GOOD on Agriculture Minister Barnaby Joyce for arguing the importance of interest rate subsidies for farmers struggling in bad drought conditions, but they are needed now, not when "budgetary circumstances allow it".
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Australian farmers already pay through the nose on interest rates as the government, through the Australian Prudential Regulation Authority (APRA), requires banks to hold three to four times the capital on business loans than home loans of the same amount.
Combined with a high dollar, this means Australian farm loans are dearer than most of our competitors'.
Compared with other nations, the Australian government is the second lowest contributor to agricultural assistance, with a mere four per cent against more than 65pc in some countries and to compare our industry with the motor industry is rubbish, as Australian farmers can compete with our international competitors provided we can get through the droughts.
Governments want to look at the record of major corporations in agriculture as they tend to be fair weather stayers and bail out when the going gets tough.
However, family farmers are the backbone of an industry that is a major contributor to national export income and mainstay of rural communities.
We have the experience to iron out the inequities in past schemes, and the nonsense pedalled about propping up farmers who are going broke is complete bulldust as the State agencies had to make assessments as to eligibility.
If farmers were not judged to be viable in the long term they did not receive assistance.
Additionally, those who earned the majority of their income off farm were also not eligible, which is nearly 50pc of farmers.
Off-farm assets were also counted to eliminate those who did not need the help.
Barnaby will need all the help he can get, as I well-remember the visit I and the other State farmer organisation presidents made to then Prime Minister John Howard around 2002.
Australia was gripped by a similar drought to now that had gone on for more than 12 months.
Our reception was short and sharp with a simple message that the then government was not into middle class welfare.
This was similar to the rhetoric coming from the current treasurer.
All the State presidents and the National Farmers Federation met after that meeting and resolved to go back to our respective States and mount a public relations campaign so every Australian was aware of the crippling nature of the drought on farm business, and more importantly families.
I reckon we had done a reasonable job when Sydney cabbies and hotel concierges would ask me how our campaign was going.
Howard stumped up more than $900 million shortly after.
Agriculture is a very capital intensive industry and farmers have had to borrow to expand their business to remain viable.
All the benchmarking I have read has identified those who are the most profitable usually owe the most money and are the innovators the industry desperately needs to keep.
Agriculture is the backbone of a large number of regions throughout the nation, and with 98pc of farms still owned by families and country towns reliant on farmers' incomes, the government cannot sit on its hands.
I hope the State farming organisations still have the expertise to engender metropolitan support to put pressure on the Liberals.
