Crop outlook declines as Government Support Increases

The Iemma Government has boosted support for regional communities impacted by drought   through the continuation of the multi-million dollar Business Drought Assistance Payroll Tax Relief Program, Rural Affairs Minister Tony Kelly and Parliamentary Secretary to the Minister for Primary Industries Steve Whan said today.

The announcement came as more than 80 per cent of the State was declared in drought.

"The Iemma Government will continue to stand by farmers and the businesses who rely on them - we will renew the Business Drought Assistance Scheme ($2.7 million allocated in 2006/2007) with applications for this financial year to be accepted until 30 June, 2008," Mr Kelly said.

"This important scheme includes payroll tax relief for regional firms to retain skilled workers for the duration of the drought.

"The Government has committed $350 million in assistance to drought stricken farmers and we will continue to review our range of programs to ensure we are doing all that can be done to help.

Mr Whan said while some scattered rainfall was received in parts of the State last week, it was not enough to influence the November drought figures.

"The latest drought figures show 81.9% of NSW is in drought (up from 78.6% last month), another 10.5% is marginal (down from 12.1%) and just 7.6% is satisfactory (down from 9.3%)," he said.

"These latest figures paint what’s becoming a very grim picture for our farmers - the harvest is likely to be half what was expected mid-year.

"This below average rainfall has continued throughout most of October, and this is having a devastating impact on crop and pasture conditions.

"And unless November is wetter than average, 2006-07 will be one of the few instances in history where the Murray-Darling Basin has suffered a winter-spring drought in successive years."

"Winter crop production is forecast at 2.82 million tonnes, down almost 40% from mid-September estimates of 4.67 million tonnes.

"The estimated winter crop area to be harvested is 2.68 million hectares, down from the 3.12 million hectares estimated in mid September.

"Prospects for summer crops continue to decline with no significant spring rainfall across the State.

Details of State and Federal Government drought assistance measures can be found at www.dpi.nsw.gov.au/drought or call the hotline on 1800 814 647.

NEW DECLARATIONS (moved into drought)

• Broken Hill Part of Board moved from marginal to drought (whole Board now drought declared)
• Cooma The south eastern part of Division B and the western part of Division D moved from marginal to drought.
• Hunter Division C moved from marginal to drought.
• Kempsey The western part of Divisions A & B moved from marginal to drought
• Milparinka The south western part of Board moved from marginal to drought
• South Coast Divisions C & D moved from marginal to drought
• Tamworth Whole Board moved from marginal to drought.

REVOCATIONS (moved out of drought)

• Armidale Divisions A, C & D moved from drought to marginal  (whole Board now marginal).

ALTERATIONS (moved between marginal and satisfactory)

DECLINED (satisfactory to marginal)

• Gloucester Divisions B & D moved from satisfactory to marginal.
• South Coast Divisions A & B moved from satisfactory to marginal.

Downloadable drought maps are available at www.dpi.nsw.gov.au/drought/situation