Support for farmers passes through senate
Farmers are a peculiar bunch. They put up with the harshest of conditions on rural real estate that is far from anything, working hard day-in and day-out to produce something they’re proud of. You might think that in our modern world that agricultural producers are a dying breed, but the truth is far from that.
In fact, minister of agriculture Barnaby Joyce points out that farm production is at its highest point ever. In a 16 June media release he noted that a record high of $53.7billion is expected to be reach this financial year. While export sales may be easing back slightly due to market factors, the overall level of export demand is still encouraging.
“The latest ABARES figures forecast the total value of farm exports in 2015-16 to be $41.8 billion dollars,” he said.
“That’s money in the bank for the Australian farming and agribusiness sector at a time when it couldn’t be more important.”
Farmers supported by federal budget
Measures announced in the federal budget have had a particular focus on assisting farmers and rural communities stricken by drought, as well as encouraging the development of rural real estate through depreciation measures.
Whether it’s new land for sale or an old farm under a revamp, agricultural producers will be able to take immediate advantage of tax write-offs for new fencing and water infrastructure, according to minister Joyce. There is also a three-year write-off period on fodder storage, meaning farmers can invest in holding hay or silage for when it’s needed.
“These accelerated depreciation measures are policies originating from our Agricultural Competitiveness White Paper, and the measures will encourage Australian farmers, regardless of the size of their farm enterprise, to invest in their businesses to better [prepared] for drought and improve their productivity,” said Mr Joyce.
Hopefully with these depreciation measures in place, combined with the Drought Concessional Loan Scheme, which has continued under the new budget, farmers will be able to revitalise their holdings this year. As the industry as a whole streaks ahead towards record levels of production, no one wants to be left behind.
And who knows? Perhaps after a year or two at these levels of production, you might be able to afford that extra piece of land for sale that you’ve been eyeing up. Real estate across the country is heating up, so making the investment in more arable land or even a new homestead could be just the ticket.