Latest news with #DavidJochinke
ABC News
23-05-2025
- Business
- ABC News
Farmers call for policy reform across multiple sectors as productivity collapses
Collapsing productivity on Australian farms has left a once world-leading sector at risk of being left behind by international competitors. Annual farm productivity today is just a quarter of what it was decades ago, prompting the national farming lobby to ring the alarm for a government-led policy overhaul, including changes to competition and workplace laws. Productivity measures how efficiently inputs such as feed, fertiliser, fuel, labour, land and water are used to produce outputs like beef, grain, milk or wool. Executive director at the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Jared Greenville, said the rate had fallen around 75 per cent from an annual rate of 2.2 per cent in the 1980s and 1990s. "Farm productivity has slowed and the average rate's about 0.6 per cent," Dr Greenville told Landline. "That's put us back in relative terms to international competitors as they're getting stronger productivity growth. As the federal government's commodity forecaster, ABARES has estimated the Australian farm sector will produce $91 billion of food, cotton and wool this year. If that eventuated it would be one of the most valuable years for the farm sector, likely further driven by a big winter crop forecast to harvest almost 60 million tonnes. The National Farmers' Federation said despite the high forecast it expected the productivity slump would worsen. NFF president David Jochinke claimed farmers were at the cutting edge of technology and "clever sustainable practices" but had been hampered by "poor policy, administrative burden, and green tape". The NFF used the productivity announcement to again call on the federal government to overturn a ban on live sheep exports, change competition laws, improve access to workers, and restrict transmission lines on farm land. Katie McRobert from the Australian Farm Institute said innovation typically drove productivity. That could include technological advances, increased research spending and improved infrastructure. She cited a 2017 study that found if farmers had adequate phone and internet access they would contribute an extra $20 billion to the economy. Ms McRobert said policy changes to drive productivity should also consider social, animal welfare and environmental impacts. "Maybe a regional community doesn't want to see all the farms in the region consolidate and become one big farm," she said. "As a society we need to step back a little bit from pure productivity measures and think about what it is we want to incentivise and what the goals are that we're seeking." Dr Greenville said Australian farming's high productivity rate before the year 2000 was the envy of not only global competitors, but also other parts of the Australian economy. It was driven by increased mechanisation — such as switching to larger tractors and rotary dairies — and major changes to trade rules such as deregulation. "We saw producers shift out of wool production and we saw the sheep flock fall from over 120 million to about 70 million that we see today, and a massive shift of those operations into cropping," Dr Greenville said. "The cropping industry became more productive as it could grow in terms of the scale of production." As a mixed farmer from north-east Victoria, the productivity slump prompted a mixed response from fifth-generation farmer James Russell. "It does surprise me a little bit as a grain grower. It doesn't surprise me as much as a sheep producer," Mr Russell said. "We've seen huge upticks in technology [in] our ability to grow a crop bigger and better. "In the sheep industry, we still farm sheep in a very similar way than we did 20 years ago. "We don't actually get a return, it costs us money to get sheep shorn [this year]." Cropping's annual productivity rate is sitting at 1.2 per cent, compared to 0.5 per cent for sheep, which has been plagued by low production and prices. Despite an annual productivity rate of almost 2 per cent in the 40 years before 2010, dairying's productivity rate has dropped away to basically zero. But ABARES said the sector is largely a two-speed industry, with some dairy farmers faring much better than others. One of those driving up the sector's productivity is Simon Scowen, who farms on the New South Wales Mid North Coast. This year Mr Scowen has built a large shed for his 800 milking cows. With easy access to mixed feed rations, shelter, fans and sprinklers, in the first few months since moving into the shed he said milk production jumped by 20 per cent. "Those that have been doing it for a couple of years in Australia, that we've gone and had a look at, they range from a 30 to 40 per cent increase in cow production by putting them in this facility," Mr Scowen said. Dairy Australia says seven per cent of the milk produced in Australia comes from cows housed in a shed. That figure is expected to increase. Watch ABC TV's Landline at 12:30pm AEST on Sunday or stream anytime on ABC iview.
West Australian
21-05-2025
- Business
- West Australian
Asset rich, cash poor: Farmers come out swinging against Labor's plan to tax unrealised gains
Farmers have come out swinging against Labor's planned changes to superannuation taxation, saying asset-rich but cash-poor farming families may have to sell property to cover the tax. From July 1, the concessional tax rate will rise from 15 per cent to 30 per cent on the earnings attributable to super balances above $3 million, including taxing unrealised gains on the increased value of farming properties. Agriculture industry groups have labelled the move 'unfair' and 'unreasonable', with unrealised gains being profits that farmers have not received and cannot use until they have sold their land. National Farmers' Federation president David Jochinke said 3500 farming families would be instantly hit, with another 14,000 also affected if property values grew above the threshold. He said the impact would be most felt in multigenerational families where older farmers held their assets in self-managed super funds and leased the day-to-day operations to their children. This arrangement works because it provides retirement income for the parents, as well as an opportunity for the next generation to start farming. 'Like any property, farmland values can rise, but these paper gains don't translate to real income. Rises in land values usually mean very little when farms are multigenerational with no intention of being sold,' Mr Jochinke said. 'This tax could force some farmers to sell up just to pay their tax bill.' Business groups have been consistently lobbying the Government to drop the unrealised gains component of the policy, but Council of Small Business Associations chief executive Luke Achterstraat said the group had not seen 'any consideration to change the tax' in two years. 'We're not necessarily talking about high-net-worth individuals here. We're talking about a lot of small family and farming communities,' Mr Achterstraat said. Less than one per cent of Australians have super balances worth more than $3m, but critics claim the proposal could end up affecting more people because it would not be indexed. It is understood wealthy retirees, including farmers, have been selling assets and restructuring their investment portfolios ahead of the July 1 deadline. Federal Treasurer Jim Chalmers has repeatedly defended the changes, labelling them 'modest' and an 'important part' of efforts to make the Budget more sustainable. 'It only applies to a tiny sliver of people, and it is still concessional,' he said. 'This is a modest change, but helps make the Budget more sustainable and fund our priorities.' When announcing the change back in 2023, Dr Chalmers said about 80,000 Aussies would be impacted or about 0.5 per cent of the population by wealth. But modelling from AMP deputy chief economist Diana Mousina shows the average 22-year-old today could retire with more than $3m due to wages growth, inflation and compound interest. Pastoralists and Graziers Association of WA president Tony Seabrook said Labor's proposal would catch super account holders 'trying to do the right thing', off guard. 'Those that have taken the advice to put their properties into their superannuation, are in a world of pain,' he said. 'People took the advice to do this . . . and it was good advice. 'Asset-rich and cash-poor has been the nature of our business forever . . . to do this is unfair and unreasonable, and fails to acknowledge the impact on rural farming families.' The move is Labor's major revenue-raising initiative for its second term of government, with estimates the move will rake in $2.3 billion per year. The legislation, before Parliament since November 30, 2023, will only require Senate support from the Greens to pass — a likely outcome given they have expressed support for the policy.
Sky News AU
08-05-2025
- Business
- Sky News AU
‘Soul crushing' drought in Tasmania influences $73 million dollar support package
National Farmers' Federation President David Jochinke calls the drought conditions occurring in Australia's south-east 'soul-crushing' for farmers. Due to the financial loss the drought has caused, the South Australian government has released a $73 million drought support package to help farmers and their communities cope. 'It would be awesome now with the new government to be put in place to really change their focus and get out to these regional communities and put their arms around them,' Mr Jochinke said.
ABC News
06-05-2025
- Business
- ABC News
Farmers asses what majority Labor government will mean for them
Labor's resounding federal election win will likely end the live export of sheep by sea, a move strongly resisted by the agriculture sector. And while agriculture was not front and centre of the election campaign, the Albanese government said a national food security plan, funding for farm safety and a strong record on trade would form a large part of its commitment to farmers. Protests, walkouts and fights Australia's peak farming body, National Farmers' Federation, has been at war with the Labor government over the National Farmers' Federation president David Jochinke said the agriculture sector, which was worth about $88 billion, still had major concerns about the returned government's policies. David Jochinke says farmers need to hold firm on agriculture policy. ( Supplied: VFF ) "There are going to be some absolute headwinds when we talk water, industrial relations, trade with regards to sheep live export and also productivity," he said. "We have to make sure we hold firm on agriculture policy and we are not going to back away from hard lines that we put in the sand around what we can and can't accept. " Ultimately there will be some policies we are not satisfied with and we will take appropriate action. " Keep the Sheep held rallies and truck protests in key seats ahead of the election. ( ABC News: Andrew O'Connor ) Live export will end Labor's election victory confirmed the end of the live sheep by sea trade, which was legislated in the last parliament with the phase out to occur in 2028. A $140 million compensation package to industry from the federal government was included in the process. Holly Ludeman has been coordinating the Keep the Sheep campaign. ( ABC News: Ruby Littler ) The win was a disappointment to the Keep the Sheep campaign — a Western Australia lobby group dedicated to overturning the decision which held rallies, truck protests, and tried to influence the election in key WA seats. Campaign coordinator Holly Ludeman said she spent the day inspecting animals and loading sheep on a live export vessel in Fremantle. She said she hoped to continue the fight. "We need to take some time to regroup," she said. " There is another election in a few years. This is a viable industry and that's what I'm going to keep fighting for. " Strong record on trade Ms Collins said her government's record on reopening access to key exports markets in China was a major success for agriculture. "We've got the most diversified agricultural trade now that we've ever had, 169 different markets now," she said. Julie Collins says the government has farmers' backs when it comes to trade. ( ABC News: Jacqueline Lynch ) A trade war with China which started in 2020 had locked out Australian wine, barley, hay, lobster and beef exports. But since the Albanese government came to power, Chinese tariffs on all the goods have been dropped. Trade was restored and increased with an announcement last week of "I think Australian farmers know that we've got their back when it comes to this," Ms Collins said. "We've been slowly restoring relationships right across the globe and we've been working incredibly hard to make sure that we get access to those markets that are so critical to producers." What else? During the election, Labor committed to spending $3.5 million on new national food security strategy Feeding Australia. Mr Jochinke supported the strategy. "Hopefully it shows us strengths and weaknesses throughout the supply chain including inputs on farm, production on farm and supply chain for consumers, and that will form the basis of trying to form better policy," he said. Labor also promised increased funding to key agriculture events such as Beef Australia at Rockhampton and Lambex — a sheep event to be hosted in Adelaide in 2026. Photo shows A young woman smiling and wearing a winning ribbon as she holds onto stud cattle. Gold, sheep, now beef cattle — Rockhampton has a varied history. But it's an event held every three years that has secured Rockhampton its spot as the beef capital of Australia. Labor said its planned investment in the sector would identify opportunities to improve supply chain resilience with a goal of minimising price volatility and costs at the check-out. Labor also pledged to spend $2.5 million to continue key farm safety programs after farm deaths The big remaining question for farmers was who would represent them and make major policy decisions inside the re-elected Albanese government. Ms Collins came into the job in July 2024. While it was not known if she would retain the role, Ms Collins said she wanted to stay. "It's a privilege, I've loved it, and I would love to continue doing it," she said. ABC Rural RoundUp newsletter Stories from farms and country towns across Australia, delivered each Friday. Your information is being handled in accordance with the Email address Subscribe
