How to Really Help The Farmers

After reading tebbybabes and the videos in the comments, I'm wondering how to help the Australian farmers and setting up a poll with my options.

I'm confused with the whole story and my option is continuously by the cheap milk and donate 0.50/l that I buy every week as far as my financial situation allows me. Please provide list of charities that honestly help farmers.

Feel free to provide your valuable feedback.

*** Update ***
Hi OZBers,
Thanks for your valuable feedback. I agree with most of you.

I'll divert the additional fund I calculated to for population who are actually in need. I'll close this thread shortly with the final remark made out of the comments.

"Leave it to market forces, farmers are still a business"

Poll Options expired

  • 4
    A. Buy expensive Milk from super markets
  • 8
    B. Buy directly from farmers such as [Aussie Farmers Direct](https://www.aussiefarmers.com.au)
  • 3
    C. Buy cheap milk and donate money to funds that directly help the farmers
  • 36
    D. Do nothing. Just be BAU. Not your fault and no one going to help when you lose your job!

Comments

  • +4

    I think it is worth remembering that farmers both have access to our normal welfare provisions, but also additional primary producer provisions for times of drought etc.
    I'm a fan of farmers, but there are many people in the community in much more serious circumstances, so I won't be directing any charity to dairy farmers. Your priorities might be different.

    • +1

      Couldn't agree more … using a figure derived over a decade ago there are more than 100,000 homeless people in Australia at any one time. There are 250,000 pensioners that choose between food and heat every winter. One in five Australian children do not meet the requirements of being above the level the gummints sets in order to be considered "in poverty".

      But you want to support businesses with huge capital assets that are doing it tough, OK.

      • +5

        Can I ask why so many ozbargainer's keep saying 'gummint' instead of the actual word?

      • +3

        There will be a whole lot more homeless, pensioners and children in poverty if something isn't done about this.

        • Spot on! Your name doesn't reflect your comment though!! lol

      • Fair point. Not that I'm directing my existing charity fund towards farmers. I was thinking about something additional. They may have huge capital assets, but letting them to sell them to Chinese companies like in the case of Tas farms as they couldn't cover the cost of their crops make me feels we are letting our own people down.

    • +1

      I live down the road from a dairy farm and to be quite frank, I'd be happy to see him go out of business. The manner in which he looks after his animals is deplorable (and cruel) and I imagine it's pretty much standard practice when you either don't care about animal welfare, or only care about the bottom line. My view is heavily tainted by my personal experience, but I say, screw the farmers, it's the cows that are ultimately being punished for the cheap milk.

    • Which welfare provisions are you speaking of? I can't think of any that you can claim as a self-employed farmer making a huge loss. It's not like they can get Newstart.

      Provisions for drought also aren't applicable to any Victorian or Tasmanian Dairy farmers, which is where the large majority are.

      • I am not an expert on VIC or Tas, but NSW has the RAA http://www.raa.nsw.gov.au/ which is expressly set up to help rural people deal with stuff like this.
        And of course a dairy farmer can get access to Newstart if they no longer have their farm.
        It is like saying that redundant car factory workers can't get Newstart because they insist they won't take a job except car manufacture.
        If we want to provide additional welfare to farm owners above what is available to the rest of the population, I'm open to considering it, but I don't understand why "it is common sense" that these particular agricultural business people need different support to other people.

        I am particularly exercised by the idea that we have free markets (e.g. Nationals support for TPP and other trade deals) that allow farmers to scale up production and take the benefits in good times, but then seek special treatment in bad times.

    • Thanks mskeggs. I have a big respect to you with the amount of sensible feedback you provide in all forums. Yes, I do bit of support for individuals who really in need, but this I was thinking to do as my current purchase of milk is reduced by $0.10/l as we mostly use long life milk which is $0.90 at all supermarkets. Also I got a second hand experience thru my uni friend, who's father took his life as he couldn't sell his crops to cover his loans (15 years ago and not in Aus). Although his family is back on track I don't want to see such tragedies again. I know it is not in my control, but it is my little effort to support the people who actually feed us.

  • +4

    I would be more concerned with the people of regional Australia without farms to supplement their income. Those people are some of the poorest people in Australia and deserve our attention.

    I donate meat and fruit to families in Barnaby Joyce's electorate of New England through my uncle's farm near Tamworth.

  • +1

    Dairy farming is nasty business. I don't feel sorry for dairy farmers.

    • nasty in what way?

      • In treatment of animals

        • all dairy's? or just the bad ones? like pet owners? - there are a lot of great pet owners and a few absolutely crap ones.

  • +3

    there needs to be introduced a government run "farmers bank" which solely assists Australia's agri-business.

    open to farmers for financial assistance and run by people who have an understand of farming and rural finance.

    Australia is both a country of bounty, and in the next breath, a land of drought. Farmers are at the mercy of the weather and the banks won't wait for a "good year".

    This is not a scheme to support clueless, incompetent or unproductive farmers but to remove the commercial interests which govern banks and their lending policies.

    Farmers utilising the farmers bank are able to borrow at rates that are lower than "the banks" - possibly just above the RBA rate.

    There are no application fees or annual fees.

    Farmers must produce farming records and justify the loans they are seeking.

    Again, this is not a cash cow for farmers (no pun intended). This is a way that farmers can keep their heads above water. Combined with qualified financial planning assistance.

    Loans aren't handed out willy nilly.

    A farmer friendly bank.

    Where "loan manager" are more like "case workers" in assisting and advising farmers.

    Suicide in rural areas is amongst the highest levels in Australia. A large proportion of suicides are attributed to financial pressures. Having a more pragmatic approach would hopefully reduce the number of suicides. Also it would remove the commercial banks pound-of-flesh interference.

    Further more, despite the Australias climate, we have the ability to produce a lot of food for export. Make that a government priority. money back in to farming and primary industry. get people back on the land.

    this would also improve local/regional economies which in turn would help small businesses and increase regional employment.

    anyway, that's my rant.

  • you know every time i hear them complain i just doesn't add up to me. i don't know this ins and outs and maybe someone can enlighten me but this is what i think

    if they are being offered a ridiculously low price that is below cost to the farmer, why doesn't the farmer refuse, where else are they going to be able to source milk below cost. if the farmer is truly making a loss then where is that money coming from?

    if someone else is able to supply it lower on the market well then so be it, that is how business works and why should people subsidize them so they can keep profiting.

    as above there are plenty of people worse off they couldn't care less about, plus they are exploiting animals for their own gain and they cry for sympathy. i don't feel sorry for them, they can always start farming vegetables instead.

    • if they are being offered a ridiculously low price that is below cost to the farmer, why doesn't the farmer refuse, where else are they going to be able to source milk below cost. if the farmer is truly making a loss then where is that money coming from?

      Farmers don't really have the luxury of choosing who they sell their milk to - most milk distributors have their own area's and there is very little competition. And farmers can't just hold out - they can't afford to. It would be the same as you going to work tomorrow and holding your breath until your employer pays you more. - good luck with that.

      if someone else is able to supply it lower on the market well then so be it, that is how business works and why should people subsidize them so they can keep profiting.

      and what's wrong with bringing in illegal workers from overseas and paying them peanuts? so that Australian citizens can't have those jobs. See, here is the fundamental fault with the concept of capitalism- profit over people. why buy anything australian made ? (think clothing, art, household goods, etc) why not buy it from india or china, where production costs are minimal. buy Australian!?!? why do that to supplement australian businesses? you can get it for 5% cheaper when it's made elsewhere. 5% cheaper!! you're saving money!!! but then your money is going overseas.

      plus they are exploiting animals for their own gain and they cry for sympathy

      yes to the first part. I totally agree. I've been vegetarian for over 20 years but helping my father-in-law on his beef farm e.g. separating year old calves from their mothers and hearing them bleating and trying to get back together is quite sobering. especially as the bull calves are going to be someones dinner shortly. And then at the same time look at the level of "exploitation" that exists over the "natural" world. we're digging up the earth, burning it, flooding it, cutting down it's trees. and at the same time humans are exploring space, writing books, developing computers, etc. killing animals happens, just as clearing land happens and air pollution happens. part of that is "progress" part "greed" part "hubris". umm, no easy answers.

  • All the comments make it seem like the world has ended for the milk producers. The farm gate price dropped from about $5.60 to $5.00 per kg milk solids. Takes just under 14 liters or milk to contain one kg milk solid. The price to the farmer dropped from 40 cents per liter recently to just under 36 cents per liter now. No one has provided any details on the farmers actual cost per liter to produce the milk. It seems the farmers were perfectly happy at 40 cents per liter - all it takes is another 5 cents per liter to the farmer and all is well again. I would like someone from the government etc to actual provide some details before handing out huge amounts of additional assistance to the farmers. At 36 cents per liter, a lot of farmers would still be fine - it would be the higher cost/less efficient farmers who might run into issues at the lower price. The issue in my view has been blown out of proportion in my view - a lot of bluster and very few details.

    • Ok, I can clarify a few details for you. My father is a dairy farmer.

      Milk production is a high scale game where small movements in margins mean a lot. Most dairy farmers estimate their break even point at roughly $5.00/kgms in an average year. The past 12 months' rainfall has been well below average (in Victoria anyway, not sure about elsewhere) meaning that most were breaking even at the $5.60/kgms price. Dropping it to $5.00/kgms means that a large majority of dairy farmer will make a significant loss this FY, especially when you consider the scale of production.

      The scary part though is for suppliers of Murray Golburn (especially) and Fonterra. They have cut their price to $1.91 (MG) and $4.41 (Fonterra) for the remaining 2 months of the FY. Fonterra's price is also being reduced for the first 2 months of next FY.

      Certainly not blown out of proportion, farmers are selling their herds/farms to meet their debt repayments. There will be lives lost to suicide over this.

      • Thanks for the info. I guess that the farmers/coops who struck deals to sell directly to Coles/Woolworths are better off at this point. The case seems to be more of MG and Fonterra protecting their profit at the cost of the farmers.

  • Thr premiumisation of milk, following honey, vitamins, yoghurt, coffee, bread etc etc

    • tinned fish, cheese and Cage Eggs!

  • -2

    TYPICAL TOWNIES THE LEFT WING LATTE SET OF INNER MELB SUBS THEY DON'T CARE
    I SEE SOME OF THE SO CALLED BEGGERS IN MELB CBD ARE THE SAME ONE'S EITHER INVOLVED IN THE EAST WINS LINK PROTESTS
    OR THE SAME ONE'S INVOLVED IN RIOTS WITH VIC POL
    I HOPE THEY LIKE THEIR MILK.
    MAYBE FARMERS SHOULD PROTEST AT THE FARM GATE. SEE WHAT HAPPENS THEM

  • +2

    I have one word for you - Greed. Murry Goulburn was not set up well as a co-op. It seemed more about setting up for a float and cashing in which some have done and disappeared and as usual the slower ones are caught holding the bag…

    I don't get misty eyed about farmers failing for one simple reason. I know enough farmers who raked in the cash, blew it (buying 100K luxury cars?) and then cried when the drought hit. I know nobody will believe me and I am fully ready to be flamed. I also know that a small sample does not make a scientific study! I ALSO know how many farmers there are, if they were all slowly dying with no relief or good years then there simply wouldn't be as many as there are.

    It's a business, nobody steps in and bails out my employer if they fail and i lose my job why are farms any different? Sounds harsh I know but I don't like selective help based on some national identity that was never true in the first place.

  • Why does buying more expensive branded milk from Australian farmers help the farmers?
    Wouldn't this become an issue in the future where we'd eventually fall away from this hype and then there's an oversupply of milk in the market?

    At one stage or another, farmers would've had the upper hand to hang these companies by the balls and set their own price but unfortunately they've let money take over their lives.

    It's a business, survival of the fittest. If you fail to change and adapt, you're losing and as I see it, milk has always been a losing battle. Let's not cry over spilt milk

    This social media outcry is just an injection for farmers, it won't last long

    • "Why does buying more expensive branded milk from Australian farmers help the farmers? "

      It doesnt, it helps the milk co-ops who sell the branded milk with higher profit margins
      It helps woolies and coles who sell the branded milk with higher profit margins
      None of those profits get to the farmer

      "This social media outcry is just an injection for farmers, "

      No its not, none of the profits from branded milk gets to the farmer
      They get the same $Xc/L whether their milk goes in a coles/woolies bottle or an "insert brand name" bottle

      "it won't last long"

      It'll last as long as dumb people fail to do research, keep posting false "facts" and keep paying

  • I say leave it to market forces. Paying the farmers too low will either make them more cost efficient or make them drop out entirely causing a milk shortage. A shortage will then force milk prices back up. Interfering with natural supply and demand will just cause problems later on.

    • I agree, the market forces will sort them out.
      At the end of the day, farmers are still a business and they have to figure out how to keep their doors open

      • -1

        I would essentially agree but I think this viewpoint ignores the fact that the Colesworth of the world have much more market power than farmers.

        When market forces are skewed like that, then I think the govt. needs to step in.

        Colesworth created this $2 problem and IMO if you force it to $2,50 or $3,00 then I beleive Colesworth would get 90% of the increase and the farmers 10%.

        Their power needs to be broken up.

        I'd rather the govt. protect farmers at the expense of Colesworth.

        • You dont get it do you?
          The farmers get the same regardless of what milk you buy, it has nothing to do with coles/woolies.

        • So Colesworth did not created the $2 problem.

          Good to know.

        • +1

          @Davros: agreed, farmers are getting the same amount regardless so it doesn't make a difference.

        • @tonyjzx: The $2 problem is a problem for coles/woolies as they are selling their product at near cost.

          Now that the average dummy is buying branded milk, coles/woolies are very happy as they make even more money off of the branded product than they do off of the home/coles/woolies brand.

          The farmer gets exactly the same amount regardless of what milk the dummies buy.

  • -1

    TO HELP THE DAIRY FARMERS BOYCOTT THE BIG TWO
    WON'T TAKE LONG AND THEY WILL COME TO THE PARTY

  • How about you donate to a charity that week actually help homeless and starving people instead or help out the community.

Login or Join to leave a comment