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Adjustment to Agricultural Policy Reform - Issues and Lessons from the New Zealand Experience

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  • Rae, Allan N.
  • Nixon, Chris
  • Lattimore, Ralph G.

Abstract

Pressures for the reform of agricultural policies in wealthy countries will increase. Current policies are expensive and inefficient and impose substantial costs on countries that cannot afford to subsidize their agricultural sectors. A major political impediment to policy reform is the real or assumed costs of adjustment that would be imposed on farmers. In this paper, we illustrate some of the key issues by reference to the New Zealand experience. Issues covered include adjustments in output and input markets, productivity and innovation. Adjustments by farmers and others, along with reforms outside of agriculture, ensured that farm incomes and the agricultural sector recovered from the initial shock of deregulation.

Suggested Citation

  • Rae, Allan N. & Nixon, Chris & Lattimore, Ralph G., 2003. "Adjustment to Agricultural Policy Reform - Issues and Lessons from the New Zealand Experience," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15741, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    • Handle: RePEc:ags:iapr03:15741
    DOI: 10.22004/ag.econ.15741
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    References listed on IDEAS

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    1. Ron A. Sandrey & Grant M. Scobie, 1994. "Changing International Competitiveness and Trade: Recent Experience in New Zealand Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1041-1046.
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    3. F.G. Scrimgeour & E.C. Pasour, 1996. "A Public Choice Perspective on Agricultural Policy Reform: Implications of the New Zealand Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 257-267.
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    5. Johnson, R.W.M., 1993. "New Zealand Agricultural Policy Review: 1991-93," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(03), pages 1-26, December.
    6. Warren E. Johnston & Gerald A.G. Frengley, 1994. "Economic Adjustments and Changes in Financial Viability of the Farming Sector: The New Zealand Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1034-1040.
    7. Garry R. Griffith & Walter B. Moore, 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967‐1988," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 21-48, April.
    8. Alston, Julian M. & Johnson, Paul R., 1988. "Factor Price Equalisation Among International Farmland Markets," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(2-3), pages 1-11, August.
    9. Johnson, R.W.M. & Schroder, William R. & Taylor, N.W., 1989. "Deregulation and the New Zealand Agricultural Sector: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 57(01-02-03), pages 1-28, December.
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    Cited by:

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    Agricultural and Food Policy;

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