MULTI-PERIL CROP INSURANCE - SUPPORTING OUR FARMERS

If elected in 2018, a Marshall Liberal Government will waive stamp duty on multi-peril crop insurance, allowing our South Australian farmers the opportunity to produce crops with the safety of knowing they can break even on crop production costs during volatile climatic condition periods.

Multi-peril Crop Insurance

At a time when South Australia’s manufacturing industry is slowing down and the mining sector has stalled in the face of falling global commodity prices - our primary industries sector is more important than ever.

With South Australia’s volatile climate conditions and damaging weather events, our farmers require an insurance that will enable them to enter into a cropping season with the reassurance they can be financially reimbursed, at a break-even price, if peril occurs.

Multi-peril crop insurance (MPCI) is an insurance product that protects farming operations against different types of peril, including drought, flood, fire and frost. This type of insurance covers the production costs incurred by farmers if their crop fails due to a nominated peril, providing financial security and helping farms and regional communities remain financially viable.

South Australian farmers currently have the highest stamp duty rate on insurance premiums in the nation at 11% and this is a significant burden on farmers wanting to insure their crops.

South Australian farmers are disadvantaged by our comparatively high levels of stamp duty. In NSW the value of MPCI premiums purchased was 3.5 times the value of South Australia, however the stamp duty paid on these premiums was 13% less than in our state.

This is a significant cost to our farmers who may already be struggling financially given the recent drought period and significant weather events experienced around South Australia.

The State Liberals Plan

If elected in 2018, a Marshall Liberal Government will waive stamp duty on multi-peril crop insurance, allowing our South Australian farmers the opportunity to produce crops with the safety of knowing they can break even on crop production costs during volatile climatic condition periods.

The State Liberals will take action to reduce the unnecessary costs incurred by South Australian farmers which inhibits their potential to produce higher yields and generate greater income. This is great news for South Australia’s economy, job creation prospects and exports. It is in South Australia’s best interests that our farmers are given every chance to succeed.

Primary industries have long been the backbone of the South Australian economy, directly employing over 37,000 South Australians and generating over $18 billion in economic activity.

With a structured insurance scheme, farmers will have the opportunity to target higher yields with the confidence to plant crops during times when they previously would not have taken the risk. A stamp duty free MPCI policy would better position farmers to produce a crop with the safety net of knowing they will be able to break-even should their crop fail as a result of a climatic peril.

We will help reduce the financial stress our farmers face when their crops are affected by our State’s unpredictable climate and weather events, helping to enhance the positive impacts on the mental and physical health of our primary producers and regional communities.

As outlined in our 2036 manifesto, the South Australian Liberal Party is committed to reducing the tax burden on South Australian business and households and cutting red tape.

Waiving stamp duty on MPCI will position South Australian farmers to take more risks, plant more crops and target higher yields. This will be great news for South Australia’s economy and exports and enable South Australia to capitalise on our world renowned primary industries sector, in which we have a significant competitive advantage.

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