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More drought concessional loans on the way: Federal Government drought co-ordinator

Updated August 05, 2015 13:15:20

A new drought co-ordinator says the next round of drought concessional loans are 'on the cusp' of reopening and funding boosts will be announced for a list of service providers.

David Jones, from the Department of Human Services is one of seven drought co-ordinators funded by the Federal Government to promote and facilitate assistance packages in affected communities.

He is now travelling throughout South Australia and western Victoria to assess the drought situation and meet with community leaders.

"I'll be in and about regions attending community events, working with local service providers to ensure farming families are able to access support and services they need to cope with the impacts of drought," he said.

One of the things Mr Jones will be promoting is an extension of the drought concessional loans scheme.

Last month, Federal Agriculture Minister Barnaby Joyce announced $250 million per year, for the next 11 years, for low-interest loans.

Applications are not yet being accepted.

"My understanding is they're on the cusp of being reopened, so I would expect there will be an announcement very shortly," Mr Jones said.

The scheme's eligibility criteria has been widely criticised and Mr Jones could not confirm whether it would be different in the new round.

However, he did acknowledge the difference in applicant success rates between South Australia and other states.

In what one farmer described as "drought policy apartheid", 90 per cent of Victorian applicants were successful in receiving low-interest loans while zero SA farmers were approved by Primary Industries and Regions SA (PIRSA).

"As part of my role I have a natural interest in trying to understand why some areas may be struggling to get concessional loans more than others," Mr Jones said.

"It's too early in my role to make any statements about why I think that might be occurring, but certainly it's an area that I have an interest in."

PIRSA declined multiple requests for an interview, but, in a statement, said it was working with the Federal Government to ensure the new round would be opened to SA farmers as soon as possible.

'Differences in application process between states': PIRSA

PIRSA representatives and Agriculture Minister Leon Bignell have repeatedly denied suggestions the process for SA farmers applying for low-interest loans was not equal to that of their peers in other states.

But in its latest statement PIRSA called for change.

"Currently there are differences in the application process between states and SA believes there must be a uniform process," the statement said.

"We have asked the Federal Government to review the scheme's eligibility guidelines to ensure farmers in all states have the same access to the scheme."

PIRSA also conceded the "market value" of farmer's assets had not been sought.

Instead "rated values", which were often millions of dollars lower, were used in assessing viability.

Meanwhile, in Victoria, every applicant was visited by an assessor.

A list of rejected SA applicants confirmed they had since been contacted by PIRSA and offered a property value assessment.

PIRSA also committed to a new approach when the next round opened.

"Staff from PIRSA will visit the affected regions to meet with farmers, to discuss their eligibility and the application process," the statement said.

Mental health providers, rural financial counsellors to receive funding boost

Federal Government assistance includes funding for additional rural financial counsellors, who offer farmers in drought-affected regions free advice and assistance.

Mr Jones said funding announcements for other service providers were also days away.

"There's a recognition that drought can have a significant impact on mental health and wellbeing of farmers, their families and local communities," he said.

"The money does include funds for community support packages, to increase access to mental health services and activities to increase mental health awareness.

"My job is to bring together any service providers that will be appointed and I guess that's the point.

"At the moment, I still don't know who they are in the Local Government Area, but I'm hoping to get that information in the next week or two."

Mr Jones has already travelled through parts of western Victoria and south-east South Australia, and said rain over the coming weeks would play a big part in farmer confidence.

"Whilst there's a covering of green and it all looks quite lush, reserves of water in dams from what I can see is extremely low," he said.

"I can see that it won't take much for those existing reserves to be exhausted."

Topics: agricultural-policy, drought, beef-cattle, sheep-production, grain, horsham-3400

First posted August 04, 2015 16:06:26

Original author: Danielle Grindlay

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