The federal government contribution to the inter-government agreement on national drought program reform was initially agreed upon in May 2013. The Farm Household program was more general than just a drought program which is why the White family was introduced to that program when their household budget was affected. The allowance is for any farmers in difficulty and was not specifically designed as a drought relief program although a clients are referred to FHA.
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The centrelink payments that now have placed the white family in debt was reported by the Armidale Express last week. The Farm Household Allowance that is being used to support rural households has a financial counselling service that is administered by Department of Agriculture. Financial advisers attached to that department can provide assistance as farmers need to negotiate with banks concerning bank payments or in the worse scenarios the sale of the properties during this drought. The Centrelink arm is initiated when farmers do not have any capacity to feed themselves and their cattle.
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"We are pleased to see the report is being read and attention drawn to it which may lead to it being responded to."
- Michelle Lawrence: Agricultural Industry Advisory Council.
The review of the Farm Household Allowance review was completed in February 2019. The Armidale Express has contacted the committee for comment on the response to the review.
"The review panel were an independent panel tasked with providing recommendations to government on the efficacy and efficiency of the policy and delivery settings of the FHA to create an enduring approach to income support for farmers experiencing financial hardship. The report is in the hands of the Minister for Agriculture now. The report was commissioned by the Hon David Littleproud MP however the Ag portfolio is now in the hands of Hon Bridget McKenzie MP," Michelle Lawrence Chair of the review said.
"During the review we discovered there was a need to communicate the role of the FHA clearly. The FHA is designed to support farmers experiencing financial hardship for any reason. Drought is one reason for financial hardship amongst farmers but other reasons may be commodity price drops, floods, fire, input price costs or biosecurity issues.
"We also noted some confusion that this payment was for business expenses or a way to manage drought, however it is designed to assist with personal expenses such as household expenses where the money might flow back into the local community to benefit the whole community.
"The FHA forms part of the Australian Government's contributions to the Intergovernmental Agreement (IGA) on National Drought Program Reform, which was agreed by Australian, state and territory primary industries ministers in May 2013.
We found there was confusion in the messaging that the FHA was a drought support tool, but it is not. We recommended that the marketing and messaging be clear that the FHA is for farmers in financial hardship irrespective of cause.
- M Lawrence
"We also recommended that if the government determines it will provide assistance targeted specifically to drought, it should be delivered through an individually tailored program." Ms Lawrence concluded.
