State govt drought aid welcomed, but concerns remain

The program will inject money into already established support programs, increase rebates and deliver rate relief measures for farmers receiving the federal government's Farm Household Allowance.

The government has allocated $1.69m to the Family and Business support mentor program, while Rural Business Support will receive $1m for its various support measures, including the Rural Financial Counselling Service.

The On-Farm Emergency Water Infrastructure rebate scheme will receive $5m, with rebates increased from 25 per cent to 50pc, available by application to those living in regions that form part of the federal government's Drought Communities Program.

The largest portion of the funding - $13.18m - will be put towards 50pc rebates for council rates or pastoral lease rent to the end of the 2020-21 financial year.

But, this assistance is only available to producers receiving the FHA, which provides farmers with fortnightly payments of up to $600.

SA Primary Industries Minister Tim Whetstone said offering the rate relief benefits to those on the FHA meant those "most in need" would receive funding.

"Our support will encourage more farmers in hardship to apply for the FHA, recognising the Commonwealth have recently relaxed eligibility and streamlined assessment processes," he said.

The modifications, passed in federal parliament last month, include changes to the time limit on FHA payments to four in every 10 years, provision of a one-off relief payment for FHA recipients who have used their four years of payment by June 30, 2020, and increasing the upper limit of the off-farm income offset from $80,000 to $100,000.

He said the RBS funding aimed to help farmers with the application process to receive the allowance, and in-turn, receive rent and lease relief as part of the Drought Support Program.

About 630 SA farmers are on the FHA, with another 2000 farmers across the state likely to be eligible.

"The RFCS is doing an outstanding job in not only providing support for farmers applying for the FHA, but also creating greater resilience, so additional assistance to this program is important," Mr Whetstone said.

RBS chief executive officer Brett Smith said the funding had come at a good time, with demand for the RFCS expected to peak after Christmas.

He said the service was responding to 20 to 25 new families each week, and expected this number to grow by 5-10 leading up to Christmas and into the new year.

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"In February, we were servicing 570 families, which was the highest demand for the RFCS since 2010, but we are expecting to surpass that number early next year," he said.

Primary Producers SA chairman Rob Kerin said while some struggling farmers may be deterred from the FHA application process, he hoped the tangible benefits would encourage those in need to apply.

"When you're going through hard times, the last thing you want is a process like that, but the more worthwhile it's made for them to fill out an application, the more incentive there is to do so," he said.

He welcomed the "targeted" nature of the funding, and said it was a good criteria for providing support.

"So many different methods of drought support have been tried over time. We've had lines on maps and other ideas, so the reliance on the FHA for something like the Drought Support Program is a way of targeting (those most in need of assistance)," he said.

Opposition primary industries spokesperson Eddie Hughes was pleased with the funding announcement, but said support was well overdue.

"In the past two state budgets, there has been no tangible assistance for drought-affected farmers in our state, and we're now playing catch-up with the other states," he said.

"We're even lagging behind Vic, where the drought situation is a mixed bag like it is in SA.

"(The government) has been very slow to pick up on this, but now that it has been done, I do welcome it."

TRURO farmers Michael and Carolyn Doering also welcomed the funding, but had their reservations.

"These things often sound good, but they're not applicable to us or you have to jump through hoops to get approved," Mr Doering said.

His apprehension stems from it taking them 14 months to get FHA approval.

The Doerings run Walmona Santa Gertrudis stud, alongside a sheep and cropping operation. The business is in its third year of drought so they have cut back fertiliser and stocking rates.

"Cash flow had been pretty tight getting through this far," Mr Doering said.

"A blessing has been the livestock prices we have received during the drought.

"We have a bit of cropping country so we can use stubbles for now, but there aren't a lot of them either."

Mr Doering said about 10pc of their crops failed this year, and 15pc last year.

"Our dams are also nearly empty so things will be pretty tight come autumn," he said.

The Doerings looked into water efficiency funding, but were unable to match the government contribution as the program specified.

"We haven't got the money, that's why we were trying to do it, to save money and water," Mr Doering said.