Ministerial Statement

National Drought Summit

The Hon. T.J. WHETSTONE (Chaffey—Minister for Primary Industries and Regional Development) (14:02): I seek leave to make a ministerial statement.

Leave granted.

The Hon. T.J. WHETSTONE: Tomorrow, the Deputy Premier, in her capacity as the first minister, and I, in my capacity as Minister for Primary Industries and Regional Development, will represent the people of South Australia by attending the National Drought Summit, which has been convened by the Prime Minister. The Drought Summit will be held at Old Parliament House in Canberra and bring together representatives from governments from all levels, the farming and agribusiness sector, banking, finance services, community, charitable organisations and other relative experts.

The purpose of the Drought Summit is to discuss the drought response to date across Australia, to discuss the challenges ahead and seek to agree on ways to further coordinate efforts into the future. The South Australian government congratulates the Prime Minister on this initiative. In a nation that is highly urbanised with a population heavily concentrated in capital cities located on our coastlines, it is vital to recognise the reality that our primary industries continue to underpin the economy. It is therefore important to recognise that there are large parts of the land suitable for agricultural production that are in drought, and that is a very serious issue for the nation.

In South Australia, the agriculture, food, wine, and forestry industries generate $22.5 billion in revenue and in 2017-18 accounted for 52 per cent of the state's merchandise exports. In the 2017-18 year, our overseas goods exports were dominated by agriculture. Field crops, including grain, hay, feed and seeds, were our most valuable merchandise exports, at $2.38 billion; followed by wine, valued at $1.85 billion; and livestock products, at $1.38 billion.

Areas of South Australia are experiencing drought conditions, and forecasts indicate that the state will continue to receive below average rainfall during the remainder of this year's crop and pasture growing season. The areas considered to be drought affected include eastern and western Eyre Peninsula, Murray Mallee, Upper Yorke Peninsula, Mid North and northern pastoral areas. Despite some recent rainfall events, these areas have had minimal rainfall over the past two seasons, resulting in poor crop and pasture growth.

Despite their best efforts to manage the land and their stock, some farmers are experiencing low levels of pasture and stubble feed and also soil erosion in some areas. The South Australian crop estimate for the season has fallen to 4.9 million tonnes, which is well below the long-term average of 7.9 million tonnes. The implications of a smaller crop are that grain exports will be down and that the economy generated from those exports will be smaller. There will be less work for off-farm workers, contractors and businesses reliant on a large crop, less money circulating in our country towns in cropping districts and farmers' finances will be impacted.

A challenging aspect of drought is that it is impossible to tell when it will end. The Drought Summit will receive a presentation from the Bureau of Meteorology on projected seasonal conditions. While farmers are ever optimistic for a good autumn break, farmers, governments and communities need to plan for circumstances where the dry continues. South Australian farmers are incredibly resilient, and I have spoken with many of those farmers who have planned for a difficult year. They have managed their stock numbers, invested in water storage and fodder storage sheds and responded to the seasonal conditions that have turned unfavourable.

However, the effects of drought are not uniform and impact on different farmers in different ways, and that is why state, territory and commonwealth governments have agreed to pursue policies that encourage resilience to drought and unfavourable conditions. Governments have moved away from policies of 'lines on maps' drought declarations followed by assistance to policies where assistance is available to help farmers manage through temporary periods of hardship towards more resilient and financially robust businesses.

The South Australian government has partnered with the commonwealth to fund the Rural Financial Counselling Service, which is delivered by Rural Business Support. This service helps people who are very good farmers get a better handle on finances. Currently, Primary Industries and Regions South Australia, working with other industry and government organisations, is providing technical advice to farmers on livestock management and welfare and strategies to protect pastures and farming soils.

The government has also invested in eight Family and Business Support Mentors to help farmers obtain the assistance they need. While it is important to make assistance available to people enduring tough times, South Australian farmers have proven to be resilient and resourceful. Data released by the commonwealth indicates that, of an estimated 3,400 South Australian farmers eligible for the Farm Household Allowance, only 238 are currently taking advantage of that scheme, and many of the remaining farmers will be implementing their own strategies to work through the drought.

South Australian farmers have been impacted by decisions in other jurisdictions to offer transport subsidies that have distorted the fodder market. The South Australian government believes that there should be a consistent approach to drought assistance nationally and that drought-affected councils in South Australia should be able to access the Drought Communities Program. The government will continue to stand alongside South Australian farmers during these tough times.