Farming protection rises, but lags world

Australian farming is now more protected and subsidised than manufacturing, after drought relief and other handouts have lifted the effective rate of protection to almost 6%, the Productivity Commission reports.

The commission estimates that Australians pay $5.90 in taxes and higher prices to support every $100 worth of farm produce that is grown here rather than imported. The subsidy is highest with dairy products, where the effective protection rate is 15.1%.

While the assistance rate for primary production has risen from 3.6% to 5.9% since the 2002 drought, assistance for manufacturing has declined from 5.1% to 4.5%, the commission estimates, with significant falls in support for the vehicle manufacturing and TCF sectors.