BOUNTIES FOR FERTILIZERS
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Bounty payments on fertilizers have rapidly emerged as a major form of assistance to Australian agriculture. They have been justified as a way of reducing costs and increasing productivity, though economic theory and experience from agricultural production studies suggest that they achieve these objectives inefficiently. The bounties are directed towards making acres more productive, which should in turn make farmers more productive. It is suggested that greater economic welfare would result from tackling the problem the other way round.