Pastoralists across Western Australia are labelling the state government’s proposed changes to pastoral leases “anti-agriculture” and a move to push smaller, family-run operations off the land.
Negotiated between the government and individual pastoralists, the leases govern the use of the state’s 85-million-hectare pastoral estate.
Pastoral lease terms and conditions had previously been set out in schedules attached to now-obsolete legislation.
The WA Department of Planning, Lands and Heritage (DPLH) wants to “modernise” the terms of pastoral leases to include types of mandatory insurance and clauses to indemnify the state from potential costs.
It has also flagged future potential native title payments.
All WA leases will expire between 2033 and 2065, depending on their length.
There are 489 pastoral leases in WA, covering about a third of the state’s mainland. (ABC News: Jo Prendergast)
Government accused of ‘rushing’
DPLH began drafting the conditions last year, and has held some meetings with industry members this year.
But many pastoralists said they still felt the draft lease terms were difficult to understand and potentially very expensive to meet.
They also said the process had not been transparent.
In the Gascoyne, Justin Steadman of Wooramel Station said the consultation period was insufficient.
“They’re rushing it through … everyone’s busy,” he said.
“This is mustering time, [we’re] trying to survive, so for people to put aside or go and pay lawyers to go over [the proposed changes], it’s just not an ideal situation.”
Public feedback on the process is being sought until December 16.
One of the main concerns for pastoralists was under the new terms, they would be required to have public liability insurance that was unlimited in aggregate.
Anna Plains Station owner David Stoate said it was a worrying prospect at his Kimberley property, about 2,000 kilometres north of Perth.
“I’m not exactly sure what that means, but it doesn’t sound good,” Mr Stoate said.
His cost of insuring the 404,000ha pastoral lease has already tripled over the past five years, rising from $100,000 to $350,000.
“These sorts of increases aren’t sustainable,” he said.
David Stoate is concerned about rising insurance costs. (ABC News: Alys Marshall)
“In the future it may be cost prohibitive to ensure everyone on the station is covered, especially when there is a lot of unauthorised access.”
Anna Plains Station has faced rising insurance costs for years. (ABC News: Andy Seabourne)
Mount Magnet pastoralist Ashley Dowden, who also chairs the Pastoralist and Graziers Association’s (PGA) pastoral committee, said there was no clarity on how much future cover was expected.
“At the moment public liability insurance is maybe $20 million, but it might be $30 million, it might be $40 million,” he said.
Australian saleyard cattle prices from 2018 to 2024. (Supplied: Meat and Livestock Australia)
“How much that is going to cost is going to be a big issue.”
Mr Dowden said the risk of some people leaving their properties because they could not afford to comply with the new lease conditions was “very real”.
Drought and depressed livestock prices have added pressure, forcing some pastoralists to seek incomes off their properties.
“Cattle prices are terrible … we are operating below the cost of production,” Mr Dowden said.
“This state government has been so anti-agriculture … I see this is another step along the way in the bridge to getting rid of us.”
Debbie and Ashley Dowden are the fifth generation of pastoralists at Challa Station near Mount Magnet. (ABC News: Jo Prendergast)
The DPLH declined to be interviewed, while Lands Minister John Carey has been contacted for comment.
Uphill battle for insurance
In the seven years Jared and Blair Ridley have leased Kirkalocka Station in the Murchison, they have found insurance increasingly difficult to secure.
They have removed some items from their policy to reduce costs and have agreed to a very high excess.
“To be able to afford our insurance, we’ve almost cut it down to a point where it’s almost not worth having it,” Mrs Ridley said.
An oil spill resulted in contamination of the Kirkalocka Creek in 2021. (Supplied)
In 2021, an accident on the highway that passes through Kirkalocka resulted in thousands of litres of oil contaminating a creek on the property.
After the spill, the couple discovered the environmental damage was not covered on their policy.
“Even if you think you might be covered, the realistic outcome is that you possibly won’t,” Mrs Ridley said.
“You’d be hard pressed to find [an environmental damage] policy, and it would be completely unaffordable.”
‘Taking the piss’
David Hammarquist from Mt Augustus Station in the Gascoyne has long wrangled with insurers to cover the Mt Augustus (Burringurrah) Tourist Park.
He said their diversified business structure made insurance more difficult to obtain.
“Our premiums go up and you don’t make a claim for 10 years and then your premiums still go up,” he said.
David Hammarquist’s family has operated a tourist park on Mt Augustus Station since the 1980s. (ABC News: Alistair Bates)
“The insurance companies are really taking the piss.”
Mr Hammarquist said the rising costs could price out pastoralists without serious financial backing.
“It might open the door for more corporates to come in,” he said.
“Because they can wear all those costs and [have] better lawyers than you and me.”
Native title confusion
While native title is not referenced in the changes to pastoral lease conditions available for public comment, a supporting document provided by the department stated:
“[Pastoral] lease renewal triggers compensation to native title parties under the Native Title Act 1993.”
The document said the state government had made no decision about carrying the cost of that compensation.
Lawyer Emma Salerno believed it referenced a looming risk to pastoralists.
“In other states in Australia, that liability falls on the government, but WA is different in that it can push back liability to the landowners,” she said.
While the cost of native title compensation was unknown, Emma Salerno said more transparency was needed between government and industry.
“It’s a real risk that industry bodies should certainly be proactively engaging with the minister about,” she said.
“Native title compensation liability for pastoral release renewals remains under consideration by government, and is not subject to the current consultation.
“In 2015, the state government carried the native title compensation liability for pastoral lease renewals.
WA Minister for Lands John Carey said native title compensation liability for pastoral release renewals “remains under consideration by government, and is not subject to the current consultation”.
“In 2015, the state government carried the native title compensation liability for pastoral lease renewals,” he said.
It is not compulsory for WA pastoral stations to be signed to an Indigenous Land Use Agreement. (ABC News: Daniel Mercer)
Indigenous Land Use Agreements
Speculation has also been raised by the Pastoralists and Graziers Associationabout a potential future requirement of pastoral lessees to negotiate an Indigenous Land Use Agreement (ILUA).
An ILUA is a voluntary agreement between native title parties and other stakeholders about the use and management of areas of land and or waters.
The Native Title Tribunal stated, “The recognition of native title does not take away the rights of primary producers”.
But a document published by the WA government as a “guideline to pastoral lease extensions” stated:
“Where native title exists or may exist, pastoral lessees will be required to negotiate an ILUA for the extension or regrant with the relevant native title party(s).”
The PGA’s Ashley Dowden said a requirement to negotiate an ILUA would be a major shift in obligation for pastoralists.
“If an ILUA is required to renew a pastoral lease it allows the Indigenous groups to hold pastoralists to ransom,” he said.
The WA Department of Planning, Lands and Heritage declined an interview but said in a statement that many experienced pastoralists and land users currently operated under an ILUA.
“Negotiating ILUA’s is a well-established process and will be a key part of renewing pastoral leases,” the statement read.
Many of the pastoral properties in WA operate as beef cattle enterprises. (ABC News: Jo Prendergast)
