The federal government's bid to overhaul drought aid in the budget could be helped by drought-breaking rains in some regions last financial year that saved more than $170 million in payments to farmers.
According to The Australian Financial Review, summer rains that moved northern NSW out of drought, reducing demand for farm support, will also free up cash set aside for drought relief this financial year and could help fund the transition to the new regime from July.
Agriculture Minister Tony Burke has previously acknowledged that extra resources would be needed for the transition. This is because the government wants to introduce the new program, aimed at preparing farmers for dry periods, while maintaining existing payments to those still in the grip of this drought.
In total, the agriculture, fisheries and forestry portfolio spent $382 million less than its appropriation in 2007-08. About $174 million of this was because less money was needed for drought assistance than predicted.
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