RURAL SECTOR ASSISTANCE PROGRAMME: HAWKE'S BAY

  • John Luxton
Agriculture

Cabinet has agreed to make the Rural Sector Assistance Programme (RSAP) available to farmers and growers in the Hawke's Bay, Acting Agriculture Minister John Luxton and Social Welfare Minister Roger Sowry announced today.

Cabinet took the decision at its first meeting since receiving the request for assistance.

The programme provides those eligible with 75% of the unemployment benefit rate. This means a married farming couple with two or more children will be able to receive $195.71 a week. It will be available for one year from next Monday.

The Government expects 130 farmers in Hawke's Bay to be eligible, at an estimated cost of $1,120,000 over the next 12 months.

The RSAP is designed to provide farmers with an income to cover modest essential living costs during the immediate disaster recovery period. It is a special programme for farmers because, unlike other self-employed people, farmers are not able to leave their land and seek alternative income during natural disasters such as droughts. The programme is already available to farmers in Marlborough and North Canterbury.

Farmers and horticulturists are eligible if they meet the following criteria:

  • they have no assets unconnected with the farm which would be practical to realise;
  • they have no "cash assets" connected with the farm that are realisable and below the Special Needs Grant cash asset limit of $737 for a single person and $1,228 for a married couple;
  • the farm is in financial difficulty and is not producing sufficient income to meet essential living expenses - defined as $401 a week for a single person and $576 for a married couple;
  • they have no significant income other than from the farm, with any income they or their spouse receive resulting in a dollar for dollar reduction to any assistance provided; and
  • the farmer has decided to sell the farm, is actively considering the ongoing viability of the farm, or has evaluated the ongoing viability of the farm and is actively working towards the recovery of the farm as a viable business concern.

As in the case of Marlborough and North Canterbury, pastoral capital stock, or the proceeds from the sale of pastoral capital stock, are excluded from the asset criteria. The Government believes that to include pastoral capital stock, or the proceeds from the sale of pastoral capital stock, would be to eliminate the possibility that the farms could return to being viable businesses in the future.

Today's announcement brings to $2,064,700 the amount the Government has already allocated for drought relief this year. This consists of $254,700 in direct assistance plus $1,810,000 for income support in Marlborough, North Canterbury and Hawke's Bay.

It is expected the Government will receive a request for assistance from Wairarapa and Tararua farmers this week.