Drought

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (15:42): I rise today to talk about the drought that is affecting South Australia as well as other areas across south-eastern Australia. As the grain growing season has progressed, it has become clearer that in some parts of the state this is the worst drought in living memory. The Bureau of Meteorology reported in May that it was the lowest seven months of rainfall on record. Brad Perry from Grain Producers SA said:

We didn't get opening rains, we didn't get finishing rains and a lot of the growers that I've talked to, who keep rainfall records back to the 1900s, have said it's either the worst or second worst on record...

Many have said that this drought has been harder than previous droughts as it comes at a time when fertiliser, energy, chemical costs as well as council rates are much higher. It has also been exacerbated in many regions by severe frosts.

Many farmers have tried to salvage something from their worst season in living memory by cutting crops for hay or turning stock into paddocks to graze on what little growth is there. Many cannot even justify converting failed crops to hay, and some have resigned themselves to not even getting their seed back. Predictions up until June of La Niña conditions led many farmers to sew dry in anticipation of later rainfall to partly compensate for the lack of the early break. They committed to the expense of growing a crop and now face having little or no return.

The expected economic fallout is considerable, with GPSA predicting a 2024 harvest 50 per cent lower than average, possibly worth $2 billion compared with the average of $3.3 billion. The impact will be most keenly felt in farming families and in regional communities. With less income in our towns, people are less inclined or able to spend locally and so all local businesses suffer. Rural businesses, such as machinery dealers, harvest contractors, freight operators, grocery suppliers and other businesses, will suffer a hit in turnover.

Farmers have voiced disappointment with the poor response to date by the Malinauskas Labor government, with a strong sentiment that it is not in proportion to the severity of this drought and the impact it will have on their businesses and their communities. Booleroo Centre farmer, Peter McCallum, has said that grain producers wanted the government to acknowledge there was a drought.

At present, there seems to be some skirting around the issue, despite record low rainfall in many growing regions and partial or total crop failure across many areas of the state. Coomandook farmer Paul Simmons, speaking to the Stock Journal, called for the government to '…stop dancing around the "d" word and acknowledge drought is occurring, not just dry conditions'.

To date, Minister Clare Scriven has failed to respond to calls for assistance and simply referred to existing support measures, such as previously committed funding for the FaB mentors program, Rural Financial Counselling and the $1,500 household allowance. There appears to be no new or additional assistance to those affected rural and regional businesses and communities to address the scale of the drought these people are going through and to provide the base recovery. Instead of leadership and commitment, these vital rural businesses are being deflected towards existing measures rather than meaningful targeted assistance that can make a difference.

In contrast, the Victorian government have committed $13.5 million of drought funding towards grain, fodder and water infrastructure grants across 11 local government areas badly affected by this drought. The contrast cannot be clearer. There are many possible types of assistance that can be used or could be used in this state, with the Rural Investment Corporation suggesting that farmers may already qualify for different types of funding assistance.

Farmers have suggested deferral of interest payments or access to low or no-interest loans to see them through. Farmers are not expecting a hand-out but a hand up. Underpinning our food and fibre production capacity in South Australia will effectively be investing in our future. While the impact of the drought is currently being borne by farming communities and families, it can be expected to spread wider in the coming months.

A smaller economy means that people across the state will feel the impact but, most importantly, it means that our farms will have less of the world-class food we produce in this state to stock supermarket shelves. The basic laws of supply and demand dictate that with less food supply food prices are more likely to increase at a time when families are already battling the cost of living. Times like this make us realise that the people in our cities, towns and regions need each other, and there is an urgent need to invest in the future of our farming communities for the benefit of all South Australians. The government must acknowledge this, and they must acknowledge this without delay.