Albanese Government’s 2024-25 Federal Budget ‘kick in the teeth’ for farmers despite $789m ag injection

Farming leaders have called Labor’s $789 million Federal Budget injection for the agricultural sector nothing but “a kick in the teeth” and “another missed opportunity”. Treasurer Jim Chalmers handed down the Albanese Government’s third Budget last Tuesday, but there were few major surprises for farmers. The centrepiece, a $519.1m top-up of the Future Drought Fund over eight years, had already been unveiled as a pre-Budget announcement on May 6. Established in 2019 under the former Coalition Government, the fund invests in programs to help farmers prepare for the next dry spell. The top-up includes $235m for drought resilience programs, $120.3m for testing new drought mitigation solutions and $137.4m for measures to help producers with business planning and financial literacy. While it was met with a lukewarm response at best, the other major pre-Budget announcement, a $107m “transition package” to support the phase-out of live sheep exports, drew widespread condemnation. Premier Roger Cook said the transition package was not enough, while peak industry body the Australian Livestock Exporters’ Council called it “paltry” and “insulting”. The funding was revealed on May 11 as part of the Albanese Government’s long-awaited announcement of a roadmap to end the live sheep trade, with a May 2028 deadline now set. Of the $107m, $64.6m will go towards expanding onshore meat processing capacity, with the rest set aside for projects including developing market opportunities and demand for sheep products domestically, and improving animal welfare standards. The National Farmers’ Federation issued a scathing response, with president David Jochinke accusing Labor of “twisting the knife into agriculture”. “The Budget confirms $107 million to cancel the trade and to add insult to injury, only $64.6m will go to producers and the supply chain,” he said. “Peel back the surface and the disappointment appears. This is a painful Budget for Australian farmers and a kick in the guts when we are already down.” WHAT ELSE IS IN IT FOR AG? Some $63.8m has been allocated over 10 years to support efforts to reduce emissions in the agricultural sector in a bid to meet Australia’s net zero by 2050 target. Another $48m will go towards improving the Australian Carbon Credit Union scheme. In his post-Budget speech, Federal Agriculture Minister Murray Watt said without intervention on climate change, “things will get worse” for agricultural production. “Global temperatures are higher now than they ever have been in history and it is costing our farmers every single day,” he said. “Drought is now impacting on farmers in WA, Tasmania and elsewhere. ABARES conservatively has estimated that on average farmers had lost more than $30,000 per annum due to climate change over the last 20 years, with that figure expected to rise.” Senator Watt also cited the CSIRO’s recent Ag2050 Scenario report, which highlighted the need for industry to “adapt to climate change to continue its growth trajectory”. The Government would reveal more information on the funding in coming months “as we develop the plan more”, he said. A $1m package will pay for a two-year pilot program designed to attract graduates into the skilled agricultural workforce. Another $500,000 will go towards extending the AgCAREERSTART pilot program and Farmsafe Australia will receive $400,000 across three years to extend the National Farm Safety Week campaign. A $2m package will help agricultural exporters re-establish commercial ties to China and “diversify into other markets”, while $1.5m will go towards improving accurate and clear labelling of plant-based alternative protein products. The Australian Fisheries Management Authority will receive $1.7m to protect the nation’s northern waters from illegal fishing and $16.9m will be spent on improving biosecurity services at the new Western Sydney Airports. Other funding set to benefit agriculture indirectly included nearly $102m for upgrading regional airports, $40m for rolling out community Wi-Fi in regional and remote Australia, and $1.7 billion for upgrading regional roads. ‘A MISSED OPPORTUNITY’ National lobby group GrainGrowers Limited labelled the Budget “another missed opportunity” to increase targeted investment aimed at “boosting the long-term profitability of farming communities”. GGL chair Rhys Turton, a York farmer, said he had hoped for a “cost of production” Budget to address underlying pressures being felt across the sector. “While we welcome Government support and investment in some key areas such as carbon and climate, trade and market access, freight and supply chains, and farm inputs, it is not at the level to make a significant difference to operational efficiencies,” Mr Turton said. “Many of the key areas of investment simply need additional funding.” Mr Turton said investment in road maintenance would provide critical funds to address a range of issues, but noted much of the funding was long-term. “While this is welcome, the state of our roads and bridges is such that we need investment now to prevent current issues from getting even worse,” he said. Mr Turton said the $1.5m set aside to boost the agricultural workforce “falls short of meaningful assistance”. WoolProducers Australia chief executive Jo Hall said the Budget was “another kick in the teeth” and showed how “out of touch” the Federal Labor was with the nation’s sheep and wool industry. She said WPA had asked for “a modest” $2m over three years to establish a Wool Trade Policy program in a bid to continue trade expansion work and ensure the industry’s sustainability. “Despite all the talk the Government have made in the face of the live sheep export ban, that they would assist industry to transition to alternative markets for sheep products, they have failed to deliver on a program that would actually achieve tangible outcomes for woolgrowers,” Ms Hall said.