Productivity Growth and Technology Capital †MyAssignmenthelp.com

Question: Discuss about the Productivity Growth and Technology Capital. Answer: Introduction Over the past decades, Australias government has followed approaches in order to improve productivity in agricultural sector of the country, these includes deregulation of agriculture and reduce distortion of producers support. Government has implemented a range of support measures over the past years to support farmer returns. Recognizing the sect oral and countrywide costs assistance have been provided by the government. As per OECD reports Australias producers support stands in the second lowest position which is 3 percent of gross farm receipts. Agricultural sectors contribution to GDP is 12 percent of the total GDP level. Among the basket of goods country produces diverse primary goods and these are barley, wheat and vegetables and these goods are not only used for domestic utilization but for exports as well. Farmers here are considered to be versatile ones as they adopted the mixed cropping system of production (Hunt, 2012).. This study mainly aims to explore the reforms in the agricultural industry of Australia. It also shows the government interest and agricultural units interest. The effect of Internet of things advancement is also analyzed in this study. Finally recommendations are provided to the policyholders in order to improve the sector. Agricultural sector of Australia comprises of various industries. Country have comparative advantage in broadacre agricultural sector. These broad acre industries contribute about 16 percent of total value of production of Australia. Thus agricultutal sector have the capability to create a healthy well being for the farmers by improving the productivity level. Advancement of technology is regarded as one of the reason behind betterment of productivity growth , this also reduces cost of production and increases profit level. In contraction period also agricultural sector have recorded high growth and all these owe to the improvement of output growth of agricultural sector of the country. Government agencies and agricultural units thus have huge interest on this sector and this is due to its growing nature and providing benefit to the economy. Government is taking other new policies in order to grab and retain the farmers in this agricultural sector over the coming years (Kandasamy,201 4). Reforms in agriculture industry of Australia Past decades have witnessed reforms in both the economic condition and policy of Australian government for encouraging the operation of farmers. Exposure of the agricultural sector to international competition has been pursued by the government with a view to improve the standard of livings of the farmers and this is done by promoting change in organization and increasing productivity. Reforms in agricultural sector was undertaken at the starting point of economic reforms of other countries. The noticeable reforms that were undertaken in this industry were reduction of tariffs and different protection measures that were adopted by the government. However these two reforms aimed to increase market force flexibility and reduces constraints in the path of efficient product marketing. The government also managed risk of biosecurity by involving the import goods during the entry to the nation. Several types of other policies were implemented by the government to encourage the farmers to f ight against the draught circumstances. The reform in agricultural sector mainly took place by considering financial counseling that were given to the farmers during their financial breakdown situations. Innovations of new technology as well as advancement of Internet of things have been applied I the production process and marketing process. With help of IOT farming became smart and this mainly shows about the adoption of digital technologies in farms to augment their decisions. The farmers working in broad acre have followed worldwide positioning in their tractors in order to reduce soil compaction. Furthermore the carbon farming application is also initiated by the government for improving productivity and achieving economic advantage by reducing emission of greenhouse gas . All these changes in agricultural sectors have increased the nations productivity and improved performance of the country economically (Hofstadter,2011). The above figure shows the contribution of agricultural sector to the economy from 2015 to 2016. It has been observed the sector contributed 2.2 percent of GDP , 0.3 percent of employment and 3.6 percent of output level. The above figure shows that during 2015 to 2016 mixed result has been achieved in agricultural sector. Here output has fallen but employment increased. Although during this period a mixed result has been observed but the contribution of agricultural sector to GDP has been rising over the past decades (Fuglie, 2012). The above figure shows that the contribution from agriculture to GDP has increased overtime, and this is reason why government is encouraging this sector as this sector has the potentiality to improve countrys condition. Australian government has imposed several policy reforms in order to improve the productivity growth, however to escape fall in growth as observed in 2015 to 2016 , government should follow the suggested recommendations for improving production (Fuglie, Wang Ball, 2012)( Anderson, Rausser, Swinnen, 2013). The policyholders are recommended to hold up rural counseling programs and provide funds to few groups counting Rural Alive on permanent basis. The government must take into consideration farmers decision making process and adoption of different programs that are fitting their preference and requirements (Cary Roberts, 2011).. The policy makers must address the agricultural issues and provide funding into the areas where problems exist in a large scale. Investment of Australian government is encouraged in agricultural sector as this sector have the capability of producing economic growth (McLachlan, 2013). Conclusion The study thus shows that agricultural sector have the capability to improve growth of the economy and this capability achieved by the agricultural sector due to its exposure to several reforms that took place in this sector with a view to improve the sector. Although there is long way to go for this sector hence more reforms are to adopted and implemented in this sector. References Anderson, K., Rausser, G., Swinnen, J. (2013). Political economy of public policies: insights from distortions to agricultural and food markets.Journal of Economic Literature,51(2), 423-477. Cary, J., Roberts, A. (2011). The limitations of environmental management systems in Australian agriculture.Journal of Environmental Management,92(3), 878-885. Fuglie, K. O. (2012). 16 Productivity Growth and Technology Capital in the Global Agricultural Economy.Productivity growth in agriculture: An international perspective, 335. Fuglie, K. O., Wang, S. L., Ball, V. E. (Eds.). (2012).Productivity growth in agriculture: an international perspective. CABI. Hofstadter, R. (2011).The age of reform. Vintage. Hunt, W., Birch, C., Coutts, J., Vanclay, F. (2012). The many turnings of agricultural extension in Australia.The Journal of Agricultural Education and Extension,18(1), 9-26. Kandasamy, J. K., Sounthararajah, D. P., Sivabalan, P., Chanan, A., Vigneswaran, S., Sivapalan, M. (2014). Socio-hydrologic drivers of the pendulum swing between agricultural development and environmental health: a case study from Murrumbidgee River basin, Australia.Hydrology and Earth System Sciences. McLachlan, R. (2013). Deep and Persistent Disadvantage in Australia-Productivity Commission Staff Working Paper.