Farmers in Victoria dealing with a devastating drought | 7.30

Southwest Victoria Drought: A Deep Dive

Key Concepts: Drought, rainfall deficiency, frontal systems, water restrictions, destocking, emergency services levy, market distortion, climate change impact.

1. The Severity of the Drought in Southwest Victoria

• Unprecedented Dryness: Mark Billings, a fourth-generation dairy farmer in La Pent, Southwest Victoria, states that this drought is "far worse" than the 1967-68 drought, which his father always talked about. This is the first time his dam has run dry in nearly 100 years.
• Impact on Farmers: The drought is described as "insidious," affecting livestock, farmers, and their families. Farmers are experiencing their second year of dry conditions, with some properties recording their lowest rainfall on record.
• Rainfall Deficiency: Dr. Carl Banza from the Bureau of Meteorology notes that the region is experiencing "lowest on record" rainfall deficiencies over the past 15 months. This is attributed to a lack of rainfall from frontal systems during cooler seasons (April to November).

2. Economic and Logistical Challenges

• Hay Shortage and Price Increase: Mark Billings has completely run out of hay and is now buying it at a premium. The price of feed has increased by $100-$200 per ton.
• Water Scarcity and Delivery: In Byak, 20 minutes from Mark's farm, water tanks and dams have run dry. Residents are relying on water delivery services. Lucy Richardson, who runs a water delivery company with her husband Scott, reports receiving 18-20 calls a day and working seven days a week.
• Cost of Water: A truckload of water costs $500-$600. Farmers requiring 3-4 loads a week face water costs of $2,000+ per week, excluding other expenses.
• Government Response: The Victorian state government announced a $15.9 million support package for farmers. However, Ralph Cotter, the regional drought coordinator, states that subsidies for water carting are not being considered due to concerns about "distorting the market."

3. Impact on Communities and Water Restrictions

• Apollo Bay Water Shortage: Apollo Bay, a coastal town south of Byak, is running out of drinking water despite recent rainfall. The town is under stage three water restrictions.
• Great Ocean Road Running Festival: The influx of runners for the Great Ocean Road Running Festival is further depleting water reservoirs, with many participants unaware of the water restrictions.

4. Expanding Drought and Destocking

• West Gippsland Affected: The drought is spreading to other parts of Victoria, including West Gippsland. Dairy farmer Evan Campbell is using his hay reserves and buying feed.
• Destocking Decisions: Both Mark Billing and Evan Campbell have had to make the difficult decision to sell parts of their herds ("destocking"). Mark has reduced his herd by 10-15% of peak numbers. He mentions selling young stock that aren't fit for their business moving forward.

5. Farmer Frustration and the Emergency Services Levy

• Emergency Services Tax: Farmers are angry about the government's new emergency services tax, which includes a fixed rate and a variable charge based on property value. They argue that this disproportionately impacts them.
• Protest: Over a thousand CFA (Country Fire Authority) volunteers, many of whom are farmers, protested at the state parliament in Victoria, demanding the tax be scrapped.
• Emotional Toll: The combination of the levy and dry conditions is taking a significant emotional toll on rural communities.

6. Weather Forecast and Future Outlook

• Unfavorable Forecast: The weather forecast indicates that above-average rainfall is not expected in the coming months. Frontal systems are not predicted to produce much rainfall.
• Business Survival: Mark Billings expresses concern about the long-term viability of his farm, stating that another failed spring could lead to many farms and farmers going out of business.

7. Key Quotes

• Mark Billings: "This is far worse than that [1967-68 drought]."
• Lucy Richardson: Describing the urgency of water deliveries, "knowing that you've got families with young children that don't have water they're they're literally got nothing to bathe or drink or flush a toilet with so you're doing the best you can"
• Ralph Cotter: "We're just a bit wary of of providing subsidies like that that might distort the market."
• Mark Billings: "Can our business survive this? Can you handle another year? I don't think so."

8. Technical Terms and Concepts

• Rainfall Deficiency: A prolonged period with significantly below-average rainfall.
• Frontal Systems: Weather systems that bring rainfall, particularly during cooler months.
• Destocking: Reducing the number of livestock on a farm due to drought or other factors.
• Market Distortion: Interference with the natural forces of supply and demand in a market, often caused by government intervention.
• Emergency Services Levy: A tax imposed to fund emergency services, such as fire services.

9. Synthesis/Conclusion

Southwest Victoria is experiencing a severe drought, impacting farmers, communities, and businesses. The lack of rainfall, high costs of feed and water, and the burden of the emergency services levy are creating significant challenges. The long-term viability of many farms is at risk if conditions do not improve. The government's response is viewed as insufficient by some, particularly regarding water carting subsidies and the emergency services levy. The situation highlights the vulnerability of agricultural regions to climate change and the need for comprehensive support and long-term solutions.