Howard announces drought relief package

Australia's Prime Minister, John Howard, has announced the first part of a government drought relief package, which is worth $US262 million.

Howard says more announcements are likely as further parts of the plan are developed.

The new package will cover a longer period and give help to more types of producers; irrigators and dairy farmers will now be eligible along with dry land farmers.

"All eligible producers in exceptional circumstances declared areas in New South Wales, Victoria, Queensland, South Australia and the ACT (Australian Capital Territory) will receive an extension to their income support and interest rate subsidies until the 31st of March, 2008," Howard said.

The package has its critics, however.

Professor Peter Cullen from the Wentworth Group of scientists says the government should be focusing on helping some farmers to leave the land.

And he says those who want to stay need help so they can allow the land to regenerate.

"What we seem to be doing, by drip-feeding these people with drought relief, is keeping them there, maximising the misery, and maximising the land degradation," Professor Cullen said.

"There must be a smarter way for our society to handle the way that we're going to have to re-adjust some of these marginal farm lands."

Last week, the government warned the drought threatened to drive the agriculture sector into a recession.

- RADIO AUSTRALIA