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Barnaby Joyce delivers half billion in assistance to dairy farmers

The Federal Government has announced a half-billion-dollar assistance package including concessional loans to dairy farmers dealing with the collapse of farmgate milk prices.

Murray Goulburn recently cut its price from $5.65 to between $4.75-$5.00 kgMS, while the other major dairy processor Fonterra cut its price from $5.60 per kgMS to $5.00 per kgMS. As a result, many dairy farmers are expected to leave the industry.

As the ABC reports, the assistance package announced yesterday by Agriculture Minister Barnaby Joyce (pictured) includes $55 million worth of concessional loans this year and $500 million in concessional loans over 2016-17 and 2017-18.

“The concessional loans will go as low as 2.66 per cent. They’re currently at 2.71 per cent.” Joyce said.

“Farmers will be able to borrow $1 million or half of what they owe, whichever is the lesser, so that they can assist themselves to get through this crisis.”

The package, which received bi-partisan support from shadow agriculture minister Joel Fitzgibbon, also included increased access to financial counselling services.

As News.com.au reports Joyce also announced that, if re-elected, the government would establish a commodity milk price index to provide the industry and producers with a better idea of expected global and local milk price fluctuations.

“The Coalition will consult with the industry on the design of the index that would provide dairy farmers with valuable information for use in supply negotiations with processors and to assist in following international price trends,” Joyce said.

Meanwhile, as AAP reports, dairy farmers are rallying in Melbourne this morning to highlight their plight. They plan to gather in Federation Square and march to Parliament House.

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