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Abstract

Relative price movements for major agricultural commodity groups are reviewed. Estimates of the movement in real farm income per farmer are presented for Australian agriculture over the period 1949 to 1969, and for the sheep industry for the period 1953 to 1967. Increased productivity has offset the adverse price movements experienced by farmers over the period examined. The effect of the cost-price squeeze on farm investment and adjustment is discussed. The continuing cost-price squeeze has not prevented sustained investment by farmers.

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