Challenges Faced by Farmers in Adapting to Evolving Environmental Laws, Highlighted by Peak Body
Environmental policies are increasingly posing challenges for farmers, according to a peak body representing agriculture in Australia. In a recent Senate hearing, Michael Drum, the executive officer at Macquarie River Food and Fibre, spoke about the impact of government regulations on farmers and how it is affecting their ability to produce efficiently. The compliance costs associated with these regulations are not only burdening farmers, but also trickling down to customers and shoppers.
Drum highlighted that agricultural policies have driven compliance to an unprecedented level in Australia. While each individual policy may seem reasonable, the cumulative effect of these policies has not been taken into account. This lack of consideration is severely impacting farmers’ ability to produce efficiently. Compliance costs can reach hundreds of thousands of dollars for farmers. This cost is not limited to Australia alone, as it also affects exports.
One of the examples given by Drum is the federal government’s intervention in the water market to protect the health of the Murray-Darling Basin. While this policy makes sense on its own, when combined with other regulations, it becomes increasingly difficult for farmers to cope. The constantly changing water policies further exacerbate the problem, making it difficult for farmers to keep up. In essence, the rules are constantly shifting, making it impossible for farmers to have a stable existence.
The peak body proposes that policy costs should be made transparent. While positive policy changes are welcomed by the farming industry, it is crucial that these policies are properly costed and go through risk assessments. Currently, the costs associated with these policies are accepted at a macro level without considering the full impact on farmers. There is a need for a comprehensive risk assignment to understand the potential problems that may arise from these policies.
Moreover, the agriculture industry in Australia is open to a significant amount of risk. The rising costs caused by government regulations will ultimately find their way to supermarkets and consumers. This means that customers and shoppers may face higher prices for agricultural products due to the compliance costs borne by farmers.
In conclusion, the evolving environmental laws and regulations are posing significant challenges for farmers in Australia. The compliance costs associated with these regulations are not only burdensome for farmers but also affect customers and shoppers. It is crucial for policymakers to consider the cumulative impact of these regulations and properly assess the costs and risks involved. Transparency in policy costs is necessary to ensure that the burden is distributed fairly and to maintain a stable and sustainable agricultural industry.
