Growers demand commitment on power prices and insurance

With just days remaining until the Queensland election, CANEGROWERS is urging political leaders to commit to critical reforms that will lower soaring power prices and eliminate unfair stamp duties that hinder farmers’ ability to manage risk, CANEGROWERS call for lower power prices.

“The current demand-based tariffs are designed for constant, year-round use—not for farmers who depend on electricity in bursts during the growing season,” Mr. Galligan said. “We need genuine tariff reform, not superficial fixes.”

CANEGROWERS CEO Dan Galligan highlighted that Queensland’s sugarcane growers have been hit hard by a 145% increase in electricity prices since 2007, significantly outpacing general inflation, which has risen by only 56% during the same period. This has put immense pressure on the productivity and competitiveness of growers.

Current electricity tariff structures disproportionately penalise farmers who rely on seasonal power usage for growing food and fibre. CANEGROWERS is calling for a shift towards equitable, consumption-based tariffs. The organisation, alongside the Queensland Farmers’ Federation, is also advocating for raising the threshold for large electricity customers from 100 megawatt hours (MWh) per annum to at least 160 MWh/a, allowing more farmers to access fairer rates.

“The current demand-based tariffs are designed for constant, year-round use—not for farmers who depend on electricity in bursts during the growing season,” Mr. Galligan said. “We need genuine tariff reform, not superficial fixes.”

CANEGROWERS is also pushing for the removal of the 9% government stamp duty on crop and parametric insurance products. This tax discourages farmers from safeguarding their businesses against natural disasters, making insurance unaffordable for many.

“Eliminating this tax is a no-brainer,” Mr. Galligan stated. “By removing the stamp duty, the government would encourage farmers to protect themselves from floods, droughts, and cyclones, reducing their dependence on government aid.”

Despite the clear benefits, neither major party has committed to abolishing the stamp duty or lowering power prices for agriculture.

“The lack of political action on these issues is disappointing,” Mr. Galligan said. “Farmers remain exposed to disasters due to a tax that makes essential insurance unaffordable. With the election just days away, this is the last chance for political leaders to show their support for Queensland agriculture.”