The extra $12,000 for drought affected families and improved eligibility for more farmers by increasing the asset cap from $2.6 million to $5 million would provide a vital safety net for drought-affected farmers, particularly particularly for those newer to farming who haven’t had time to build up resources according to GrainGrowers boss David McKeon.

He also welcomed more funding for counsellors and $11.4 million in mental health support to help farmers cope with the toll on farmers and regional communities.

“It is important that farmers don’t self assess,” Mr McKeon said. “Many farmers don’t think they will qualify for this assistance, when in fact they might, particularly with recent changes to eligibility.

“The Farm Household Allowance provides immediate support to keep farm families going through drought and I encourage farmers in need to apply for it. 

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“Rural financial counsellors at a local level can assist with the application – whether a farmer chooses to go into the office, the counsellor comes to their home, or they make the application on line with the financial counsellor stepping them through the process via the telephone.”

GrainGrowers National Policy Group Members last week reported major concerns for the east coast harvest, with many areas of Queensland and NSW unlikely to get a crop.

The group was also concerned about the financial ability of growers to put in the next crop, even if they can access seed and inputs, given the financial strain they are under and the high costs of planting.

“The vast majority of farmers had prepared adequately for this drought and have been improving their cropping systems in recent years to better manage risk," Mr McKeon said.

Mr McKeon also praised the banks who have followed Rural Bank’s lead in offering a Farm Management Deposit offset to their customers.

“To date, NAB, CBA and Rabobank have enabled farmers to use the money in their FMD to offset interest on their loans,” he said.

“This is an important development which will assist farmers not only in the current drought, but in any future years of good and poor seasons.”