1. Introduction to Agriculture in Australia

Understanding agriculture in New South Wales (NSW) requires consideration of a wide range of factors that influence a farmer’s income. These include:

• a) Seasonal changes (drought, floods, fires)

• b) Changes in demand for agricultural products

• c) Changes in eating habits

• d) Shifts in international markets

• e) Advances in technology

d) Economic returns from agriculture are also influenced by:

• e) Government fiscal policies

• f) The future outlook for agriculture

• g) Return on investment

h) To gain a comprehensive overview of farm investment returns, one may refer to statistics published by the Australian Bureau of Agricultural and Resource Economics (ABARE).

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2. The History of Farming in Australia Early Development

In the first decades after European settlement, farms developed near early settlements, primarily growing wheat and raising sheep imported from Europe.

1800s Expansion

Government-sponsored exploration during the 1800s opened vast tracts of land. Farmers and squatters gradually occupied these areas. The introduction of railways from the 1850s connected remote farms to cities and ports.

Wool Production

Large areas of forest and scrub were cleared for pastures. Although Australia’s dry climate and infertile soil were initially challenging, the land proved ideal for wool production. Wool became the backbone of Australian agriculture—leading to the saying, “Australia rode on the sheep’s back.”

Access to water and drought management became ongoing challenges. Irrigation systems enabled farming beyond sheep grazing.

Diversification (1900 Onwards)

By 1900, wool and wheat still dominated, but diversity increased with beef and dairy cattle, fruits, grains, and vegetables. Western Australia emerged as a major grain producer by 1905. Other industries, like sugarcane in Queensland and grape cultivation in Riverina, also developed.

Workforce Contributions

The 1901 census recorded around 14% of Australia’s population working in agriculture and pastoral industries. However, this did not include many Aboriginal people who worked as stockmen and in supporting roles, significantly contributing to the industry.

Impact of World War I :

Rabbits became a major agricultural pest, spreading from Geelong, Victoria. They severely reduced farming productivity—a challenge that persists today.

Overproduction and Exports

By the early 20th century, Australian agriculture produced more than the domestic population needed. Australia became a significant food exporter. Government support through bounties and tariffs encouraged production and limited imports.

Post-War Recovery and Decline

Despite the Great Depression and two world wars, agriculture continued to grow in the early 20th century. However, in the latter half of the century:

• i) Farming's role in the economy declined

• ii) Government assistance reduced

• iii) Wool lost value

• iv) Small farms struggled to survive, giving way to larger operations

v) Farmers were forced to innovate and diversify to remain viable.

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3. Development of Agriculture

Period 1: 1945–Mid-1960s – Growth and Stability

This period was marked by:

• a) Government support and financial incentives

• b) Expansion of agricultural sectors, even in hard times

  
  

Period 2: Mid-1960s–1970s – Adjustment and Challenges

The removal of subsidies (e.g., dairy industry) led to rapid adjustment. Many farms that had survived due to government support had to shut down or adapt.

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Trends in Farm Sector Growth Purchased Inputs and Self-Sufficiency

Between 1950s–1960s:

• 1) Use of purchased inputs increased by 2.6% per year

• 2) Output grew by 3.3% per year

• 3) Farmers relied more on external goods and services

• 4) Traditional self-sufficiency of farms declined

• 5) Farmers became production specialists

  
  

Technological Advancement

Research and support services provided new production technologies—often without considering long-term environmental or economic consequences. Agricultural education focused heavily on production rather than business or environmental management.

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4. Modern Challenges and Adaptations Productivity over Production

Since the late 1960s, the focus shifted from simply increasing production to improving productivity. Farm management evolved as a recognized discipline, aiding decision-making and efficient resource use.

Declining Terms of Trade

• a) Farm input costs rose faster than commodity prices

• b) Farmers responded with cost-cutting measures and productivity improvements

Cost-Cutting Measures Include:

1. 1) Adopting Improved Technology

   • Use of large equipment to reduce labor

   • Use of chemicals for higher yields and lower per-unit costs

2. 2) Changing Farm Business Structure

   • Reducing reliance on hired labor

   • Streamlining operations for cost-efficiency

3. 3) Eliminating Inefficiencies

   • Delaying expensive upgrades until financially viable

   • Avoiding risky or undesirable practices

   • Improving management practices through education

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Enterprise Mix Adjustment

Farmers shifted from low-return ventures (like animal industries) to higher-return options (like cropping). This had significant effects on:

• a) Transport, storage, and shipping infrastructure

• b) Demand for farm inputs like machinery, chemicals, and fertilizers

• c) Agricultural credit systems

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Conclusion:

Australian agriculture has evolved from small, self-sufficient farms into a dynamic and mechanized sector. It has faced numerous challenges—from environmental issues to market forces and government policy shifts. However, through adaptation, innovation, and strategic management, the sector continues to contribute significantly to Australia’s economy and global food supply.

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