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Encouraging Government Support for Farming

In: Agricultural Economics and Food Policy in New Zealand

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  • David Hall

Abstract

The 1970s were marked by high inflation and global economic crises. Federated Farmers proposed a cost adjustment scheme to compensate farmers for inflation, but it was ill prepared. When the 1973 oil price crisis impacted on New Zealand’s major customers, the Federation secured major subsidisation from Governments to increase farm exports. The Federation also secured support for a levy to support its activities. When export lamb prices increased, the Government asked meat and wool farmers to voluntarily deposit, temporarily, $85 million of their increased income. The Government threatened to introduce a system of reference prices for export meat with payments above the reference price diverted from farmers to a ‘stabilisation’ fund. But violent opposition by farmers was threatened and the price reference scheme was abandoned.

Suggested Citation

  • David Hall, 2021. "Encouraging Government Support for Farming," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Economics and Food Policy in New Zealand, chapter 0, pages 169-185, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-030-86300-5_12
    DOI: 10.1007/978-3-030-86300-5_12
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    Cited by:

    1. Gianna Gayle Amul & Michael Ang & Diya Kraybill & Suan Ee Ong & Joanne Yoong, 2022. "Responses to COVID‐19 in Southeast Asia: Diverse Paths and Ongoing Challenges," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(1), pages 90-110, January.

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