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Government Agriculture Policy – Productive or Counterproductive

According to a study by the Australian Department of Agriculture, governments often provide support to their agriculture sectors through trade protection and domestic market subsidies. These support programs can have adverse outcomes. They can divert resources from and adversely impact more productive sectors of agriculture.

They can contribute to environmental damage and constrain agricultural development.

The report argues that reforming agricultural support, by opening trade and cutting subsidies, can build a more productive and competitive agricultural sector. Such reforms enable famers to better respond to market signals, manage risk, and better utilize existing trade networks to raise farm incomes.

Source: Department of Agriculture, Australian Government

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