How do EC assessments work?
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Fact Sheet 2
How do EC assessments work?
This fact sheet aims to explain how regions are assessed for Exceptional Circumstances (EC). A diagram of the EC assessment process is attached at Figure 1.
In most cases, the process to determine whether an area or industry is eligible to receive EC assistance, takes approximately two months from the receipt of an application. However, there are cases that are more complex, particularly where additional information is required from the state or territory government or community, where the process can take considerably longer.
Development of an EC Application
It is the responsibility of the industry, community and the relevant state or territory government to establish a case for EC assistance with objective evidence. Much of this information comes from the community (for example, farmers, accountants, bankers, rural financial counsellors and welfare agencies).
The first step is for the community or industry group to take its concerns to the relevant state or territory government, which will assess the case. If a case for EC assistance can be established, the state or territory government will work with the affected region or industry to develop a formal EC application.
A quick and effective assessment of the application and additional information is dependent on the quality and relevance of the information provided. The information needs to include a description of the EC event, its cause and data that shows the current and projected impact of the event on income and production. Farm case studies or surveys can provide insights into farmers’ experience of the event, if they supplement financial and production data from the long-term historical record.
Once the state or territory government is reasonably confident that the case for EC assistance fully meets the EC guidelines, it will then forward the application to the Australian Government Minister for Agriculture, Fisheries and Forestry (the Minister).
What Happens When an Application is Received?
Once an application is received and accepted, the Minister will usually refer it to the Australian Government Department of Agriculture, Fisheries and Forestry for a preliminary assessment against the EC criteria. If a prima facie case for EC assistance can be established, the Minister will then refer the application to an independent panel of farmers and industry experts - the National Rural Advisory Council (NRAC) for a full assessment.
Acceptance of a prima facie case allows eligible farmers to receive income assistance for up to six months while NRAC is conducting its assessment. NRAC will provide the Minister with advice on whether a case has been made for the provision of full EC assistance.
NRAC Assessment
A lot of information gathering occurs before NRAC inspects a region and consults directly with affected producers. Information and expert advice can come from a number of sources including:
- state departments
- industry bodies
- individual landholders
- local agronomists and consultants
- the financial sector
- the Australian Government Bureau of Meteorology
- the Australian Bureau of Agricultural and Resource Economics (ABARE)
- the Bureau of Rural Sciences (BRS).
NRAC Visit of the Region
NRAC may conduct a tour of the affected region to assess the situation and obtain additional information from affected producers, community groups, local government and local businesses and their employees.
The tour is often a critical part of the process as it provides the opportunity for producers to present their case to NRAC and for NRAC to observe the impact of the EC event first hand. There may be questions that arise from the visit or additional information that needs to be gathered following the visit.
Accompanying NRAC on the tour generally is a representative from the Australian Government Department of Agriculture, Fisheries and Forestry, who will collect information and assist NRAC in preparing its report to the Minister.
What questions will NRAC ask?
NRAC may ask about:
- current and long-term production and income
- farm financial circumstances before and following the event
- the outlook of the region
- how farmers had prepared for such events.
Preparation of the Report to the Minister
Following completion of the tour, additional information is assessed and preparation of the written report to the Minister commences. There are occasions when it may be necessary to wait for additional production or income data to become available, or for the results of an additional growing season. When there are delays in preparing the report, close consultation is maintained with the relevant state or territory government, which in turn liaises with the community.
Announcement by the Minister
On completion of its examination, NRAC presents its recommendations to the Minister who has responsibility for declaring whether or not a particular area is experiencing exceptional circumstances.
Figure 1: Current EC Process
