A proposed amendment to the Farm Management Deposits (FMD) Scheme could see the non-agricultural production income threshold for farmers nationwide extended, allowing those participating to draw more income from wind farms without penalty.
The FMD scheme is a piece of legislation designed to assist farmers in preparing for conditions of financial hardship by providing a tax deductible form of income-banking in times of plenty.
Under the amended system, there will be greater scope for farmers to reserve income from non-agricultural sources, such as rents paid on wind farms, when afflicted by drought or other natural disasters.
The increased income, for many, will be crucial in determining the viability of ongoing commitment to agriculture, according to Deputy Chief Executive of the Clean Energy Council (CEC), Kane Thornton, who noted that
“In many cases we have seen that hosting wind turbines has been the difference between staying on the land and being forced to sell the family farm.”
These decisions, however, must also take into consideration the predicted increase in frequency of natural disasters, like drought and bushfires, exacerbated by inadequate national action on climate change. Continue reading “Policy Watch: Wind farmers to benefit from tax changes… But only if RET remains intact”