{"id":14032,"date":"2018-10-22T03:34:58","date_gmt":"2018-10-22T03:34:58","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=14032"},"modified":"2018-10-23T03:37:20","modified_gmt":"2018-10-23T03:37:20","slug":"helping-farmers-in-distress-doesnt-help-them-be-the-best-the-drought-relief-dilemma","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/helping-farmers-in-distress-doesnt-help-them-be-the-best-the-drought-relief-dilemma\/","title":{"rendered":"Helping farmers in distress doesn’t help them be the best: the drought relief dilemma"},"content":{"rendered":"

Neal Hughes<\/a>, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)<\/a><\/em> and Steve Hatfield-Dodds<\/a>, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)<\/a><\/em><\/span><\/p>\n

Two years ago we were celebrating just about the best year for farmers ever<\/a>. Now many farmers \u2013 particularly in New South Wales and southern Queensland \u2013 are in the grip of drought. <\/p>\n

It underlines just how variable the Australian climate can be.<\/p>\n

While attention is focused on responding to the current situation, it is important to also think long-term. In our rush to help, we need to make sure well-meaning responses don\u2019t do more harm than good.<\/p>\n

The drought policy debate<\/h2>\n

The recent drought has stimulated much empathy for farmers from the media, governments and the public. Federal and state governments have committed hundreds of millions of dollars in farmer support. Private citizens and companies have also given generously to the cause.<\/p>\n

While there appears to be overwhelming public support for helping farmers through drought, concerns have been raised by economists<\/a> as well as farmer representatives<\/a> \u2013 including both the former<\/a> and current head<\/a> of the National Farmers\u2019 Federation. <\/p>\n

A central concern is that drought support could undermine farmer preparedness for future droughts and longer-term adaptation to climate change.<\/p>\n

Another concern is that simplistic \u201cfarmer as a victim\u201d narrative presented by parts of the media overstate the number of farmers suffering hardship and understates the truth that most prepare for and manage drought without assistance. <\/p>\n

Sensationalist media coverage can also damage Australia\u2019s reputation as a reliable food producer. Images of barren landscapes, stressed livestock and desperate farmers send the wrong signals to customers and trading partners. <\/p>\n

An acute policy dilemma<\/h2>\n

The tension in drought policy is real. <\/p>\n

To remain internationally competitive Australian farmers need to increase their productivity. <\/p>\n

Agricultural productivity depends on two main factors. First, innovation \u2013 adopting new technologies and management practices. Second, structural adjustment<\/a> \u2013 shifting resources towards the most productive sectors and most efficient farmers.<\/p>\n

Supporting drought-affected farms has the potential to slow both these processes, weakening productivity growth.<\/p>\n

This gives rise to an acute dilemma: should we support farmers in distress, or support the industry to be the best it can be?<\/p>\n

\n

\n
\n
\n Read more:
\n To help drought-affected farmers, we need to support them in good times as well as bad<\/a>
\n <\/strong>
\n <\/em>\n<\/p>\n

\n

Factoring in climate change<\/h2>\n

While it is difficult to attribute any specific event to climate change<\/a>, it is clear Australia\u2019s climate is changing, with significant consequences for agriculture.<\/p>\n

Australian average temperatures have increased by about 1\u2103 since 1950<\/a>. Extreme heat events have become more frequent and intense. Recent decades show a trend towards lower average winter rainfall<\/a> in the southwest and southeast.<\/p>\n

Research by the Australian Bureau of Agricultural and Resource Economics and Sciences shows climate change has negatively affected the productivity<\/a> of cropping farms, particularly in southern Australia. <\/p>\n

This research also shows evidence of farmers adapting<\/a> to maintain productivity and reduce their sensitivity to climate.<\/p>\n

\n