The Effect of Declining Wool Prices, Wheat Quotas and Debt Reconstruction on the Financial Viability of Australian Farmers
An examination of the decline in net farm income between 1966-67 and 1969-70 indicates that in the three major zones the following size groups will be non-viable (l) In the High Rainfall Zone, farms with less than 2,000 and more than 10,000 sheep, comprising 85 per cent of farms in the Zone. (2) In the Wheat Sheep Zone, farms with less than 1,000 sheep, comprising 56 per cent of farms. (3) In the Pastoral Zone, farms with less than 20,000 sheep, comprising 98 per cent of farms. This situation could be alleviated to some extent by extending the period of debt repayment from the present average period of 7 years to a period of 20 to 30 years.
A NEGATIVE INCOME TAX AND LOW INCOME FARM FAMILIES
An efficient procedure is proposed for making welfare payments to low income farm families. This is a negative income tax. It uses the income tax system for linking directly transfer payments to income needs, without unduly adverse effects on resource allocation. The negative income tax proposal is considered in relation to rural adjustment and reconstruction.
FARM ADJUSTMENT AND THE ROLE OF GOVERNMENT
The problem of low income farms in Australia is examined in a dynamic context of overall farm adjustment. It is suggested that the pace of agricultural adjustment has been and is too slow, in the light of current and prospective market and cost trends. Consideration is given to both the case for, and the possibilities of, government action and the relationship of onÂ•-farm adjustment to the adjustment needs of the economic and the social infrastructure on the agricultural sector.