❓ A WA parliamentary question addresses the impact of dry conditions and rising input costs on Wheatbelt farmers, prompting discussion of potential fallback strategies and investigation into fertiliser price increases.
AnsweredQoN 620Legislative Council
QuestionView source ↗
WHEATBELT — COUNTRY COMMUNITIES SUPPORT PROGRAM
Following a dry May in country WA, especially in the south east, east and central wheatbelt areas with only light rain so far in June, I ask — (1) Does the Department of Agriculture and Food’s monitoring show that a growing percentage of WA’s wheatbelt is finely balanced to have any sort of a season? (2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE
Following a dry May in country WA, especially in the south east, east and central wheatbelt areas with only light rain so far in June, I ask — (1) Does the Department of Agriculture and Food’s monitoring show that a growing percentage of WA’s wheatbelt is finely balanced to have any sort of a season? (2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE
AnswerView source ↗
(1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(1) Does the Department of Agriculture and Food’s monitoring show that a growing percentage of WA’s wheatbelt is finely balanced to have any sort of a season? (2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(1) Does the Department of Agriculture and Food’s monitoring show that a growing percentage of WA’s wheatbelt is finely balanced to have any sort of a season? (2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(2) With the escalating cost of fertiliser, fuel and chemical prices now impacting on farmers’ input costs, and coupled with a possibly below-average season, are fallback strategies being developed to assist country communities so that they will not be devastated? I hope that that does not happen. Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
Hon KIM CHANCE replied: (1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(1) Yes. As is often the case, and as the honourable member is aware, there are significant differences in the outlook in various parts of the state. One of the worst affected areas of the state this year is the eastern wheatbelt. Pretty much all of it from the other side of Avon Valley has been affected. Obviously we are extremely nervous about the north eastern wheatbelt. However, it is in a slightly better position than the eastern wheatbelt, although it is still desperately in need of rain. South of the Great Eastern Highway is pretty good generally, although Esperance had a disturbingly dry start to the season. (2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
(2) This matter was discussed in some detail by the government and representatives from the Western Australian Farmers Federation about three weeks ago. We have put in train a number of decision-making processes around the discussions that we had. Clearly these issues primarily concern the cost of next year’s crop, particularly the fuel, fertiliser and chemical cost increases. The purchases for the current year’s crop were made just prior to the increase in prices. It is a very concerning scenario. I have had discussions with farmers and even those farmers who have not been badly affected by seasonal downturns have said that they predict the cropping program for next year will be as low as 20 per cent of the usual crop. In some cases, they even predict the cropping program will be down to zero because they simply cannot see how they can be competitive at those input prices. However, this is an ongoing process and these are early days. It is in that light that the department is continuing those discussions. The department is also looking at issues of what is actually driving the fertiliser prices upwards. It seems to me that although we do not have all the information we need to make this judgement, on the supply/demand scenario, it does not seem that the supply factor so exceeds demand that it could possibly have caused a 300 per cent increase in the price of diammonium phosphate. I wonder whether there is some speculation around the edges or whether a bubble is developing. I hope that some clarity will be provided as we get towards summer. A number of issues are uncertain. One of the very certainties is the fuel price. However, a number of other issues are uncertain. We must go through this in great detail with the farming industry.
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