Evaluation of socio-economic change in the South Island High Country
Operational research project code: SUS 714
Investigation of 10 years economic data on the high country by Glen Greer of Lincoln University in 2003 showed that while the economic viability of high country farmers had recently improved this was almost solely the result of improved product prices and that structurally the farms had very high costs of production and were vulnerable to any down turn in prices or reduction in farm size.
Since then fine wool prices have been at very low levels. At the same time the tenure review programme under the CPLA has now been entered by 75 percent of high country farmers. A typical outcome for tenure review is reduction in farm size through a return of the higher altitude land and any land with significant indigenous values to the Crown, freeholding of the remainder of the property and a capital transfer to reflect the negotiated value of the land given up and aquired.
The freehold title will give farmers greater freedom to:
- intensify production (albeit still in a harsh environment);
- subdivide;
- develop alternative land uses such as vineyards or tourism.
At this stage it is unclear whether the combined effect of changes in product prices and the implementation of tenure review are resulting in economic growth in the region or in declining communities.
It is proposed to evaluate the socio-economic changes in the high country over the last fifteen years using census data up to 2006 (available late 2006) and a survey of high country farmers.
LINZ, MAF and DOC are required to report to government annually on achievement of the government’s 10 high country objectives one of which refers to socio-economic outcomes. For the 2005/06 report the socio-economic reporting was general and limited as the only information available to assess progress was anecdotal or general comment from farm monitoring.
This project will provide a solid assessment of the change in social and economic condition of the high country during the implementation of a major government policy – Tenure Review. In doing this it will provide a more general observation on the capacity of the farming industry to innovate and respond positively to structural change.
Contact:
John Greer
Tel: 03 358 1864
Email: john.greer@maf.govt.nz
Contact for Enquiries
Manager, Innovation Policy
Ministry of Agriculture and Forestry
MAF Policy
PO Box 2526
Wellington
New Zealand
Tel:+64 4 894 0618
Fax:+64 4 894 0741
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