Agricultural Production in Australia: Impact of Recent Drought
VerifiedAI Summary
The report primarily aims to discuss agricultural production in Australia with special reference to the impact of recent drought. Agriculture is one of three main sectors of the economy. Production of agricultural commodities is largely dependent on climatic condition. Agricultural production is largely vulnerable to extreme climatic condition. Drought defines a natural calamity when a region suffers from lack of rainfall. Hot dry summer in Australia has wiped away moisture of soil in almost every state and union territory. Water storage has declined to an extremely low level. The impact of current drought is more severe in some states compared to others. Continuous lack of rainfall hampers agricultural production resulting in a decline in farmers’ income which in turn adversely affects overall health of the economy. Analysis has found that production of agricultural commodities has increased significantly in the last 20 years. The marker structure of agricultural commodities is close to perfectly competitive market. The drought has a severe impact on agricultural production as well as the economy as a whole. In order to reduce severity of the impact government should take necessary policy measures.
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