Flood aid welcomed but some farmers disappointed

1.00pm

New government funding for flood ravaged areas has left some farmers bitterly disappointed.

The Government yesterday announced another $40 million in assistance to flood-hit areas in the lower North Island, taking the total aid package to around $130 million.

Today Rangitikei District Councillor Bruce Gordon, a cropping farmer who lost $40,000 of crops in the floods, queried why there was no compensation for losses.

"I don't understand why there is no compensation for arable farmers growing wheat and maize and barley," he told National Radio.

"I would say it's a huge issue."

But Agriculture minister Jim Sutton said yesterday farming was a risky business and the Government could not fully compensate farmers for lost income, but it could give them a helping hand.

"We cannot make things as they would have been if this event had never occurred...what Government has set out to do is to provide farmers with an effective helping hand," Mr Sutton said.

Yesterday's announcement included a $25 million agricultural recovery package, $11m to remit rates on income-generating properties (both farms and non-farm businesses) and another $4m to help councils repair local roads.

The agriculture package would give financial assistance to farmers and growers to cover 75 per cent of the cost of restoring essential on-farm infrastructure; a grant of 90 per cent of the cost to re-establish crops; and new start grants to ensure farmers and growers who are forced to leave their properties leave with at least $65,000 equity to start again.

Meanwhile tree growers were uncertain where they stood. They sustained damage of about $50 million.

Middle Districts Farm/Forestry Association president Dougal MacIntosh said trees had not been specifically mentioned in the package.

"This is something that is a little unclear yet. I think it would be wonderful if trees were treated as crops."

The Government estimated 2600 farms had been hit by floods, 800 of them severely. The Government had a "working estimate" that 20 farms were destroyed to such an extent that they could not be restored.

The Government was uncertain about the total damage caused to the economy, but it was estimated that $200 million damage was caused to the farming sector and $100m to public infrastructure.

The Ministry of Agriculture and Forestry has estimated there was about $21 million in crop losses, including 20,000 tonnes of potatoes, half the region's harvest, worth about $9.8 million.

But Vegfed has said the flood losses were closer to $30 million, as it was too late to replant most crops.

The Government has already announced around $90 million in assistance.

Around $75m would have been provided as standard disaster assistance such as assistance to local councils and repairing highways.

In recent weeks the Government announced another $18m in assistance.

This was made up of up to $10m in Taskforce Green help to repair damage and $4.9m to match donations to public flood relief appeals.

Manawatu farmer Darrell Shellard said he was disappointed not to be covered for stock losses.

Mr Shellard said tracks and roads at his property at Pohangina, 28km northeast of Palmerston North, was covered in slips.

"We've got about 200 acres we still can't use. I don't know how much stock we've lost in slips."

"I guess anything helps. But this doesn't seem such a big deal. We'll see."

Rural Recovery Centre head and Federated Farmers Manawatu-Rangitikei president Shelley Dew-Hopkins was pleased with the new funding.

"I'm very, very pleased with this. It's much more than I thought we'd be offered. Farmers will now be able to move on with some confidence."

Ms Dew-Hopkins said she accepted the Government was not paying out compensation as it had for those affected by Cyclone Bola.

"I wasn't expecting them to. Fixing the infrastructure, and enabling farmers to get on and repair and prepare for the future was the most important issue."

She said the package would mean farmers could repair fences, tracks, water systems, bridges and other necessities.

Mayors in affected districts were relieved.

Manawatu Mayor Ian McKelvie said the Government had "got it right for farmers".

However, he remained worried about costs associated with rivers and roads. Some rivers have deviated widely from their old channels.

Mr McKelvie said funding the management of rivers was a regional council issue and would hit Manawatu ratepayers' pockets.

"And the $4 million announced for roading won't go far if it has to cover from Picton up. In the Manawatu alone we are looking at an extra $3 million. Well, that's the money almost gone to a great extent."

Mr McKelvie was also concerned about measures to help small-block holders in the district who did not have what they needed, for example tractors, to start repairing damage.

"I'd like their situation clarified."

Horowhenua Mayor Tom Robinson said roads in the region were not badly affected but farmers were suffering.

"We might have fewer farmers affected, but the ones that were hit are as bad as anywhere.

"It's good to see the Government coming to the party on this."

VegFed chief executive Peter Silcock said last night that, subject to detail he was working on with officials, the package was "certainly very welcome".

"You would have to say, from an industry and agricultural point of view, the Government coming in with any kind of support is a fairly unusual event," Mr Silcock said.

"In fact, a lot of guys I've been talking to were saying, 'We're not holding our breath'."

Some crops could not now be planted for seasonal reasons and compensation for that needed to be clarified.

Paul Argyle, Kairanga grower and chairman of VegFed's buttercup squash sector, said he was encouraged to see the Government had recognised the severity of the flood and gone some way to recognising the unique position of cropping farmers.

"Anything the Government can do to help us face the next season will be good, because, let's face it, there are some guys out there right now considering whether they want to take that sort of risk again," he said.

- NZPA