Last night, on Tuesday 14 May, the Federal Government released its 2024/25 Federal Budget.

Much of the framing centred on providing cost-of-living relief for Australian households, and supporting Australian innovation.

Disappointingly, the Government largely missed the opportunity to extend that support to struggling vegetable, potato and onion growers, and a horticulture industry confronting viability-threatening challenges.

As part of its proactive advocacy agenda, AUSVEG consulted with industry to submit a pre-budget submission to Treasury, seeking action and investment in priority areas.

Our submission advocated for initiatives to increase vegetable consumption, bolster sovereign capability for farm input manufacturing, address workforce shortages, foster worker wellbeing, support capital upgrades and education to improve on-farm sustainability and regenerative farming, and ensure biosecurity-risk creating industries are shouldering an equitable cost burden.

Many growers will no doubt share AUSVEG’s disappointment that this year’s budget has either not gone far enough, or overlooked many of the key issues confronting our sector.

In other areas, a number of retrograde measures have either been introduced, or left in place.

Workforce

Despite the well-publicised challenges confronting growers in securing a reliable and consistent workforce, and ongoing advocacy from industry for fit-for purpose solutions, the budget provides little in the way of relief for our industry on workforce issues.

Instead, the Government has cut the Harvest Trail Services and Harvest Trail Information Service from 30 June onwards, to save $47 million over five years. With growers in many regions reliant on these services, this is an extremely disappointing development.

Additionally, the Government has confirmed its intention to reduce intake of international students. While this may go some way to alleviating housing pressures, it is also unclear what impact this may have with regard to available agricultural workforce.

Without measures that make it easier, not harder, for growers to find the workers they need, when they are needed, the extreme pressures already being felt by many vegetable growing businesses will compound further. AUSVEG, on behalf of industry continues to emphasise the urgency of this situation in its ongoing advocacy for initiatives that genuinely address our industry’s workforce needs.

Labour hire

AUSVEG, along with other key industry stakeholders has long advocated for a national labour hire licensing scheme.

While a $2 million budget commitment in 2024–25 to establish a project office to progress a national labour hire regulation model is welcome, clearly there is some time to go before such an initiative is operational.

Education and careers in agriculture

The Government has committed $1.9 million over three years to provide targeted grants to industry led projects, including continuation of activities for National Farm Safety Week and work experience opportunities for young people interested in agriculture through the AgCareer start pilot.

This also includes funding for a new, skilled agricultural work liaison program, in urban and regional universities, aimed at increasing the number of highly-skilled graduates entering the sector.

While any investment in encouraging future generations to pursue careers in agriculture is welcome, this is still a long way short of the concerted, coordinated national effort required to attract talented young people into our sector.

Future Made in Australia

Further details of the Government’s previously-announced Future Made in Australia policy formed a $22.7 billion centrepiece of last night’s budget. While AUSVEG understands that sovereign capability is vitally important – and has advocated for measures to support domestic production of key farm inputs such as fertiliser – it was disappointing to note no such commitment was outlined in last night’s budget.

Rather than investing billions of taxpayer money in untried industries, for a fraction of the cost the Government could better support an Australian vegetable industry with a strong track record of innovation, and where there is proven and ongoing demand for the vegetables we produce.

Drought relief and emissions reductions

Much of the agriculture spend in this year’s budget comes in the form of $519 million for drought preparedness and resilience measures, much of which has been previously flagged.

Further, few details were provided in relation to plans to invest $63.8 million over 10 years to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050. Further information is expected to be revealed at next week’s Sustainable Agriculture Summit in Toowoomba.

Competition and retailer practices

Amid this year’s heightened focus on the practices of the big grocery retailers, the budget contains $8.9 million over four years from 2023–24 to improve monitoring of supermarket pricing practices, through an Australian Competition and Consumer Commission inquiry into supermarket practices, and tracking and the publication of supermarket prices by CHOICE.

In addition, the Treasurer in his budget speech foreshadowed the government’s intention to act to make the Food and Grocery Code mandatory, which was a recommendation of the interim report of the Emerson review of the Code, as well as the recently-concluded Senate Select Committee Inquiry into Supermarket Prices. This move would be welcomed by AUSVEG and many growers.

Biosecurity

As a carryover from last year’s budget, the Government’s proposed Biosecurity Protection Levy (BPL) remains a live concern.

This is despite a recent Senate Inquiry, and its subsequent report, examining the proposed legislation, outlining a litany of concerns and inconsistencies identified by industry and other key stakeholders. Incongruously, the report recommended the Senate pass the legislation, intended to take effect from 1 July this year.

AUSVEG continues to support a well-funded and resourced biosecurity system, guided by the principle of shared responsibility. However, along with the wider agricultural sector, we continue to raise concerns about this proposed additional tax on industry, including: that it does not take into account the significant contributions primary producers already make to biosecurity activities; that it does not adequately ensure key risk creators – such as the international shipping container industry – are shouldering a fair share of the cost; and, that it remains a deeply-flawed, confusing and inefficient model.

With recent developments in Canberra indicating the legislation may not have the numbers to pass the Senate, we are hopeful that common sense will prevail, and the BPL will not be imposed on farmers in its current flawed form.

Find out more

The Australian Department of Agriculture, Fisheries and Forestry has released a series of fact sheets following the budget release, outlining key measures in the portfolio.

• These fact sheets can be accessed here.
• The full budget papers can be accessed here.

If you would like to discuss this or any other issues relating to the advocacy work that AUSVEG undertakes, please contact AUSVEG General Manager – Public Affairs and Communications, Lucy Gregg on 03 9882 0277, or via email at publicaffairs@ausveg.com.au.

* * *

Extracts from the Budget papers

AGRICULTURE, FISHERIES AND FORESTRY

Agriculture – other priorities
The Government will provide $20.7 million over five years from 2023–24 (and $3.4 million per year ongoing) to support priorities in the agriculture, fisheries and forestry portfolio. Funding includes:

• $13.9 million over four years from 2024–25 (and $3.4 million per year ongoing) to maintain drought policy capability in the Department of Agriculture, Fisheries and Forestry to support Australia’s readiness to respond to drought events
• $3.4 million over four years from 2024–25 to develop a national Timber Fibre Strategy and review the National Forestry Policy Statement in collaboration with the states and territories
• $1.5 million over two years from 2023–24 to improve existing arrangements for the accurate and clear labelling of plant-based alternative protein products
• $1.0 million over two years from 2024–25 for a skilled agricultural work liaison pilot to attract graduates to work in agriculture
• $0.5 million over two years from 2024–25 to continue the AgCAREERSTART pilot program for two cohort years to encourage young people to consider a career in agriculture
• $0.4 million over three years from 2024–25 for Farmsafe Australia to extend the National Farm Safety Week campaign.

The Government will also terminate the Plantation Development Concessional Loans program and redirect the available loan provision ($37.5 million) to other loan products managed by the Regional Investment Corporation to maintain support for the farm business sector.

The cost of this measure will be partially met from a reprioritisation of existing funding in the Agriculture, Fisheries and Forestry Portfolio.

Agriculture and Land Sectors – low emissions future
The Government will provide $63.8 million over ten years from 2024–25 (and $0.9 million per year ongoing) to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050.

Future Drought Fund – better support for farmers and communities to manage drought and adapt to climate change
The Government will allocate $519.1 million over eight years from 2024–25 from the Future Drought Fund for initiatives that provide improved support to farmers and communities to manage drought and adapt to climate change. Funding includes:

• $132.0 million over eight years from 2024–25 to continue the Drought Resilience Adoption and Innovation Hubs model to support activities to address the challenges of drought and climate variability in local areas
• $83.2 million over five years from 2024–25 to continue the Farm Business Resilience Program to provide farmers, farm workers and advisers with access to learning and development opportunities and continue the scholarships program
• $67.0 million over four years from 2025–26 for the next phase of the Regional Drought Resilience Planning program, with a greater focus on implementation of activities in plans
• $60.3 million over six years from 2024–25 to continue and expand the Long Term Trials program to test drought and climate resilience farming practices and support the adoption of drought resilience innovations
• $40.0 million over six years from 2024–25 for the Resilient Landscapes program to support trials and demonstrate how natural resources management practices contribute to drought and climate resilience
• $37.0 million over three years from 2025–26 for the new Scaling Success program to support previously funded Future Drought Fund projects that demonstrated successful drought and climate resilience outcomes
• $36.0 million over four years from 2024–25 for the Future Drought Fund Communities Program to support social resilience and the mental wellbeing of farmers and communities
• $20.0 million over three years from 2025–26 for the Innovation Challenges Pilot program to accelerate research and innovation in response to drought and climate challenges
• $17.2 million over four years from 2024–25 to continue the Climate Services for Agriculture program and the My Climate View online tool to provide accessible and tailored climate information for farmers and regional communities
•  $15.0 million over four years from 2024–25 to partner with First Nations people and communities to support connection to Country through the management of drought and climate risks
• $11.4 million over four years from 2024–25 to support enabling and evaluation activities to deliver drought and climate resilience outcomes.

The Government will also provide $42.2 million over four years from 2024–25 for the Department of Agriculture, Fisheries and Forestry to support the delivery of the Future Drought Fund initiatives.

EMPLOYMENT AND WORKPLACE RELATIONS

Employment and Workplace Relations – reprioritisation
The Government will achieve savings of $65.5 million over five years from 2023–24 (and $13.2 million per year ongoing) from the Employment and Workplace Relations portfolio. Savings include:

• $47.3 million over five years from 2023–24 (and $11.1 million per year ongoing) by ceasing the Harvest Trail Services and Harvest Trail Information Service programs from 30 June 2024

CLIMATE CHANGE, ENERGY AND WATER

Murray-Darling Basin Plan – continuing delivery
The Government will provide funding over five years from 2023–24 to continue implementation of the Murray-Darling Basin Plan (Basin Plan). Funding includes:

• $27.0 million in 2024–25 to expand the existing Resilient Rivers Water Infrastructure Program to enable the Commonwealth to work with private proponents on water recovery activities
• $17.0 million over three years from 2023–24 to enhance shorebird and wetland habitat in the Coorong region
• $4.0 million in 2024–25 for the hydrological modelling platform underpinning implementation of the Basin Plan and a business case for further development
• an additional $0.6 million in 2024–25 to deliver the Murray Reconnected Floodplains project • funding for additional voluntary water purchases to contribute towards environmental outcomes under the Basin Plan
• funding for Basin states to minimise the socio-economic impacts of water purchases and continue implementing the Basin Plan reform activities.

The Government has already provided partial funding for this measure and the remainder of the cost will be met from funding within the Water for the Environment Special Account and Sustainable Rural Water Use and Infrastructure Program.

Elements of this measure are not for publication (nfp) due to commercial sensitivities and ongoing state and territory negotiations. This measure builds on the 2023–24 MYEFO measure titled Murray-Darling Basin Plan – delivering commitments.

TREASURY PORTFOLIO

Treasury Portfolio – additional resourcing

• $8.9 million over four years from 2023–24 to improve monitoring of supermarket pricing practices, through an Australian Competition and Consumer Commission  inquiry into supermarket practices and tracking and the publication of supermarket prices by CHOICE

Competition Reform
The Government will provide $13.9 million over five years from 2023–24 (and $0.3 million per year ongoing) to progress competition reforms, including:

• Replacing Australia’s current merger control with a faster, stronger, simpler, targeted, more transparent and streamlined mergers control system that better addresses anti-competitive mergers, including establishing a comprehensive database of mergers and acquisitions in Australia
• expanding the scope of the Competition Review, announced in August 2023, to include advice on non-compete clauses, and to work with states and territories to revitalise National Competition Policy
• developing a Regulatory Initiatives Grid for the financial sector to provide greater transparency of announced regulatory reforms and planned regulator initiatives and activities to promote better collaboration and engagement with industry and reduce regulatory burden.

Additional funding for this measure and future cost recovery arrangements will be held in the Contingency Reserve pending the finalisation of the policy and implementation details of the new merger system. The cost of this measure will be partially met from within existing resources of the Treasury portfolio.