In this paper (10.8.19), Ben Rees offers his impressions of questionable economics underpinning drought policy in Australia, in light of comments from AgForce about managing the ‘cyclical’ nature of drought in the agricultural sector.
‘It was interesting to have AgForce’s President recently identify their drought policy model as based upon business cycle behaviour. In 1958, John Galbraith commented “nothing in the history of social ideas is more interesting than the treatment of the so-called business cycle”.
‘Whilst prices, wages, rents, and interest were all affected by depressions, early research into severe economic fluctuations emanating from depressions were studied on the assumption that such dislocations did not happen. The drought policy comment by AgForce dates contemporary industry economics consistent with Galbraith’s description of early economic thought which assumed that severe dislocations did not exist over the business cycle.’
- Ben Rees on business cycle theory »
- Australia urgently needs real sustainable agriculture policy »
- A national drought policy should be an easy, bipartisan fix. So why has it taken so long to enact a new one? »
- We can’t drought-proof Australia, and trying is a fool’s errand »
- The science of drought is complex but the message on climate change is clear »
- New study: changes in climate since 2000 have cut Australian farm profits 22% »
- Australian Agriculture: the real story »
- Research Report 40: Livestock and regional recovery »
- Research Report 41: Rural Debt Taskforce »
- Ben Rees on rural debt and viability »