A new Australian Government drought plan

NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

The Northern Territory Cattleman’s Association – submission on the Australian Government
Drought Plan Consultation Draft 2024

The Northern Territory Cattleman’s Association (“NTCA”) welcomes the opportunity to comment on
the Australian Governments Drought Plan Consultation Draft (the “Draft Drought Plan”). The NTCA is
the peak primary industry body in the Northern Territory, representing over 90% of the Territory’s
pastoral industry, from small family pastoral holdings and Indigenous enterprises to large corporate
entities.
Our submission reflects insights gathered through consultations with producers regarding past
drought assistance measures and the principles outlined in the 2024 Draft Drought Plan. Please find
below the NTCA’s formal submission to the Draft Drought plan, which correlates with the NTCA’s
general policy on drought.

Recommendations in short form:

1. Restructure of the Northern Drought Hub to increase engagement, attendance and
outcomes
2. Improvement of subsidy schemes
3. Reactivate the Pastoral Water Enhancement Scheme
4. Amending the Farm Management Deposit Scheme
5. Acknowledgement of the impact of Climate Change on Drought and appropriate
accommodations
6. 12-month probationary period

Background:

Given the unique climatic and demographic conditions of the Northern Territory, a one-size-fits-all
approach to drought is not appropriate nor effective. This submission highlights the specific challenges
faced by NT producers and offers recommendations for more tailored approach to drought assistance
in the NT.

The Northern Territory experiences tropical conditions in the Top End, while the southern regions are
more arid, naturally leading to a range of different vantages and hinderances. Of specific significance
is the demographical difference being that our pastoralists are generally responsible for more larger

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

scale pastoral operations and therefore subject to substantial geographical isolation. A standard
national approach does not effectively cater to these characteristics and the programs and initiatives
from future policies must account for the unique challenges posed by each region, which is a critical
issue historically in the application of drought policy.

The NTCA understands that Australia’s drought policy is developing away from immediate,
reactionary support to more long term, proactive assistance. For this to be successful, the proactive
assistance needs to be assisting.

Key Issues Raised in Consultations

1. Northern Western Australia and Northern Territory Drought Resilience Adoption and
Innovation Hub (Northern Drought Hub)

The NTCA strongly supports the concept of the Northern Drought Hub, however, the consensus is that
the projection of tangible producer focussed assistance has failed to effectively integrate in the
Northern Territory. This is likely the result of a variety of factors mentioned above, being the uniquity
of our climatic, demographic and geographical isolation, all leading to the necessity for exceptionally
tailored and region-specific assistance.

A survey conducted in mid-2024 by the NTCA among NT pastoralists revealed that majority had no
prior knowledge of the Northern Hub and certainly not enough background to provide feedback on its
productivity or utility. From those participated in the survey and were aware, none deemed practical
value in the Hub. It is the NTCA’s view that a restructure and redesign of the delivery program
produced by the Hub is integral to the future success of the program.

The view of pastoralists generally is that the Hub currently exercises excessively in the research and
development field and needs to transition towards practical engagement and collaboration with
industry to produce tangible results. While innovation, research and development is essential for long-
term drought preparedness, on-ground, practical support is the priority and preference to achieve
transformational change in management and mitigation practises.

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

Pastoralists want programs that deliver tangible benefits to drought resilience, such as detailed and
unique management planning and drought orientated operational assistance. While these programs
may be in circulation, the engagement and delivery of them has not been effective.

The Drought Hub needs an internal structural arrangement that supports engagement with industry
and promotes a dependable relationship between the Drought Hub and producers. Not until recent
years has the Drought Hub funded long term trials and demonstrations that capture seasonal
variability. Given the duration of droughts, the primary characteristic of funding an programs should
be long term to ensure accurate and appropriate data and assistance is provided.

The NTCA supports a structure that utilises peak bodies to collaborate with the Drought Hub in
consultation and communication with industry. The NTCA recognise that the overarching concept of
retaining the Northern drought related research and project in the Northern Drought Hub provides
many advantages to pastoralists; however, submit that peak bodies are best placed to increase
engagement and outcomes. We also recognise that the research and development projects would
greatly benefit from the collection of accurate and consistent data from across the Territory.

Pastoralists flagged that attending Drought Hub workshops is often impractical. The vast distances
between stations and towns, compounded by the cost of accommodation and travel, makes
participation difficult; and this is without considering the everyday management requirements of
pastoralists as parents and employers. Altering the approach by bringing training and resources
directly on-site to the stations that register interest would likely result in higher engagement and
produce tangible, effective support for producers.

2. Unintended consequences with Fodder Subsidies

Fodder subsidies in the past have led to significant challenges for NT producers. Specifically, subsidies
offered to southern states have created market access issues, as regions provided with financial aid
have been able to outbid NT producers for already limited supplies, leaving NT producers without
access or forcing them to pay exorbitant amounts to compete in already harsh conditions. This issue
was further inflamed by the lack of proportionality in the allocation of subsidies. Subsidy programs
should be redesigned to better account for the scale, ensuring that assistance is distributed in a
manner proportional to the size of the business (per square km or per head) rather than on a per-

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

person basis. This would provide a more equitable distribution of support to both smaller family-run
stations and larger corporate-owned properties.

Producers have also raised concerns about the misalignment between the value of subsidies and the
rising costs of fodder and freight, which are not adequately reflected in current subsidy schemes. As
a reoccurring theme, the application process for subsidies has been described as overly complex and
time-consuming.

3. Pastoral Water Enhancement Scheme

The re-investment to the historical Pastoral Water Enhancement Scheme also referred to as the ‘Dud
Bore Scheme’ is strongly supported by NTCA. Previously, funding was provided where an attempt to
drill a bore is unsuccessful, the government will reimburse the costs (for a maximum of three
attempts). Where the bore drilling is successful, costs will not be awarded. This initiative received a
considerable amount of praise and was recognised as a tangible, productive initiative in drought
mitigation and encouraged producers in drought prone regions to adopt risk management strategies.
We welcome further consultation in relation to this initiative in due course.

4. Improvements to the Farm Management Deposit Scheme

While the Farm Management Deposit Scheme (“the Scheme”) has proven beneficial in supporting
pastoralists during periods of drought, several concerns remain.

The eligibility criteria for accessing the Scheme is not appropriate or achievable for many smaller
family run businesses and we recommend tailoring the Scheme to allow greater engagement across
the board. Further, on the basis that these funds are utilised for essential purchases such as fodder
and operational support in periods of drought to keep cattle alive, a tax-free threshold should be
introduced for these withdrawals. This would provide some financial relief during periods of extreme
hardship and incentivise producers to contribute to the Scheme for future use.

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

5. Climate Change impacts on Drought

The impacts of Climate Change on drought have been distinctly and continuously reaffirmed; Climate
change will increase the frequency, duration and intensity of droughts. Whie producers acknowledge
their contribution to Greenhouse Gas emissions, like all industries, they are by no means the largest
contributors; however, suffer the consequences of drought on an unparalleled scale.

The impact of climate change disproportionately impacts pastoralists, particularly taking into account
the excessive regulatory pressure under climate change regulations in a holistic comparative analysis
acknowledging the systematic failure to recognise the unequivocal benefit to the environment that
standard practise land management provides to the natural carbon cycle.

The increased impact of climate change on drought needs to be sufficiently addressed and
accommodated for in the new drought policy by ensuring that sufficient correlation with the
evidentiary acknowledgments of impacts on drought in climate change policy and appropriate
consideration given.

6. 12-month probationary period

Whilst the majority is supportive of the significant shift away from the natural disaster concept that
has moulded the past decades of drought policy, without knowledge of the specific policy delivery
framework, we cannot conclusively provide support on the concept. We can conclusively state that
the for concept to achieve practical and productive outcomes the management and mitigation works
proposed need to produce outcomes. Without this, there will likely be a need to revert to the latter.

Given the need for a cautious approach, acknowledging the general consensus that it is an appropriate
approach, it is important to ensure that the concerns raised—particularly those related to the long-
term effects of climate change on drought—are addressed to ensure that the Australian government
does not disengage from its responsibility to assist producers in managing extreme weather conditions
and hardship.

Based on the above, we firmly believe it is essential to introduce a 12-month operational probationary
period, with industry to be consulted on the policy’s suitability and productivity at the end of this
period.

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au
NORTHERN TERRITORY CATTLEMEN’S ASSOCIATION
Advancing and Protecting the Interests of the Cattle Producers of the Northern Territory

Conclusion:

In summary, the Northern Territory Cattlemen's Association urges the Australian Government to
adopt a more regionally tailored approach to drought management, particularly for the NT’s unique
climatic, demographic and geographical conditions.

Greater focus should be placed on practical, on-ground assistance for pastoralists, with subsidies and
funding mechanisms adjusted to reflect the specific scale and challenges of NT operations. We also
strongly recommend revising the eligibility and tax treatment of the Farm Management Deposit
Scheme. Finally, given the significant impact of drought policy on the industry, we firmly submit that
a 12-month probationary period be implemented.

The NTCA looks forward to working with the Australian Government to ensure that the 2024 Drought
Plan is effective in supporting NT pastoralists through future drought periods.

Northern Territory Cattlemen’s Association | (08) 8981 5976 | office.darwin@ntca.org.au | www.ntca.org.au