FARMER groups have called on federal Agriculture Minister Tony Burke to end the uncertainty on interest-rate subsidies for drought-stricken farmers.
In Canberra last week Mr Burke announced that the Government would eventually terminate interest-rate subsidies for drought-stricken farmers
Hesaid the subsidy did more harm than good and kept some people in financial limbo for years.
However Victorian Farmers Federation president Andrew Broad said Mr Burke needed to announce his alternative drought policy as soon as possible and not just discuss the dismantling of interest-rate subsidies.
"The test for the farm community will be to see if it is simply a dismantling of the current Exceptional Circumstances (drought assistance) system, or the introduction of a program that builds capacity and resilience and offers real support for farmers and rural communities," Mr Broad said.
Mr Burke said some farmers had been receiving the subsidies for seven years on properties that were not making money, "where they're staying just afloat and only just afloat".
"Instead of helping them get out of that (farming) we gave them just enough money to hold them in that precise situation," Mr Burke said.
Farmers receiving the subsidy said they were sick of hearing politicians argue drought assistance was harming agriculture by supporting those they regarded as unviable.
"It (interest rate subsidies) means you can keep the business going, so that when things turn around you have the capacity to take advantage of it," one northern Victorian dairy farmer said. "It doesn't mean we're not viable."
While Mr Burke has not released details of what assistance will be available as part of the Government's drought reforms, he has previously discussed a range of alternatives with farmer groups.
These alternatives include exit grants for farmers wanting to leave the land; drought preparedness grants of up to $40,000; and the capping of Centrelink income support payments to a maximum of three or four years out of seven.
Some of these reforms are similar to those developed by the previous Coalition Government.
National Farmers' Federation president David Crombie said the federation was open to reforming drought support, but not for farmers in drought-stricken areas.
"These families are under immense pressure, dealing with devastating circumstances and it would be unconscionable to pull the rug out from under them," Mr Crombie said.
"An arbitrary cut-off would be completely unacceptable."
Mr Burke said the Government had no intention of immediately and unilaterally removing interest-rate subsidies.
"It would cause more harm, so therefore that will not happen," Mr Burke said.
"The government position remains - any reform of drought policy is about the next drought, not the current one.
"But I cannot see any justification as to why a future drought policy would involve an interest-rate subsidy.
"I do not believe we are doing people a favour by continuing to have those policy settings for the next drought."
