Address to the CropLife Agricultural Industry Federal Budget Breakfast, National Press Club

Thank you very much for the opportunity to talk to you today.

Let me start by acknowledging the traditional owners of the land on which we gather, the Ngunnawal and Ngambri people, and pay my respects to their elders past, present and emerging.

Can I also thank our host Matthew Cossey, his board and the team at CropLife.

For over a decade CropLife has hosted this breakfast and given Agriculture Ministers a chance to engage with people leading, working in and supporting agriculture, fisheries and forestry industries, so I’m really honoured to address it for the first time.

Can I also recognise Assistant Ministers Kristy McBain, Tim Ayres and Anthony Chisholm, MPs and Senators Tony Sheldon, Meryl Swanson, Raff Ciccone, Dan Repacholi, Helen Haines, Susan McDonald and David Pocock. There are so many special guests here that I've come to regard as friends and partners.

Last night the Treasurer Jim Chalmers handed down his first budget - the first budget since the election of the Albanese Government in May.

It was a budget that put people first, dealing with the cost-of-living issues we've inherited, with a clear focus on improving our skills, health and aged care systems, as well as investing in key job-creating infrastructure projects.

All while getting our nation’s finances back on track, after years of rorts, waste and poor management.

Now I know you are all here to hear from the Agriculture Minister about the Agriculture budget, but it’s worth mentioning these bread and butter issues, because they are so important, particularly in rural and regional Australia, where the majority of our primary producers are.

Farmers’ are paying more for fertiliser and other inputs.

Farm workers’ interest rates are going up.

Rural Australians need access to good healthcare and aged care.

And rural industries need access to good infrastructure to help their businesses grow.

Like many household budgets around the country we’ve had to carefully consider our spending and make sure it delivers value for money.

That has required some reprioritisation of precious public funds, to focus on what’s really needed.

That’s what good governments do.

It builds trust with a public worn down by big announcements that didn't get delivered.

There’s no doubt people are doing it tough, and this Budget will deliver targeted cost of living relief.

I’m proud to be part of a Government that’s cutting the cost of medicines on the Pharmaceutical Benefits Scheme, delivering cheaper child care for families, extending paid parental leave, funding more university and fee-free TAFE places, more affordable housing and that's getting wages moving again.

This will benefit thousands of people across rural and regional Australia, all while lifting the capacity of our economy to deal with huge inflationary pressures.

The other issue which is certainly front of mind for a lot of people in regional Australia right now is our response to natural disasters.

I’ve obviously got a dual interest in this, in my Agriculture and Emergency Management roles.

Our primary producers are on the frontline of almost every fire, cyclone, hailstorm or as we have seen more recently intense flooding.

Over the last week alone I’ve met with farmers and communities everywhere from western New South Wales to Central Victoria and northwest Tasmania who have suffered major crop losses and severe damage to infrastructure

As a new government, we want to change how we deal with natural disasters, from reaction to prevention. We will continue to support the farmers and others who are impacted, and have provisioned $3 billion for ongoing disaster support, but with climate change delivering more frequent and intense disasters, we need to be much better prepared for what's coming than we saw from the previous government.

That's why last night's Budget saw us invest up to one billion dollars over five years in our new Disaster Ready Fund to mitigate the impact of disasters, by building new flood levees, cyclone shelters, bushfire evacuation centres and seawalls, right around the country.

This will help protect our people, their properties and taxpayers from the enormous costs.

A third consecutive La Nina summer will create more challenges for our farmers, as we are seeing down the eastern seaboard, but we know that good rainfall will also provide real opportunities for our industry.

Australian agriculture has reached record highs in the last two years off the back of – on the whole - great conditions.

This means the industry is well positioned to lean into these inflationary times.

The Prime Minister, the Treasurer and the entire Albanese Government understands the importance of the agriculture sector not only to the economy, but to rural and regional Australia.

Agriculture is one of our nation's great industries.

It feeds the world, it earns us huge export dollars, and it's the backbone of so many rural communities.

I'm proud to represent the industry, that is why I’m pleased to tell you that our first Budget invests more than $1.2 billion to protect and grow our agricultural sector.

Protect and grow – that’s our Budget’s plan for Australian agriculture.

When I first became Ag Minister I identified, through extensive consultation with stakeholders, a couple of immediate priorities for the industry.

The first of those is protecting our food and fibre production by bolstering our biosecurity system.

A strong biosecurity system is vital to keep our agriculture sector safe, support our environment and the way of life we all enjoy.

The presence of both foot and mouth disease (FMD) and lumpy skin disease (LSD) in Indonesia presents a heightened risk of a large incursion in Australia.

Varroa Mite and a range of plant diseases also threaten a range of Australian producers.

In response we have deployed the strongest ever response to a biosecurity threat at our border, supported our Indo-Pacific neighbours, toughened our legislation, stress-tested our preparedness, and aligned ourselves carefully with state and territory partners in a first National Biosecurity Strategy.

It’s worth repeating that Australia remains both FMD and LSD free, but the last few months have illustrated the need for a biosecurity system which is up to contemporary challenges.

To that end, I’m pleased to say that the centrepiece of our agriculture budget is an investment of $134.1 million to bolster Australia’s biosecurity system against the immediate threat of disease.

These Budget measures include:

• $61.6 million fast-tracked over 2 years to strengthen Australia’s frontline biosecurity capability, including in northern Australia and to support domestic preparedness and biosecurity outcomes in neighbouring countries
• $14.0 million to continue support to Indonesia, Timor Leste and Papua New Guinea to prevent and respond to the spread of FMD and LSD
• $11.7 million to expand our detector dog capability at the border, by investing in an additional 20 detector dogs and handlers.

Put together with the traceability measures I'll mention in a moment, this is a substantial down payment on our election commitment to deliver long-term sustainable biosecurity funding.

We will have more to say on this commitment in the future, after we properly consult with industry and other stakeholders.

The previous government botched their introduction of a biosecurity levy because they were more interested in the announcement than talking to those affected.

We will not make the same mistakes.

We understand this is a complex matter that requires careful consideration and time to engage in meaningful conversations with stakeholders.

And we will begin that conversation formally next week.

But the biosecurity investments we’re making now mean we won’t drop our guard in the meantime.

The other key component of our biosecurity package is a big new investment in livestock traceability.

Improving traceability both on and off farm provides transparency in the supply chain and reassurance for consumers – and enhances our biosecurity as well.

Knowing when and where livestock have been would be vital to manage a serious disease outbreak.

While there have been big improvements in traceability in some livestock industries, sorting out traceability for sheep and goat has been a holy grail that’s eluded governments for years. I've talked before about the new spirit of cooperation - I’m pleased that this new cooperative approach between the Federal, State and Territory Governments with industry partners has seen real progress.

It has been a major focus of my recent discussions with State and Territory Agriculture Ministers under the National Biosecurity Strategy, where we are now working with industry towards mandatory implementation of national individual electronic tagging for sheep and goats in each jurisdiction by 1 January 2025.  

We are serious about seeing that commitment realised.

That’s’ why in this budget we are investing $46.7 million to support continuous improvement in our livestock traceability systems.

That is double the former government’s commitment and a huge signal to States, territories and industry that we’re serious about driving these long overdue reforms forward.

So that we maintain our world-class system and ensure we recover quickly from any disease incursions.

COVID-19 has taught us the benefits of tracking individuals to slow the spread of infectious disease.

We can apply these same lessons to protect our livestock industries, while also shoring up trade and giving consumers the information they increasingly want.
Industry has told us for years that they want to see reform and investment.

We are listening and we are acting.

The second immediate priority is the workforce shortages that are restricting the ag sector, just as they are the wider economy.

Just last Friday I chaired the first meeting of our Tripartite Workforce Working Group, which for the first time brings together government, unions and employer groups.

This was a direct outcome of the Jobs and Skill Summit held earlier this year.

It was only an initial meeting, but that new cooperative approach that we’ve been able to foster gives me confidence that we can deal with these longstanding challenges.

Several participants noted they had never been brought together by government, to solve these challenges, together.

We have already begun work in the space including Budget commitments last night to beef up the PALM scheme, unclogging the visa waitlist - one million - and I’m pleased to advise that our government has put agriculture on the priority industry list for our new fee-free TAFE places.

We’ve also provided $10 million in the Budget to support workforce training in the forestry industry.

This is part of our $204 million commitment to the forestry sector to help it innovate and grow

If we truly want our forestry industry to grow to keep pace with the demand for paper and construction materials, we need to have skilled workers on the ground to meet the needs of the industry.

Which is a good segue way into what I see as a couple of longer-term priorities for the ag industry, that the Budget also addresses.

The first of those is maximising the value adding opportunities in our industry.

This is one of the most exciting areas of my portfolio and something I saw firsthand at the Australian Country Choice meat processing facility in Brisbane last week.

Parts of an animal which may have been previously discarded, repurposed for biohealth and exotic food export markets.

This is a simple example of the good work that is possible across the industry.

And something that will be driven by our $15 billion National Reconstruction Fund funded in the Budget and $500 million of which will be made available for co-investment with industry in agriculture, food and fibre.

We have also committed in this budget to establish a $16 million Agritech Hub in Western Sydney to help drive innovation in this space.

One of our government’s central commitments at the election was to make more things here.

That applies to agriculture just as much as to minerals, trains and other manufacturing. Last night's Budget sets the path for a future made in Australia.

The second long-term priority for the industry is helping the ag sector manage the impacts of climate change and seize the opportunities available through more sustainable production.

I’ve said before that Australia’s agriculture industry has been waiting for a government that would join the industry’s own endeavours to tackle climate change.

Farmers, processors and the industry has moved on from the climate wars and finally we have a government ready to help.

The best early example of this is something you may have seen over the weekend.

Australia will join more than 120 other countries in signing on to the Global Methane Pledge, a non-binding, collective, economy wide ambition to reduce methane emissions.

Unlike the approach of some other countries, ag was at the table when the Government was making its decision on this and achieved an outcome that not only champions the work that you are already doing, but invests in incentives to reduce emissions, rather than imposes punitive measures like a tax or a levy.

I must commend my colleague Chris Bowen for the great work he has done in the space, including investing $5 million in ag specific research to help reduce methane emissions.

I must also commend the peak farm groups like NFF and RMAC for being part of that process.

Through careful, respectful collaboration, we achieved a good outcome for industry and the environment.

This will help keep the export door open with our trading partners, particularly those in countries with ambitious sustainability targets.

This is the biggest difference between our government and the previous government.

Where they divide, we are bringing people together.

Where they fear monger, wanting to close borders in kneejerk reactions and hyperventilating about the end of the backyard BBQ, we are a stable, sensible hand.

One that works with industry to achieve the goals it has set.

Ultimately it is only farmers who pay the price for that old way of thinking.

One of the many interesting visits I have had during my time as Minister was to Seaforest in Triabunna in Tasmania.

There I saw firsthand the benefits that seaweed could have for the industry.

It’s been well established that feeding Asparagopsis seaweed to livestock can cut their emissions by 98 per cent.

That’s why in the Budget we have provided $8 million to support Australia’s seaweed farming industry.

We want to help build a thriving regional industry that provides jobs for regional communities while reducing emissions.

This isn’t the only thing we’re doing to invest in sustainability of our agriculture industry.

Together with my colleague, the Minister for the Environment and Water Tanya Plibersek, we are also delivering $1.1 billion for the next phase of the Natural Heritage Trust program. 

$302 million of this funding is for climate smart agriculture – funding which will enable Australian farmers to deliver our environmental goals, participate in newly emerging carbon and biodiversity markets, reduce their emissions and grow our agricultural sector as well.

Not only will this deliver for the environment, it will unlock new income streams and new premium markets for our produce as more international consumers look for clean, green, sustainable products.

For the last two years we have had bumper seasons, but any farmer will tell you that it always pays to be ready for the next drought.

That’s why we have dedicated $20 million to make sure the government is ready to respond when drought conditions inevitably return.

This funding will support:

• The effective use of a drought early warning system to monitor and predict when regions may start seeing drought conditions.
• A decision-making framework to determine when support is given.
• Arrangements to better co-ordinate responses between levels of government.

A few other quick points from last night’s budget that I will briefly mention.

We have invested $12.3 million to secure the future of trade events like Rockhampton's Beef Week in 2024.

These events provide vital links between Australia’s ag sector and the world, opening avenues for trade between our businesses and overseas countries.

The budget also includes specific funding of $4 million to further diversify our trade opportunities and Minister Don Farrell will have more to say on that in the coming weeks.

We know there is intense interest in new trade deals and we will work with industry to help our ag sector grow.

There is also new funding to set up an Inspector-General for Animal Welfare, ensuring Australians can maintain confidence in the industry.

The importance of agriculture to our economy, to our society and to our place in the world cannot be understated.

As I say, Australian ag feeds the world, generates huge income and employs so many across our country.

The Prime Minister, the Treasurer and the entire Albanese Government understand this and appreciates the work our ag sector does every day.

As a government we are doing our part to protect and grow the agricultural sector as we deal with biosecurity threats, a modernising global food market and our transition to a low carbon economy.

I am proud to support this innovative and resilient industry.

Thank you.