I am pleased today to announce an additional $430 million in drought assistance measures for Australian farming communities.
The funding will extend the 38 areas of agricultural production currently receiving Exceptional Circumstances assistance until March 2008 for a further six months to September 2008.
The extension will provide confidence to farmers suffering through the worst drought on record. It will allow farmers to plan through to next year's season, knowing that assistance will continue to the end of their next planting opportunity.
The Australian Government has already provided more than $2.4 billion in drought assistance since 2001 and today's announcement is further evidence of the Coalition's commitment to rural and regional communities.
The estimated cost of today's EC extension is $340 million.
With the Budget in such a strong position, the Commonwealth has been able to generously support those in need when natural disasters strike. It is one of the great dividends of our current prosperity.
I am also announcing today, interim EC assistance for those farmers in Western Australia's agricultural zone and Tasmania who are facing their second consecutive failed year.
Farmers in these regions have experienced low rainfall for the past 18 months and have a less than 50 per cent chance of receiving average rainfall in the next 3 months.
However their relevant state governments have yet to finalise applications for drought assistance for all of these areas.
Today's declaration of interim drought assistance will provide immediate income support for eligible farmers struggling to meet their day-to-day household needs in these regions, and will allow the state governments to focus their efforts on completing applications for full EC assistance, which includes Interest Rate Subsidy payments.
It will mean there is no delay in payments to farmers while state governments prepare their paperwork.
The estimated cost of this new measure is $90 million.
My Government continues to consider additional assistance to address the drought crisis being felt across rural and regional Australia.
*A list of the eligible Exceptional Circumstances regions is below.
EC Area
NSW - Armidale, Braidwood, Casino, Central North North-West, Central Tablelands, Condobolin, Condobolin-Narrandera, Cooma-Bombala-ACT, Dubbo, Forbes, Goulburn-Yass, Gundagai, Hay, Hume, Majority of Western Division, Molong, Mudgee-Merriwa, Northern New England, North East Northern New England, Northern Tablelands Small Areas, Nyngan, Riverina, South Coast Moss Vale, South West Slopes & Plains, Walgett-Coonamble, Young.
Victoria - Central Victoria, Central and East Gippsland, Goulburn- Loddon-Campaspe, Mallee East, Mallee South East, Mallee - Northern Wimmera, Murray System, Northern Victoria,
North East Victoria.
South Australia - Upper North Cropping
Western Australia -
North Eastern Wheatbelt, Southern Rangelands