Frost-hit farmers in Australia’s largest wine-grape growing region have been denied financial aid by the South Australian government.
Freezing temperatures hit the renowned wine regions of the Barossa Valley and Riverland in September, with some growers reporting crop losses of more than 80 per cent.
But Primary Industries Minister Clare Scriven told the ABC that frost was an “unfortunate” business risk of growing grapes, and instead redirected growers to insurance providers.
The state government has however committed to the use of satellite imagery to capture the extent of damage to help growers to prepare for future events.
SA Primary Industries Minister Clare Scriven says frost damage is a business risk. (ABC Rural: Eliza Berlage)
“A lot of growers and businesses will have their own arrangements in terms of business insurance or whatever, so we’re certainly not announcing monetary amounts for frost-affected growers,” Ms Scriven said.
“What we are announcing is this sort of support which assists them with having better information.
“The government’s role is to provide the information as far as possible and then to make sure that people are in contact with other levels of support that might be appropriate for their circumstances.”
Riverland grower Jim Giahgias said he was shocked by the lack of support and questioned how any grower could be expected to afford insurance following tumultuous and low-income years experienced by the industry.
Loveday grape grower Jim Giahgias says frost insurance is often not a viable option for growers. (ABC News: Will Hunter)
“I believe the minister’s got that wrong, because what grower can afford at this stage to put a frost insurance in place?” the Loveday-based grower said.
“When you’re only receiving a very minimal amount for your grapes, then you wouldn’t even make what the insurance is going to cost you.”
Similarly, investing in preventative measures like frost fans is a huge expense for growers, with a price tag of about $100,000 per fan, according to Mr Giahgias.
The chairman of Australia’s largest member-owned wine grape co-operative CCW, Jim Caddy, said the state government did not seem to understand how “horrendously expensive” and unviable it was for most growers to insure crops.
“I’ve been growing grapes for 45 years and I’ve never had it, it’s just not worth it,” Mr Caddy said.
CCW chair Jim Caddy says insurance is “horrendously expensive”. (ABC Riverland: Sam Bradbook)
Australian National University associate professor of anthropology Caroline Schuster said much better solutions were needed for farmers to invest in climate-change adaptation and resilience measures.
“Right now, there are very few direct ways in which farmers can lower their premiums,” Ms Schuster said.
She suggested a multi-faceted approach between farmers, government and insurers as a sustainable way forward.
How will the satellite imagery help?
Department of Primary Industries and Regions satellite imagery maps the extent of frost damage to vineyards across the state.
But growers said, while it might be of assistance in the future, it would be of no help this year.
Mr Giahgias and others are concerned the images recorded would be too late to capture the full extent of September’s frost.
Vineyards are growing back after frost events hit in September. (ABC News: Will Hunter)
“It might not show the full picture, because a lot of the vineyards are starting to actually grow back, the foliage is coming back,” he said.
He said, while there would be green foliage, there would not be actual grape bunches, and the damage needed to be assessed on the ground.
“Within the next two weeks, you will not even know that a frost has gone through this region,” Mr Giahgias said.
Both Mr Caddy and Mr Giahgias called on the state and federal governments for assistance to wine grape growers in this “natural disaster” situation.
Mr Giahgias suggested improvements to access the Farm Household Allowance and financial assistance to impacted growers.
“I believe what the government needs to do is provide farmers, maybe with a zero interest rate for the next 12 months that helps growers financially,” Mr Giahgias said.
