Australia Agriculture Reforms: Impact on Economy and Farmers

Australia Agriculture reforms 1
Economics and International Trade
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Australia Agriculture reforms 2
INTRODUCTION
Largely, the performance of the agriculture industry in Australia is responsible for 0.9 %
of the overall 1.9 % growth of its gross domestic product. Recently, the contribution of the
Australian agriculture industry to its gross domestic product has been
significant (Johnson 2017).The improved performance in the agriculture sector is due to the
reforms that have taken place in the country. The effects of these reforms on the Australian
economy and farmers has been both negative and positive. Primarily, the legislative and financial
commitment of the Australian government through funding of research and development
initiatives, financial and technical support through the drought policy program ,subsidies ,price
support mechanisms and financial support during the dairy farming adjustment phase have
contributed to the growth in revenue for the government through taxation and increased income
for them respectively. The impact of these reforms has been the development of newer farming
methods and equipment, employment opportunities, loss of employment opportunities due to the
invention of agro-based robots and increased competitiveness of agricultural produce.
In addition, the Australian agricultural market has expanded its markets due to the
productivity and competitiveness of their products. Also, stronger trade relations between the
United States of America and Australia has boosted the performance of the agricultural sector
due to the mutually recognized food safety standards between the two countries. Small farm
enterprises have been the greatest beneficiary of taxation cuts .Particularly, small business with
an annual turnover of less than three million dollars. Also, the fact that current legislative
instruments have been incorporated into the agriculture sector has equally boosted the security of
the Australian agricultural produce through structural internal measures for exportation of

Australia Agriculture reforms 3
goods and prevention of foreign diseases and pests from foreign countries produce. All in all, the
reforms have affected the performance of the sector.
AGRICULTURE INDUSTRY REFORMS IN AUSTRALIA
Recently, the Australian government has enacted important regulations which directly
impact the performance of farmers in the country .In the year 2017, the Export control bill was
introduced by the Australian parliament to address the modern exportation challenges facing
farmers and exporters in the industry (Department of Agriculture and Water resources N .d).The
export legislation is intended to provide a modern export platform for the exportation of
agricultural produce having taken into account the challenges of globalization. The agricultural
produce exportation department will be efficient and conducive for business in the event that the
current bill is incorporated into Australian legislation. Noteworthy, the Australian dairy industry
has experienced change over the past few years. The Australian government rolled out a
financial adjustment assistance after the massive exit of dairy farmers from the
industry .Essentially, the Australian dairy market deregulation took place in the year
2000(Department of foreign trade and affairs N .d).Currently, dairy farmers in Australia are
susceptible and exposed to market forces which directly impact their actions and income.
Hopefully, the enactment of the Export control bill will boost the trade volume of
Australia’s agricultural produce. The Bill is expected to provide adequate protection for farmers
and exporters when it comes to exporting and dealing with export based agricultural produce.
Previous exportation regulations are currently ill-equipped to handle the modern challenges
facing the export processing zones due to the effect of globalization. Following the harsh
economic times facing the dairy market, certain dairy farmers had to be bought out by other
farmers and by the Australian government. This adjustment phase required the financial

Australia Agriculture reforms 4
assistance of the Australian government (Harris N .d).During this adjustment phase, there was
investment uncertainty into the dairy market thus reduced production and manufacture of dairy
products. Also due to the uncertainties facing the dairy sectors, most employment opportunities
in the dairy market were lost following the drastic reduction of dairy farmers. The
unemployment rates in the country increased due to this dairy market restructuring. Also, the
prices for dairy products went up due to the limited supply of dairy products despite the growing
demand for dairy produce in the country.
In addition, there was limited exportation volume for dairy produce from the Australian
farmers following the market deregulation and adjustment phase. These changes in the dairy
sector led to a significant drop in revenue contribution to the gross domestic product by the
sector. There was instability in the dairy produce prices due to the transitioning phase of the
sector. Unlike the Export control Bill, the Australian government has enacted the Biosecurity
Act. The Act was enacted in the year 2015 to replace the Quarantine Act. Primarily, the object of
the Biosecurity Act is to protect Australian agriculture produce from foreign threats of pests and
diseases (Department of Agriculture and Water Resources N. d).Following its enactment, the
Australian farmers have faced little or no foreign threats of pests and diseases to their produce. It
can be said that the Australian agricultural industry mainly battles domestic threats of pests and
diseases following the inception of the Biosecurity Act. In addition to protection farmers produce
from foreign pests and diseases, the biosecurity Act has been effective in providing a balance
between protecting agricultural produce from diseases and pests and also promoting trade
relations in agricultural produce.
Moreover, taxation regime flexibility has been observed in the agricultural sector of
Australia over the years. Friendly taxation practices are likely to encourage investment as