WA farmers leading the world

WA Agriculture and Food Minister Terry Redman said new analysis has shown that West Australian farmers lead the nation in running profitable farming businesses with the least amount of government assistance.

A new study undertaken by the Department of Agriculture and Food and released today has looked at the value of government assistance received by farmers in Western Australia compared with farmers in the Eastern States and in other major agriculture producing nations.

Mr Redman said that WA producers were found to have received much less financial assistance from government than producers in the Eastern States and internationally.

“This demonstrates just how efficient and adaptable WA farmers are. While farmers in other parts of the world can hide behind trade distorting subsidies and barriers, our farmers are continuing to innovate and raise their productivity,” he said.

The comparison was made using the internationally recognised Producer Support Estimate (PSE) to quantify the percentage of a farmers income derived from the Government.

“In 2008, Western Australia had a PSE of 2.32 per cent whereas the national average was a much higher 5.85 per cent. When WA is excluded, the national PSE rises to 6.77 per cent,” the Minister said.

“The difference between WA and our international competitors is even more significant. The WA figure is well below the Office for Economic Co-operation and Development average PSE of 21 per cent.

“WA farmers are punching well above their weight in a marketplace where many of our international competitors are effectively subsidised and can accommodate less efficient practices and higher margins for error.

“WA has a much greater focus on supplying our customers with high quality products that we have worked hard to produce. It also means the Government’s focus can be on practical programs to assist our farmers, for example in the area of drought preparedness.

“This research highlights the importance of reducing regulation and ensuring that future government policies do not place unnecessary constraints on the industry.”