AUSTRALIA'S system of drought relief is failing farmers, Agriculture Minister Tony Burke has told parliament.
A new way to help drought-stricken farmers, which is to be trialled in Western Australia, will turn the Exceptional Circumstances system on its head, Mr Burke said.
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He was introducing legislation on Wednesday to enable the trial, which was agreed with the WA government and will cover about 6000 farmers across a wide range of farming conditions.
Mr Burke said EC help was only available to farms affected by droughts that occurred on average once every 20 to 25 years.
But few believed the next drought would be so rare an event.
Some farmers had reached the EC's interest rate subsidy limit of $500,000.
Farmers in most debt got most assistance while farmers who'd made the tough decisions and stayed out of debt weren't recognised.
Assistance was based on arbitrary lines on a map, meaning one farmer may be eligible while his neighbour misses out.
"And when times are good, the government disappears from view," Mr Burke said.
"These are all significant flaws which show how the system is failing farmers."
Mr Burke said the 12-month trial, starting on July 1 this year, would try a new approach to drought support.
It would help with household expenses and provide grants of up to $60,000 for on-farm projects.
A key part was helping farmers develop a business plan, after which they could choose - "stay on the land with dignity or leave with dignity".
Either way they'd be helped, through on-farm investment grants or exit grants.
Mr Burke said there were risks, including "a flood of rent-seeking consultants who complete fill-in-the-blank templates and pocket taxpayers' dollars".
Debate on the Farm Household Support Amendment (Ancillary Benefits) Bill 2010 was adjourned.
