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Farms to boost economy and inflation
20 Feb 2008
Improved conditions in the agricultural sector could boost farm output from $2 billion to $7 billion and add half a percent to total GDP in 2008-09. As the drought has abated in many parts of the country, farmers should be in a good position to take advantage of a boom in soft commodity prices. The latest National Farmers Federation-Westpac commodities index has climbed by 21.8 per cent over the past year in Australian dollar terms and 37.2 per cent in US dollar terms. Agricultural economist at NAB, Frank Drum, says that farm production could rise by 30 per cent this year while farm incomes are expected to increase 43 per cent. The news is not all good though as Australian consumers face paying higher prices for food which will push the inflation rate higher.
The Australian, 20/2/2008
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