WORLD TRADE
ORGANIZATIONG/AG/N/AUS/42
22 March 2002
(02-1505)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notifications concerning new or modified domestic support measures exempt
from reduction ( Table DS:2 ) were received from the delegation of Australia on 6 March 2002.G/AG/N/AUS/42
Page 2
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   ACT Rural Conservation Fund
(2) Domestic legislation:   Nil
(3) Detailed description of measure with reference to criteria:
The Rural Conservation Fund is a financial assistance scheme for projects on leased rural land
that address conservation of biodiversity.  Eligibility for funding assistance is assessed against
prescribed criteria. In particular, projects are assessed against their potential to make acontribution to conservation of the biodiversity of the Australian Capital Territory.  Particular
attention is given to the degree to which they contribute:
- protection or management of habitat links or remnant vegetation;
- the conservation requirements of a threatened species or ecological community;
- protection or management of an aquatic ecosystem;
- determining the extent, significance or condition of an element of the natural biodiversity
of the ACT;  or
- promotion of conservation of biodiversity on leased rural land.
The program is exempt from reduction commitments consistent with paragraph 12 - Payments
under environmental programs– of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:  $250,000 per annum
(5) Date of entry into effect:   May 2000
(6) Period of application:   Ongoing
(7) Products to principally benefit (if any individual product(s)):  All agricultural productsG/AG/N/AUS/42
Page 3
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Central North East South Australia Farm Assistance Program
(CNEFAP)
(2) Domestic legislation:  Nil
(3) Detailed description of measure with reference to criteria:
The program was developed in response to long-term structural impediments to productivity
improvements, competitiveness and viability of farm businesses associated with drought, land
degradation, small property size and inability to switch enterprises from pastoral activities.
The CNEFAP aims to facilitate structural adjustment in the rural sector, to enhance viability
of farm business enterprises in the designated Central North East region of South Australia.  It
encourages sustainable long-term profitability, viability and innovation through thepreparation of business plans, increased farm productivity, grasshopper and locust control and
research into alternative farming methods.
The Program is open to approximately 350 primary producers in the Central North East
region of South Australia.  Assistance is offered for a range of activities including preparation
of business plans that identify long term viability and options for development or change in
their business and training needs; new projects to increase farm viability or sustainabilitywhere the primary producer has an approved business plan which indicates the viability of the
project; on-farm infrastructure; and identification and development of information on
economic and ecological opportunities for alternative farming enterprises and best practice in
the region.
The program is exempt from reduction commitments consistent with paragraph 13 - Payments
under regional assistance programs– of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:  Total Program funding is $4.05m, comprising a Commonwealth
contribution of $2.0m and South Australian contribution of $2.05m.
(5) Date of entry into effect:   14 August 2000
(6) Period of application:   3 years
(7) Products to principally benefit (if any individual product(s)):   All agricultural productionG/AG/N/AUS/42
Page 4
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Agriculture Advancing Australia (AAA)-Farm Help
(2) Domestic legislation:   Farm Household Support Act 1992
(3) Detailed description of measure with reference to criteria:
The aim of Farm Help, formerly the Farm Family Restart Scheme (FFRS), is consistent with
the aims of FFRS but provides some minor changes as well as a name change.  It provides
welfare support to farm families who are experiencing financial difficulties; providesadjustment assistance to farmers who wish to leave the industry; and gives farmers access to
professional advice on the further viability of their business and on employment opportunities
if they choose to exit the industry.  Farm Help extends the cut-off for application for income
support and the re-establishment grant from that available under FFRS.  The measure also
adds a retraining component for re-establishment grant recipients to develop skills for work inother industries; and administrative support for farmers assessed as being non-viable to
develop a ‘pathways plan' to plan the farm family's future whether on or off the farm.
The Income Support component of the program is exempt from reduction commitments
consistent with paragraph 6 – decoupled income support; the re-establishment component of
the program is exempt from reduction commitments consistent with paragraph 9 – structural
adjustment assistance provided through producer retirement; the re-training component is
exempt from reduction commitments consistent with paragraph 2 (c) - training services; andthe professional advice component of the program is exempt from reduction commitments
consistent with paragraph 2 (d) - extension and advisory services - of Annex 2 of the
Agreement on Agriculture.
(4) Cost of measure:   $111.2 million over 3 years
(5) Date of entry into effect:   1 July 2000
(6) Period of application:   Applications close 30 November 2003
(7) Products to principally benefit (if any individual product(s)):   All agricultural productionG/AG/N/AUS/42
Page 5
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Great Artesian Basin Sustainability Initiative
(2) Domestic legislation:  Nil
(3) Detailed description of measure with reference to criteria:
Provision of $31.8 million over 5 years to facilitate substantial progress in restoring
groundwater pressures in strategic areas of the Great Artesian Basin.
Program funds will be used primarily to assist bore rehabilitation, with supplementary
incentives being made available for replacement of open drains with piping.  These activities
will be funded in partnership with State/Territory Governments and water users, and managed
to extract maximum leverage in complementary measures necessary to ensure lasting change
in attitudes and water use and grazing management practices, consistent with inter-
governmental commitments to water reform.
The program is exempt from reduction commitments consistent with paragraph 2 – General
Services, infrastructure – of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:   $31.8m
(5) Date of entry into effect:   1 July 1999
(6) Period of application:   5 years
(7) Products to principally benefit (if any individual product(s)):   All agricultural productsG/AG/N/AUS/42
Page 6
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Loxton Irrigation Scheme (LIS) Refurbishment
(2) Domestic legislation:  War Service Land Settlement Agreements Act 1945; States Grants
(War Service Lands Settlement) Act 1952
(3) Detailed description of measure with reference to criteria:
The Loxton Irrigation Scheme (LIS) was established in the period 1946-1956 as part of the
War Service Land Settlement (WSLS) Scheme for soldier settlers following World War II.Under the WSLS arrangements, the Commonwea lth provided funds for the acquisition and
development of the land and the construction of the irrigation system.  South Australia was
responsible for the on-ground administration.
The Commonwealth and the State of South Australia agreed to the refurbishment of the LIS.
The LIS Refurbishment involves replacing open channel with pipeline and providinghigh-pressure water supplies to irrigators.  The project will result in considerable
environmental benefits for the Riverland region in South Australia.  The project complies
with the Council of Australian Government (COAG) Water Reform Requirements.
The program is exempt from reduction commitments consistent with
paragraph 2 (g) - General Services, infrastructural services – of Annex 2 of the Agreement on
Agriculture.
(4) Cost of measure:  The Commonwealth Government will commit $13.629 million and the
State Government and growers to contribute at least $20.52 million over the same period.
(5) Date of entry into effect:   1 July 2000
(6) Period of application:   2 years
(7) Products to principally benefit (if any individual product(s)):   All agricultural productsG/AG/N/AUS/42
Page 7
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Assistance to producers in Exceptional Circumstances Areas in the
Central Highlands and Southern Midlands Municipalities of Tasmania to maintain breeding
stock.
(2) Domestic legislation:  Nil
(3) Detailed description of measure with reference to criteria:
Payments are made to farmers located in the drought areas of the Central Highlands and
Southern Midlands of Tasmania to maintain their breeding stock in drought conditions.
Applicant must be certified as being in an Exceptional Circumstances declared area. In
addition applicants are required to provide evidence of undertaking activities to maintain
breeding stock before payments are reimbursed up to a maximum of $1500 per enterprise.
The program is exempt from reduction commitments consistent with paragraph 8 – Relief
from natural disasters – of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:   $124,560
(5) Date of entry into effect:   25 May 2000
(6) Period of application:   25 May 2000 – 31 December 2001
(7) Products to principally benefit (if any individual product(s)):   All rural producers.G/AG/N/AUS/42
Page 8
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   National Action Plan for Salinity and Water Quality
(2) Domestic legislation:  Nil
(3) Detailed description of measure with reference to criteria:
The National Action Plan for Salinity and Water Quality will support regional communities
and landholders to undertake targeted action in 21 catchments or regions which are
significantly affected by high levels of salinity.  Key objectives of the Action Plan are to:
• prevent, stabilise and reverse trends in dryland salinity affecting the sustainability of
production, ensure the conservation of biological diversity and the viability of ourinfrastructure
• improve water quality and secure reliable allocations for human uses, industry and the
environment.
Regions/catchments will develop integrated natural resource management plans which are
expected to incorporate targets to achieve identified outcomes.  These plans will be accreditedby the government as a basis for future action to manage salinity and water quality issues, as
well as activities such as capacity building and development of pilot schemes for market-
based measures.
The program is exempt from reduction commitments consistent with
paragraph 2 (d) - General Services, Extension and advisory services; andparagraph 2 (g) - infrastructure services – of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:   $700 million Commonwealth funding (to be matched by $700 million
from State governments)
(5) Date of entry into effect:   3 November 2000
(6) Period of application:   Seven years
(7) Products to principally benefit (if any individual product(s):  NilG/AG/N/AUS/42
Page 9
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Development Incentive Scheme (Queensland)
(2) Domestic legislation:  Nil
(3) Detailed description of measure with reference to criteria:
The scheme is designed to encourage individual landholders to undertake commercially and
ecologically sustainable irrigation practices.  The scheme provides 22.5% (up to a maximum
of $150,000) of eligible costs of construction of new water storages for irrigation purposescosting $200,000 or more.  It is designed to act as a catalyst to promote the development of
significant sized on-farm water storage for irrigation that is both ecologically and
commercially sustainable, and to promote the development of significant sized storages on
productive land in areas where there are limited opportunities for construction of major public
water supply infrastructure.
Costs eligible for payments include those associated with preliminary design to ensure the
overall development proposal is commercially and ecologically sustainable, dam design, land
and water management plans, cash flow analysis and certification. The costs of land clearing
and development of the area to be irrigated, and purchase of water distribution and application
equipment are not covered by the payment.  Furthermore, no production is required to receive
the payment and it is paid in three equal annual instalments.
The program is exempt from reduction commitments consistent with paragraph 6 - Decoupled
Income Support - of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:  $8.8 million
(5) Date of entry into effect:   October 1997
(6) Period of application:   Until 30 June 2003
(7) Products to principally benefit (if any individual product(s) ):   N/AG/AG/N/AUS/42
Page 10
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Dairy Exit Program
(2) Domestic legislation:  Farm Household Support Act 1992
(3) Detailed description of measure with reference to criteria:
The Dairy Exit Program (DEP) is part of the Federal Government's Dairy Industry
Adjustment Package (DIAP) aimed at helping dairy farmers in the transition to a deregulated
market from 1 July 2000.  Centrelink administers DEP on behalf of the Department of
Agriculture, Fisheries and Forestry-Australia.
This program provides time limited access to a grant of up to $45,000 to eligible farmers in
the dairy industry who decide to leave farming.  A retraining grant is also available to eligible
farmers to assist them in finding an a lternative career after they exit farming.
This payment may be taken as an alternative to a Dairy Structural Adjustment Payment
entitlement.  The grant is only payable on sale of the farm and all farming assets.  The Dairy
Exit payment is subject to an assets test on the sale of the farm.
Claiming is done in two parts:
• an initial application for DEP which must be lodged before 1 July 2002;  and
• after the sale of the farm, a 'Claim After Sale' form must be lodged within 12 months of
applying for the DEP and before 1 October 2003.
Farmers who receive this grant can also access a retraining grant of $3 500 to assist them in
finding an alternative career after they exit farming.
Qualification requirements for the DEP are similar to those of the re-establishment grant paid
under the Agriculture - Advancing Australia ( AAA) Farm Help - Suppor ting Families through
Change program.
This program is exempt from the reduction commitment consistent with
paragraph 9 - structural adjustment assistance provided through producer retirement – of
Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:   $30 million allocated for the duration of the program.
(5) Date of entry into effect:   1 July 2000.
(6) Period of application:   2 years
(7) Products to principally benefit (if any individual product(s) ):   N/AG/AG/N/AUS/42
Page 11
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   Plague Grasshopper and Locust Control (South Australia)
(2) Domestic legislation:   Noxious Insect Act 1934
(3) Detailed description of measure with reference to criteria:
Assistance is provided to control significant ‘outbreaks’ of plague grasshopper and locusts.
Funding activities include insecticide purchase, plane and helicopter hire for spraying and
surveillance, salaries and administration.
The program is exempt from reduction commitments consistent with
paragraph 2 (b) - General Services, Pest and disease control – of Annex 2 of the Agreement
on Agriculture.
(4) Cost of measure:  $6.484m in 2000/2001
(5) Date of entry into effect:   1934
(6) Period of application:  Ongoing as required during plague occurrences
(7) Products to principally benefit (if any individual product(s) ):  Horticultural and
Agricultural CropsG/AG/N/AUS/42
Page 12
Table DS:2
DOMESTIC SUPPORT:  Australia
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
(1) Full title of measure:   WEST 2000 Plus Program
(2) Domestic legislation:  Rural Adjustment Act 1992
(3) Detailed description of measure with reference to criteria:
The program was developed in response to long-term structural impediments to productivity
improvements, competitiveness and viability of farm businesses associated with drought, land
degradation, small property size and inability to switch enterprises from pastoral activities.  TheProgram is open to all landholders in the western Division of NSW and aims to help
landholders improve their economic performance, business and management skills and, where
possible, develop alternative industries. The program also aims to contribute to the better
management of the natural resource base in the region.   Assistance is offered for improving the
business, management and technical skills of landholders; establishment of alternativeindustries and funding for other activities that facilitate the provision of information,
networking and advice on alternative industry opportunities; undertaking specific natural
resource management activities; facilitation of rural restructuring and ensuring landholders
have access to adequate counselling support
The program is exempt from reduction commitments consistent with paragraph 13 – Payments
under regional assistance programs – of Annex 2 of the Agreement on Agriculture.
(4) Cost of measure:  $5.912m of Commonwealth funds over three years.  This contribution is to
be matched by the NSW Government.  Total Program funding is $11.825m.
(5) Date of entry into effect:   12 December 2000
(6) Period of application:   3 years
(7) Products to principally benefit (if any individual product(s) ):   All agricultural products
__________