The annual report for the Northern Region NSW Rural Financial Counselling Service has indicated demand for the service increased significantly during their 2013-14 year of operations.
The drought and economic conditions are driving more farmers to seek financial counselling, but the National Rural Advisory Council (NRAC) recently recommended a 20% funding cut to the Rural Financial Counselling Service (RFCS).
The recommendations were part of a review commissioned by the Federal Government, where NRAC suggested savings could be made within the federal program, while also meeting the needs of those who rely on it.
The independent advisory body recommended that a reduction in total program funding should not significantly affect NSW and Queensland, which are currently experiencing challenging climatic conditions.
It recognises a higher demand for RFCS assistance in those states, and asks that additional resources be provided under the needs-based funding model recommended by NRAC.
The review ultimately confirmed that the service is an essential part of assisting agricultural enterprises in Australia, but outlined ways it could be delivered more efficiently
Executive Officer of RFCS NSW Northern Region, Shirley McNaughton, said it was significant that the review has recognised the importance of the RFCS role into the future.
“It’s pleasing to see that the RFCS will continue to be there to support farmers,” she said.
“Whatever shape or form it takes, the service will still be there.
“Certainly the current drought has increased our workload this year, our annual report for the 2013-14 year of operations shows there was a 59% increase in client numbers across the region, and a large proportion of that workload is in the drought affected areas of the north west of our service area and the Tablelands.
“Our rural financial counsellor based in the Narrabri area, has carried a significant workload.”
Narrabri’s local Rural Financial Counsellor, Julie Roy, helps farming families and small rural businesses make informed decisions about their financial situation through financial analysis.
Her region covers Narrabri, Gunnedah, Warrumbungles and Tamworth, along with three other counsellors.
“We look at what options are available to them, whether or not there’s any government assistance available at the time that they may be interested in applying for, and we also support farmers with debtor negotiations or those going through farm debt mediation,” Julie explained.
She said high demand for the service has continued into 2014 with the introduction of both state and federal assistance at the beginning of the year.
“In February the State government announced drought assistance including fodder transport subsidies and the emergency water infrastructure rebate, and then the Federal government brought income support forward, so there were two levels of assistance announced this year.
“The last twelve months for me have been very busy.”
State assistance ended on June 30 this year.
However, the concessional loans are still available through the Rural Assistance Authority and income support for eligible farmers is available through Centrelink.