*No hope in sight, as drought devastates Australian farmers*
By Peter Veness
September 18, 2007 06:35pm
Article from: AAP
FARMERS are headed for another disaster after the Federal Government's
official forecaster downgraded its winter crop estimate.
The Australian Bureau of Agricultural and Research Economics (ABARE)
today decreased all its winter grain forecasts.
"Winter grain production in 2007-08 is forecast to total 25.6 million
tonnes,'' the forecast said.
The forecast for wheat, the largest winter crop, dropped seven million
tonnes to 15.5 million tonnes.
Nationals Leader Mark Vaile warned there was no hope in sight for farmers.
"It's deepening and getting worse,'' Mr Vaile said.
Some farmers are now facing their seventh year of drought as the worst
conditions on record rage on.
The Government yesterday poured another $430 million into its
exceptional circumstances drought aid program and Mr Vaile promised no
farmer would go without whilst conditions remained tough.
Farmers had to be kept afloat, Mr Vaile said, as a matter of national
security.
"It's critically important for the future of our nation that we ensure
we maintain critical mass in our agricultural sector for food security
reasons.
"At the end of the day we all probably take it a little too much for
granted in Australia that we can go to the supermarket and buy fresh
dairy product, buy fresh meat ... at a super affordable price on world
standards.''
National Farmers' Federation president Ben Fargher said the ABARE
forecast confirmed what many growers and graziers had been telling him.
"We are seeing crop losses and irrigation areas under a huge amount of
pressure,'' he said.
Commsec equities economist Martin Arnold said estimates could fall further.
"While the current crop estimates are well above the same time a year
ago, rainfall remains the question mark and crop estimates could fall
further,'' Mr Arnold said.
Australian Greens senator Rachel Siewert warned the ABARE figures were
too optimistic.
"Last year's September crop forecast was 16.4 million tonnes compared to
an actual outcome of 9.8 million,'' Senator Siewert said.
"With the weather forecast for rain not looking promising, it is
unlikely (wheat) crops yields will be anything like 15.5 million tonnes.''
The forecast was little better for the smaller winter crops, barley and
canola.
Barley production is forecast to climb from last year to about 5.9
million tonnes while canola production is estimated at 1.1 million
tonnes, a massive 24 per cent below the five year average.