Soaring fuel prices hit farmers' hip pockets
24 Aug 2004
The National Farmers’ Federation today warned that record high fuel prices would significantly increase farm costs. NFF Farm Business and Economics Committee Chair, Mr Charles Burke said farmers spent almost $1.7 billion annually on their fuel bill and any increase in fuel costs would hit farmers hard.
“These record high fuel prices are going to hit farmers in the hip pocket, with many farmers still struggling through one of the worst droughts on record,” Mr Burke said. “Based on ABARE statistics, for every 1 per cent increase in the price of fuel the annual fuel bill for Australian farmers increases by around $17 million. This is not to mention the indirect effect on the costs of doing business in rural areas through higher charges for freight.”
Mr Burke urged the Australian Government to fast-track the changes to fuel taxation it has agreed to implement as part of its Energy White Paper released in June 2004, to ease the effect of the soaring fuel prices on farmers. “In June, NFF welcomed the Government’s decision to help reduce farm costs by broadening the scope of fuel excise rebates,” Mr Burke said.
“However, farmers will currently have to wait until for the extension of the offroad fuel rebate to start at a 50 per cent rate in 2008, increasing to 100 per cent by 2012, and the onroad extension will not start until 2006. Given the current outlook for fuel prices, NFF urges the Government to fast track these policies to ease the burden on farmers.”
NFF Press Release, 24th August, 2004.
by Mairi Barton, General Manager Public Relations, NFF
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