HUMAN Services Minister Alan Tudge says 1500 farmers are “rapidly approaching” the end of their three year allowance limit to receive the government’s Farm Household Allowance (FHA) payment but are being supported.
The FHA program offers a single rate of $528.70 per fortnight and $477.40 per person for couples and was implemented as part of the federal government’s drought policy reforms, to transition away from the ‘lines on maps’ approach of the previous multi-billion dollar Exceptional Circumstances program.
Speaking to Fairfax Agricultural Media, Mr Tudge outlined new changes to improve the delivery of FHA support to farmers and reduce frustrations in the claims process, by appointing dedicated case officers to enhance personal contact and understanding of complex farm business arrangements and processing documentation.
He said he understood the three year limit was now approaching for many farmers that are also being given government support to assist their return to viability, following set-backs like drought, or to transition out of farming if needed.
Mr Tudge said while his department administered the FHA program that was aimed to be a short term payment program to support farmers while they “get back up on their feet”, Agriculture Minister Barnaby Joyce was responsible for its underpinning policy design.
“I don’t know the exact figures but there are many people who will be rapidly approaching that three year limit,” he said.
“But we’ll be communicating with them well in advance so they know that payment may be coming to an end and informing them about that so there are no surprises and of course offering them other services, to assist their position.
“My responsibility is to administer that payment and ensure it’s delivered in the most efficient way possible, but the decision on the size of the payment and the duration of the payment and all other policy parameters are determined by the Agriculture Minister.”
Mr Tudge said the farmers meet every three months with their Case Officer to discuss their situation.
He said the Case Officers worked with farmers who are in their third year of payments to help them create a transition plan so they are well prepared for when their payments cease.
“If required, Case Officers can direct farmers to the Rural Financial Counselling Service (RFCS) for financial advice, or other community and industry groups that provide counselling, emergency relief as well as information and advice,” he said.
Currently, 1501 FHA recipients are in their third year of payment and expected to come off payment in June but are working with their Case Officers and the RFCS to prepare them.
Most of the recipients due to reach the end of their three year limit are based in NSW and QLD.
However, the Case Officers have been in contact with these FHA recipients to create a transition plan and ensure each farmer is aware of their potential options to help manage the situation.
A letter is sent to farmers three months before the expected end date of when their payment will stop, as per the program’s requirements – and one was sent at the beginning of this year reminding them it would be their final year of payments.
In January this year, Fairfax Agricultural Media reported that as of mid-December 2016, FHA support was being delivered to 4735 farmers nationwide and overall 6861 claims had been granted, since it commenced on July 1, 2014.
The number of current recipients comprised; 1527 in Victoria; 1342 in NSW; 1311 in Queensland; 401 in SA; 87 in WA; 47 in Tasmania; and 20 in both the ACT and NT.
A statement from the government at that time said as of June 30 last year approximately 1634 farmers had entered their third year and if they continued receiving payments, their entitlements would lapse between July 1 and December 31, this year.
National Farmers’ Federation President Fiona Simson welcomed Mr Tudge’s commitment to assist famers nearing the end of their FHA eligibility.
"The NFF has for some time expressed concern in regards to the next steps for producers who are about to reach the end of their eligibility,” Ms Simson said.
"Three years is an extremely short timeframe in the context of a farm business – in 2009 the Productivity Commission recommended that income support be available for three years within a seven year timeframe
“A commitment by the Minister that, the about 1500 farmers nearing the end of their eligibility, will be communicated with in advance and supported in their transition is positive.”
Ms Simson said plans to allocate case workers to farmers applying for the FHA was also positive.
She said farmers who deemed it necessary to apply for the support were already under “significant pressure”.
“Having a dedicated resource to help them with the paperwork involved and to communicate about approval deadline expectations would greatly assist to ease their burden,” she said.
“These initiatives plus the development of the Regional Investment Corporation, are all really positive steps forward in the way help is afforded to farmers when they need it most.”