Australia's peak farming body has accused Home Affairs Minister Tony Burke of making "deeply offensive" comments about farmers, as concern grows over how changes to backpacker visas could affect the nation's agricultural workforce.
The National Farmers' Federation has warned the changes could contribute to higher food prices if they leave growers without enough workers during harvest periods — times when farmers often hire 'backpackers' on Working Holiday visas.
While Burke acknowledged the migration changes would create challenges for some, he suggested the agricultural sector could use more capacity in the Pacific Australia Labour Mobility scheme.
The scheme allows eligible Australian businesses to recruit workers from nine Pacific island countries and Timor-Leste when there are not enough local workers available.
Burke also said the strengthening of protections for PALM workers during his tenure as work minister had led to warnings from some agricultural employers that they would turn away from the PALM scheme.
Richard Shannon, executive officer of the NFF Horticulture Council, labelled Burke's comments as "provocative" and rejected any suggestion that employers had moved away from the PALM scheme because of stronger protections for workers.
Shannon said those requirements made the scheme more expensive for employers than hiring backpackers, for businesses needing workers for shorter periods.
Under the federal government's migration overhaul announced on Thursday, working holidaymakers wanting to remain in Australia for a second or third year will have to enter a ballot after completing the needed regional work.
Second-year places will be capped at 45,000, compared with 57,000 people who qualified last year, while third-year places will fall from 31,000 to 5,000.