Farmers are effectively saying they expect good export prices to continue into the future. But for land prices to continue to grow at these rates requires improbably high increases in export prices and productivity. There appears to be a gap opening up between land values and expectations of returns.
All else being equal, unfavourable demographics increase the relative importance of capital deepening for underpinning potential growth.8 Education and infrastructure policies promoting entrepreneurship could smooth the transition and mitigate adverse effects on low-skilled workers. These include retraining and lifelong learning opportunities. We have witnessed a sharp increase in the participation rate of older workers during the past decade.