1 Background

1.1 Drought Impact Survey

In 1999, Agriculture New Zealand carried out a survey of Canterbury farmers to determine the impact of the 1997–1999 Canterbury drought. The results of this survey work are reported in the MAF Policy Technical Paper, "Regional Economic Impacts of the 1997–1999 Canterbury Drought" published in February 2000.

The survey sample was a selection of representative farm types based on their geographic location and known farming type. This was designed to give a representative sample of the Canterbury farming economy.

This study carries out further detailed analysis of the bulk information gathered in the 1999 survey.

1.2 Areas

For the purpose of the survey, the geographic area was split into the following four sub-regions:

North Canterbury—From the northern tip of the Canterbury region to the Waimakariri River.
Central Canterbury—That area between the Waimakariri and Rakaia Rivers including Banks Peninsula.
Mid Canterbury—That area between the Rakaia and Rangitata Rivers.
South Canterbury—That area between the Rangitata and Waitaki Rivers.

These geographic boundaries are also seen to be natural population catchments for business, sporting and cultural activities.

1.3 Data Validity

The 1999 survey of 269 farmers gave a 95 percent confidence level that the sample represented the population with an error level of no more than 10 percent in any of the three major sectors (arable, livestock and dairy). This means that comparative data within and between sectors gives a satisfactory level of reliability. However, when that information is broken down into analysis for comparison within and between sub-regions, the confidence levels and error levels decrease and increase respectively.

1.4 Purpose and Methodology

The purpose of this study is to further analyse information gathered in the original survey. In the survey in 1999, farmers were asked to detail their actual expenditure for 1996/97, as the base year for the analysis of the drought impacts in 1997/98 and 98/99. They were then asked to indicate where they usually purchased goods and services. They were given a choice of four categories:

out of Canterbury;
in Christchurch;
in Ashburton/Timaru;
in a small town.

Farmers were asked to estimate on a percentage basis where that spending would occur. Results of the percentage responses were reported in the Technical Report, February 2000. This study is based on relating the results of the two questions together to determine actual expenditure levels with a further breakdown of expenditure by sub-regions. In this way, MAF Policy is better able to understand the impacts of intra-regional expenditure by farmers.

Contact for Enquiries

Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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