BUDGET: Government ramping up pressure on agricultural emissions

THE ‘Phase Out of Live Sheep Exports by Sea’ will get $107 million over five years.

There’s $63.8 million over 10 years from 2024–25 (and $0.9 million per year ongoing) to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050.

And $519.1 million over eight years from 2024–25 from the Future Drought Fund for initiatives that provide improved support to farmers and communities to manage drought and adapt to climate change.

Thees are among the key headline initiatives for agriculture in the Federal Budget handed down on Tuesday night this week.

But the Leader of The Nationals David Littleproud said Labor had continued to ignore regional Australia in its Budget, cutting regional infrastructure projects and failing to provide new money for regional programs, while refusing to fix its self-made cost-of-living crisis.

Specifically where agriculture is concerned, Mr Littlepround said:

“Labor is also remaining secretive about water buybacks in its Budget and when new road projects will actually be delivered, given most of the funding is pushed off into the never-never.

“Labor is pressing ahead with its new fresh food tax, called a biosecurity protection levy. Food costs will continue to climb because Labor is refusing to reinstate the AgVisa, instead introducing just $1 million in its Budget for a ‘skilled agricultural work liaison pilot’ to attract graduates to work in agriculture.”

Agricultural budget

The Government will provide $20.7 million over five years from 2023–24 (and $3.4 million per year ongoing) to support priorities in the agriculture, fisheries and forestry portfolio.

Funding includes:

• $13.9 million over four years from 2024–25 (and $3.4 million per year ongoing) to maintain drought policy capability in the Department of Agriculture, Fisheries and Forestry to support Australia’s readiness to respond to drought events

• $3.4 million over four years from 2024–25 to develop a national Timber Fibre Strategy and review the National Forestry Policy Statement in collaboration with the states and territories

• $1.5 million over two years from 2023–24 to improve existing arrangements for the accurate and clear labelling of plant-based alternative protein products

• $1.0 million over two years from 2024–25 for a skilled agricultural work liaison pilot to attract graduates to work in agriculture

• $0.5 million over two years from 2024–25 to continue the Agcareerstart pilot program for two cohort years to encourage young people to consider a career in agriculture

• $0.4 million over three years from 2024–25 for Farmsafe Australia to extend the National Farm Safety Week campaign.

The Government will also terminate the Plantation Development Concessional Loans program and redirect the available loan provision ($37.5 million) to other loan products managed by the Regional Investment Corporation to maintain support for the farm business sector.

The cost of this measure will be partially met from a reprioritisation of existing funding in the Agriculture, Fisheries and Forestry Portfolio.

Agriculture and Land Sectors low emissions future: The Government will provide $63.8 million over 10 years from 2024–25 (and $0.9 million per year ongoing) to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050.

Future Drought Fund – better support for farmers and communities to manage drought and adapt to climate change: The Government will allocate $519.1 million over eight years from 2024–25 from the Future Drought Fund for initiatives that provide improved support to farmers and communities to manage drought and adapt to climate change. Funding includes:

* $132.0 million over eight years from 2024–25 to continue the Drought Resilience Adoption and Innovation Hubs model to support activities to address the challenges of drought and climate variability in local areas

• $83.2 million over five years from 2024–25 to continue the Farm Business Resilience Program to provide farmers, farm workers and advisers with access to learning and development opportunities and continue the scholarships program

• $67.0 million over four years from 2025–26 for the next phase of the Regional Drought Resilience Planning program, with a greater focus on implementation of activities in plans

• $60.3 million over six years from 2024–25 to continue and expand the Long Term Trials program to test drought and climate resilience farming practices and support the adoption of drought resilience innovations

• $40.0 million over six years from 2024–25 for the Resilient Landscapes program to support trials and demonstrate how natural resources management practices contribute to drought and climate resilience

• $37.0 million over three years from 2025–26 for the new Scaling Success program to support previously funded Future Drought Fund projects that demonstrated successful drought and climate resilience outcomes

• $36.0 million over four years from 2024–25 for the Future Drought Fund Communities Program to support social resilience and the mental wellbeing of farmers and communities

• $20.0 million over three years from 2025–26 for the Innovation Challenges Pilot program to accelerate research and innovation in response to drought and climate challenges

• $17.2 million over four years from 2024–25 to continue the Climate Services for Agriculture program and the My Climate View online tool to provide accessible and tailored climate information for farmers and regional communities

• $15.0 million over four years from 2024–25 to partner with First Nations people and communities to support connection to Country through the management of drought and climate risks

• $11.4 million over four years from 2024–25 to support enabling and evaluation activities to deliver drought and climate resilience outcomes.

The Government will also provide $42.2 million over four years from 2024–25 for the Department of Agriculture, Fisheries and Forestry to support the delivery of the Future Drought Fund initiatives.

Phase Out of Live Sheep Exports by Sea – transition support: The Government will provide $107.0 million over five years from 2024–25 for a suite of actions for sheep producers and the supply chain, market development, sheep welfare, implementation and engagement to support an orderly phase out of live sheep exports by sea, so that individuals, supply chain businesses and communities are well positioned and ready when the trade ends.

Funding includes:

• $64.6 million to assist sheep producers and the supply chain, particularly in Western Australia, to capitalise on existing and emerging opportunities so that they are well positioned when the trade ends, including for businesses to plan and implement transition actions, expansion of domestic sheep processing capacity, support for community wellbeing activities and additional rural financial counsellors

• $27.0 million to enhance demand within Australia and internationally for sheep products and to maintain and develop market opportunities with a range of delivery partners, including Austrade. This funding will support activities such as market analyses, consumer studies, product promotions and building business relationships, and enable Agricultural Counsellors and Austrade to support diverse trade to the Middle East and North Africa region

• $11.0 million for the implementation of the phase out, including a stocktake of transition progress in 2026–27 and continued engagement with industry, communities, trading partners and other stakeholders

• $2.6 million to continue to improve sheep welfare standards so that they are practical and meet community expectations and for Australia to enhance its engagement in the World Organisation for Animal Health

• $1.7 million to appoint a Transition Advocate to facilitate two-way communication between industry and government, information to industry about the transition plan and associated support, and advice to government on how the transition is progressing. Partial funding for this measure will be held in the Contingency Reserve until final design and delivery options are settled. The measure includes $9.4 million already provided for by the Government and builds on the 2023–24 Budget measure titled Phase Out of Live Sheep Exports by Sea (independent panel).