Duncan B.
Many Victorian
farmers are facing financial hardship.
During July, hundreds of farmers contacted
the Rural Finance Corporation when a new farm finance deal between the Federal
and Victorian governments was announced.
The scheme will make concessional loans,
up to $650,000, available to farmers so that they can
re-finance existing farm debt.
The loans will cover about 50% of a farmer’s
total debt at an interest rate of 4.5%.
There are strings attached to these loans
however.
Farmers receiving the loans must demonstrate
that over the next three to five years they will be able to resume profi table
trading and be able to manage the debts. What a lot of hoops to jump through!
A combination of dry weather, low milk
costs and high fodder costs has meant that many dairy farmers have had to
borrow money to buy fodder and grain to feed their cows.
Dairy processors such as Fonterra and
Murray Goulburn are owed many millions of dollars in loans by their farmer
suppliers.
In Fonterra’s case, their suppliers owe
$18 million dollars, up $14 million from this time last year.
What can farmers do?
Small farmers must realise that their real
interests lie with the working class, not with the big farmers and agribusiness
corporations.
It is essential that they unite with the
working class and recognise that workers and farmers have the same enemies.
Small farmers are part of the United Front of Australians against imperialism.
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