Enhanced protections against unfair contract terms in Australian Consumer Law are vital to giving farmers a fair go, says the state's peak agricultural body.
NSW Farmers CEO Pete Arkle said the Treasury Laws Amendment (Enhancing Tax Integrity and Supporting Business Investment) Bill 2022 would penalise the use of unfair terms in standard form contracts, boosting protection for farmers and consumers, and should be passed unamended.
"This is an important first step in protecting farmers for unfair practices," Mr Arkle said.
"Farmers are at a substantial disadvantage in negotiating contracts. They are generally small businesses entering into contracts with processors and retailers that exercise significant market power.
"This reform acknowledges this power imbalance, seeks to strengthen the protections and importantly creates a deterrent for parties that breach these laws."
NSW Farmers has long called for stronger protections for farmers from price gouging by processors and major retailers.
"We have seen a number of instances of competition laws failing to protect our farmers and our supply chain, including the recent scenes of empty shelves at major supermarkets," Mr Arkle said.
"Farmers work incredibly hard to grow the quality food and fibre that we have come to expect - and sometimes take for granted - and our lawmakers owe it to them to make sure they get a fair reward for that work.
"Strengthening competition laws will not only help farmers grow our food, it will help support a growing agricultural sector that will in turn help rebuild our economy.
"We have a great global reputation for growing the best, and we need to give farmers certainty that they will get a fair go in the marketplace.
"People were shocked to learn farmers were being ripped off by dollar-a-litre milk, but there is still more work to do in making sure we protect our local food supply."
