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Government Drought Support

Author

Listed:
  • Productivity Commission

Abstract

Many Australian farmers and rural communities have been experiencing hardship from the latest severe and prolonged drought. While this is not new to dryland farming, 'irrigation drought' is uncharted territory. Australia has always had a variable climate, with drought being a recurring feature. Looking to the future, experts predict higher temperatures and, for some regions, more frequent periods of exceptionally low rainfall. Most farmers are sufficiently self-reliant to manage climate variability. The National Drought Policy's (NDP) Exceptional Circumstance (EC) declarations and related drought assistance programs do not help farmers improve their self-reliance, preparedness and climate change management. Governments need to commit to a long term reform path that recognises that the primary responsibility for managing risks, including from climate variability and change, rests with farmers. Similar recommendations from the previous reviews of the NDP have not been adopted. To ensure that this new policy direction is credible and enduring: the NDP should be replaced with extended objectives for Australia’s Farming Future; and an intergovernmental agreement with independent monitoring and financial incentives for complying with agreed commitments should be established.

Suggested Citation

  • Productivity Commission, 2009. "Government Drought Support," Inquiry Reports, Productivity Commission, Government of Australia, number 46.
  • Handle: RePEc:ris:prodir:46
    Note: 486 pages
    as

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0010/86275/drought-support.pdf
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    File URL: http://www.pc.gov.au/projects/inquiry/drought/report
    Download Restriction: no

    References listed on IDEAS

    as
    1. Marsh, Sally P. & Pannell, David J., 2000. "Agricultural extension policy in Australia: the good, the bad, and the misguided," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.
    2. John W. Freebairn, 1983. "Drought Assistance Policy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 185-199, December.
    3. Bradley, Rebecca & Gans, Joshua S, 1998. "Growth in Australian Cities," The Economic Record, The Economic Society of Australia, vol. 74(226), pages 266-278, September.
    4. Michael D. Young & Jim C. McColl, 2009. "Double trouble: the importance of accounting for and defining water entitlements consistent with hydrological realities ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), pages 19-35, January.
    5. Harris, S.F., 1970. "Farm Adjustment And The Role Of Government," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 14(02), December.
    6. C. Edwin Young & Monte L. Vandeveer & Randall D. Schnepf, 2001. "Production and Price Impacts of U.S. Crop Insurance Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1196-1203.
    7. S.F. Harris, 1970. "Farm Adjustment And The Role Of Government," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 14(2), pages 107-120, December.
    8. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    drought; irrigation; rainfall; drought assistance programs;

    JEL classification:

    • E - Macroeconomics and Monetary Economics

    Statistics

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