Federal Member for Hume Angus Taylor has welcomed the ANZ’s drought support package for farmers, and has called on the major banks to match the assistance and commit to further measures. “A 12 month moratorium on farm repossessions is a strong helping hand for landowners impacted by drought.

“Further commitments by the ANZ, including freezing interest rates for 12 months, relocation assistance and more funding for rural counsellors are welcome initiatives.

“I commend the ANZ for its leadership, and I encourage the other rural lenders to follow suit. We do need to recognise that parts of Queensland and northern NSW are in a drought spiral not seen for a generation.”

Mr Taylor said the need for longer term solutions was critical to the sector.

“Agriculture has been necessarily preoccupied with short term issues, like the collapse in the live cattle trade and droughts. However there is an urgent need for Australia and New Zealand to overcome more fundamental problems.

“Perhaps our greatest challenge lies in raising sufficient capital to absorb risks, fund growth and support farm turnover. Farm debt levels are already high and few external sources of equity capital are available to farmers, particularly in Australia.

“New structures for supporting young farmers into agriculture are desperately needed.

“As I refer to in ‘Greener Pastures’, these structures could include rapidly evolving equity partnerships, modern variations of share farming and using off-take agreements, as used in the mining sector.

“It is time for the banks, farm organisations and governments to sort out a sustainable solution – we can’t keep putting bandaids on a gaping wound.”