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REGIONAL AUSTRALIA WILL BOUNCE BACK AFTER DROUGHT: REPORT.

AsiaPulse News

| March 03, 2003 | COPYRIGHT 2003 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

CANBERRA, March 3 Asia Pulse - A rosy picture is being painted of regional Australia post-drought, with record crop plantings, high priced livestock and frenzied activity in country towns being predicted in a new report.

Compiled by rural modelling and forecasting company Agrecon, the report said every past major drought had been broken by good rains the following year which led to a rural resurgence.

And it appears the report's predictions are already coming through, with a huge jump in livestock prices in the past seven days.

Report authors Brian Button and Don Aitken said a survey of serious droughts over the past 100 years had shown a clear trend of strong post-drought recovery.

They said on average, wheat plantings climbed 81 per cent the year after a drought, while barley production leapt 54 per cent.

This had major flow-on effects to rural economies, boosting economic activity and also leading to a rise in farm-based borrowing.

The authors said 2003 was likely to follow the trend of past droughts, bringing financial relief to the nation's hard-pressed farmers.

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