According to the Australian Bureau of Agriculture and Resource Economics, the boom in farming has had a direct impact on the hip pockets of the nation's farmers. At its Outlook 2001 forecasting conference in Canberra in February, the bureau predicted the net value of farm incomes to increase by 29 per cent next financial year. This follows a 14 per cent rise in the current year. Importantly for rural and regional Australia, farmers are spending money consolidating and rebuilding their farms, bringing a much-needed cash injection to country towns. Colac agricultural machinery dealer Linton Evans says his business is in its best shape for 20 years with almost all farmers in the area making and spending money after years of hardship.
People talk of a recession coming, but that's crap.
One reason is the deregulation of the dairy industry, which has had a devastating impact on many dairy farmers, particularly in Queensland and New South Wales, where market milk prices have fallen by as much as 20 cents a litre in 12 months. Recent reports have predicted up to half of New South Wales' dairy farmers could be forced off the land and 15,000 jobs in Queensland's dairy industry could be lost because of deregulation. However, a more fundamental problem is affecting Australian farming. It's called the 80-20 split. Though the nation's farmers are enjoying their best prices in a decade, the spoils are not being shared evenly.