PUBLIC CHOICE THEORY AND AUSTRALIAN AGRICULTURAL POLICY REFORM*

Recent discussion of the process of policy reform has tended to focus on public and private interest theories of public choice as alternative models. The analysis of Australian agricultural policy presented in this paper draws on several extensions of the private interest model including the contractarian framework, extra-rational considerations such as moral attitudes and the desire to participate. Recent agricultural policy reforms in Australia are examined in the light of those theories. This examination highlights the importance of ideas and changes in the rules for policy formulation in influencing policy outcomes. In some cases the private interest theory appears to offer an adequate explanation while, in others, it provides only a partial explanation of policy change, and requires extension if policy choice is to be influenced, or even understood. An important independent role for economists and policy makers is seen both in the formulation of policies and in the design of rules for policy choice.     

THE IAC'S APPROACH TO AGRICULTURAL POLICY*

The main recommendations contained in the IAC's reports on rural references are outlined. The Commission's reasoning on four issues that are widely viewed as important to the formulation of rural policy is examined. The four issues are: assistance to industry; terms of trade; uncertainty and instability; and adjustment policy. Criticisms are made of the IAC's argument on these issues, and some inconsistencies between reports are indicated. It is concluded that the IAC has made a valuable contribution to the discussion of rural policy in Australia even though its recommendations are sometimes sounder than the argument offered to support them.     

CONSTITUTIONAL AND INSTITUTIONAL CONSTRAINTS IN AGRICULTURE AND AGRICULTURAL POLICY*

When men are committed to technology they are also committed to continual change in institutions and customs [8, p. 72]. Nowhere does the fervor for this arcadian age reach such a crescendo as it does with the odes that are dedicated to the whooping crane of the American economic scene, the ‘family farm’ [6, p. 171].     

AGRICULTURAL POLICY FORMATION: THE DIFFERING FUNCTIONS OF INDEPENDENT ANALYSTS AND ADVISERS*

Agricultural policy has been analysed systematically in Australia but the process of policy formation is not well understood. Distributional dimensions of policy issues influence decisions and policy analysts might improve their performance by better identification of these dimensions without neglecting basic efficiency criteria. These propositions and the functions of policy advisers are considered in this paper.     

GUARANTEE THRESHOLDS AND THE COMMON AGRICULTURAL POLICY

In recent years an important development in the Common Agricultural Policy of the European Community has been the acceptance of the principle that the price guarantees can no longer be unlimited in nature, and that, if production exceeds a certain level, action should be taken to ensure that producers share in the responsibility for additional production. In 1981 the term ‘guarantee threshold’ was introduced to denote this level of production. Different mechanisms have been introduced in the various market regulations to give effect to the guarantee thresholds, and it is necessary for policy makers to realise that these mechanisms have different economic consequences. The case of milk is particularly instructive, for here the European Community in 1984 made a radical change by switching from the mechanism of reducing price support, if the guarantee threshold is exceeded, to a system of quotas for milk deliveries. Guarantee thresholds also exist for other products (cereals, processed fruit and vegetables, oilseeds) and in other cases there are analogous measures (sugar, wine, fruit in syrup, cotton). In the future development of the CAP, guarantee thresholds will continue to play an important role. How far can the Community expect to succeed in controlling its agricultural production by price or quantitative action, and what accompanying measures will be necessary?     

CHANGING INSTITUTIONS,PROCESSES AND ISSUES IN THE FORMATION OF AUSTRALIAN AGRICULTURAL POLICY*

In this paper the effect of structural changes in the Australian economy on the determination of policy for agriculture is examined. The effectiveness of the unification of farm organisations is questioned and the threat to organised agriculture of new lobby groups and new governmental institutions is outlined. The role of wide-ranging inquiries into the state of the agricultural economy is scrutinised. Attention is drawn to the effect on rural lobbying of the advent of 'government by consensus' under the Hawke Government and to the increasing militancy of farmers. It is shown that recent advocacy of greater centralisation of agricultural administration has no constitutional basis. It is concluded that the emerging problem of organised agriculture is to find an effective way to modify the impact on the industry of general economic policies and overseas economic developments rather than to deal with commodity-specific legislation.     

FARM CREDIT POLICY IN THE EARLY STAGES OF AGRICULTURAL DEVELOPMENT*

This paper discusses the farm credit policies pursued by governments in low-income countries. It is argued that, in the early stages of development, peasant attitudes to debt are such that cheap credit is unlikely to be a useful growth stimulus. It is shown that the effectiveness of credit depends on the ability and willingness of the peasants to devote such additional funds to productive uses. The poor performance of many government rural credit programmes in low-income countries is discussed and criteria for a successful programme are presented.     

THE NORTHFIELD REPORT: STRUCTURAL POLICY AND AGRICULTURAL EFFICIENCY

A brief review of the Northfield Report on the Acquisition and Occupancy of Agricultural Land emphasises its general acceptance of the existing situation. An opportunity has been missed to develop more far reaching conclusions in respect of a policy area where scope for national initiative within the EEC remains. Although the Committee took an efficient agriculture as a principal objective its definition is not discussed and the only factual evidence quoted is the analysis by Britton and Hill based on the Farm Management Survey. The appropriateness of this is questioned and some alternatives are suggested. The Britton/Hill analysis does not give particular support for the Committee's advocacy of a family-based farm structure. The Committee sees value in a let sector but expects its decline to continue. Nationalisation of agricultural land as the most direct route back to tenancy is rejected. Yet there is a need for the continuity of ownership to avoid leakages through capital taxes and family transfers. Nationalisation may be infeasible and in its absence, an alternative would be to positively discourage continuing owner occupation and over time to develop an effective land tax to recover support costs.     

AGE AND EFFICIENCY IN PUBLIC AGRICULTURAL POLICY: THE CASE OF ONTARIO1

Casual impressions suggest that some of the least efficient farm units are those operated by older farmers. This view has become embodied in the fabric of thinking about agriculture, and into a variety of public and private policies designed to remove older farmers from agriculture or to discourage them from expanding their farm operations. This article takes a closer look at the validity of the underlying assumption. Based on Ontario data for 1965, there seems real reason to question whether older farmers differ materially in levels of efficiency as compared with younger farmers, and there is therefore a new reason to re-examine attitudes and policies employing or based upon agricultural age restrictions.
L'AGE ET ľEFFICACITE FACTEURS DVNE POLIQUE PUBLIQUE EN AGRICULTURE: LE CAS DE ľONTARIO - Les impressions momentanées suggerent que certaines des unités agricoles les moins efficaces sont celles qui sont exploitées par les plus vieux agriculteurs. Ce point de vue est devenu enraciné dans ľensemble des idées concernant ľagriculture, et dans une gamme de politiques publiques et privées destinées à séparer les agriculteurs de ľagriculture ou à décourager leurs plans ďexpansion de leur exploitation agricole. Le présent article examine plus minutieusement la justesse de ľhypothèse sous-jacente. Fondé sur les données de ľOntario pour 1965, il semble y avoir une bonne raison de se demander si les plus vieux agriculteurs diffèrent sensiblement quant aux niveaux ďefficacité par rapport aux plus jeunes agriculteurs, et il existe done une nouvelle raison de réexaminer les attitudes et les politiques employées ou fondées sur des restrictions agricoles quant àľàge.     

RURAL EXTENSION AND THE AGRICULTURAL ECONOMIST*

The role of the agricultural economist in rural extension is discussed with particular reference to the changing structure of extension, exemplified by the development of private consulting services and the changing orientation of extension from purely technical considerations to problems of management. The status of the agriculturist generally, and of the extension worker in particular, is also examined and it is concluded that the status of extension as a profession must be raised if the results of technical and economic research in agriculture are to be utilised effectively.     

AN ADAPTIVE CONTROL APPROACH TO AGRICULTURAL POLICY*

It is postulated that some issues of economic policy in general, and of Australian agricultural policy in particular, may be analysed in the framework of an adaptive control model. Policy making is characterized as a rational, sequential decision-making process under conditions of imperfect knowledge in which forthcoming information may be used to learn about the uncertain terms as decision periods pass. Emphasis is given to the linear-quadratic control problem. The paper provides a review of the formulation of a policy problem in the framework of an adaptive control model and of derived policy strategies. An illustrative example is reported.     

日本农业支持政策的最新趋势及启示

二战以来,日本农业分别经历了农业社会、工业化时代和全球化时代3个阶段的发展和变迁,其经验和教训对于中国农业发展具有一定的启示。研究对日本农业支持政策的演变及动向、特征与发展趋势以及目标机制和运作方式等方面进行了分析和探讨,结果显示:日本农业的变革涉及法律约束力、经营规模、农业贸易政策和国内支持等各个方面;日本农业的发展依赖于财政补贴,虽然其补贴强度呈下降趋势,但日本农业国内支持政策对保障农民收入、提高农产品竞争力仍具有重要作用。依据日本经验和教训提炼出的启示主要有:农户组织化经营要有计划地组织引导;农业经营规模的扩大要有序推动;农业剩余劳动力的就地消化要下大力气推动;国内支持政策应尽可能由纳税人负担。最后需要说明的是,降低农业支持水平与规模扩大的关系要根据实际情况合理辩证地处理。     

AGRICULTURAL POLICY ISSUES AND ECONOMIC ANALYSES

In this paper a number of wide-ranging matters, which provide the background to much of the work of agricultural economists, are surveyed. Apart from their interest to the profession they are also issues attracting widespread public comment. The purpose of this paper, however, is not to add to that comment, but rather to stimulate more detailed analyses and balanced discussion of them. In this way the hope is that a fuller appreciation of the difficulties and the consequences that alternative approaches might involve will emerge.     

AUSTRALIAN FARM ORGANIZATIONS AND AGRICULTURAL POLICY

This paper describes the structure and operation of the Australian farm organisations and discusses their role in the formation of public policy. Comparisons are made between their activities and those of similar organisations in other countries. In the later sections of the paper there is some discussion of the process of government consultation with rural pressure groups in Australia and of the question of unification.