National Farmers' Federation Report
by John Underwood
Before I commenced writing this report, I read through my NFF Report to you last year.
I realised that nothing much has changed, as the issues are basically the same.
The economic down turn, slow down, global recession, call it what you like, has influenced everything and everybody. Our Federal Government
has tried stimulus package upon stimulus package, with the main outcome being a greater national debt.
The NFF is also struggling financially and is, in fact, in a more serious position than last year. The NFF has been forced to reduce its workload with an inevitable resultant reduction in our ability to have input into government policy making and government mentality.
Our CEO, Ben Fargher, has done an excellent job in keeping the NFF functioning with reduced staffing levels. On behalf of the NTCA, I acknowledge and thank NFF President David Crombie, as well as Ben Fargher and their small team, for their marvelous efforts all round.
The NFF has reacted to its predicament by reducing the number of issues with which to deal. Some of these issues, including Quarantine and Telecommunications, have been handed back to State Farm Organisations in NSW and Victoria, but ultimately co-ordinated by the NFF.
The NFF has tried to restructure itself by changing the Constitution to allow the Organisation to broaden its membership. A new category of ‘Associate Membership’ has been put in place to encourage membership beyond State Farm Organisations and Commodity Councils, who are also struggling.
To placate cash-strapped State Farm Organisations, a new membership fee subscription set up has been put in place, based on membership income:
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LARGE: - membership contributions greater than two and a half million dollars warrant a subscription of $300,000 plus GST.
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MEDIUM: - membership contributions between one and a half to two and a half million dollars warrant subscription fees of $200,000 plus GST.
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SMALL: - membership contributions less than one and a half million dollars warrant a subscription of $40,000 plus GST.
Fortunately, this means no great increase for small member NTCA.
Although battered by lack of finance, the NFF has effectively helped and coerced the Federal Government to see things from our point of view. Some ongoing problems never change. Australian farmers need a unified single voice in Canberra like never before.
Some of the more important issues that NFF has embraced include the following:
- Industrial Relations and Work Place Relations
The aim of the Award Modernization Process is to reduce the number of Industry Awards – there are about 50 at present – to just one for the pastoral industry, and a couple for other industries. That sounds good, however Julia and her team lost touch with reality and came up with an award that farmers simply cannot live with.
The new proposed national pastoral industry award is far too inflexible. Double time on Sundays and public holidays, with 38 hour weeks without any flexibility is frightening, costly and unrealistic for a livestock enterprise.
The NFF has sought help from the Australian Farmers Fighting Fund to approach the Australian Industrial Relations Commission to negotiate another way, much to the frustration of the Australian Workers Union.
The NFF is proposing to the Australian Fair Pay Commission that there should be no wage increase in light of the current economic climate. The NFF is also continuing to pursue its Labour Shortage Action Plan, as there is no evidence of a downturn in the need for workers within the industry.
- The Farm Business and Economic Committee
The NFF welcomed most of the proposed package of the first economic stimulus package. In particular:
- A Drought Hardship Grant run by a committee
- Investment in regional infrastructure
- Tax breaks for small business
These are positive measures that compliment the NFF submission to the 2009 Federal Budget.
Other important items addressed by this Committee include:
- A commitment to a new style Drought Preparedness Regime.
- The need for the forthcoming budget to reverse the decline in Agricultural Research & Development funding, and work on a long term plan to ensure sustained investment in productivity gains. The government must boost the core infrastructure and resource capacity of CSIRO, Rural Research Development Corporations, Co-operative Research Centres, and Universities, with increased funding towards collaborative outcomes.
- The Australian Government must recognize that Climate Change represents new research and that this increased funding must not be taken from productivity endeavours.
- The Australian Bureau of Statistics funding needs to be increased to its previous levels of 2007 and 2008.
- The NFF also advocates the rapid extension of the Environmental Stewardship Programme. Government’s management of National Parks and Reserves leave a lot to be desired.
- The NFF contends that the Tax Zone Rebate Scheme for individuals working in remote areas should be reviewed with a view of an extension for business enterprises, so as to encourage workers to remote areas.
- Pension access – the five year wait for aged pensions for retiring farmers who have handed the family farm on to the next generation is unfair and should be abolished. This abolition would also expedite sensible succession planning.
- The NFF demands that the Australian Government honours its 2008 Budget Pledge of a 20 Billion dollar Nation Building Infrastructure Plan. Specifically only 12.6 billion dollars have so far been allocated.
- The NFF also demands that the Federal Government implements its National Broadband Network, which is supposed to revolutionise telecommunication services in Rural Australia. The Government must address the uncertainty of how future upgrades will be funded, bearing in mind that Treasury has already used the $2 billion communication fund that the previous government had put in place for this purpose.
- Management Investment Schemes (MIS) – the courts have provided clarity about the interpretation of MIS Law. The NFF argues that MIS are not appropriate for Regional Australia, particularly when land use decisions are involved.
- The NFF is in the process of negotiating a new National Drought Policy with the Federal Government. Points of concern include:
- A new Management and Preparedness Grant
- Transition from existing to a new system
- Income support (welfare measure)
- Business support, including accelerated depreciation
- A tool box of indicators and predictions etc. New research shows that the Indian Ocean dipole induced currents affect eastern seaboard weather patterns, more than those in the Pacific Ocean.
- Trade
NFF welcomed the Australia New Zealand / ASEAN Free Trade Agreement. ASEAN accounts for 15% of Australia’s Total Agricultural Trade, including 84% wheat and flour and 75% of live export cattle. The Doha round of negotiations have stalled – ‘what’s new?’ you might wonder.
The NFF is advocating that our government pursues a Free Trade Agreement with Korea, bearing in mind that the USA has progressed a Free Trade Agreement already with Korea.
- Relationships
Government relationships are very important to the NFF. There has been genuine ongoing hard work to build strong working relationships with government ministers and their staff. Minsters Tony Burke and Simon Crean in particular are strong supporters of the NFF.
The NFF has a healthy relationship with the ALP back benchers, and has also placed a lot of emphasis and effort in engaging with opposition shadow ministers, and their back bench committees.
- Water
- Water – the Federal Government must ensure (with haste) funding for on farm water efficiency. Despite accelerated water “buy back”, the corresponding “on farm” infrastructure support has yet to materialize.
- The NFF is strongly advocating that the Government initiates a complete social and economic impact assessment of the Murray Darling Basin Plan.
- Water – the Federal Government must ensure (with haste) funding for on farm water efficiency. Despite accelerated water “buy back”, the corresponding “on farm” infrastructure support has yet to materialize.
- NFF 1 st National Congress
This will be held at the Brisbane Convention Centre over 22-23 June 2009, including the inaugural NFF 2009 Innovation in Agriculture Awards.
The Congress theme: “Modern Farmers – growing opportunities today … meeting the challenges of tomorrow” will be a timely examination of world food needs and Australia’s important part in filling the order.
“For the first time, the NFF is bringing farmers, whole-of-chain participants, government and leading experts in their fields together to discuss and debate the major issues, challenges and opportunities ahead of Australian agriculture and indeed, the world,” NFF President David Crombie said.
“The 2009 Congress, which will be an annual event, will address the critical issues of our time and, importantly, each session will feature dedicated time for questions from the floor to allow farmers to have their say by asking questions of the experts.”
- NFF Committees
The NFF will reshape their working committees from here on. Smaller and more effective committees with some non-member scientific help will be the order of the day.
The NTCA will have to seriously think about membership and input on these committees.
So, as I said in my Introduction life at the NFF goes on. Ben and his staff have had to reshape their workload. Say a prayer that our restructure will produce more income, so that we can better accommodate the wishes and needs of our farmers.
We cannot expect the NFF to do everything. State Farm Organisations have a role to play in keeping in touch with grass roots farmers. Some media reports suggest that the NFF is out of touch with grass roots farmers. This leaves me cold. It is the job of State Farm Organisations to liase with those who work the land in their relevant areas.
With new issues facing Australian farmers such as Climate Change, Emission Trading Schemes etc, we will need a revitalized NFF with sufficient resources to ultimately influence government policy. If NFF cannot get it right, Australian farmers and consumers will pay.
I personally have enjoyed my six stimulating years on the NFF Policy Council. My thanks go to Terry, Michael and Georgia for filling in at home and making possible my trips to Canberra.
The new NTCA representative will join the new Members Council. I just hope there will be more State Farm Organisations and Commodity Councils and associated members around that table.
OUR FUTURE DEPENDS ON IT.
John Underwood AM
(Riveren Station)
26 March 2009
