A proposed national income protection scheme for farmers could provide some much-needed financial security, but 'it needs to be viable'.
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NSW Minister for Agriculture Adam Marshall renewed calls for an income protection scheme as agriculture ministers from across the country were in Moree for a drought meeting.
"As this devastating drought rolls on and continues to ravage our rural communities it's clear governments need to think big and take ambitious action to protect our farmers and businesses against future droughts," Mr Marshall said.
"The NSW government is of the firm belief that the best drought assistance measure a government can deliver is to help the agricultural industry self-insure and remove some of the volatility in the sector."
Alan Brown from the Wagga branch of NSW Farmers said similar insurance schemes had been attempted in the past with mixed success, although there were some operating overseas.
"It does provide farmers with a bit of security, particularly for a follow-up crop," Mr Brown said.
"To be viable, though, it would need to be one-in, all-in. A lot of the time it's just prohibitively expensive.
"But I know in places where they do have them, farmers tend to spend differently, because they know they're guaranteed some income. They tend to run newer machinery and that sort of thing."
Andrew Cottrill, the Riverina-Murray regional manager of the NSW Business Chamber, said droughts have had big impacts on smaller regional communities.
"We would have to make sure the proposed scheme was sensible and viable, but we anything that could have a positive impact on regional communities is welcome," he said.
In July, the NSW Government announced it was committing $2 million to partner with the National Farmers Federation to explore insurance models.
"The NSW government has taken the lead on this issue but it's bigger than any one state or territory," Mr Marshall said.
"Farmers in places like Canada and Europe are already able to access these kinds of schemes but in Australia national farm income protection models have proven elusive. It's time that changed."
NFF president Fiona Simson said that "with the Bureau of Meteorology forecasting no rain in sight, and drought predicted to become more frequent and prolonged in future, we need long term solutions now".
"Farmers and agriculture-dependent communities need support to get through what could be another disastrous year in some parts of NSW and other parts of Australia," Ms Simson said.