Australia’s successful agricultural policy reforms show policy makers in developed countries a pathway to cutting subsidies and tariffs, according to a new ABARES Insights paper.
Australia transformed its agriculture sector through reforms over the past half century that prioritised innovation, productivity, resilience and open markets.
ABARES Executive Director Dr Jared Greenville said that Australia’s experience offers a pathway for other developed countries.
“Australia’s policy approach to agriculture has changed considerably over time,” Dr Greenville said.
“Like many developed countries today, our sector once relied on high levels of distortionary support and rigid marketing systems, which placed brakes on productivity growth and held back our international competitiveness.”
Before reform, Australia had around 60 agricultural marketing authorities that controlled the pricing and selling of many agricultural products.
Today, the sector is thriving; it is internationally competitive, market-responsive and more resilient to evolving dynamics.
“Our experience shows international partners on their own reform journeys, that it is possible to overcome big challenges and build an internationally competitive and thriving agricultural sector with a strong environmental record,” Dr Greenville said.
“Consensus-building, a coherent reform program and the repurposing agricultural support towards research and innovation were key to our success.
“Underpinned by the reforms made to agriculture, the sector has continued to grow, with real incomes for broadacre farms growing at an annual rate of 1.6%, and 1.5% for dairy, between 1990 and 2024.
“The real gross value of farm production also grew 80% over the past five decades.”
View or download the Insights paper.
