In New Zealand, Farmers Don't Want Subsidies | Mark Ross and Chris Edwards | Cato Institute: Commentary

In New Zealand, Farmers Don't Want Subsidies | Mark Ross and Chris Edwards | Cato Institute: Commentary: "New Zealand's government decided to eliminate nearly all farm subsidies. That was a dramatic reform because New Zealand farmers had enjoyed high levels of aid and the country's economy is more dependent on agriculture than is the U.S. economy.

[R]ather than passing another big government farm bill that taxpayers can't afford, the U.S. Congress should step back and explore the proven alternative of free market farming.
Despite initial protests, farm subsidies were repealed in 1984. Almost 30 different production subsidies and export incentives were ended. Did that cause a mass exodus from agriculture and an end to family farms? Not at all. It did create a tough transition period for some farmers, but large numbers of them did not walk off their land as had been predicted. Just one percent of the country's farmers could not adjust and were forced out."

"The vast majority of New Zealand farmers proved to be skilled entrepreneurs — they restructured their operations, explored new markets, and returned to profitability. Today, New Zealand's farming sector is more dynamic than ever, and the nation's farmers are proud to be prospering without government hand-outs."

"Measured agricultural productivity had been stagnant in the years prior to the reforms, but since the reforms productivity has grown substantially faster in agriculture than in the New Zealand economy as a whole."

"More efficient agricultural production in New Zealand has also spurred better environmental management. Cutting farm subsidies, for example, has reduced the previous overuse of fertilizer. And cutting subsidies has broadened farm operations to encompass activities such as rural tourism that bring management of the rural environment to the fore."