GRAIN Producers SA has welcomed the South Australian Govern ment’s $18 million drought package (announced November 26) as a positive first step, but says more support is needed. 

The package includes $8.1 million in new initiatives: on-farm drought resilience infrastructure grants, mental health and community support, and funding for donated fodder. 

GPSA chair John Gladigau said the package acknowledged the severity of this season, one of the driest on record in SA. 

“Additional support will likely be necessary to assist growers in overcoming challenges from the drought that are expected to persist beyond this season,” he said. 

“It’s encouraging the state government has recognised the challenges faced by SA grain producers and communities. 

“GPSA lobbied strongly for a 25 per cent farmer co-contribution to the on-farm infrastructure grants (a reduction from the 50 per cent co-contribution required in Victoria) and we are pleased that this will make the grants more accessible to those who can make use of them. 

“We remain concerned that the $5 million allocated to these grants may not stretch far enough, especially when compared with the $12 million allocated to drought-affected council regions in Victoria.” 

Mr Gladigau said the additional Rural Business Support funding was appreciated. 

“It must be noted that this service is already operating at capacity with demand continuing to rise,” he said. 

“The absence of cashflow support, such as council or Emergency Services Levy rebates, for grain producers who have invested significant amounts in planting a failed crop represents a notable gap in this support package.” 

Given the combined impacts of drought and frost on the growing season, Mr Gladigau said the SA economy was projected to lose more than $1 billion in grain harvest contributions compared with last year. 

“The full extent of the drought’s impact on the cropping industry, and its ripple effects on local communities, will be much larger than many people realise,” he said. 

Livestock SA chair Gillian Fennell said the $8.1 million in new funding would help livestock producers across many parts of the state dealing with the cumulative impacts of a collapse in livestock prices through 2023, followed by prolonged dry conditions. 

“We are pleased that the government has acknowledged the challenges in our industry at present and is providing some funding towards assisting producers, regional communities and additional health and wellbeing support. 

“We have advised the government that measures like the On-Farm Drought Infrastructure Grants can help livestock businesses to become more resilient and the 75 per cent rebate is an important feature of the grants as cash flow is particularly tight. 

“Details of the infrastructure grants are still pending but the $5000 cap will be prohibitive for some livestock businesses, and this will need further consideration. 

“We accept that, under the national drought agreement, direct fodder and freight subsidies are no longer available, but think the government’s decision to allocate funding towards assisting charities to deliver donated fodder to those most in need will prevent it going to producers in other states.” 

Ms Fennell said funding for community events and mental health and wellbeing programs would be put to good use. 

“The package is a good start and we look forward to continuing to work with the government to provide advice about ongoing assistance as it may be needed,” Ms Fennell said.