Multi-Million Dollar Agricultural Fund Remains Untapped
A substantial fund established to support South Australian farmers through industry shifts has remained untouched by the state government for the past ten years. The Rural Industry Adjustment and Development Fund, boasting over $28 million, was created in the 1980s to offer loans and grants at the discretion of the minister responsible for primary industries and regions.
Calls to Aid Struggling Wine Sector
The untapped millions are now the focus of calls to assist the state’s beleaguered wine industry. Growers in the Riverland region, facing a crisis exacerbated by prolonged drought and challenging wine market conditions, have expressed bewilderment at the government’s inaction.
Peter Szabo, general manager of CCW Co-operative, a collective representing independent Riverland growers, voiced his shock at the surplus funds. “I was a little bit taken aback there was so much money just sitting around unspent and that this region is so in requirement of some financial assistance,” Szabo stated. “This sort of money injected into this region to help us keep our grape growers going and so forth would be just a change that would be fantastic for the entire region.”
Szabo believes the funds could facilitate a crucial transformation within the region, potentially aiding growers in transitioning to alternative crops or exiting the wine industry entirely. “We need to find ways of transitioning to something else and that helps both our irrigation trusts and our local corner stores and retailers and tractor manufacturers and all the rest,” he explained. “We’ve gotten to a point because we’ve received funding to employ a transformation officer … but it’s very, very significant that there is a barrier of capital funds to allow people to transition to other commodities.” He added, “We are at a critical junction right now and probably 12 months [or] two years too late in seeking funding because a lot of people continue spending their own capital.”
Diversification and Investment Urged
While some growers remain skeptical about the efficacy of additional funding amidst global market pressures, others see the fund as a significant opportunity. Loxton North wine grape and citrus grower Peter Hill advocates for using the money to attract new industries to the region. “I think that fund is certainly an opportunity for this region and obviously other agricultural regions in the state as well, but particularly the Riverland while it’s suffering this downturn in the wine industry,” Hill commented. “This region would be ideal for them to relocate to … whether it’s a low-interest loan to relocate up here or there was new crops and that was incentivised.”
Hill emphasized the need for greater regional diversification to mitigate future risks. “We need a more diversified region and then we’ve got less chance of this happening again. It’s a bit like the wine industry relying on one market like China — as soon as that collapses, we’re in strife.”
Government Cites Fund Limitations
In response to queries about the fund’s inactivity, a government spokesperson indicated that its effectiveness is constrained by the requirement for loan interest to reach commercial rates. “The minister’s defence has been that the fund isn’t fit for purpose and that’s why it hasn’t been used over the last 10 years,” stated Liberal MLC leader Nicola Centofanti, who brought the issue to parliament. “If that is the case, then let’s make it fit for purpose.”
The state government spokesperson suggested that if the previous administration had been aware of the fund, this limitation might explain its non-use during their tenure. The spokesperson also confirmed that the primary industries minister has engaged in discussions regarding the wine industry’s future, including two roundtables and a review of current and future funding priorities.
Analysis of auditor-general’s reports indicates the fund has grown by approximately $4 million since 2018, with an estimated $1 million generated annually in interest for 2024 and 2025.
