Agricultural trade reform: Benefits for Australian broadacre agriculture

Australian agriculture is highly dependent on world markets. A large share of Australian agricultural production is exported, and Australian farm prices closely reflect world prices. Fundamental reform of global polices affecting agriculture would reduce distortions to world markets and increase both world prices and trade opportunities for Australian farmers. • While progress in the agriculture negotiations of the World Trade Organisation's Doha Round has been slow to date, the negotiations provide an opportunity to achieve fundamental reform of distorting policies across agriculture. With Australian agriculture being highly dependent on world markets, such reform would deliver financial benefits to Australian farmers. Reforms, such as those proposed by the Cairns Group would lead to a reduction in distortions to agricultural markets and increases in Australian farm gate prices, farm cash incomes and land prices.