Farmers subject to weather vagaries; vagaries subject to climate change

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ustralian farmers, like counterparts all around the world, are subject to the vagaries of the weather; weather that can be, and is disrupted by climate change.

Darren Gray writes in today’s Melbourne Age about how farmers have a special saving account buffer against drought, failed crops and other adverse events.

Australian farmers have more than $3.5 billion in special savings accounts as a buffer against drought, failed crops and other adverse events.

“Figures from the Department of Agriculture show Victorian farmers are the biggest users of Farm Management Deposit (FMD) accounts, with almost $830 million held in 11,143 accounts. New South Wales farmers are the next biggest users, with $800 million held in 10,737 accounts.

“But the crippling drought affecting most of Queensland and a substantial part of northern and north-west New South Wales is a likely key factor behind a $600 million drop in these savings in just nine months.

“The amounts held in these accounts have dropped in the past three consecutive quarters, from a record high of more than $4.1 billion in June 2014 to $3.54 billion in March this year. Totals typically fall in these months, but the $600 million drop is much steeper than normal,” he writes.

Gray’s story - “Cash reserves for Australian farmers top $3.5 billion” – warns about multiple seasons without incomes for many farmers.