Australian Drought aid tops $1 billion

The Age, Melbourne, Australia
The Federal Government today announced a $714 million package to help farmers hit by the worst drought in living memory.

The package comes on top of $430 million in exceptional circumstances funding announced by Prime Minister John Howard on September 17.

Assistant Water Minister John Cobb told a drought summit in Parkes in Central Western NSW the package would include direct grants to irrigators and more exceptional circumstances funding.

Exit grants of up to $150,000 will be available to farmers to leave their properties and there will be an increase in the number of mental health counsellors from the package.

Mr Cobb said there would be an increase to the off-farm assets limit for access to the exceptional circumstances interest rate subsidy from $473,000 to $750,000.

The change means farmers living in exceptional circumstances declared areas will be able to hold more off-farm assets before being cut off from drought funding.