Mr Wedge – who owns Ascot Cattle Co Charolais and Angus Stud – has backing from several other Warwick farmers who want the payments managed by an independent panel appointed by the federal government.
Mr Wedge said insurance companies refuse to cover drought despite making payments on natural disasters such as floods, fires and storms.However, the concept faced resistance yesterday from Water Ministerwho said a Farm Management Deposits Scheme already existed which allowed farmers to put tax-free deposits into a fund.
“There’s a huge gap there really … These natural disasters are going to be more frequent than not. It’s just some way to keep the agriculture industry sustainable.” Mr Judd said whatever the immediate financial solution, communities urgently needed long term water infrastructure like dams.“The dams should have been built thirty years ago. There’s been no major infrastructure in water management in this country since the snowy schemes and no major irrigation development.“The water we need is on the other side of Range, we need diversion projects to deliver from coastal regions to the Downs.
The economist said more granular data was needed to ascertain the viability of insurance, including more weather stations in remote areas and use of stations on private property.