Election offers energy spark, but more still needed

Electricity affordability has proven to be a major issue during the Queensland State election with the parties already releasing their policies to combat the ‘energy crisis early in the campaign.

Queensland Farmers Federation (QFF) President Stuart Armitage said it was encouraging that all parties had announced some positive commitments, but we are yet to see the holistic solution to the ‘energy crisis that farmers need.

The LNP and Katter’s Australia Party (KAP) have committed to addressing the network assets optimization issue “ the LNP by writing down Energy Queensland’s regulated asset base (RAB), KAP by valuing the assets at actual cost rather than replacement cost.

This is an important shift as the gold plating of the poles and wires is the number one driver of electricity price increases. The LNP commitment needs to go further, as it only writes the total RAB down by about 6.5% when 50% is required to deliver real price relief.

The LNP’s $75 million Food and Fibre Transition Payment for farmers on tariffs 62, 65 and 66 is also a constructive first step. But when the 3-year $1,400 payment runs out we will still be left with unsuitable tariffs. Encouragingly, KAP have committed to directly dealing with the transitional tariffs issue by indefinitely freezing the proposed changes.

KAP, The Greens and One Nation (ONP) have all committed, in different ways, to addressing the four hidden taxes on the Government Owned Corporations (GOCs) that accounted for about $3 billion in government revenue last year  about $12 billion over the last 3 years.

Labor has best addressed on farm demand management and energy efficiency with its commitment to a $10 million extension of the Energy Savers Program that will conduct 200 extra energy audits and offer a 50% co-contribution (capped at $20,000) towards the cost of implementing changes recommended through the audits.

However, without addressing the price side, Labor must significantly ramp up this program so more farmers can benefit and evolve the program over time to address broader productivity issues. read more

shed meetings November 2017

BPS and Farmacist will be conducting a round of shed meetings in November 2017. Topics will include SRA8, smut update, variety selection, irrigation, managing nitrogen losses, managing seed cane and chemical losses.  Please see the table below for times and dates. Growers are welcome to attend an alternative shed meeting if they are unable to attend their normal venue.

Electrical and electoral prices too high

There is no doubt that electricity prices will be a major factor in the outcome of the Queensland State election. The jury however is still out on how various parties will positively address this integral issue for regional and rural Queensland.

Queensland Farmers Federation (QFF) President Stuart Armitage said that despite assurances from politicians over several years of downward pressure on electricity prices, there has been no reprieve and the time for downward pressure is over  immediate price relief is needed now.

The ongoing energy crisis continues to have viability and profitability ramifications for Queensland farmers, who over the past decade had experienced electricity price increases of at least 130%. For some, the cost of this basic need and critical farm input has risen by 300%. Over the same period, CPI has increased by just 21%.

Farmers are fed-up with the lack of action and are looking for those candidates and political parties willing to do what it takes to reform the current broken electricity system.

Modern, intensive farming businesses rely on a range of energy-intensive activities for irrigation, heating, cool rooms and packaging sheds to produce high quality food, fibre and foliage. Reliable, affordable electricity is a must for farmers to keep the doors open so they can continue to employ people and support Queensland communities.

Government programs addressing energy efficiency and demand management have been an important resource for helping Queensland farmers to identify, learn and implement energy efficiency practices and changes to their businesses.

These programs must continue and must evolve to factor in linked activities, address broader productivity issues and provide implementation incentives. But they must also be ramped up so more farmers can benefits, and they have only dampened the unsustainable price increases imposed on farmers, Mr Armitage said.

This election QFF is advocating for the following sensible and practical actions to realise our vision for a vibrant and thriving agricultural sector providing food, fibre and amenity to all Queenslanders: read more

Reef Report Card confirms farmers progress & successes

The standout modelled results include a reduction in average annual loads of dissolved inorganic nitrogen (DIN) by a further 5.5 to 25.5 per cent in the Burdekin, and 4.1 to 9.6 per cent in the Fitzroy.

Queensland farmers Federation (QFF) President Stuart Armitage said that the 2016 Report Card offered a constructive update on the progress of many aspects associated with improving the health of the Reef, even though agriculture was the only sector measured and factored in to the Report Card results.

Queensland farmers from various industries are engaged in programs that are implemented over a number of years. The Report Card is just one way of measuring their progress.

Not all the activities undertaken during the reporting period are included, so these results are considered a conservative estimate of the progress our sector has made.

The Report Card mentions results from the various industry Best Management Practice (BMP) programs. Industry BMP programs are making significant progress towards changing practices to protect the Reef with farmers contributing $1.55 for every $1 invested by government.

In sugarcane alone we have seen a 60 per cent plus increase on the number of farms achieving Smartcane BMP accreditation since the 2015 Report Card.

Over 62 per cent of banana farmland across north Queensland is now BMP accredited, and many more growers are currently working towards this goal.

Graziers in the Reef catchments are also embracing the BMP process with 1,722 properties covering nearly 10 million hectares undertaking assessments on their practices as they work towards BMP accreditation, Mr Armitage said.

Agriculture is essential to regional Queensland sustaining over 40,000 jobs and contributing more than $5 billion of economic value at the farm gate alone (Reef catchment area total).

QFF continues to take a lead role facilitating the Reef Alliance partnership. The Alliance consists of the agriculture sector, Natural Resource Management (NRM) groups and WWF and shares a common goal of securing the future of the Reef. read more

Issues paper for northern Australia insurance inquiry

24 October 2017

The ACCC has today released an issues paper for its inquiry into the supply of residential building, contents, and strata insurance in northern Australia. The Australian Government directed the ACCC to undertake a wide-ranging inquiry due to concerns about affordability and availability of insurance in the region.

The ACCC will be hosting a series of public forums so consumers can share their concerns directly with the ACCC. The forums will be held in November and December this year in Townsville, Cairns, Darwin, Alice Springs, Karratha, Broome, Rockhampton, and Mackay.

These forums will allow us to hear directly from people in northern Australia about their experiences of the insurance market, ACCC Deputy Chair Delia Rickard said.

The ACCC is investigating why insurance premiums have increased substantially in northern Australia over the past few years. Our Inquiry aims to identify the barriers that prevent consumers from accessing affordable, appropriate, and comprehensive insurance.

As a formal inquiry, we will use our compulsory information gathering powers to access information directly from insurers. This is something other inquiries have not been able to do. We are also seeking consumer and industry input on price, policy coverage, and any barriers to consumers getting a better deal, Ms Rickard said.

The ACCC is seeking feedback from interested stakeholders on a range of issues, including:

• Insurance pricing, the key cost components of insurance, and insurer profitability
• The competitiveness of markets for insurance in northern Australia
• How consumers interact with insurance markets including any barriers to consumers making well informed choices
• Other regulatory issues relevant to the insurance industry
• The role that mitigation can play in improving affordability.

There is a short version of the issues paper covering the content most relevant to consumers. Consumers can respond to the short version online. The full issues paper, short version, and information about the public forums is available at: Northern Australia insurance inquiry.

Submissions are due on 21 December 2017 and can be emailed to [email protected] (link sends e-mail).

Background

The ACCC must submit reports to the Treasurer by 30 November 2018 and 30 November 2019. The inquiry is to be completed and a final report submitted to the Treasurer by 30 November 2020. read more

Queensland Farmer’s Federation –  Reducing Energy Use

Reducing energy use, bills and increasing on-farm efficiency

Over 60% of the 130 farms participating in the QFF Energy Savers program have or plan to implement part of the $3 million of annual energy cost savings identified in the energy efficiency audits across different industries. This includes 50 farms implementing energy efficiency projects and another 32 that are planning to in the near future.

QFF President Stuart Armitage said that despite the evident structural challenges with energy affordability in Queensland, farmers are not waiting around on the promise of eventual price relief.

“Farmers are implementing projects to improve and upgrade irrigation, refrigeration, lighting and installing solar photovoltaic (PV) systems,” said Mr. Armitage.

“The biggest uptake has been by irrigators improving pumping systems. Crop requirements, climatic conditions, water licencing and irrigation channel conditions mean they don’t have the luxury of deciding when they pump water.

A recent survey of program participants found that over 90% of respondents felt that Energy Savers has raised awareness of on-farm energy management.

Most encouraging too has been feedback from energy efficiency suppliers that farmers are approaching them for improvements based of the case studies and information provided through the program.

The Energy Savers program has developed and published 45 case studies, including 5 videos covering a range of agricultural industries throughout Queensland all available on the Energy Savers website. These case studies and information have been presented at 50 events throughout the state’s agricultural regions.

“QFF continues to work with Ergon and the State Government to assist farmers move ahead with projects identified in the audits by providing advice and information to reduce barriers, such as understanding the technologies and accessing financing options,”  said Mr. Armitage. read more