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Agfest organiser Rural Youth has cancelled the 2020 agricultural exhibition, describing the decision as "absolutely heartbreaking".
This is the first time in Agfest's 37-year history that the event has been cancelled.
The next Agfest will be held in May 2021.
Rural Youth state president Jake Williams said the organisation felt for all stakeholders, knowing the decision would have wide-spanning ramifications.
"It affects not only exhibitors in Tasmania but those that come from the mainland and overseas," he said.
Mr Williams said Agfest annually injected $20 million into the state's economy.
Watch: Agfest organisers announce 2020 cancellation:
Tourism Industry Council Tasmania chief executive Luke Martin said it was no surprise Agfest was cancelled. "The reality is every event in the state of any scale is absolutely not a factor in the next three or four months," Mr Martin said.
"It was almost a matter of expectation Agfest would follow the way of some of the other [events]."
Agfest committee chairman Ethan Williams said organisers expected more than 700 exhibitors and 65,000 people would attend the event, originally scheduled for May.
"It's a massive blow to Tasmania along with everything else that has been cancelled over the last few days ... everyone suffers, unfortunately," he said.
"In the wake of what's happened, it's not a surprise - the writing's been on the wall."
Ethan Williams said exhibitors will be refunded 85 per cent of their reservation payment.
He said it was in the terms and conditions signed by all exhibitors that no refund could have been given if the event was cancelled.
"It is a term of goodwill that we are giving some [money] back and hopefully we can run forward for next year," Ethan Williams said.
"We also have to run Rural Youth for the full financial year, Agfest is Rural Youth's main financial benefit ... we will struggle, but we hope that all exhibitors and stakeholders accept that and why we made that decision."
Exhibitors who were attending this year can re-apply for next year's event from October 1.
Ethan Williams said they will be automatically accepted for the 2021 Agfest.
He said exhibitors will be refunded 85 per cent of their reservation payment.
He said it was in the terms and conditions signed by all exhibitors that no refund could have been given if the event was cancelled.
"It is a term of goodwill that we are giving some [money] back and hopefully we can run forward for next year," Ethan Williams said.
"We also have to run Rural Youth for the full financial year, Agfest is Rural Youth's main financial benefit ... We will struggle, but we hope that all exhibitors and stakeholders accept that and why we made that decision."
IN OTHER NEWS:
Primary Industries and Water Minister Guy Barnett said Agfest had become a key part of the state's rural calendar and was a significant contributor to the economy.
"While the decision to postpone Agfest 2020 due to the coronavirus pandemic is disappointing for the entire community, the primary consideration must be the health and safety of all Tasmanians," he said."
"I recognise that this decision has been a difficult one, but has been made in the best interests of exhibitors, volunteers and patrons.
"The government is currently proactively working with Rural Youth Tasmania and the Agfest Committee on ways to support the agricultural sector and how best we can assist in delivering a bigger and better Agfest in 2021."