Modelling interactions between farm-level structural adjustment and a regional economy: a case of the Australian rice industry

Mushtaq, Shahbaz and Cockfield, Geoff and White, Neil and Jakeman, Guy (2014) Modelling interactions between farm-level structural adjustment and a regional economy: a case of the Australian rice industry. Agricultural Systems , 123. pp. 34-42. ISSN 0308-521X

Abstract

Climate change and on-going water policy reforms will likely contribute to on-farm and regional structural
adjustment in Australia. This paper gathers empirical evidence of farm-level structural adjustments and integrates these with a regional equilibrium model to investigate sectoral and regional impacts of climate change and recent water use policy on rice industry. We find strong evidence of adjustments to the farming system, enabled by existing diversity in on-farm production. A further loss of water with additional pressures to adopt less intensive and larger-scale farming, will however reduce the net number of farm businesses, which may affect regional rice production. The results from a regional CGE model show impacts on the regional economy over and above the direct cost of the environmental water, although a net reduction in real economic output and real income is partially offset by gains in rest of the Australia through the reallocation or resources. There is some interest within the industry and from potential new corporate entrants in the relocation of some rice production to the north. However, strong government support would be crucial to implement such relocation.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2013 Elsevier Ltd. All rights reserved. Available online 15 October 2013. Published version deposited in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - USQ Other
Date Deposited: 22 Oct 2013 02:41
Last Modified: 18 Nov 2014 02:33
Uncontrolled Keywords: climate change; geographic relocation; regional economic model; rice; structural adjustment; water and environmental policy
Fields of Research : 16 Studies in Human Society > 1605 Policy and Administration > 160507 Environment Policy
07 Agricultural and Veterinary Sciences > 0701 Agriculture, Land and Farm Management > 070107 Farming Systems Research
05 Environmental Sciences > 0501 Ecological Applications > 050101 Ecological Impacts of Climate Change
Socio-Economic Objective: D Environment > 96 Environment > 9609 Land and Water Management > 960905 Farmland, Arable Cropland and Permanent Cropland Water Management
Identification Number or DOI: 10.1016/j.agsy.2013.08.010
URI: http://eprints.usq.edu.au/id/eprint/24193

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