East Gippsland farmers could receive significant financial relief under a Victorian Farmers Federation proposal calling for a $1.3 billion Federal Government fuel crisis payment to primary producers in this month’s Federal Budget.
The VFF is urging Federal Treasurer Jim Chalmers and Agriculture Minister Julie Collins to introduce a one-off support payment to help farmers manage
soaring fuel and fertiliser costs amid rising inflation.
Under the proposal, payments would be calculated using diesel fuel tax credits farmers have already claimed over the past year, providing what the VFF says would be a simple and efficient support measure.
The call is expected to resonate strongly across East Gippsland, where agriculture remains a major industry and many farmers rely heavily on diesel-powered machinery and transport operations.
VFF acting president Peter Star said rapidly increasing input costs were placing growing pressure on farming businesses.
“Every single one of our farm input costs are skyrocketing and it’s fast approaching unsustainable levels for many farmers,” Mr Star said.
“We’re calling for fair financial support to ensure farmers can keep their head above water.”
Mr Star said the latest inflation figures showed fuel prices had surged by more than 30 per cent in March, adding further strain to regional producers already facing high operating costs.
“Support at the farm gate can help keep farmers farming and that flows down through the supply chain and into the hip pocket of consumers at the checkout,” he said.
The VFF proposal would effectively mirror the existing fuel tax credit system, using the 52.6 cents per litre rebate already reported through business activity statements.
The organisation argues the payment would restore fairness after farmers were excluded from the Federal Government’s temporary fuel excise reduction for motorists, a measure that cost $2.55 billion.
Mr Star said the assistance could provide meaningful relief for producers across Victoria, including grain growers and mixed farming operations common throughout East Gippsland.
“Based on the ATO calculator, a grain grower using around 75,000 litres of diesel annually could receive about $40,000,” he said.
“While that amount may not dramatically change cropping programs, it helps provide certainty for an industry that demands it.”
The VFF said member feedback showed some farmers were facing input cost increases worth hundreds of thousands of dollars, raising concerns about the long-term impact on food production and prices.
The proposal has now been presented to Agriculture Minister Julie Collins, with the VFF calling for the measure to be considered by Federal Cabinet as part of broader cost-of-living and regional support initiatives.
Mr Star said the payment would acknowledge the critical role farmers play in Australia’s economy while helping regional industries cope with mounting financial pressures.
