The Australian Drought: Impacts on Economy and Agriculture
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Added on  2023/04/21
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This document discusses the impacts of the Australian drought on the economy and agriculture. It explores the decrease in agricultural supply, the rise in prices, and the government's funding and efforts to support affected farmers.
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0Running head: ECONOMICS Economics Name of the student Name of the university Author note
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ECONOMICS Table of Contents Introduction................................................................................................................................1 Body...........................................................................................................................................1 Conclusion..................................................................................................................................3 Referenced list............................................................................................................................5
ECONOMICS The Australian drought Introduction A drought is a kind of natural disaster that takes place due to the below average precipitation of any kind of the given region which result to prolonged shortage of the water supply. Farmers are known to have faced ruins in various places of the New South Wales and Queensland. Huge parts of the eastern Australia have been in droughts which took place for seven years with dry conditions which will comprise of the federal as well as state measures. Body The drought had been mostly dry in nature compared to the previous years. One of the senior climatologist states that the areas which experiences some of the significant drought are specially the regions of eastern South Australia, North west Victoria and New South Wales. Most of the parts of the central as well as the eastern New South Wales have known to experience below average rainfall since the last April(Cox, 2019). In the previous year the dry conditions have mostly spread for covering the most inland parts of the state. Although rain over the past few weeks in the western part of Australia had made the condition bearable in some of the areas. Parts of Albany in the south still remained dry(State of the drought: How bad is it and why has it been so dry?.2019). The June had been one of the driest months on record for a period of over for areas in New South Wales which also includes upper Hunter, parts of Illawarra along with the southern highlands with an area in the central west. The worst affected areas were the parts of New South Wales. After the drought of 1902, Australia had known to suffer this kind of major drought. The reason behind such dry drought is because of the absence of rain for several months. Moat of the rain only took place in the tropics which lead to this kind of drought in parts of New south wales. There was also
ECONOMICS absence of any major feeds from the Indian ocean moisture from the north west approaching fronts or places covering the east coast lows in the drought affected areas. Although it rained heavily on the coast of the Newcastle, it is not affected the inland or the southern part of new castle. There was however no effect on the inland and south of the Newcastle. Another the reason is that the recent winters had also been quite stronger than the usual sub-tropical ridge over the southern Australia. The winter was quite severe and harsh which also resulted in drought(Cox, 2019). There had been decline in the rainfall also in the past fifty years where there was a decline of about three millimeters as year. A lot of places which are on the south east are on the track for the driest months. The reason for this dry weather is a big ridge of the high pressure that is sitting over the eastern Australia. Figure1Supply curve shifts to left
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ECONOMICS In case of drought the agricultural sector faces a huge loss in the economy. For this reason, the supply of the agricultural crops decreases because of the increase of dry barren lands due to droughts (State of the drought: How bad is it and why has it been so dry, 2019). The supply curve of the agricultural crops therefore moves to the left and the quantity of the goods supplied also increases. Since the supply curve shifts to the left the equilibrium which suggests decrease in the supply, it leads to rise in the price of the goods. The agricultural goods therefore will become expensive in nature. The equilibrium point therefore moves up from e to e1. The economic impacts of drought can cost people as well as money. Farmers tend to lose a huge amount of money when drought will be destroying the crops.When the water supply will be too low, farmers will have to spend more money on the irrigation in order to draw a greater number of wells. Thegovernmenthaveknowntofundmorethan$1.8billionfortheboost. Government of Australia had provided huge number of droughts for the states affected by drought (Drought funding gets $1.8bn government boost. 2019). Ssixty drought-affected councils across western Queensland andNew South Waleshave been provided with $1m each by the federal government for spending on thetrucking in drinking water to building new community facilities. The government is also known to double the amount where the farmers can borrow from the low interest loans from the banks. Total amount of loans provided ranged from from $250m to $500m. Conclusion Drought is known to affect the lives of many people since water is an important part of all our activities. It also affects the environment in many ways. The economic impacts of droughts are those which can even cost people or money. Large numbers of farmers known to lose money when drought will be destroying crops. Drought therefore also leads to rise in the
ECONOMICS price of goods.Social impacts of drought are ways that drought affects people’s health and safety. According to the media reports it have been found out that the effects of drought in Australia had been quite severe. The drought has been the driest in the past fifty years. Although the government have taken huge efforts to help the people suffering from drought specially those of the farmers. The government of Australia have known to provide huge amount of loans to them in order to help the farmers.
ECONOMICS Referenced list Cox, L. (2019). 'Australia doesn’t realise’: worsening drought pushes farmers to the brink. Retrievedfromhttps://www.theguardian.com/environment/2018/jun/10/australia- doesnt-realise-worsening-drought-pushes-farmers-to-the-brink Droughtfundinggets$1.8bngovernmentboost.(2019).Retrievedfrom https://www.theguardian.com/environment/2018/aug/19/drought-funding-to-get- 18bn-government-boost Hubbard, G., Garnett, A., Lewis, P. and O’Brien, T. (2015) Essentials of Economics, Pearson Australia: Frenchs Forest State of the drought: How bad is it and why has it been so dry?. (2019). Retrieved from https://www.abc.net.au/news/2018-06-11/drought-how-bad-is-it-and-why-has-it-been- so-dry/9826130
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