Seaqaqa sugarcane farmer Hamid Khan is calling on the Government to extend agricultural lease terms from 30 years to 50 years, saying the current lease period is too short for farmers to fully benefit from their investments.
Khan made the submission to the Parliamentary Standing Committee during its public consultation at the Seaqaqa Hall.
Khan says the 30-year lease term creates uncertainty for farmers because they are required to pay another lease premium when the lease expires.
Khan says by the time farmers have developed their farms, the lease is nearing its end and they are required to pay the lease premium again.
Insert: Hindi Khan on lease 8th Aug
He says if leases are extended to 50 years, farmers will have greater confidence to plan ahead and invest in developing their sugarcane farms.
Khan also raised concerns about lease rental costs, saying he pays around $700 a year for his seven-acre farm, which he believes is too expensive.
He says sugarcane farmers are already burdened by rising production costs, including fertilisers, weedicides and labour, leaving them with very little profit.
Khan adds that despite previously raising concerns about reducing lease rental costs, no action has been taken.
He is now urging the Parliamentary Standing Committee to carefully consider the concerns of cane farmers and recommend reforms that will provide greater security and reduce financial pressure on those in the sugar industry.
