Drought-hit Victorian farmers able to apply for $30 million in loans

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rought-hit Victorian farmers battling the devastating effects of failed crops and financial losses will now be able to apply for a share of $30 million in loans.

Severe dry conditions have crippled grain growers in north-west Victoria this season, some properties having had no meaningful rainfall for months on end.

Many crops have failed in the Wimmera and the Mallee, and will not produce any grain, while others have been cut for hay because the likely grain production was severely compromised.

Other farmers have written off their crops and let livestock in to graze the plants.

The dry conditions mean many growers will lose money on their harvest this season, given the vast investment needed to sow crops. For some, it will be the second consecutive year of financial losses.

Read Darren Gray’s story in today’s Melbourne Age - “$30m in drought loans for Victorian farmers”.

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.

John's not predicting a drought, but he knows something's afoot

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hen and how do you declare the beginning of a drought?

Salisbury West farmer, John Vanston, is not predicting drought, but is wondering where the rain has gone.

The Victorian lamb producer and grain grower has likened what he is seeing now to what the conditions were like in the 1982 drought.

A story in today’s Melbourne Age - “Victorian farmer likens severe dry conditions to 1982 drought” – Darren Gray writes, “In recent months he (John Vanston) has only received passing showers, rather than decent rain, which have provided no benefit to the parched paddocks and empty dams.”