As the city media discuss the drought we see some great generosity but much talk of farmers needing to be prepared for drought and not constantly being bailed out.
This talk reflects the thinking of the Productivity Commission and other intellectuals on indexed salaries paid by taxpayers.
For 40 years we’ve had National Farmers’ Federation (NFF) spokespeople tell the media that “we don’t want subsidies”. Northern hemisphere farmers ask if we are crazy.
Forty years ago, I represented the Cattlemen’s Union at a meeting in Canberra. Industry leaders were there to meet with Baron von Heereman, president of the German Farmers’ Federation. During discussion I asked him about European farmer subsidies.
He replied “I don’t understand your Government’s thinking toward farming. Our consumers are well paid and see no reason why we food providers shouldn’t also be well paid”.
Five years later, in 1983, I was in Paris on my Churchill Fellowship. An OECD official told me how Doug Anthony had come to the OECD headquarters and told them that Europe should stop subsidising its farmers. They initially thought that he was joking but when he persisted they just wrote him off.
Meanwhile the NFF was talking about setting up an embassy in Europe to lobby governments to stop subsidies. Our ministers went to WTO meetings to push for access and lower tariffs on agricultural imports until such gatherings became the target of huge anti-globalisation rallies.
The EU stupidly put sanctions on Russia. Russia retaliated by banning EU agricultural imports. EU has spent huge money subsidising farmers for their lost market. The sanctions cost us our kangaroo meat access but our government paid no compensation.
President Trump is promising US farmers massive subsidies as China raises tariffs on US agricultural imports in response to his tariffs on Chinese goods. Australian beef going to Japan or Korea attracts 27 per cent tariffs, to USA 14pc if our quota is exceeded.
Their Governments protect their farmers. Canberra has recently permitted the importation of Japanese beef with no quota and would have allowed US beef in whilst US had BSE but for a few of us alerting the Senate.
Subsidies on freight in drought are normal practise in the US and were in Australia until NSW dropped them in 2014 year. The practice is wisely aimed at preserving the herds and flocks which generate export income. Canberra is happy to heavily subsidise foreign-owned windfarms but not Australian farmers. We need some consistency before agriculture follows textiles and car manufacture into oblivion.
I can remember discussion on the venue for the final Victorian Graziers’ Association meeting. A telephone box was suggested. The NFF’s continued opposition to farm subsidies points to a similar ending for them. It can’t come soon enough.
- John Carter
