Farming under spotlight at inquiries

The federal government's backpacker tax and the milk price crisis will come under the scrutiny of two separate parliamentary inquiries.

Representatives from the tourism industry, the peak farmers lobby group and Treasury will give their take on the new working holiday visa tax in one of the hearings in Canberra on Wednesday.

The government originally slated a 32.5 per cent tax rate from the first dollar backpackers earned in the 2015 budget, but has since dropped it to 19 per cent.

The package also includes a 95 per cent tax on superannuation payments once working holiday-makers leave Australia, and a $5 increase in the international departure tax from July 1, 2017, to $60.

The coalition says Australian farmers will be let down if the opposition delays the introduction of its revamped backpacker tax measures.

Labor allowed the legislation to pass the lower house last week, but is reserving its final position until after the Senate committee reveals its findings.

Separately, dairy farmers, the Department of Agriculture and the small business ombudsman will appear before a committee looking into the dairy industry.

The inquiry is scrutinising the impact of the decision of dairy giants Murray Goulburn and Fonterra to cut milk prices paid to farmers earlier this year.

Australian Dairy Farmers says it's doing its best to help although it can't solve all of the issues.

The group has proposed a code of practice on contractual agreements and a competition watchdog review of the impact of $1 milk.

"We need to ensure that an unfair share of risk in the value chain is not taken by the farmer," group president David Basham said.