The National Farmers’ Federation partnered with the NSW Government on a project aimed at improving the financial risk management options available to Australian farmers to help them manage drought and other natural disasters. The project was multi-commodity and national in focus.
The project examined in detail the following six topics:
- Commercial and government-subsidised insurance options
- Forward contracts, futures, options and swap markets and associated product options
- Mutuals and co-operatives
- Awareness and education of financial risk management options
- Off-farm income and assets
- Other government risk management measures
The NFF commissioned six sub-project teams to provide research, analysis and recommendations on these topics. The teams included experts in farm business management, commercial financial risk management products, agricultural research, strategy, economics and government policy.
Each sub-project examined existing arrangements in Australia, including their strengths and weaknesses. They looked at overseas examples and assess whether lessons learnt in other countries could be applied in Australia. And scanned existing and new options for improving or expanding financial risk management tools and products available to Australian farmers. The sub-project teams considered both commercial products and government measures and policies.
The sub-project teams were tasked with working together to ensure new options for managing farm financial risk were considered as a suite of options available to farmers.
Farmer Reference Groups
Farmers were central to the success of this endeavour. Each sub-project convened a Farmer Reference Group that acted as a source of information, sounding board for ideas and ground-truthed findings and recommendations.
On-farm financial risk management survey
The NFF partnered with the NSW Government to better understand financial risk management options for farmers including insurance, derivatives, mutuals and cooperatives and off-farm income options.
See the final reports
Report 1 – Insurance
Report 2 – Hedging
Report 3 – Mutuals and Co-ops
Report 4 – Education & Awareness
Report 5 – Off-farm income
Report 6 – Policy