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Reward For Food Innovation

Sydney Morning Herald

Wednesday May 14, 2008

David Humphries

THE Government wants agriculture and fishing to cash-in on an emerging world food shortage by value-adding to raw produce. For encouragement it is putting up $35 million from taxpayers.

But what is given with one hand can be taken away with the other. Budget documents reveal that the food innovation grants begun last year have been scrapped, saving $62 million over five years for "programs in priority areas for farmers and agriculture", and as a commitment to "responsible economic management". The Minister for Agriculture, Fisheries and Forestry, Tony Burke, said food production companies had to become more competitive through innovation.

"The assistance will include dollar-for-dollar grants to regionally-based food processors and $10 million for innovation and productivity in the seafood industry," he said.

The budget includes $5 million for promoting farm and seafood produce, and continued funding for improved welfare of animals exported live. Drought relief is expected to fall to $760 million because of improved weather, but the emphasis will swing to climate change initiatives, centred on the $130 million Farming Future program.

Research into the effect of climate change on farming, and the adaption of farms for it, will cost $60 million over four years, while $55 million will be spent advising and training farmers.

Mr Burke said 69 per cent of farm land was covered by exceptional circumstance declarations - interim or extended.

For those still under strain, but farming in areas no longer covered by an exceptional circumstances declaration, a new $14.5 million transitional income support program was announced.

© 2008 Sydney Morning Herald

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