Drought - Exceptional Circumstances (EC)

Drought Assistance

A drought is a prolonged, abnormally dry period when there is not enough water for users' normal needs. Victoria is currently in the midst of a severe drought indicated by the entire state of Victoria being Exceptional Circumstances (EC) declared.

Definition of EC:

EC are rare and severe events outside those a farmer could normally be expected to manage using responsible farm management strategies.

The event

• must be rare, that is it must not have occurred more than once on average in every 20 to 25 years
• must result in a rare and severe downturn in farm income over a prolonged period of time (eg. greater than 12 months)
• cannot be planned for or managed as part of farmers' normal risk management strategies, and
• must be a discrete event that is not part of long-term structural adjustment processes or of normal fluctuations in commodity prices.

An area must first become EC declared, or at least have a prima facie case for becoming EC declared, before drought-affected farmers and agriculture-dependent small businesses can obtain assistance.

Due to the unprecedented severity, length and extent of the current drought, the Australian Government has recently (2006 and 2007) increased the number of EC-declared areas across Australia , extended the expiry dates for existing EC declarations and reintroduced some lapsed areas.

There are a number of supports and assistance available through both by the State and Federal Government, these supports are not just for the primary producer as drought can affect all members of a rural community, the web links below can provide people with the necessary information.

Department of Primary Industries

Department of Agriculture, Fisheries and Forestry

Gippsland Rural Outreach Workers Network (GROWN)

Eligible farmers in EC declared areas can access income support payments, business interest rate subsidies (full EC only) and the Victorian Government's EC municipal rates subsidy.

• To access EC support, farmers need a certificate that their farm is in an eligible area. These are available via Centrelink Drought Assistance on 13 23 16.
• For information on EC income support contact Centrelink Drought Assistance on 13 23 16.
• For information on EC business interest rate subsidies (full EC only) contact the Rural Finance Corporation on 03 5448 2600.