Agriculture Reforms Assignment PDF
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Added on 2021-06-14
Agriculture Reforms Assignment PDF
Added on 2021-06-14
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Running Head: AGRICULTURE REFORMS1TO:FROM:DATE:SUBJECT:
Running Head: AGRICULTURE REFORMS2INTRODUCTIONAccording to ABRES September report 2017, Agriculture contribution to the country’s Grossdomestic product was the largest for the year 2016 to 2017(Johnson, 2017).This assertion showshow integral the agricultural sector is to the growth of the Australian economy. The agriculturesector contributed 0.9 % of the 1.9 % economic growth rate (Johnson, 2017).The Australianagriculture industry has undergone positive and negative reforms which have consequentlycontributed to its decline and industry growth over the years. On a positive note, the Australiangovernment has offered financial support, subsidies and adjustment assistance to the agriculturalsector whose effect on the industry has been positive. In addition, the government is committedto research and development of agricultural based innovations which have contributed to theincreased production and technological advances in the field. Also, the Australian government has made trade agreements with Asian countries and the U.S topromote and create newer markets for its agricultural produce .However, tax benefits are morefavorable to small farming businesses as opposed to large farming businesses. Taxation reprieveshave been given to certain basic plants and equipment’s thus making the effect of the taxationrelief small rather than large-scale. The recent food and safety initiative with the United States ofAmerica and, export control bill are aimed to protect the farmer’s interest at the internationallevel while promoting international trade relations thereby creating a win situation. TheAustralian government has implemented current legislative instruments which areaccommodative and responsive to the changing global and economic conditions thus creating agood business environment for investments, local and international, creating room fortechnological advancement through financing agricultural based research and making newertrade arrangements with fast growing economies such as China, India and other Asian countries.
Running Head: AGRICULTURE REFORMS3All in all, the agricultural reforms made by the Australian government has made positive changesto the industry performance as contrasted with negative impacts.AGRICULTURAL INDUSTRY REFORMS IN AUSTRALIA.Following the unveiling of the 2017 Competitiveness white paper on Agriculture, reforms are totake place in the agricultural sector. Particularly, the Australian government seeks to reconstructits water resources through its 300 million dollar allocation towards the national waterInfrastructure Fund .The funding is to develop research and aid in the construction of more waterresources such as dams for the benefit of agricultural uses (Vidot, 2017).Additionally, fundingallocation were made to boost fair trade and encourage competitiveness in agriculture basedsupply chains for better performance of the sector. Through this funding the ACCC is expectedto initiate competitive programs and fair trade terms for the agricultural industry players tooperate within thus leading to better outcomes in terms of revenue and healthy competition.Moreover, taxation benefits have been implemented into the agricultural sector through the whitepaper 2017, competitiveness report. Specifically, taxation reforms have been implemented in the farm management deposit schemeswhich will reduce the tax burden on agricultural produce hence more revenue for farmers andexporters (Vidot, 2017).Taxation reprieve was awarded to small farmers whose annual turnoverconstituted less than two million dollars. Additionally, small scale farmers will enjoy diminishedtax refunds in the future(Marshall,2015).Majorly, the tax incentive covers small –scale farmersas opposed to large scale farmers thus raising the issue of equity in the tax burden of farmers inAustralia .With lower taxation burden ,small farmers are able to save and boost their chances ofexpansion and growth. This tax relief was implemented in the year 2015.However, the tax reliefwas also limited in its application in the sense that it applied not only to specific plant s and
Running Head: AGRICULTURE REFORMS4equipment but also to small scale farming businesses thus limited impact in terms of collectiveindustry reforms. Additionally, the incorporation of the Biosecurity Act of 2015 has made various changes tothe agricultural sector in Australia. The Biosecurity Act has undergone changes over the years.The Act is a current version of the previous Quarantine Act. Primarily, the new biosecurity Actprovides a modern and balanced pest and disease protection for Australian agricultural produceand industry. Essentially, the Act provides a balanced view of protection without hurting the fairglobal trading arrangement in agricultural products. The new piece of legislation isaccommodative of the 21st century challenges and seeks to provide a balanced approach ofprotectionist and liberalist views of trade (Department of Agriculture and Water Resources, n. d).Owing to the fact that the Australia is part of the European Union, makes any reforms of theCommon Agricultural policy automatically applicable to the Australian agricultural sector.In addition, the Australian dairy farming sector has encountered deregulation in the milkmanufacture sector since the year 2000.Currently, Australian dairy farmers are independentlysustainable (Department of foreign trade and Affairs, N .d).Recently, the Australian governmenthas made important step towards reforming its water resources in promoting better agriculturalpractices(Pittar, N .d).The water reform was due to the need to deal with over allocation ,aginginfrastructure for water delivery and environmental reasons. Currently, the white papercompetitiveness report illustrated various budgetary allocation for revamping the Australianwater resources under the minister in charge of agriculture for better performance .Recently,there was the introduction of the Export Control Bill in the year 2017, seeking to streamline theexportation sector of agricultural produce (Department of Agriculture and Water resources, n. d).
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