Farmers warn hundreds will walk off the land

Farmers have warned that hundreds of Wheatbelt grain growers will be lost to the industry by this time next year unless the State Government reconsiders an emergency aid package announced yesterday.

Industry groups said the $7.8 million package unveiled by Premier Colin Barnett was inadequate and ill-conceived, with the eligibility criteria ruling out the vast majority of farmers in the Wheatbelt.

WA’s biggest grain grower John Nicoletti said the package was an insult and accused Mr Barnett of burying his head in the sand.

“If it is another bad year, we could lose 300 growers and equity levels will go through the floor,” Mr Nicoletti said.

“There is already a million acres of land up for sale and people who can’t sell.”

Mr Nicoletti’s claims were backed by WAFarmers, which said the Government’s package missed the mark by a big margin and vowed to continue pushing for a $100 million low interest rate loan scheme.

“Our scheme costs less than the Government’s package because our scheme involves repayment of loans rather than receiving a handout,” WAFarmers director of policy Trevor Lovelle said.

Muntadgin Farming Alliance spokesman Jeff Hooper said it appeared Mr Barnett had abandoned the Wheatbelt after raising hopes during a two-day tour of the region earlier this month.

“Any help is better than no help but this isn’t even going to scratch the surface,” Mr Hooper said. “You would think they didn’t want us out here.”

Mr Hooper said banks and the Government were not giving a true picture of the extent of the crisis or the number of farmers at risk of leaving the industry.

Mr Barnett said the aid package was based on information from the banks that showed most Wheatbelt farmers had finance of some kind for this year.

The aid package will not help farmers who have been refused finance for this year’s crop and came on the eve of Anzac Day, which marks the unofficial start of the seeding season.

Farmers who already have some finance and meet strict criteria can apply for grants of up to $25,000 from a $5 million pool up until July 31. Farmers trying to leave the industry can apply for grants of up to $20,000 from a $1 million pool to help with living and transition expenses.

They must have owned their farms for at least five years and have net assets of less than $450,000 after the sale of their property.

The Government also allocated $1.8 million for social support and rural counselling services, including up to $20,000 each for 15 of the hardest hit shires to stage community events.

Mr Barnett said the risk of depression and suicide was very real, so providing support was critical.

“We have decided to make available what I would describe as an emergency package to deal with those farmers under severe stress, financial stress, emotional stress, family stress for this year,” he said.

“We may be facing a similar prospect next year, no one can foretell that.”

Industry groups said most farmers would not meet the 55-65 per cent equity criteria needed to qualify for the $25,000 grants.

The Rural Financial Counselling Service said it had 500 Wheatbelt families using its services with a significant number of them reporting that their equity was below 55 per cent.

NAB agribusiness State manager Andrew Clark welcomed the package but said only a small group of farmers would qualify under the eligibility criteria.

Mr Clark said it would take a run of good seasons to solve debt problems and restore confidence in the industry.