The Australian Bureau of Agricultural and Resource Economics (ABARE) has today forecast that production of wheat, barley and canola is likely to be slashed by 63 per cent to just 13.6 million tonnes.
That would be the smallest grains harvest since the drought of 1994/95.
ABARE expects the drought to cut overall economic growth by 0.7 per cent.
The last week has seen just about every political party in Australia reacting more seriously to the reality of climate change. In Victoria is obvious and predictable, given we have a state election in November.
But Mr Howard, who is currently on the second day of his tour through drought-stricken areas of New South Wales, has the audacity to say the forecast is predictable.
"Fortunately we've got strong growth in other areas of our economy, but it will cut economic growth and we must understand that, and that's why we must help our farmers through their hour of need," he said.
I think John Howard has known all along this was unavoidably on the cards for Australian Farmers, but his steadfast refusal to deal with the onset of drought and inevitability of climate change is now going to cost many Farmers their independence and for some their house, home or farm due to further long-term financial pressures on farmers struggling to make ends meet.ABARE says seasonal conditions have worsened since mid-September, with little or no worthwhile rain and warmer temperatures.
National Australia Bank spokesman Tim Keith says the dire situation could place long-term financial pressures on some farmers.
"You still need to pay interest on loans and those sorts of things," he said.
"It can start to eat into your equity, and obviously that sort of financial change is the concern for a lot of our clients out there."
Content Sources/Related Links:
PM unsurprised by small harvest forecast - ABC News - 27th October, 2006.
Drought won't cripple economy: Howard - The Australian - 27th October, 2006.
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