A budget that leaves agriculture behind

This week's federal budget has landed with a thud in rural Tasmania, offering little for the farmers and regional communities that sustain our nation. Agriculture isn’t just another industry, it’s the backbone of our economy, driving jobs, exports, and food security. Yet, this budget fails to recognise the critical challenges facing those on the land.

One of the biggest disappointments for Tasmanian businesses reliant on sea freight, not just those in agriculture, is the absence of funding improvements for the Tasmanian Freight Equalisation Scheme. 

This remains the biggest handbrake on the state’s economy. While we understand an election is approaching, TasFarmers believes this budget was an ideal opportunity for Labor to at least match, if not improve upon, the Coalition’s commitment to both, the short and long-term reform of the freight equalisation scheme. 

The election should also serve as a platform for both parties to re-commit to the current funding model for future irrigation schemes, a key focus for TasFarmers. The federal government must maintain its level of support, as Tasmania will play an increasingly important role in feeding the nation in a changing climate.

Outside of the budget process, Labor has made some positive commitments, such as improving telecommunications access. However, there are still significant opportunities to establish a universal service offering.  Regional communities continue to pay more for inferior connectivity compared to urban areas. 

Another major gap in this budget is addressing the rising cost of doing business. For farmers this is one of the most significant challenges facing primary producers. 

Many of our primary producers are small business owners, yet measures like the instant asset write-off, which could provide much-needed confidence and investment, was not funded. The uncertainty surrounding this policy only adds to financial stress in an already volatile industry.

We urge all parties and candidates to commit to reintroducing this measure, as it would provide small producers with the confidence and financial means to reinvest in their businesses during challenging times.

This budget was a missed opportunity for the government to demonstrate its understanding of and commitment to the agricultural sector as a key part of our economy. Actions speak louder than words. 

What this budget does highlight is the growing divide between agricultural policy and policymakers. As that gap widens, we continue to hear from producers that the public service is increasingly out of touch with regional communities, whose livelihoods revolve around feeding the nation. 

This budget may give the government a short-term boost in the polls among undecided voters. However, most rural voters take a pragmatic view. They will be asking themselves whether they are better off running their farms today than they were four years ago. Both parties still have the opportunity to clearly outline their positions and vision, providing much-needed direction to our members on which party will best support them and their businesses.