01/03/2011image expired

Natural disasters are estimated to have cost Australian agricultural production around $2.3 billion, according to the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).

Economists found the total losses to agriculture amount to around $2.3 billion, with cyclone Yasi contributing $300 million. This translates into a loss of half a percentage point in growth. The Australian mining industry has also been heavily affected by the adverse weather.  

The ABARES forecasts do reveal a silver lining to Australia’s recent stormclouds in that they predict high commodity prices, strong farm incomes, and a boost in exports in the next few years.

Agriculture Minister explains need for growth

Federal Agriculture Minister Joe Ludwig said today (1^st March) that agriculture's "beating" in the recent floods and cyclones means more needs to be done to improve farm productivity, telling an assembly at the Outlook Conference that, "These recent weather events highlight the need for Australia to boost agricultural growth to meet future challenges, including climate variability."

Mr Ludwig said the Federal Government is increasing farm growth through the nation's first National Food Plan, furthering research and development funding, and changing its drought management. He called for a focus on growth and acknowledged the need for government to ensure farmers have the necessary capabilities to be productive, saying, "The experiences of recent months have only highlighted the imperative of the Gillard Government to get these policies right. Increased focus on improving productivity must be a key response from government and industry to this pressure."