Economics Reforms in the Australian Agriculture Industry

Question: Discuss about theEconomicsfor Reforms in the Australian Agriculture Industry. Answer: Introduction Agriculture Industry of a nation plays a significant role to improve the prosperity of a nation effectively. The industry improves the economic as well as financial position of a nation. Along with this, the Australian Agriculture Industry is one of the most superior industries in the world. It is famous for its high quality and superior products. Moreover, the Australian agriculture industry is the most innovative and extremely technical industries all over the world. The industry highly contributes in the development of economy as well as GDP of Australia. It is a major source of employment for the people of Australia. Presently, just about 350,000 people are occupied in the Australian agriculture industry. The government of nation develops effective plans and strategies for the growth and expansion of the industry in the international marketplace. A lot of reforms or changes take place for the growth of the industry. In addition to this, this research essay would be beneficial to describe the major reforms that have occurred for the growth of the Australian agriculture industry in previous years. Also, the essay will recommend some reforms that may be beneficial for the future growth of the agriculture industry of the nation. Reforms in the Australian Agriculture Industry The agriculture industry of a nation is considered as a major component of the economy of the nation. The Australian agriculture industry is the most foremost step in the economy development of the nation. As per the report of Australian Bureau of Statistics (ABS), Australia is a major producer and exporter of numerous agricultural products such as: wheat, wool and beef. It exports a huge quantity of agricultural products to other nations (Vitalis, 2007). The below chart is valuable to demonstrate the increased annual exports of Australia to other nations. (Source: Land Commodities 2014). On the other hand, the increased growth of the Australian agriculture industry is not a result of one or two years. The fact is that, the Australian governments make effective reforms within the industry on the regular basis. Along with this, there are numerous reforms that have cropped up within the Australian agriculture industry in past years. In the mid 1980s, the major reform occurred within the industry. The reform was related to the subsidies that the governments generally provide to farmers of a nation (Edwards, 2003). The government reduced around 95 percent of the subsidies. This can be seen a major reform in the agriculture sector of Australia. It is because of this reform within the industry made all the farmers independent. Now, they are not depending on the government for any assistance. In addition to this, the government of nation declared the agriculture sector as one of the most export oriented industry in the world. This is measured a revolutionary reform within the industry. Due to this reform, the Australian agriculture industry has become a major producer and exporter of agriculture products in the world. Now, the nation has a strong comparative advantage in the production of farming products. Agriculture is considered as one of the most productive as well as competitive sector in the economy of Australia (Blandford Hill, 2006). Along with this, in current, Australia exports approximately 70 percent of its farm production. The increased exports create strong opportunities for the economy development of the nation. So, it is the other major reform that has done within the agriculture industry of Australia. The below graph is helpful to show the share of global production and global exports of the Australian agriculture industry properly. (Source: Land Commodities 2014). In the same manner, the other major reform that happened in the agriculture sector is the adoption of advanced technologies within the industry. The advanced technologies offer more innovative ways of production to the farmers (Harris, 2005). With the help of the Internet, the Australian farmers become able to understand the methodologies that are valuable to improve the level of production. The use of the technologies not only increased the productivity; but also improved the profitability and standard of living of Australian farmers. Moreover, these advanced technologies provide a totally new working environment to the people. In view of that, this is seen an important reform within the Australian agriculture industry (Edwards, 2003). On the other hand, the Australian government reduced the strict trade rules and regulations for the economic and financial growth of the nation. This is a major reform within the industry. It is because of due to heavy trade regulations; farmers were unable to export their products to other nations. So, they do not get suitable prices for their production. But, this reform reduced the complexities of the Australian farmers. Now, they export around 70% of their total production to other nations. Moreover, in current, the agriculture sector of Australia has become superstore to other countries especially for to Asian countries (Gray, Oss-Emer and Sheng, 2014). Hence, there can be seen numerous important reforms in the Australian agriculture industry. Along with this, according to me, there are some important reforms that are sill required in the Australian agriculture industry. The government of nation should reduce the taxes that they charge from the farmers. This reform will increase the productivity, profitability, and standard of living of the Australian farmers. Moreover, this reform will reduce the dependency of the famers on the financial bodies for financial assistance. So, this is the reform that is required within the agriculture industry of Australia. Conclusion On the base of the above investigation, it can be said that, the agriculture industry of Australia is one of the emergent industries in the world. It boosts the economy of the country. Along with this, it is observed that, the future of the Australian agriculture industry is bright. There can be seen a regular increase in the agriculture products of the nation. Moreover, the agriculture sector contributes in the improvement of GDP and employment level of the nation. On the whole, the Australian agriculture industry is a major producer of the agriculture products that are required for the endurance of people. References Blandford, D., Hill, B. (2006). Policy Reform and Adjustment in the Agricultural Sectors of Developed Countries. USA: CABI. Edwards, G. (2003). The story of deregulation in the dairy industry. Australian Journal of Agricultural and Resource Economics, 47(1), 75-98. Gray, E., Oss-Emer, M. and Sheng, Y. (2014). Australian agricultural productivity growth. Research by the Australian Bureau of Agricultural and Resource Economics and Sciences, 1-52. Harris, D. (2005). Industry Adjustment to Policy Reform A case study of the Australian dairy industry . Rural Industries Research and Development Corporation, 1-87. Land Commodities. (2014). Emerging market demand for Australian agricultural commodities. Retrieved From: https://www.landcommodities.com/emerging-market-demand-for-australian-agricultural-commodities/ Vitalis, V. (2007). Agricultural subsidy reform and its implications for sustainable development: the New Zealand experience. Environmental Sciences, 4(1), 21-40.