The National Farmers’ Federation is partnering 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 is multi-commodity and national in focus.
The project examines 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 has commissioned six sub-project teams to provide research, analysis and recommendations on these topics. The teams include experts in farm business management, commercial financial risk management products, agricultural research, strategy, economics and government policy.
Each sub-project will examine existing arrangements in Australia, including their strengths and weaknesses. They will look at overseas examples and assess whether lessons learnt in other countries could be applied in Australia. And they will scan existing and new options for improving or expanding financial risk management tools and products available to Australian farmers. The sub-project teams will consider both commercial products and government measures and policies.
The sub-project teams are tasked with working together to ensure new options for managing farm financial risk are considered as a suite of options available to farmers.
Farmer Reference Groups
Farmers are central to the success of this endeavour. Each sub-project is convening a Farmer Reference Group that will act as a source of information, sounding board for ideas and will ground-truth findings and recommendations.
On-farm financial risk management survey
The NFF has 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. Farmers and others in the industry are being urged to contribute through a short survey, available here.