31 °C Singapore, SG
December 1, 2024
Latest News
Corio Generation and bp Alternative Energy Investment Ltd invest in South Korea Australia missing climate targets Advocating for US based offshore wind Broken Record, Temperatures hit new highs, yet world fails to cut emissions (again) Toshiba and GE to shore up Japanese offshore wind domestic supply chain How I got here… National University of Singapore green finance academic Sumit Agarwal Multi-billion-dollar renewables project earmarked for Yindjibarndi native title land Smart Energy Finances: Enel divests 50% of Australian renewable operations to Japanese oil and gas giant Critical minerals investments surged by 30% finds IEA Kung Fu nuns fight climate change One of Southeast Asia’s largest energy storage systems comes online Why turning waste into gas will add value to this Indigenous economy Renewable energy records tumble around Australia as rooftop solar power soars Topsoe supports SGP BioEnergy in renewable fuels production in Panama ‘Poor tropical regions’ suffer greatest economic damage from worsening heatwaves UNEP: Meeting global climate goals now requires ‘rapid transformation of societies’ Analysis: Africa’s unreported extreme weather in 2022 and climate change Partly wind-powered coal ship sails into Newcastle New fossil fuels ‘incompatible’ with 1.5C goal, comprehensive analysis finds Australian offshore wind ‘supercharged’ in Victoria as billions pledged to fast-track projects Goldwind turbine ‘breaks world record for largest rotor diameter’, Chinese media reports BW Ideol to work with developer Taiya on Taiwan floating wind pilot US to boost floating wind power Wind Power in South Korea – an overview GS E&C to develop bioethanol using cassava waste Korean business group has asked the US to make exceptions for Korean EV’s in Inflation Reduction Act Equinor’s Australian offshore wind debut Global energy transition stalls – 2022 Global Status Report in pictures India’s ReNew Power secures $1bn loan for gigascale 24/7 wind-solar-battery project POSCO International to merge with POSCO Energy

$1b ‘wiped off farm incomes from 20 years of climate change’

More than $1 billion has been wiped from the value of Australia’s annual crop production due to the change in climate over the past two decades, according to a new report.

ABARES Climate report key points

Key points:

  • A new government report finds cropping farmers are most exposed to changing climate, losing $70k from average annual profit
  • ABARES says farmer profits have fallen 22 per cent over past two decades
  • The report suggests drought relief for farmers risks slowing adjustment and innovation

For the first time, government commodity analyst ABARES has quantified the financial loss Australian farmers have experienced due to the increasingly warmer and drier climate.

It found changes in climate since 2000, had reduced the average broadacre farmer’s profits by 22 per cent, or about $18,600 per year.

For cropping farmers — considered the most heavily exposed to climate variability — the annual farm profits fell by 35 per cent, or $70,900.

“We knew it was big, but we didn’t have a precise number before and this model and method allows us to get at that,” report co-author Steve Hatfield-Dodds said.

Dr Hatfield-Dodds said the modelling relied on 30 years of data, which distinguished the impact of price, climate variability and other factors on Australian farms.

That was modelled with reporting by the Bureau of Meteorology.

“Essentially, there’s been a shift in climate in the last past 20 years, where the climate has become noticeably hotter and drier,” he said.

Drought support reduces adaptation

The ABARES report has thrown up questions about government support for farmers affected by drought, and how best to drive innovation in the sector, as the climate continues to change.

“Adjustment, change and innovation are fundamental to improving agricultural productivity, maintaining Australia’s competitiveness in world markets, and providing attractive and financially sustainable opportunities for farm households,” it reported.

Dr Hatfield-Dodds said the sector must increase its resilience to a warmer and drier climate.

“There’s a lot of talk about economists versus normal people,” Dr Hatfield-Dodds said.

“The economists worry about drought assistance because there is this unavoidable dilemma between helping farmers who are in need now, and slowing down innovations and adjustment in the sector.

Rural Newsletter

Rural news in your inbox?

Subscribe for the national headlines of the day.

“And we know from this study — and lots of other ones — that innovation is crucial to improving farm income for households over the long run.

“But there aren’t many options for governments to help farmers that don’t risk slowing down innovation.”

He suggested incentives, such as improved weather-insurance policies for farmers, could help build resilience in the sector.

Dr Hatfield-Dodds also highlighted the Federal Government’s Future Drought Fund, providing $100 million a year from next year, as a policy which would support resilience in the sector as the climate evolved.

It was not yet clear how that funding would be allocated, but the legislation passed earlier this year outlined spending on future drought preparedness.

Losses could have been greater

The report found the losses would have been even greater had Australian farmers not adapted to drought as well as they had.

In short, if the average cropping farm had made no adaptions to the hotter and drier climate, its income would have been down by a further $26,700 a year.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *