For the information of members and friends who may need more information about drought assistance, we provide the following information, which is also available at www.raa.nsw.gov.au.

● In response to the protracted drought and negative outlook for the season ahead, the NSW Government is further boosting its drought support package.

● The Government has announced an extra $185 million to continue the Emergency Drought Relief package in 2019-20.

● This funding will help alleviate some of the immediate financial pressures facing our farmers and regional communities.

● It includes $70 million to continue subsidies on transport costs for fodder, stock and water.

● Eligible farm business will be entitled to receive up to $40,000 in 2019-20

● The subsidy can cover 50% of the full cost of freight up to a maximum of $5 per kilometre (+GST).

● For all transport cost after 1 July 2019, the maximum eligible distance limit of 1,500 kilometres no longer applies.

● The government will also reduce financial pressure on farmers by waiving LLS rates, waiving fixed water costs, and waiving Farm Innovation Fund interest fees.

● As part of the election commitment to boost the Farm Innovation Fund by $350 million, to $1 billion, farmers can now borrow up to $1 million to build on-farm infrastructure, including stock containment areas.

● The Government has also committed an additional $36 million to support rural communities impacted by this drought - this includes funds for mental health, reducing the cost of farming, ag vehicle registration exemptions, funding for pre-schools and skilled pathway opportunities.

● Over the next financial year the government is investing up to $55 million to improve water security and infrastructure in rural and regional towns, including $15 million for emergency town water supplies in critical areas.

● In addition, the Government has created a new $170 million Drought Stimulus Package to help stimulate rural and regional economies impacted by this drought.

● This brings the total NSW Government drought funding in support of farmers and regional communities to over $1.8 billion.

On-farm measures

● In response to the climatic outlook and the economic and social impact this drought is having on rural and regional communities across the state, the NSW Government is extending the on-farm Emergency Drought Relief programs from 2018-19.

● This funding will help alleviate some of the immediate financial pressures facing farmers, including:

● $70 million to continue to subsidies transport costs for fodder, stock and water, up to a cap of $40,000 in 2019-20 per farming enterprise.

● $30 million to provide a rebate of fixed charges on water licences that don't receive an allocation

● $50 million to provide relief from all Local Land Services annual rates in 2020

● $10 million to remove payment of interest charges on Farm Innovation Fund loans for next financial year

● $7 million for exemptions for registration fees for agricultural vehicles

● $9.6 million to continue current measures to reduce the cost of farming and assist with the reducing immediate cash flow pressures - including donated fodder subsidies, and waiving apiary and wild dog border fence fees.

● $15 million for emergency water carting and related work to secure town and household water supplies - this will allow us to be responsive to urgent water supply emergencies through the year.

 
Off-farm measures
● In addition to continuing to support farmers, this package will also help those in rural and regional communities impacted by drought.

● Communities across NSW are severely affected by this drought and are feeling the impact of a contracting economy.

● There is a ripple effect in rural communities and associated industries such as stock and station agents, cattle buyers, agricultural contractors, professional services, shops and schools.

● The long-term impact of stressful situations like drought can have a lasting effect on communities and the government is providing support for regional communities as they suffer through this rapid onset drought.

● That is why additional funds will be directed into a support package for off-farm drought relief measures in 2019-20 to support affected communities.

● This package expands on existing drought support programs and includes:

• $5m to improve skills pathways. This will help allow farm workers to build additional skills and work in alternate jobs during times of drought and provides costs associated with attaining traineeships young unemployed people in remote areas.
• $1.15m for increased sport grants for communities. These help build resilience and increase community bonding and investment. This funding will cover 23 regional NSW electorates.
• $8.3m to support mental health measures for drought affected communities, coordination of drought and wellbeing events by 7 additional Drought Peer Support Workers, more farm-gate councillors, Aboriginal wellbeing initiatives and a Youth Drought summit.
• $5.2m for a support package for pre-school children. This allows the pre-schools to continue to run and means parents dealing with the effects of drought can still afford and access early childhood education.

Drought Stimulus Package

In addition to the Emergency Drought Relief package, the NSW Government has announced a new Drought Stimulus Package to help stimulate rural and regional economies impacted by this drought.

● $170 million funding for infrastructure works, and enhancing water security and infrastructure in rural and regional towns, including

• water infrastructure programs
• capital investment in rural and regional activities
• advice and support to water dependent industries, such as mines and abattoirs, to help them become more water efficient.

Current conditions

● Currently more than 97% of the state is experiencing drought conditions

● The Bureau of Meteorology considers the current drought worse than the millennium drought. The seasonal outlook to July is for drier than average conditions and there is a heightened risk of an El Niño developing in autumn, increasing the probability of the drought continuing.

● Farmers are already experiencing a difficult time. ABARES forecasts that NSW farm business profit will fall by 166% on 2016-17 levels and the average farm is forecast to suffer a $69,000 loss.

● GVP for primary industries has declined by 22% since 2016-17, wiping $3.4 billion from the NSW economy.

● Cotton production declined by approximately 1.2 million bales or 43% year on year (2017-18)

● The rice harvest is expected to be down by 92% at just 50,000 tonnes (Sunrice)

● A recent Australian Bureau of Statistics report indicated NSW beef herd declined by 11%, more than half a million head.

● The sheep flock has also been impacted by drought, with the 2017-18 flock in NSW declining by 6% year on year, around 1.7 million head.

● MLA project a further national sheep flock decline of 6.8% in 2019.

● The dairy industry has been impacted heavily also with milk production in NSW declining by 10.4% in the year to date (April), almost 100 thousand litres less than this time last year.