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Drought Assistance Policy

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  • John W. Freebairn

Abstract

Droughts are a feature of the Australian agricultural scene. Most farmers develop successful strategies to grapple with drought. The purchased fodder and interest rate subsidies used in the 1982-83 drought are analysed. As partial input subsidies, they had serious flaws in meeting goals of efficiency, equity and welfare support. Alternative policies to provide incentives for rational private decision making and to provide direct welfare support are discussed and advocated as a preferable approach to future droughts.
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Suggested Citation

  • John W. Freebairn, 1983. "Drought Assistance Policy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 185-199, December.
    • Handle: RePEc:bla:ajarec:v:27:y:1983:i:3:p:185-199
    DOI: j.1467-8489.1983.tb00424.x
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    1. Toft, H.I. & O'Hanlon, P.W., 1979. "A Dynamic Programming Model for On-Farm Decision Making in a Drought," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(01), pages 1-12, April.
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    Cited by:

    1. Crase, Lin, 2017. "Drought special edition: introductory comments," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    2. Patrlck, George F., 1988. "Mallee Wheat Farmers' Demand For Crop And Rainfall Insurance," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(1), pages 1-13, April.
    3. Lin Crase & Bethany Cooper, 2017. "The Political Economy of Drought: Legacy and Lessons from Australia's Millennium Drought," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 289-299, September.
    4. Becker, N., 1999. "A comparative analysis of water price support versus drought compensation scheme," Agricultural Economics, Blackwell, vol. 21(1), pages 81-92, August.
    5. Productivity Commission, 2009. "Government Drought Support," Inquiry Reports, Productivity Commission, Government of Australia, number 46.
    6. Glyn Wittwer & Marnie Griffith, 2011. "Modelling drought and recovery in the southern Murray‐Darling basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 342-359, July.
    7. Kingwell, Ross S. & Xayavong, Vilaphonh, 2017. "How drought affects the financial characteristics of Australian farm businesses," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    8. Chisholm, Anthony H., 1992. "Australian Agriculture: A Sustainability Story," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(1), pages 1-29, April.
    9. Ta Nhat Linh & Hoang Thanh Long & Le Van Chi & Le Thanh Tam & Philippe Lebailly, 2019. "Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    10. Ha, Arthur & Stoneham, Gary & Harris, Jane & Fisher, Bill & Strappazzon, Loris, 2005. "Incentives, Information & Drought Policy," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137924, Australian Agricultural and Resource Economics Society.
    11. John Quiggin & Robert G. Chambers, 2004. "Drought policy: a graphical analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 225-251, June.
    12. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    13. Linda C. Botterill & Bruce Chapman, 2009. "Income Contingent Loans for Drought Relief: Delivering better outcomes for farmers and taxpayers," CEPR Discussion Papers 597, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    14. Malcolm, Bill, 1994. "Australian Agricultural Policy Since 1992: New Emphases, Old Imperatives," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(02), pages 1-23, August.
    15. Wittwer, Glyn & Waschik, Robert, 2021. "Estimating the economic impacts of the 2017–2019 drought and 2019–2020 bushfires on regional NSW and the rest of Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(04), January.
    16. Bruce Chapman & Linda Courtenay Botterill, 2009. "A Revenue Contingent Loan Instrument for Agricultural Credit with Particular Reference to Drought Relief," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(2), pages 181-196.

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