Media Release

KAP Leader and Federal Member for Kennedy Bob Katter says the Governments farm financing boost is a crucial step in the right direction but that more work is needed to be done to ensure the long term survival of agriculture in Australia.

Mr Katter said, “While what the ALP has released today is essentially a good gesture and a step in the right direction, it is the very minor tip of the iceberg and much more is needed.

"We sincerely thank the Treasurer and the Government for taking this step in the right direction.

"We now call on the State and Territory Governments to also match the federal commitment. If they contribute more, we will be the first to applaud them.

"There will be a very harsh and condemnatory judgement passed upon them by Australian farmers if they don't match the federal funding.”

Mr Katter said that the four measures announced today would at most give about a quarter of farmers the opportunity to buy time.

“The long term fundamentals need to be dealt with which includes bringing down the value of the Australian dollar, investing in ethanol and ensuring farmers are paid an arbitrated price for dairy, sugar and eggs.

“I have been working closely with the Rural Debt Summit Chairman Rowell Walton and he has advised me that the estimated the national at risk debt to be around $5000 million or more.

“In Queensland, the debt level two years ago averaged $700,000 per farm. In December 2012 that figure rose to $1.2 million and now it is at $1.4 million and increasing exponentially.

“If the Government could find over $125 million for an overseas agriculture grant, the State and Federal governments should be able to fund a meagre $50 million a year to deliver interest rates at 2 per cent.” Mr Katter said.