Growers demand commitment on power prices and insurance

CANEGROWERS CEO Dan Galligan said that Queensland’s sugarcane growers are being squeezed by electricity prices that have skyrocketed by 145% since 2007, putting immense pressure on productivity and competitiveness. General price inflation over the same period was only 56%.

With current tariff structures penalising farmers who use power to grow food and fibre, CANEGROWERS is demanding a shift to more equitable, consumption-based tariffs.

The organisation has joined with the Queensland Farmers’ Federation in calling for the threshold for large electricity customers to be raised from 100 megawatt hours (MWh) per annum to at least 160MWh/a, ensuring that more growers can access fairer tariffs.

“The current demand-based tariffs are designed for constant, year-round use – not for farmers who have to rely on electricity in bursts during the season,” Mr Galligan said.

“What we need is real competition and genuine tariff reform, not cosmetic fixes that leave farmers out in the cold,” he said.

CANEGROWERS is also pushing for the abolition of the 9% government stamp duty on crop and parametric insurance products, which remains a barrier to farmers safeguarding their businesses against natural disasters.

“This is a no-brainer,” Mr Galligan said. “By taxing insurance, the government is discouraging farmers from managing their own risks.

“Removing the stamp duty will empower farmers to protect themselves from floods, droughts, and cyclones, reducing reliance on government aid. It’s a win for growers and a win for the state.”

Despite the clear benefits, neither major party has committed to abolishing the stamp duty.

“The lack of political will to address this issue is disappointing,” Mr Galligan said. “Farmers are being left exposed because a 9% tax makes essential insurance unaffordable for many. Political leaders need to act now, before the next disaster strikes.

“We’re just days away from the election, and neither party has committed to lowering power prices for agriculture or scrapping stamp duty on insurance.

“This is the last chance for leaders to show they’re serious about supporting Queensland agriculture.”