Iraq wheat contract suspension a two-edged sword for farmers

AUSTRALIA – …Prices at the moment are historically at a very low level. In fact, I believe at the start of the harvest we were looking at the lowest price in 15 years for wheat.

And that is hurting us quite substantially at the moment because of the increased cost of fuel and fertiliser in particular, but all the other input costs also are normally going up at about CPI or better, so going back to those levels of return is very serious for wheat growers.

There are signs of a decline in the number of family farms, a decline that’s actually accelerating. There are continuing problems of drought and there are continuing problems of markets.

In the ’70s and early ’80s, the farmers faced a great deal of prosperity because of the opening of new markets in the Middle East and in Asia, and the value of farm exports rose by 50 per cent.

But it’s hard to see, in 2006, where new markets will come from. It’s hard to see how Australian agriculture can become more efficient than it really is and it’s hard to see that government will get back into the business of subsidy. So they’re facing very hard times.

ABC (Australia)