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Cash grants may replace interest rate subsidies for drought relief
6 Apr 2005
The federal government is considering a change in the formula for drought relief. One favoured plan would allow more farmers to claim assistance by replacing interest rate subsidies with cash grants. Farmers receive around $4 million a week in drought handouts. The government wants to enable farmers without debts to also apply for subsidies. At present, farmers experiencing a severe drop in income through drought can claim business support if they can prove they are viable in the long term and if the net value of their off-farm assets does not exceed $212,500. The average farmer obtaining business support last year had $1.6million in net assets and received $11,700 in interest-rate subsidies, according to the Australian Bureau of Agricultural and Resource Economics.
Financial Review, 06/05/04
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