RESPONSE TO THE PRODUCTIVITY COMMISSION’S DRAFT REPORT INTO GOVERNMENT DROUGHT SUPPORT

important suggestions for improving the implementation of the National Drought Policy. Overall its recommendations reinforce the principles underpinning the National Drought Policy and redress the problems that have arisen over the course of its implementation. We support the Commission’s recommendations in several areas: 1. ending the declaration of exceptional circumstances and developing government support measures for farmers to manage climate variability based on individual need; 2. the end of interest rate subsidies; 3. the retention of Farm Management Deposits; 4. the end of transaction-based subsidies; and 5. substantial funding for research and development to assist farmers with the preparation for, management of and recovery from the impacts of climate variability and change. However, there are two key areas in which we believe the Commission should reconsider its recommendations. The balance of this response to the Draft Report addresses these issues. Farm poverty and income suppor