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New Zealand Agriculture Policy Review

Author

Listed:
  • Gilmour, Brad
  • Gurung, Rajendra Kumar

Abstract

In 1984, New Zealand introduced important policy reforms in order to address major macroeconomic and fiscal imbalances. New Zealand's support to agricultural producers rapidly decreased from 30 percent of the value of production to about 2 percent, and has remained the lowest among OECD economies since that time. After a difficult transition, the removal of subsidies resulted in a more diversified and competitive rural economy in New Zealand; total factor productivity growth has been roughly 2.5 percent annually since 1984, compared to roughly 1.5 percent in the prereform period. This Policy Review focuses on agricultural policy today and how New Zealand is supporting the agricultural sector now without resorting to subsidies. It describes the policy New Zealand uses to support farmers dealing with adverse events such as climatic disasters. It also describes New Zealand's strategy for promoting competiveness in world markets.

Suggested Citation

  • Gilmour, Brad & Gurung, Rajendra Kumar, 2007. "New Zealand Agriculture Policy Review," Economic and Market Information 46688, Agriculture and Agri-Food Canada.
    • Handle: RePEc:ags:aaacem:46688
    DOI: 10.22004/ag.econ.46688
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