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Farmers and politicians exploit drought funding
19 Sep 2008
Exceptional circumstances drought funding gives farmers a loophole that allows them to exaggerate their circumstances says a submission from the Australian National University to the Productivity Commission. The exceptional circumstances provisions set up perverse incentives to farmers experiencing a dry spell says the submission from Bruce Chapman and Linda Botterill. The declaration of exceptional circumstances during election campaigns gives the impression that the program is open to political interference. The National Farmers Federation says that the percentage of farm income that comes from government is about 6 per cent compared to 53 per cent in Japan, 32 per cent in Europe, 23 per cent in Canada and 11 per cent in the USA. The commission has received 106 submissions to its inquiry into how to help farmers improve their self reliance and preparedness for drought.
The Australian Financial Review, 19/09/2008
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