Agriculture in Australia

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Contents

Support for developmentBanking in the rural sectorEnvironmental issues

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Encouraging development

Land given free if it is developedLow interest loans to assistSoldier and civilian settlement

schemesTaxation advantages

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Government-sponsored irrigation schemes

Snowy River Scheme, NSWOrd River Scheme, WAVarious other smaller schemes

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Other assistance schemes

Government-assisted marketing schemes

Drought assistanceCrisis assistance

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Problems in Australian agriculture

Harsh, unreliable climatesFluctuating pricesDependence on international

marketsDeclining prices and rising costs

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Ongoing assistance

Government advisory servicesGovernment-directed bank lendingManagement trainingAssistance in marketing world-wide

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Strategies to assist

Greater output per workerReplacing human workers with machinery

• bigger tractors• bigger farms

Better use of technology• fertilizers• breeding• mechanical innovation

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Wool price support scheme

Attempted to maintain wool priceEventually became counter

productive

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Tree pull schemes

Removing surplus orchards when over-supplied

Often cause shortage and increased plantings later

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Rationalisation of irrigation water

Transferring water rights from farm to farm

Better drainage of irrigation areasLaser levelling for more economical

useRaising the price of irrigation water

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Advice and training

Government-sponsored advisersGovernment-assisted training

schemes

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Traditional areas of assistance by banks

Property purchaseProperty developmentStock and plantWorking capital

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Potential problems

Fluctuating pricesUnreliable seasonsNatural disasters

• pests• floods• fires• droughts

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Erosion

Wind erosion in heavily cropped areas

Water erosion in heavily grazed areas

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General rules that apply

Debt servicing as a percentage of income: 20%

Debt as a percentage of total assets: 30%

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Salination

Caused by excessive and poorly managed irrigation

Water tables are rising and land is being lost

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Water pollution

Excessive use of fertilizersChemicals gaining access to

waterwaysEffluent from dairy farms, pig farms

and feedlots

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Animal welfare

Stock management practicesTransportSlaughterExport of live animals

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Conservation of native flora

Clearing and replanting of native bush and forests

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Greenhouse emission targets

Reduction in diesel usage• transport• cultivation

Replanting of forests

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Current situation

Single operator farm

Capital value $1,000,000Annual gross income $100,000

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