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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
3
Government-sponsored irrigation schemes
Snowy River Scheme, NSWOrd River Scheme, WAVarious other smaller schemes
4
Other assistance schemes
Government-assisted marketing schemes
Drought assistanceCrisis assistance
5
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
7
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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