By Chris Spindler
Through budget cuts to community services and particularly through redirecting federal government rural aid the Liberal government is favouring the large rural land-holders and producers at the expense of small producers and rural workers.
The 13 years of Labor government brought hard times for the small and family farmer with more than 20,000 of the 171,000 small rural land-holders folding in the decade to 1994 (ABS figures only include farms that earned at least $5000).
The figure of 20,000 is likely to have climbed much higher over the last three years. Farmers have experienced severe drought and tight restrictions on drought relief, particularly in regards to the profitability criteria of the Rural Adjustment Scheme.
The rural assistance re-establishment grant is likely to be more than doubled to $100,000 to encourage unviable farmers to leave the land. The grant is paid in monthly instalments equivalent to the dole until the property is sold, at which time the farmer receives the balance of the $100,000. It is a cheap scheme to aid agribusinesses in a land grab.
The richest and largest land-holders have already increased their holdings considerably. The top 20% of farmers are producing approximately 60% of the produce and are making 100% of the profit. The remaining 80% of farmers are only breaking even or have continually lost money. Cash incomes on farms halved between 1982 and 1994, although this was clearly not among the top 20%.
The largest corporate rural land-holder in Australia, S. Kidman & Co, has increased its holdings by half a million hectares in the last two years. Kidman & Co own slightly less than 4% of Australia. Other large land-holders also maintained or increased their holdings, including Kerry Packer's Consolidated Pastoral Co, Elder's Austag, and private land-holders such as Hugh McLaughlan who now owns 4.7 million hectares.
While drought and price fluctuations cost small land-holders their livelihood, overseas investments and producing for overseas markets kept many of the big players in the money. For example, while Stanbroke (the biggest meat producer in the country) had its profits halved through price fluctuations it still recorded a $10.1 million profit.
Janet Holmes a Court's Heytesbury Company has been selling up properties in Australia to fund the establishment of meat works in Malaysia and, along with Packer's Consolidated Pastoral, plans to export 70% of its Australian produce in live beef.
Australian companies such as Elders are making massive profits from the expanding live beef export trade, particularly through the exploitation of freighter crew and slaughter houses overseas. Some ship crews get paid $65 per week for working 16-hour days on vessels with questionable health and safety conditions. The International Transport Federation likens these workers to new Aboriginal stock-hands and jackaroos who are being subjected to Third World salaries and conditions in the cattle industries' drive for profits.
The Liberals' budget cuts will have a disastrous social effect in the countryside. The 5% education cut is likely to close a number of regional campuses, while cuts in Austudy and labour programs and the increase in HECS will restrict opportunities for individuals. Funding reductions to state governments will reduce services in state agricultural departments, while secondary education and health cutbacks all point to a bleak future for services in rural areas.
On top of this, the budget for Landcare projects has been reduced, putting in doubt a number of local on-farm environmental initiatives.
The Liberals' attitude to smaller producers appears no different to that of the Labor Party. Increased farm sell-offs, increased privatisation of rural boards and restricted services can all be expected. The Liberals' policies will ensure that the crisis continues for the majority of small farmers and rural workers, while the rich land-holders only get richer.