Department of Primary Industries

Dry Seasonal Conditions in Rural

Report: 61 November 9, 2006

A few crops on fallow will have fair yields and take advantage of good prices. (November 2006). Source: D. Price

Environmental Indicators

Weather Rainfall Some parts of north west Victoria received no rain in October (Figure 1). Much of Eastern Victoria and the South West received 50-100 mm less than the long term average for October. Some alpine areas received 100-200 mm less than usual. A number of cold fronts passed through the state during October but they yielded 1 mm or less of rain compared with a more typical 10-20 mm. October rainfall was decile 1 across the state with some areas being the lowest on record. Victoria received less than 40% of its usual October rainfall, with all but a few southern districts receiving less than 20%. There was reasonable rainfall in early November across parts of Victoria. Temperature Extreme temperatures were a feature of October with clear skies producing hot days and cold nights. Both the highest mean maximum temperature for Victoria and the second lowest mean minimum since 1950 were recorded. Drought Rainfall deficiencies have been increasing in area since August 2006 according to the Bureau of Meteorology’s Drought Statement (3rd Nov). The August to October period was the second driest on record for Victoria since

DSC Report 1 1900. Victoria also recorded the highest maximum temperatures for August to October since records began (post 1950). Seasonal outlook The Bureau of Meteorology’s Seasonal Outlook for November 2006 to January 2007 has improved on previous forecasts. The chance of above-average rainfall across Victoria is 40-50%. The probability of above-normal daytime temperatures is 60-65% across Victoria. The probability of above-normal night time temperatures is 65-80% across Victoria. The Southern Oscillation Index for October was -15. The 2006-07 El Niño has now matured which potentially could mean better rain in late summer as the El Niño declines.

Figure 1. Victorian rainfall (mm) 1 month (October 2006)

Percentage of monthly mean (1961 – 1990 base period)

National Climate Centre Bureau of Meteorology

Water storages Goulburn-Murray Water (G-MW) On October 16th G-MW increased allocations for Murray (up 2% to 95%), Goulburn (up 2% to 23%) and the Broken (up 15% to 60%). There were no further increases on November 1st. Southern Rural Water (SRW) On October 23rd SRW increased the water allocations to 10% for both Bacchus Marsh (up from zero) and Werribee (up from 5%) to be made available by pumping dead water from Pyke’s Creek Reservoir.

Storage Change in Capacity Storage Change in Capacity last month 6/11/06 last month 6/11/06 Goulburn Basin -3% 19% Thomson/ LaTrobe Basin -4% 36% Broken Basin -3% 28% Werribee Basin -2% 14% Campaspe Basin -1% 6% Glenelg/ Wimmera Basin -1% 6% Loddon Basin -1% 23% Maribyrnong -1% 6% Upper Murray Basin -7% 32% Barwon Storage -4% 31% Ovens Basin -4% 70% Source: http://www.fishvictoria.com/pnews/water_levels.php Fire Fire restrictions were introduced approximately 2 months early in most areas. Based on the number of fires, the season is approximately 8 weeks ahead of average. Locusts Up to 25 mm of rain across the North Central on November 2nd could trigger hatchings of locusts in the next week. There have already been reports of hatchings at Gunbower Island. Reports from north west Victoria have

DSC Report 2 been identified as Small Plague Grasshoppers rather than Plague Locusts. Extremely low numbers of the Australian Plague Locust are present in NSW and Qld. Fisheries Many lake fisheries in the South West are dry and others at risk of drying this summer. Gong Gong Reservoir, which contains trout, may be drawn down by Central Highlands Water to top up the White Swan Reservoir and this may put these fish at risk. Another decision not to allocate environmental water to the Wimmera River has safeguarded the Taylors Lake fishery, but may cause drying pools and water quality impacts on Wimmera River fish this summer. While the consideration of fisheries may be secondary when such decisions are made, it is also important to minimise any loss of social amenity that may exacerbate regional depression. It is likely that lack of stream flow is impacting on the patterns of normal migration/spawning for some estuarine fish species. For example, spawning aggregations of black bream normally noticed in the Hopkins River at this time of year, have not yet been observed. Similarly, the inland running eels will be impacted by a lack of water at the Hopkins Falls

Social Indicators

DPI Drought Hotline The DPI / DSE Customer Service Centre received 320 drought related contacts for the period 1st to 31st October 2006 compared with 15 in August and 36 in September. They were completed by FAQ (215), referred (57), information sent (33), transferred (11) or a web reference (4). Calls were received from the South West (108), North West (82), North East (71), Port Phillip (38), Gippsland (10), Interstate (9) and unknown (2).

FAQ’s used to answer customer enquiries Total Exceptional Circumstances 112 Water inquiries 62 General information 43 Drought feeding of cattle and sheep 34 Stock containment 20 Groundwater enquiry line 19 Rebate for rural water bills 8 Carted water rebate 7 Dry seasonal conditions coordinators 6 Drought Preparation and Survival Guide 4 Rural Counsellors 2 Donations 1 Emergency water supply points 1 Rural apprentice support 1 Total 320 Drought financial assistance Rural Finance Corporation reports 4,852 applications for the Exceptional Circumstances Interest Rate Subsidy have been received to date with 3,587 approved and 1,008 declined so far. Total value of the subsidies approved is $74 million with an average of $20,845. The federal government has extended the expiry date for all Victorian Exceptional Circumstances areas to 31st March 2008. In addition, all producers in these areas are now eligible for assistance, rather than the particular industry nominated in the original application (e.g. dryland or irrigated dairy). The eligibility requirements have also been relaxed with the off-farm income test increased from $50,000 to $65,000. The Interest Rate Subsidy cap has been increased from $300,000 to $500,000 over 5 years. The requirement to have operated without government support for two of the last five years has been removed. In addition the federal government has extended EC support to small businesses that can demonstrate that 70% of their income is from farm businesses in EC-declared areas (November 7th). These small businesses (up to 20 staff) will be eligible for the same income support and interest rate subsidies as farm businesses.

DSC Report 3 The federal government has also launched a mobile service to take information on drought support directly to rural communities. The bus will visit northern Victoria in the week of the 15th-18th November. Victorian Government assistance Assistance measures announced in October, relevant agency in brackets, include: • A $5,000 rebate on rural water bills where the allocation of water is less than 50% (DSE); • Local councils will share in $1.4 million to host a series of events and programs in 14 of the worst drought affected communities to help boost community morale (DVC); • $1.25 million to help social support agencies such as Vicrelief and Foodbank provide additional support services for families in some of the worst drought affected communities (DHS); • $900,000 to boost mental health services in drought-affected towns. This will also help community leaders and service providers to deal with the complex needs and mental health issues experienced during the prolonged drought (DHS); • $1.5 million Drought Business Support package that will offer one-on-one business counselling to businesses significantly affected by the drought and a series of information events (RDV); • $1.8 million to help farmers make important on-farm decisions about crops and offer a production in the short, medium and longer term, offer a series of industry specific and regionally targeted workshops. Includes $1.3 million future farm planning and $500,000 stock containment areas (DPI); • $10 million under the Regional Infrastructure Development Program to prioritise water projects with industry and water authorities to reduce water consumption and increase reuse opportunities (RDV); • $10 million towards a range of projects including fencing works, pest management, stock containment and environmental works to be managed through the Catchment Management Authorities (DSE); • A $3.75 million Drought Apprenticeship Retention Bonus will give one-off $1500 cash grants per apprentice to businesses in EC declared areas which directly provide services to the farming industry (DPI); Municipal rates subsidy A total of $219,183 in municipal rate subsidies was paid to EC relief payment recipients so far in 2006-07. The 22 Shire and Rural City Councils were paid $7,671 to administer the delivery of this additional drought assistance on behalf of the state government. Community report On October 9th 2006 the federal government announced Medicare reforms that included an additional $51.7 million over five years to improve mental health services in rural and remote communities throughout . Funding will be distributed on a needs basis, rather than a population basis, with rural and remote communities in Queensland, , Western Australia and the Northern Territory expected to receive a higher proportion.

Economic Indicators

Production figures and forecasts ABARE’s Australian Crop and Livestock Report 2006-07: Drought Update (27 October) has estimated Australian beef production will decline by 13% and sheep meat by 35%. Prices have fallen considerably in recent months reflecting the higher turnoff for slaughter. ABARE also expects that the 2006-07 production of the three major winter crops (wheat, barley and canola) will decline to around 13.6 million tonnes (down 63% on last season). This is over a million tonnes less than during the 2002-03 drought and would be the smallest for these crops since the 1994-95 drought when 12.1 million tonnes were harvested. Victorian production is forecast to be down by around 74% from the previous season. The Australian Oilseeds Federation November report quotes that 213,000 ha of canola were planted in Victoria. They expect that 85,000 ha will be harvested with a final yield of 50,000 t (down from 337,500 t last year). Commodity prices and movements Twice the number of cattle was sold at Victorian markets in October 2006 compared with October 2005. The number of lambs sold was 92% higher than last year. This led to a major decrease in prices with some unfinished stock not able to be sold. In the last two weeks the numbers have eased slightly in response to the poor prices and this along with rain in Queensland has led to a slight recovery in prices. Finished stock are still commanding good prices but are in limited supply.

DSC Report 4 The anticipated shortage of sheep, and consequently wool, has caused wool prices to rise. The southern wool indicator is at 822 c/kg (up 58 c in the last week). On October 31st AWB increased the EPR’s for all new season wheat pools by $3/t. APW is now $248/t. On October 10th poor wheat production forecasts led to a wheat futures price increase beyond the maximum daily allowance at the Chicago Board of Trade leading to a temporary halt to trade.

Commodity prices This Week Last Week Last Month Last Year Wheat APW cash 1 295 310 280 195 Malting barley 1 360 365 260 180 Yearling steers (C3 180-220 kg) 2 286 290 330 381 Lambs (16-20 kg) 2 284 250 321 366 Old pasture hay (Bairnsdale $/t) 2 170 170 150 70 Water rights (Greater Goulburn $/ML) 3 602.50 550.00 447.50 55.00

Grains are Portland cash price (except for APW pool; the pool this week changes to 2006-07) Stock prices are ¢/kg cwt Sources: 1 Weekly Times 2 Stock and Land 3 www.watermove.com.au

Regional Reports

There are no new drought related issues in Port Phillip. Mallee No rain in the Mallee in October. Harvest has commenced and some yields are quite reasonable with barley and wheat 0.3 – 1.0 t/ha. However, the poorer paddocks and later sown paddocks are yet to be harvested. Sheep are now grazing stubble that could present an erosion risk, particularly on lighter stubbles. Wimmera Some areas had their lowest rainfall on record. Harvest is beginning with grain production tipped to be about 25% of normal. Yield estimates for cereals are 0-1.0 t/ha, and zero for most pulses. Stock culling is between 30% and 100% depending on the farm. Overgrazing of stubble is an erosion risk. North Central Crops and pastures have dried off and won’t benefit from the recent rain. Crop yields range from 0 - 2 t/ha, with about 0.5 t/ha on half of the paddocks. Crops cut for hay range from 1 in 10 to 1 in 30 depending on location. Expect sheep to be in stock containment areas next month. Northern Irrigation Some dryland crops have been cut for hay, but most don’t have enough biomass or are being left to harvest. Yields vary from below average to no yield. Orchardists are having to choose which crops to water for production and which to keep alive. Paddock feed has dried off - irrigators don’t have the water to keep it going. West Gippsland Some pastures which were still green benefited from the recent rain. On farm fodder reserves are generally low and silage yields this season are 25-50% of usual. Snow pea growers have had a shorter than normal harvest period. Farmers are considering sinking water bores but there is 2-6 month wait for bore contractors. East Gippsland The driest October on record in some localities. Animal health complaints have increased over the past month. There is very little paddock feed available across most of the district. A substantial amount of hay is coming into the district and little fodder has been conserved so far this season. North East The growing season has finished and any rain from now on will be of little benefit. 59% of canola and 36% of cereal crops were cut for fodder. Cereal yields range from 0.2-2.0 t/ha. Canola mostly 0.25 t/ha. Grain has been very difficult to source. Many paddock dams have insufficient water.

DSC Report 5 South West Estimated that 50-90% of canola crops and 50% of cereal crops have been cut for hay and silage. Paddock feed levels are very low with abnormally little or no pasture growth in October. Silage production is 5% to 85% of normal and hay 60% to 90%. Sheep, beef and potato producers are worried about potentially running out of stock water this summer.

DPI response

Drought related activities held this month Statewide • 1 Nov - BESTWOOL/BESTLAMB, Feeding Canola Hay, Silage to Livestock phone seminar. 65 producers connected. Mallee • The decision support model (Grain vs Hay) is still being widely used across Vic, NSW and SA and is proving very popular. • Publicity on possible chemical residues on failed crops widely publicised. • Numerous reports taken and inspections made of frost damaged crops. • Many enquires about frosted wheat. • 16 Oct - Cowangie Landcare presentation on low-cost options for 2007. 40 attendees. Wimmera • 11 Oct - Laharum Landcare/TOPCROP, Feedlotting, seasonal climate risk and options for salvaging the year. 50 attendees. • 13 Oct - CMA/Landcare, Low input fertiliser use, climate risk and options for salvaging the year. 50 attendees. • 13 Oct - Beulah, Growing pulses in dry years. 25 attendees. • 16-17 Oct - Wimmera Conservation Farmers Association soil pit days discuss managing soils in a dry year. Horsham South, 37 attendees, Donald, 31 attendees. • 17 Oct and weekly - Wimmera State of the Region report planning group. Weekly meeting. • 18 Oct - Sheep Hills TOPCROP, Seasonal climate risk and options for salvaging the year. • 20 Oct - BCG Main field day . Birchip site too drought affected. • 22 Oct - Wimmera drought committee meeting. • 23 Oct - Willaura Feeding sheep to maximise returns. • 24 Oct – Willaura & Stawell Feeding sheep to maximise returns. • 25 Oct - Gymbowen Goroke Drought feeding livestock field day. • 26 Oct - Navarre Planning for 2007 – What can be done now? • 27 Oct - Woorak TOPCROP meeting – Futures marketing options. • 1 Nov - Upper Wimmera feed gap, stock containment, EC update • 1 Nov - Yarriambiack drought committee meeting. • 1 Nov - EC eligibility criteria meeting with agronomists/landholders. • 2 Nov - EC eligibility criteria meeting with accountants. • 2 Nov - West Wimmera Shire community response meeting. • 3 Nov - Wallup TOPCROP – Llama shearing day. • 7 Nov - Wallup TOPCROP – Cup Day – AGM. • 7 Nov - Brim TOPCROP – Futures update. North Central • 12 Oct - Maryborough Regional BESTWOOL meeting. Inspection of stock containment area and sheep management discussions. • 16 Oct - Presented gross margin calculator for farmers (Echuca - Landmark) considering growing summer crop or irrigated established lucerne stands. Worked out break-even prices and how much you could spend on water. • 18 Oct - Hay vs grain calculator - presented to BESTWOOL group around Serpentine. Assessed crop for frost and dry season and whether crop would produce grain. Followed up with one on one assessment after it was found many crops were not going to fill grain. • 24 Oct - Drought discussions with North Central ‘Regional Managers Forum’ drought sub committee, ongoing weekly meetings.

DSC Report 6 • Regular office enquiries on technical aspects of feeding stock, stock containment areas, water supplies including groundwater and animal welfare issues. Kerang office are receiving calls about grazing failed crops and yield responses to extra water. Northern Irrigation • 6 Oct - A further Drought Update for dairy service providers at the Kyabram Dairy Centre. 55 service providers. • 6 Oct - Echuca Landmark drought information session and BBQ. DPI representatives spoke on managing animal health and water and feed budgeting. 30 attendees. • 10 Oct - DPI presentation at Landmark Drought Day in Echuca. 40 attendees. • 18 Oct - DPI presentation at Lockington Community drought information session and lunch. The focus of the day was on assistance that was available to farmers including Centrelink, GV AgCare, St Vincent De Paul, Campaspe Shire and DPI. 70 attendees. • 23 - 27 Oct - 11 "Feeding Cows with Limited Pasture" farm walks across the Goulburn Valley and Riverina. With just over 390 participants, the days received encouraging feedback. • 27 Oct - Kyabram Dairy Farmer Discussion Group heard from DPI speakers on managing irrigation water, pasture and other feed sources. 40 attendees. • Echuca and Serpentine - cutting crops for hay. • The dairy team conducted around 80 1:1 visits this month and handled over 150 phone enquiries. Gippsland • 6 Oct - Farmer Forum Day, Maffra to discuss water allocation, dry seasonal conditions, DPI assisting UDV with coordination and providing information packs. Dairy extension and Sustainable Landscapes staff involved. • 2 Nov - Warragul DPI and GippsDairy drought awareness forums for service providers. 50 attendees. • 3 Nov - Warragul DPI and GippsDairy drought awareness forums for service providers. 48 attendees. • DPI and the UDV continued the monthly farmer drought forums in the Macalister Irrigation District. • DPI dairy staff has been providing feed planning services to individual farmers, particularly in the Macalister Irrigation District. North East • 12 Oct - VFF drought meeting at Benalla. DPI staff involved. • 13 Oct - Murrindindi Shire held an evening for service providers to farmers. Attended by DPI, Centrelink, RFC, and shire representatives. • 16 Oct - Wangaratta Shire held initial drought committee meeting. • 30 Oct - Wangaratta Drought meeting. 50 attendees. • 1 Nov - Violet Town Drought meeting. 50 attendees. • 2 Nov - Moglomemby Drought meeting. 45 attendees. • 3 Nov - Longwood Drought meeting. 30 attendees. South West • 6 Oct - Northern Grampians BESTWOOL/BESTLAMB group held a field day at Navarre for group members and general public. Guest speakers and topic on ‘Managing resources in a dry season’. • 17 Oct - Letter drop to 350 farmers in the Derrinallum/Lismore area on assessing crops for hay or grazing and assessing for frost damage. • 23-24 Oct - Two workshops at Willaura and one at Mokepilly on Feeding Livestock and Business Decisions. . Presenters included San Jolly (Nutrition consultant) and Debbie Milne (Rural Financial Counsellor). • 19 Oct - Ballarat BESTWOOL/BESTLAMB group held a social BBQ to discuss strategies for managing the dry season. • 27 Oct - Balmoral TOPCROP group meeting used a ‘hay vs grain’ modelling tool to investigate the economics of turning poor yielding cereal crops into hay. • 31 Oct - Making cropping decisions and drought feeding workshop Beaufort. • 1-2 Nov - Two dairy producer seminars held at Ballarat and Colac on managing the dry seasonal conditions. Topics included sourcing feed supplements, water quality and sources, management strategies and access to support services. (45 people attended Ballarat session, 120 people at Colac session). • 2-3 Nov - Southern Farming Systems Field Day (Streatham) DPI drought information packs and stand. • 3-5 Nov - Coles Colac Show Lamb Competition and Lamb Industry Field day held at Colac Showgrounds. Drought feeding presentation delivered and approximately 50 copies of Sheep Drought Feeding Booklets taken by producers

DSC Report 7 Local workshops planned Statewide • 23rd Nov - Drought feeding cattle telephone seminar Wimmera • 9 Nov - Antwerp TOPCROP Beer and malt paddock to plate. • 16 Nov - Drought service providers meeting. • 16 Nov - Drought fertiliser forum. Northern Irrigation • A series of workshops are proposed for the Murray irrigation system in conjunction with G-MW to help irrigators to better understand water trade and the value of water as a source of growing feed. • 24 Nov - An update on all the various forms of support & assistance for dairy farmers is being planned to be delivered to dairy industry service providers. Gippsland • 9 Nov - Dairy producer meeting at Jindivick (Paul’s Suppliers). • 9 Nov - Macalister Irrigation District service provider forum. • 10 Nov - DPI and GippsDairy - service provider drought awareness forums at Sale and Orbost. • 15 Nov - There will be a farmer forum at Yarram. • 20 - 24 Nov - Beef & sheep producer meeting (feeding stock in a tough season). • Nov - Dec - GippsDairy focus farm dry season management days on 5 focus farms. • 6 Dec - There will be another farmer forum in the Macalister Irrigation District. North East • 9 Nov - Drought meetings Sandy Creek Land Care group. • 9 Nov - Corryong Drought workshop. • 8-9 Nov - BESTWOOL/BESTLAMB coordinators conference • 10 Nov - Broadford workshop for Mitchell Shire. • 10 Nov - Wodonga Service provider update. • 13 Nov - Rutherglen Quality Lamb Group Feeding sheep in tough times workshop. • 13 Nov - Dederang Balancing the (dairy) rations. • 14 Nov - Swanpool Balancing the rations. • 15 Nov - Yarra Valley Beef Producer group Drought workshop. • 15 Nov - Whorouly Balancing the rations. • 16 Nov - Cudgewa Balancing the rations. • 24 Nov - Drought workshop at CRC store Rutherglen. • 29 Nov - Drought workshop at Peter Davis Rural Benalla. • 29 Nov - Drought workshop for Whittlesea Shire. South West • 8-9 Nov - CAS Meat and Wool team in conjunction with RIST - ‘Dry Season Management’ workshops at Balmoral and Casterton. • Dairy team increasing extension to producer groups such as Koroit-Toolong, Boorcan, South Ecklin and Port Campbell. Also increasing one-to-one extension primarily with 3 field officers. DPI designed feed budgets being sent out with milk cheques to prompt producers to work out their fodder shortfalls. Extra 1 minute radio spots organised with ACE radio for drought related dairy information. • 19 Nov - Drought feeding workshop Beaufort Show. • 23-24 Nov - DPI BESTWOOL/BESTLAMB project holding a full day workshop on feed budgeting and strategies for managing stock in the drought in Hamilton and Skipton. • Late Nov - Meat and Wool Team planning ‘Dry Season Management’ workshop in Ararat and Colac area. Dry season related staff training activities • 12 Oct - Morwell Meeting of dairy extension and industry reps to discuss ongoing response for Gippsland dairy. • 12 Oct - Western Victorian Animal health team- Seasonal climate risk management – Emergency response. • 13 Oct - Port Phillip meeting with staff, SRW and DHS to discuss issues and responses. • 16 Oct - Gippsland and Port Phillip DSC team phone hook-up to discuss issues and responses. • 16 Oct - NE Drought Working group met. • 18 Oct - CAS staff at Ellinbank location meet to discuss issues and responses in West Gippsland. • 19 Oct - NE DPI M&W team to discuss topics for upcoming telephone seminars.

DSC Report 8 • 20 Oct - Dairy team from Colac and Warrnambool holding meeting at Glenormiston with John Mulvaney specialist dairy consultant, representatives from Murray Goulburn, Fonterra and Warrnambool Cheese and Butter, and two rural financial counsellors to gain skills in one to one financial budgeting with producers. • 2 Nov - Discussion of the implications of drought on dairy, beef and sheep producers between DPI extension and animal health staff. • Mallee Drought Operations team met via videoconference and discussed issues. • Dairy Extension Team discussed ability to change deliverable’s to allow more time for dry seasonal response. • DPI conducted feed planning training for grazing industry staff and service providers. • 6 Nov - Rural Services Drought Forum in Hamilton. Run by Western District Health Service for Department staff, Stock Agents, Agribusiness, Health Professionals etc. working with farmers. • 8 - 9 Nov Two ‘Occasional Counsellor’ workshops in Echuca for DPI, DSE and private sector staff. • 8 Nov - A Taking stock (farm analysis) update will be conducted for DPI staff and service providers. • 9 Nov – Dairy meeting with Cameron Smith (private consultant), for DPI southwest staff and service providers, Warrnambool. • 13, 28 Nov & 7 Dec - “Occasional Counsellor” training for DPI staff and service providers. • 14 Nov - North East Stockplan Workshops. • 16 Nov - Hamilton Workshop for staff working with landholders delivered by Bruce Grey DHS on impacts of long-term stress on farmers and people working in the rural sector. • 21 & 22 Nov - Rob Gordon - 2 workshops on dealing with stressed clients. DPI and Community at Horsham and Ouyen. • 26 Oct - The horticulture team held a successful meeting on October 26 in Shepparton to discuss work was occurring in the district with regards to drought and frost assistance and identify some key areas that will need attention over the coming months. • 1 Dec – “Occasional Counsellor” Warrnambool for DPI and Industry officers on working with farmers under stress.

Media and Communication

Media releases 9 Oct 2006 - Goulburn Valley EC application to be fast tracked. The Minister for Agriculture, Bob Cameron, has today confirmed he has received Exceptional Circumstances (EC) applications from farmers affected by recent frosts in the Goulburn Valley. 12 Oct 2006 - $12.5 m drought community support package released. The Premier, Steve Bracks, today released a $12.5 million support package for communities enduring the effects of on-going drought conditions currently gripping Victoria. 16 Oct 2006 - Drought support extension for farmers. (Prime Minister of Australia) I am very pleased to announce that the Australian Government will commit an additional $350 million for Exceptional Circumstances drought assistance to support farmers during these ongoing dry conditions. 16 Oct 2006 - Horticulturalists in the Goulburn Valley to receive Exceptional Circumstances assistance. (Federal Minister for Agriculture, Fisheries and Forestry) More than 500 horticulturalists in the Goulburn Valley area can now apply for full Exceptional Circumstances (EC) income and business support as a result of the Prime Minister’s announcement today. 23 Oct 2006 $114 M State Government drought assistance announced. Premier Steve Bracks today announced a further $114 million in drought assistance to help farming communities battling the worst drought on record. 24 Oct 2006 Extension to drought assistance (Federal Minister for Agriculture, Fisheries and Forestry) The Government has today announced additional drought assistance worth $560 million to help struggling farmers through the worst drought on record. 24 Oct 2006 - New Australian Government assistance for drought affected farmers and their communities. (Parliamentary Secretary for Agriculture, Fisheries and Forestry) Additional funding of $7 million will be provided to Rural Financial Counselling Services to assist with the increased workload brought on by drought. 26 Oct 2006 - Water bill rebate covers costs for Wimmera farmers (Minister for State and Regional Development) Drought-stricken farmers who are customers of Grampians Wimmera Mallee Water (GWMWater) will have the fixed component of this year’s water bills covered by the Bracks Government’s $5,000 rebate. 6 Nov 2006 Extension to drought assistance (Federal Minister for Agriculture, Fisheries and Forestry) A mobile service launched today will bus its way through some of Australia’s most drought-affected regions to make it easier for farmers to obtain information about, and apply for, drought assistance.

DSC Report 9 7 Nov 2006 - Drought assistance for small business. (Prime Minister of Australia) I am pleased to announce that the Australian Government will assist small business operators by extending eligibility for Exceptional Circumstances assistance, previously available only to farmers.

Media headlines Farming and agriculture • It’s wholesale slaughter Herald Sun 13/10 - Farmers are abandoning their properties in droves and thousands of Victoria's best milking cows are being slaughtered as hot, dry weather pushes the state into a drought crisis. • Heatwave razes recovery hopes Australian Financial Review 14/10 - The government’s chief commodities forecaster is preparing to further downgrade the winter crop as a heatwave blows across the country, wiping out the harvest and confirming the worst drought for 100 years. Water • Murray basin running on empty Australian Financial Review 13/10 - The major water storages in the Murray Darling basin could run dry by next winter unless there is a break in the drought, according to the woman responsible for overseeing the country’s most important farming region. Drought • Worst drought ever, tips Treasurer The Age 12/10 - Australia could be facing its worst drought this summer since records began, leaving hundreds of farmers dependent on government assistance, federal Treasurer Peter Costello has warned. • ABC Radio National AM 13/10 - The Climate Bureau has warned that the current drought could be the worst in Australia's recorded history and has issued a series of dire predictions. • Dry spell the worst in 1000 years The Australian 08/11 - The drought is rewriting record books and forcing climate experts, water watchers, farmers and urban planners to go back to the drawing board as they grapple with a previously unseen dry and unprecedented demand for water from our rivers. Drought financial assistance • You are not alone, Howard tells struggling families The Age 16/10 - An extra $750 million in financial assistance will be given to farmers and regional communities, as cabinet today considers a relief package to help farmers cope with what is shaping up to Le the worst drought on record. • More than half of farmland in need of relief The Australian 25/10 - Drought assistance is to be extended to more than half the agricultural land in Australia. • Federal drought plan widened $500m aid as drought plan widened Weekly Times 25/10 - The Federal Government has extended its exceptional circumstances support to at least 34 districts across the nation until 2008 at a cost of about $500 million.

Compiled & edited by Katherine Hollaway, and proofed by Drought Operations Manager.

DSC Report 10