Farm Help Re-establishment Grant Scheme Amendment 2001 (No. 2)

Overview

The Farm Help Re-establishment Grant Scheme Amendment 2001 (No. 2) was enacted to address specific issues arising from the existing Farm Help Re-establishment Grant Scheme 1997, which provided financial assistance to farmers who had exited the industry. This legislative instrument was made under subsection 52C(1) of the Farm Household Support Act 1992 by Warren Truss, the Minister for Agriculture, Fisheries and Forestry. The primary objective of this amendment was to ensure that recipients of the re-establishment grant did not re-enter the farming industry within a specified period, thereby maintaining the integrity of the grant program. This was achieved by introducing a condition that recipients must undertake not to become a farm owner or operator again within five years of receiving the grant, with the penalty of recovery of the grant amount if breached. This amendment aimed to prevent the misuse of the grant by ensuring that it was used to assist individuals in permanently exiting the farming industry.

Scope and Application

The Farm Help Re-establishment Grant Scheme Amendment 2001 (No. 2) amends the Farm Help Re-establishment Grant Scheme 1997, which was established under the Farm Household Support Act 1992. This legislative instrument applies to individuals who have previously received farm assistance and are recipients of re-establishment grants, particularly those who might be eligible for supplementary payments under the Supplementary Dairy Assistance Scheme 2001 formulated under the Dairy Produce Act 1986. It imposes a condition that recipients of a re-establishment grant must undertake not to become farm owners or operators again within five years of receiving the grant. This amendment extends the scope of the scheme to include certain payment rights under the Supplementary Dairy Assistance Scheme 2001. The instrument commenced upon gazettal and applies nationally, as it is a Commonwealth instrument. There are no stated exclusions or exemptions, and the thresholds for eligibility remain unchanged by this amendment.

Key Provisions

The Farm Help Re-establishment Grant Scheme Amendment 2001 (No. 2) amends the Farm Help Re-establishment Grant Scheme 1997. The most notable change introduced by this amendment is found in section 3.2(1)(g)(iv) of the original Scheme, which has been revised to explicitly include a payment right under the Supplementary Dairy Assistance Scheme 2001 formulated under the Dairy Produce Act 1986. This addition ensures that individuals receiving supplementary dairy assistance are now eligible for the re-establishment grants under the amended Scheme. Under section 3.9 of the amended Scheme, a significant condition is imposed on recipients of re-establishment grants. The recipients must undertake not to become farm owners or operators again within five years after receiving the grant. This condition is intended to prevent the immediate resumption of farming activities by those who may be in financial distress, thus encouraging a more sustainable transition away from farming if needed. The consequences of breaching this condition are outlined in the same section, stating that if a person does become a farm owner or operator again in violation of the undertaking, the amount of the re-establishment grant paid to them becomes a recoverable debt due to the Commonwealth. The obligations imposed by the amended Scheme extend to ensuring compliance with the new conditions set forth in section 3.9. Recipients must actively refrain from engaging in farming activities for the specified period. Failure to adhere to this requirement may lead to the recovery of the grant amount by the Commonwealth. Additionally, the amended Scheme mandates that the Department of Agriculture, Fisheries and Forestry verify the compliance of recipients with the new condition before any grant is disbursed. Breaching the condition set out in section 3.9 of the amended Scheme has serious consequences. If a recipient becomes a farm owner or operator again within the prohibited five-year period, the re-establishment grant they received becomes a debt due to the Commonwealth. This means that the Commonwealth has the legal right to recover the full amount of the grant from the defaulting individual. There are no specific penalties outlined in the text for this breach, but the recovery of the grant as a debt is a significant financial and legal consequence.