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Agricultural Reforms In Australia: Labor Regulations

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Question:

Write about the Agricultural Reforms in Australia for Labor Regulations.

 

Answer:

Introduction

In the 1980’s, Australian farmers made change work.  The representatives of the farmers realized that subsidies and tariffs did more harm than good to them as they comprised a pattern of regulations that were inflexible. This is what led to the call for reforms in Agriculture both in Australia and largely in other European Union countries. By giving up government’s protection through the various policies, farmers became more influential and productive (Crase, 2011). They achieved a greater flexibility in labor regulations, leadership in environment stewardship and expertise as business people. This resulted in the farmers being able to make decisions on production based on market factors. However, Australian farmers need certainty that these reforms will continue until the industry reaches a clear end in point (Kjeldsen-Kragh, 2007). The farmers wanted better prices that reflect the economic and market factors as well as being given more power and influence in the market.

Who is Interested and Why

First, the party most interested in the reforms is the farmers. This is because the reforms expose farmers to price changes that their products command. Thus, the openness to the market serves as a motivating factor to farmers to make the necessary response to the interplay of preferences by consumers and other farmer’s productions. Another reason why factors are interested in the reforms is because it results to market efficiency in the industry.  They also equip farmers with the required business skills to be able to mage risks (OECD review of agricultural policies, 2005).  The government is  the other stakeholder interested in this reforms.  The fact that the government is the overall overseer of the industry it is mandated to  make policies which may change the industry’s profitability and commodity prices at large.  This is to protect both the consumer and the farmer in order to make the industry sustainable.

Agrarian reform is a significant aspect for the economy of any country, Australia is no expectations as this industry is a major contributor to the country’s Gross Domestic Product (GDP).   The industry also accounts for a big number of direct and indirect employments.  Reforms are important because farmers’ rights are protected in the process (Martiin, Pan-Montojo and Brassley, n.d.). Because of agrarian reforms, output and production are increased and therefore stabilizing commodity prices. There are long run effects and short run effects of agricultural reforms which enables farmers to be protected in future against problems such as price fluctuations of their products through government incentives such as subsidies.

Changes in capital and investment in the sector is poised to happen. The small farmers are not taxed in the reforms, hence their incomes is not affected. This increases savings, which consequently leads to better purchase of modern equipments that increase productivity.

 

Recommendations of Reforms in Agriculture in Australia

In Agricultural Policies in Australia, reforms are proposed to facilitate the success of the sector, in particular the reduction of impediments related to infrastructure, innovation and access to financial services. New investments will be required to boost productivity and encourage diversification, as well as strengthen efforts to adapt to the challenge of climate change.

Looking ahead, it will be important to address the bottlenecks that slow down productivity growth and limit opportunities in the agricultural sector. In particular, it is necessary to reduce distorting aid to producers for marketing, which raises prices for low-income households and restricts the flexibility of farmers' farming options. Along with efforts to improve adaptation to climate change, these policy measures will help ensure a vibrant agricultural sector for future generation.

In order to meet the challenge of liberalization under international trade agreements, Australia would have to improve the quality and timeliness of services for agriculture; Continue to invest in agricultural innovation and the development of high-value specialized export products and ensure opportunities for farmers to have access to the country's marketing structures.

As part of a comprehensive adjustment strategy, the report also highlights the need to improve rural education and skills, and to help identify alternative ways for farmers who may have difficulty competing, as well as the need for investment Continues in the social safety net to help displaced farmers.

The report recognizes that Australia is a global leader in mitigation and adaptation to climate change in the agricultural sector. Looking forward, it recommends continued progress to ensure mutually reinforcing agricultural and climate change policies, strengthening programs to encourage producer awareness, and greater emphasis on addressing future vulnerabilities, eg by implementing standards For a weather-resistant infrastructure.

Conclusion

Agriculture is a major contributor to GDP and employment in Australia and in recent years has developed to become a dynamic and competitive export sector (Scrieciu, 2011). Farmers in Australia should be helped by the government in offering extensive services that facilitate better yields in the farm.

Achieving the dual objectives of government - the growth of the agricultural sector and the simultaneous reduction of losses - will require new policies that foster productivity growth, which has stagnated in recent years, even in the competitive export sector. Better implementation of government programs, better coordination among public institutions, and a reduction in bureaucratic processes would improve public services and help farmers achieve greater productivity.

As part of a comprehensive adjustment strategy, the report also highlights the need to improve rural education and skills, and to help identify alternative ways for farmers who may have difficulty competing, as well as the need for investment continues in the social safety net to help displaced farmers (OECD review of agricultural policies, 2005).

The report recognizes that Australia is a global leader in mitigation and adaptation to climate change in the agricultural sector. Looking forward, it recommends continued progress to ensure mutually reinforcing agricultural and climate change policies, strengthening programs to encourage producer awareness, and greater emphasis on addressing future vulnerabilities, e.g. by implementing standards for a weather-resistant infrastructure.

 

References

Crase, L. (2011). Water Policy in Australia. Hoboken: Taylor and Francis.

Kjeldsen-Kragh, S. (2007). Role of Agriculture in Economic Development. Frederiksberg: Copenhagen Business School Press.

Martiin, C., Pan-Montojo, J. and Brassley, P. (n.d.). Agriculture in capitalist Europe, 1945-1960.

OECD review of agricultural policies. (2005). 1st ed. Paris: Organisation for Economic Co-operation and Development.

Roberts, I. (2003). Three pillars of agricultural support and their impact on WTO reforms. Canberra: ABARE.

Scrieciu, S. (2011). Socioeconomic and Environmental Impacts on Agriculture in the New Europe. Hoboken: Taylor & Francis.

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