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National Drought Program Reform

Learn about the history, challenges, and opportunities of the National Drought Program Reform, including key initiatives like Farm Household Allowance and Farm Management Deposits Scheme. Explore how the reform aims to better support farmers in managing drought impacts.

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National Drought Program Reform

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  1. National Drought Program Reform Elizabeth Robertson 15 August 2013

  2. History • Pre 1990: Drought as a natural disaster • 1992: National Drought Policy established • Self-reliance • Natural resource management • Early recovery • 1993: Exceptional Circumstances (EC) arrangements established 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 2

  3. Exceptional Circumstances (EC) • Climate: rare and severe • Farm income: rare and severe downturn • Not predictable or part of structural adjustment • Inequitable and perverse outcomes 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 3

  4. National review of drought policy • Climatic: hot years are likely to be more frequent • Social: focus on personal and family wellbeing • Economic: • Drought assistance programs should be restructured • Help farmers plan and prepare for drought • Don’t wait until crisis to offer assistance 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 4

  5. WA Pilot region 1 July 2010 to 30 June 2011 WA Drought Pilot July 2010 – June 2012 • Tested practical measures • Preparedness and risk management • No drought declaration • Independent review • Recommended measures for the future 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 5

  6. Recent announcements • 3 May 2013: Intergovernmental Agreement on National Drought Program Reform • 14 May 2013: Farm Household Allowance • 1 July 2014: implementation 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 6

  7. National Drought Program Reform • Preparedness and risk management • Farm Household Allowance • Farm Management Deposits and taxation measures • Farm business training • Social support services • Tools and technologies 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 7

  8. Farm Household Allowance • Australian Government responsibility • Delivered by Department of Human Services • Will provide up to three years of income support • Support to be based on hardship, regardless of source • Case management and activities to support improved circumstances 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 8

  9. Farm Management Deposits Scheme • Deposit funds in high income years and withdraw in low income years • Improves self-reliance • Helps manage financial risk 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 9

  10. National approach to farm business training • Improves capacity to prepare for and manage risk • Focus on business planning • States and territories responsible for delivery and uptake • Farm business management skill set (VET) 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 10

  11. A coordinated, collaborative approach to the provision of social support services • Australian, state and territory government responsibility • Ongoing support • Flexibility to respond to increased need • Coordinated responses 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 11

  12. Tools and technologies to inform farmer decision making • Australian, state and territory government responsibility • Improved seasonal forecasting • Better access to information 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 12

  13. Opportunities • Evidence-based policy • Commitment and cooperation • Stakeholder consultation • Flexibility • Timing 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 13

  14. Challenges • Managing expectations • Requests v evidence • Future decisions 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 14

  15. What’s next? • Amending legislation (allowance and FMDs) • Building IT systems • Training staff • Finalise farm business training skill set • Communications plan • Implementation from 1 July 2014 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 15

  16. www.daff.gov.au/drought 15 August 2013 Department of Agriculture, Fisheries and Forestry Elizabeth Robertson 16

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