Item

Agricultural sector adjustment following removal of government subsidies in New Zealand

Gouin Daniel, M
Date
2006-08
Type
Other
Fields of Research
ANZSRC::0701 Agriculture, Land and Farm Management , ANZSRC::140201 Agricultural Economics
Abstract
This research analyses the effects on the farm sector of the New Zealand agricultural policy reform undertaken in 1985. The analysis is placed within a discussion of the larger issue of the specificity of the farm sector and whether this specificity requires special support from the state which often occur in most developed countries. This study describes the crisis of the New Zealand economy at the beginning of the deregulation process and explains why the farm sector was at the centre of the reform. The removal of state support to agriculture and the transition measures set in place are documented. The research analyses the effects of the dairy reform on farms both at the structural level and in terms of farm incomes. The sheep and dairy sectors are also analysed in detail. The analysis concludes that the farm sector has maintained its level of economic activity despite significant reductions in state support. Finally, this study discusses some lessons that can be learnt from the New Zealand experience, notably in relation with the specificity of the farm sector.