Living Standards and Western Australian Agriculture in Regional Economic Development Perspective

Similar documents
Effects of Barriers to Live-sheep Exports: from a Western Australian Perspective

A deeper understanding of farm productivity

Western Australian Resources Sector Outlook. The Chamber of Minerals and Energy of Western Australia

Oil and Agriculture: Now and in the Future

The impact of a carbon price on Australian farm businesses: Grain production

National Farmers Federation

Productivity growth in developed countries: Australia. Presentation to 2013 IATRC Symposium

Resource corridors: A case study of the Pilbara, Australia

Australian Beef Financial performance of beef farms, to

research report The Impact of a Carbon Price on Australian Farm Businesses: Grain Production Australia s Independent Farm Policy Research Institute

Economics of Crop Rotations in Medium Rainfall WA

Western Australia GSP

Screenwest Definition of Qualifying Western Australian Regional Expenditure (QWARE)

Western Australian Resources Sector Outlook

A discussion paper on alternative greenhouse emission policies for the Australian Beef Cattle Industry.

Screenwest Definition of Qualifying Western Australian Regional Expenditure (QWARE)

Heading to Presentation

ECONOMIC OUTLOOK 2015 NATIONAL ELECTRICITY FORECASTING REPORT

THE ANALYSIS OF NSW RURAL PROPERTY:

Employment Outlook for. Professional, Scientific and Technical Services

The Impact of LNG Export Expansion in QLD With special emphasis on the effects of increased gas prices

We undertake research, applications development and consulting on broad sustainability issues.

Agricultural Productivity: Concepts, measurement and factors driving it A perspective from the ABARES productivity analyses

Getting cold and prickly on saltland extension

THE ANALYSIS OF NSW RURAL PROPERTY:

ECONOMIC MODELLING TECHNICAL PAPER 5 MODELLING THE COST OF UNMITIGATED CLIMATE CHANGE

Food Security, Farming, and Climate Change to 2050 Scenarios, Results, Policy Options

CENTRE of POLICY. STUDIES and PROJECT. the IMPACT. Future Workforce Skills: Projections with the MONASH Model. G.A. Meagher and B.R.

Trends and drivers in greenhouse gas emissions in the EU in 2016

Australian Agricultural and Resource Economics Society s Annual Conference

Approaches to assessing the value of precise positioning

Climate Risk Management through Structural Adjustment and Regional Relocation: A Case of Rice Industry in Australia Shahbaz Mushtaq

ECONOMIC IMPACTS OF A NEW PULP MILL IN

plantation forestry in the Great Southern region (WA)

Agronomic performance of new open-pollinated and hybrid canola cultivars to time of sowing in Western Australia

Land management practice trends in Australia s northern and remote agricultural industries

BROADACRE FARM PRODUCTIVITY AND PROFITABILITY IN SOUTH WESTERN AUSTRALIA 1

09.7. Raising productivity growth in Australian agriculture. Katarina Nossal and Peter Gooday

Review of Functions and Responsibilities of Regional Development Commissions

Promoting Global Agricultural Growth and Poverty Reduction

Exploring the Relationship between Farm Size and Productivity

Australian vegetable-growing farms An economic survey, and

BEN NIXON. Associate Director of Global Agribusiness Research, ANZ UWA FUTURE FARM 2050

research report The Impact of a Carbon Price on Australian Farm Businesses: Beef Production Australia s Independent Farm Policy Research Institute

Australian beef. Financial performance of beef cattle producing farms, to Peter Martin. Research report 15.5.

Impact on Western Australia s sheep supply chain of the termination of live sheep exports

PIEFA 2018 Conference Ivan Neville Branch Manager Labour Market Research & Analysis Branch

Future scenarios for the southern Murray Darling Basin water market

Australian beef. Financial performance of beef cattle producing farms, to Therese Thompson and Peter Martin. Research report 14.

Decomposing Productivity and Efficiency among Western Australian Grain Producers

Water Accounting in Australia London Group Meeting, Denmark September 2004

The impact of the Carbon Pollution Reduction Scheme on Australian Agriculture

Bankwest Future of Business: Focus on Agriculture release

Primary Industries Health and Safety Partnership Plan. Partners:

Economics, agriculture and native vegetation in NSW

Submission September Office of the Environmental Protection Authority. Contact Kane Moyle Manager Environment & Land Access

Final Summary Report

Hancock Farmland Investor

Socio-economic impacts of the forest industry Western Australia December 2017

Non-Drinking Water in Western Australia: The Water Corporation Perspective. Neil McGuinness Manager Non Drinking Water, Water Industry Policy Branch

IN FOCUS: BEEF APRIL Author Phin Ziebell, Agribusiness Cover photo Winter 2017 in Seaton VIC, Marco Pagliaro

Farming in a carbon-priced economy implications for farm businesses.

Understanding. Western Australian Local Government

The challenge of rebalancing national and regional economies: human capital, natural assets and environmental sustainability in Australia

The impact of climate change on farm business performance in Western Australia

20 years of soil acidity RD and E in Western Australia what have we learnt?

Australian Bureau of Agricultural and Resource Economics and Sciences

Forestry, jobs and spending:

Grains Research & Development Corporation. Canadian Presentation 6 June GRDC s s R&D Model. Terry Enright. Chairman.

The Mid and North Western Australia Investment Portfolio Summary 2016

Place-Based versus Place-Neutral Policies for Promoting Regionally Balanced Economic Growth: A Sri Lankan Case using CGE based Simulations

GMOs, Endogenous knowledge spillovers and CAP policy

B-triple Road Network. NFF Submission

REGIONAL CLIMATE VULNERABILITY ASSESSMENT: GOLDFIELDS-ESPERANCE

JOINT AUSTRALIAN AND NEW ZEALAND SOIL SCIENCE CONFERENCE Soil solutions for diverse landscapes

Special thanks to following people:

Australian agricultural R&D and global food security

Northern Victoria Irrigation Renewal Project

Live Sheep Export Brief Report

Land management practice trends in Tasmania s broadacre cropping industries

Domestic Onshore Option for Timor Sea Gas: Analysis of Implications for Australia. A Report to the Northern Territory Government

Economic Impacts of Citrus Greening (HLB) in Florida, 2006/ /11 1

Evaluation of policy options to support carbon farming in the Western Australian Rangelands

Economic Impacts of Citrus Greening (HLB) in Florida, 2006/ /11 1

ICF Propane Inventory Update and Winter 2014/15 Supply Assessment

Institutional Reform, Resource Reallocation and Dairy Productivity: A Case Study for Australia

Productivity and returns to resources in the beef enterprise on Victorian farms in the South-West Farm Monitor Project

INTERNATIONAL COTTON ADVISORY COMMITTEE. Abidjan, Ivory Coast 2 6 December 2018 AUSTRALIAN COUNTRY REPORT

FOOT-AND-MOUTH DISEASE OUTBREAK: MODELLING ECONOMIC IMPLICATIONS FOR QUEENSLAND AND AUSTRALIA

The Hume Workforce Development Committee

1 Sustainable Agriculture

research report The Impact of a Carbon Price on Australian Farm Businesses: Cotton Farming Australia s Independent Farm Policy Research Institute

Annual Report Sparks Farm, Morawa Western Australia. Manager, Ken Sevenson. driven by passion, performance & integrity

TECHNICAL CHANGE, MARKET INCENTIVES AND RURAL INCOMES: A CGE ANALYSIS OF UGANDA S AGRICULTURE

NSWIC NEW SOUTH WALES IRRIGATORS COUNCIL

The Role of ICT in Australia s Economic Performance: Investigating the assumptions influencing productivity estimates

Wheat variety performance on sodic and saline dispersive soils in Merredin in 2016

Economic Impacts of Introducing a Carbon Tax in South Africa. Konstantin Makrelov Chief Director: Economic Modelling and Forecasting 20 August 2013

Australia s emissions and the economy

AUSTRALIAN CROPS ANNUAL REVIEW

Transcription:

Living Standards and Western Australian Agriculture in Regional Economic Development Perspective Nazrul Islam July 31, 2009

Plan of presentation How WA agriculture is placed in the national, state and regional economies; Review some study findings on economy-wide contributions of agriculture; Highlight some statistics on the changes in regional farm business structure; and Broadly comment on the possible future of WA agriculture in the regional economic development context.

WA agriculture in the state and national economies Items (1) Value-added Exports Employment Share in the WA economy (%) (2) 3.5 17 4.4 WA s share in Australian agriculture (%) (3) 15 15 13 Note: WA s share in GDP is about 12 percent. The data are averages over five years to 2006-07. Column 3 represents WA agriculture s share in the national agriculture sector; e.g. for the value-added row, it shows WA agriculture s share in value-added of the national agriculture sector. Source: Islam (2008)

5-year average growth by industry sectors in WA: 2003-04 to 2007-08 9 8 7.9 7 WA ROA Growth rate % per annum 6 5 4 3 3.5 5.9 3.6 4.7 3.1 2 1 1.0 2.0 1.3 0.7 0 Agriculture, forestry and fishing Mining Manufacturing All other sectors GDP/GSP Note: ROA: Rest of Australia Source: ABS various issues, Catalogue No. 5220.0

Index (base year 1987/88=100) 250 Output trends in broadacre agriculture: 1977/78 to 2005-06 200 Growth p.a. 1977/78 1996/97 to to 2005/06 2005/06 AUS = 4.25 4.57 WA = 5.35 5.02 W estern Australia 150 100 Australia 50 1977/78 1981/82 1985/86 1989/90 1993/94 1997/98 2001/02 2005/06 Source: Islam (2008)

Trends in TFP and TOT in WA agriculture: 1977/787 to 2005/06 Index (Base year 1977-78) = 100 250 200 Growth (% p.a.) TFP = 2.02 TOT = -2.36 150 Total factor productivity (TFP) 100 Farmers' terms of trade (TOT) 50 0 1977/78 1981/82 1985/86 1989/90 1993/94 1997/98 2001/02 2005/06 Source: Islam (2008)

Long-run impact of R&D and rainfall on productivity a Per cent 20 15 10 R&D effect 5 0 Rainfall effect -5-10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Years a Generalised Impulse Response's of TFP to one S.E. shock in the Equations for RF and R&D Source: Salim & Islam (2008)

Flow-on impact (multipliers) Type-2A multipliers a Mean primary Agricultural industries Mean secondary agricultural industries WA mean Output 2.22 2.76 2.39 Income 3.54 4.35 2.86 Employment 1.78 8.09 3.24 Value-added 2.26 4.26 2.91 a Type-2A multipliers demonstrate the impact of a unit increase in output, income, value-added or employmentin the industries shown, on total output, income, value-added or employment in the WA economy. Source: Islam (2006)

Effects of 6.4% growth in agriculture 0.6 0.5 0.4 Percent 0.3 0.2 0.1 0.0 GSP (real) Employment Consumption (real) Imports Exports Source: Ahammad (2002)

Direct & indirect impact of 6.4% growth on GSP Indirect 60% Direct 40% A 6.4% growth in broadacre agriculture leads to A Direct in WA s real GSP.2% An overall in real GSP by about.5% Thus, an indirect contribution of about. Source: Ahammad (2002)

Impact of $1m expansion of ag. processing Items Real GSP ($ 000) Total Output ($ 000) Employment (Jobs) Impact 649 1,901 17 Source: Islam & Johnson (2003)

Mapping WA regions WA regions: RDC 1 WA SD: ABS 2 WA regions Combined 1. Kimberley 2. Pilbara 3. Central = (Gascoyne + Midwest) 4. South Eastern (Goldfield-Esperence) 5. Wheatbelt (Midlands + Upper Great Southern) 6. Great Souther (lower) 7. South West (includes Peel) 8. Perth Sources: 1 http://www.dlgrd.wa.gov.au/publications/docs/map_regionaldevelopbasic.gif 2 http://www.abs.gov.au/ausstats/abs@.nsf/be4aa82cd8cf7f07ca2570d60018da27/463f50115b6dccfbca2571a9001e1f44/$file/wa.pdf

Population in regional WA: 2006-07 Great Souther (lower) Perth 7 WA Regions 27% Wheatbelt (Midlands + Upper Great Southern) South West (includes Peel) 10% South Eastern (Goldfield-Esperence) Central = (Gascoyne + Midwest) Pilbara 2% Kimberley 2% Source: DLGRD (2009)

Regional employment in WA: 2006-07 Great Souther (lower) Perth 75% WA Regions 25% Wheatbelt (Midlands + Upper Great Southern) South West (includes Peel) 10% South Eastern (Goldfield-Esperence) Central = (Gascoyne + Midwest) Pilbara 2% Kimberley 1% Source: DLGRD (2009)

GSP ($141.4b) share in regional WA: 2006-07 Wheatbelt (Midlands + Upper Great Southern) Great Souther (lower) 2% Perth 71% WA Regions 29% South Eastern (Goldfield-Esperence) 5% South West (includes Peel) 10% Central = (Gascoyne + Midwest) Pilbara 5% Kimberley 1% Source: DLGRD (2009)

GVAP share in WA regions: 2006-07 Perth 9% WA Regions 91% South Eastern (Goldfield-Esperence) Central 7% Pilbara 0% Wheatbelt (ML & UGS) 44% Kimberley Lower Great Southern 15% South West (includes Peel) 10% Source: ABS various issues, Catalogue No. 7125

Changes in broadacre farm business in WA Number of farm business 10,000 8,000 6,000 4,000 More than $400,000 $200,000 - $400,000 $100,000 - $200,000 Less than $100,000 Future scenario 2,000 0 Average (1990 to 1998) Average (2000 to 2008) 2018 2028 Source: ABARE, AgSurf http://www.abare.gov.au/ame/agsurf/agsurf.asp

Agriculture in a simple regional economy Gross Regional Product Consumption Business (e.g. Farming/Downstream) Activities Imports Investment Exports Government

Concluding comments WA agriculture out performs its counter parts in other Australian states - despite adverse effects of market and climate change. Continued R&D investment is important to offset the likely adverse effects of climate change. Farm business structure is changing towards greater economies of scale. The trend of declining farming population will impact regional communities. Integration of post-farm activities within regions of comparative advantage could be a solution.

Useful References: ABARE (2009). AgSurf http:// www.abare.gov.au/ame/agsurf/agsurf.asp. ABS (2007) Regional Population Grow th Statistical local area, http://www.abs.gov.au/ausstats/abs@.nsf/details Page/3218.02006-07?OpenDocument. Ahammad, H. (2002). A CGE Approach to Measuring the Sectoral Contribution to an Economy: An Application to Western Australian Agriculture, RURDS, Vol 13, 3, pp 305-324, November. DLGRD (2003). Indicators of Regional Development in Western Australia Department of Local Government and Regional Development, Government of Western Australia http://www.dlgrd.w a.gov.au/publications/docs/indicatorsregiondev_fullversion.pdf (accessed 20 June, 2009). DLGRD (2007). Indicators of Regional Development in Western Australia - Supplementary Report 2007, Department of Local Government and Regional Development, Government of Western Australia http://www.dlgrd.w a.gov.au/publications/docs/indicatorsregionaldevsuppreport2007.pdf (accessed 20 June, 2009). Islam, N. (2003). Living Standards and Western Australian Agriculture: Research Overview and Key Findings, ISBN 0-9750727-1-4, Department of Agriculture WA, South Perth, May. Islam, N. (2004). A General Equilibrium Analysis of Agricultural Exports Grow th on the Western Australian Economy, R. Kingw ell (ed.) Research Papers: Economic Services Group and Regional Economists, ISSN 1447-4980, ISBN 0-9750727-2-2, Western Australian Government Department of Agriculture, March, http://www.agric.wa.gov.au/content/amt/ mp2004_05.pdf Islam, N. (2008). Characteristics and Performance of Western Australian Agriculture, DAFWA, Unpublished mimeo. Islam, N. and P. Johnson (2003). Agricultural Processing and the Western Australian Economy, ISBN 0-646-42164-6, Department of Agriculture WA, South Perth, February. Pannell, D.J. and Kingw ell, R.S. (2004). Economic trends and drivers affecting the grain belt of Western Australia to 2035, Future Broadacre Agricultural Landscapes Conference, June 15-17 2004. http://www.general.uw a.edu.au/u/dpannell/ dp0407.htm (accessed 20 June, 2009). Porter, M. E. (2003). The Economic Performance of Regions, Regional Studies. Vol. 37, 6&7, pp 549-578, August/October. Pow el, R. (1998). Agriculture and the Economy, Centre for Agriculture and Regional Economy, http://www.regional.org.au/au/asa/1998/plenary/pow ell.htm?print=1 (accessed 20 June, 2009) Salim, R. and N. Islam (2008). Exploring the Impact of R&D and Climate Change on Agricultural productivity grow th: The Case of Western Australia, DAFWA, Unpublished mimeo. Sen, A. (1985). The Standard of Living, The Tanner Lecture on Human Values, Cambridge University, March 11 & 12.