Rural Adjustment Schemes: Juggling Politics, Welfare and Markets

Abstract

The Commonwealth government has offered support to farmers in the form of structural or business adjustment-type schemes since the Loan (Farmers Debt Adjustment) Acts of 1935Acts of -1971. Since 1971 a series of more comprehensive rural reconstruction/adjustment schemes with a range of objectives from debt alleviation to encouraging some exits from agricultural industries, has been in place. While having little direct impact on the structure of these industries, the various schemes have been politically important and an indicator of how core values relating to agricultural production and rural life have changed. A review of the schemes shows an increasing focus on improving farm productivity and sustainability, accompanied by a discourse emphasising the need to promote the 'farm business', rather than to protect the 'family farm'. On the other hand, governments have also used these schemes to deliver 'welfare' outputs.

Rural Economic Development: A Review of the Literature from Industrialized Economies

“…Two key resources needed to support rural economic development include financial resources and appropriate infrastructure. In terms of financial resources, much has been written about how local governments struggle with a declining tax base following industrial closures (Bull et al 2001) and how this impacts local responsiveness (Cockfield and Botterill 2006). Much has also been written about access to capital for new entrepreneurs and for communities looking to build a more flexible foundation to support new development options (Markey et al 2005).…”

Perceived profitability and well-being in Australian dryland farmers and irrigators

“…The relationship we have identified between profitability and well‐being may strengthen the welfare argument for farm exit assistance, particularly in the case of farmers unlikely to become profitable: supporting their well‐being will be an important component of promoting their successful transition out of agriculture. For either pathway, policies that marry business advice with mental health promotion are likely to achieve more positive results than programs that do just one or, worse, neither.…”

Responding to Farm Poverty in Australia

“…The 1971 scheme was amended in 1973 and then succeeded by a series of Rural Adjustment Schemes in 1976Schemes in , 1985Schemes in , 1988Schemes in and 1992 program. For a more detailed description of the reconstruction and adjustment programs and the role of welfare delivery within them, see Cockfield and Botterill (2006).…”