Up to $2,500 is available from Managing Farm Risk Programme to help farmers apply for a new insurance policy that assists with the management of drought and other production and market risks.
Managing Farm Risk Programme
The Managing Farm Risk Programme allows eligible farm businesses to access a one-off rebate for costs incurred obtaining independent and professional advice to apply for a new insurance policy that assists with the management of drought and other production and market risks.
The Managing Farm Risk Programme is delivered by the Department of Agriculture and Water Resources as part of the Australian Government’s Agricultural Competitiveness White Paper, the government’s plan for stronger farmers and a stronger economy.
The Managing Farm Risk Programme is a demand-driven programme with funding capped at $20.2 million. Eligibility is based on the farm business meeting the requirements of the programme as specified in these guidelines. Any farm business applicant that meets the requirements of the programme will receive a rebate until the funding is exhausted.
There are annual limits to the funding allocation. If an annual funding allocation is exhausted, no further payments will be made in that financial year. Applications will continue to be assessed and, if successful, will be paid in the following financial year. If funding is exhausted in the 2018–19 financial year, applications will close and assessment of applications will cease.
The programme funding is paid as a rebate, which means that applicants are required to incur costs before knowing the outcome of an application. The department can be contacted to answer general questions, but applicants are ultimately responsible for considering programme suitability and their potential eligibility prior to incurring costs.
Through the Managing Farm Risk Programme, the government aims to support farmers by encouraging a more diverse and mature insurance market in Australia to meet the varied needs of all farm businesses.
The objectives of the programme are to:
- improve the capability of farmers to manage drought and other production and market risks through use of agricultural insurance
- provide a short-term boost to the multi-peril insurance market in Australia.
Rebates will be 50 per cent of the costs incurred by the farm business (GST exclusive), up to a maximum of $2,500.
Eligible farm businesses can apply for a rebate for costs of engaging a suitably qualified service provider (see glossary) to carry out one (or more) of the following activities:
- undertaking an assessment required by an insurance provider prior to, or within 12 months of, the provider offering an insurance product
- compiling historical farm financial performance and production data
- preparing an analysis of insurance options in the context of a whole-of-farm risk assessment specific to the farm business applicant over successive seasons.
A rebate may be refused or reduced proportionately if the department considers that one or more activities undertaken by the applicant is not eligible or has been provided by someone other than a suitably qualified service provider, or if a service provider’s fees or charges are excessively or unreasonably high in the circumstances.
One rebate per eligible farm business is available under the Managing Farm Risk Programme.
An eligible farm business is one that meets all of the following criteria:
- operates as a sole trader, trust, partnership or private company
- under normal circumstances, has at least one member who derives at least 50 per cent of his or her income from the farm business
- is involved within the agricultural, horticultural, pastoral, apicultural or aquacultural industries
- is wholly located in Australia
- is registered for tax purposes in Australia with an Australian Business Number (ABN) and is registered for GST
- is not a public company under the meaning of the Corporations Act 2001
- for the previous financial year, had total cash receipts of less than $2 million
- has a written offer or refusal from an insurance provider for a new insurance product that assists with the management of production risks;
- has not previously applied for and been paid a rebate under the programme.
Note: Receipt of funding from this programme may result in an applicant’s business being ineligible for support from other government programmes. Funding may also have taxation implications. Applicants should seek independent taxation and financial advice from a suitably qualified professional before submitting their application.
Applications close 31 May 2018.