New Zealand Timeline: 1980-1995
Land Ownership
Amalgamation of smaller farms continues. There is a trend toward larger family farms and corporate farms. The trend toward rural "lifestyle" subdivision also accelerates. Between 1985 and 1990 a combination of new policies, subsidy withdrawal and deep world recession hits New Zealand farmers hard. Approximately 2% of farmers move off the land.
The Resource Management Act comes into force in 1991. Its purpose is to promote sustainable management of land, water and air. It requires land users to take greater responsibility for the impacts of their activities. Farming activities such as dairy effluent disposal face tougher environmental standards.
Land Use
In the late 1980s pastoral farming suffers a severe recession and farmers look for ways to diversify their businesses. Much restructuring of farm businesses results. Off-farm income increases as a means of meeting family living expenses and farm operating costs. Farm diversification includes deer and goat farming, hosting foreign visitors, and other tourist activities. More forestry planting occurs. Horticulture is an option on better soils.
During the 1980s and 1990s forestry plantings increase rapidly due to investment by private companies, farmers and other investors, e.g. as a superannuation investment.
Conversion of sheep and beef farms to dairy farms increases.
Prices for fine and superfine merino wool remain buoyant in the 1980s. South Island runholders do well, and many sheep farmers on the Canterbury Plains and elsewhere establish fine-wool flocks.
Rabbit numbers increase and in 1989 the Rabbit and Land Management Programme is established. Its aim is to encourage more sustainable use of land in the South Island high country and provide for the control of rabbits.
In the early 1990s high dairy company payouts and good prospects encourage many sheep and beef farmers to convert to dairying. Some North Island dairy farmers move south to convert cheaper land in Southland and Canterbury. Dairying also expands in Northland and around Taumaranui.
Commerce
In the early 1980s inflation and unemployment are high, and the budget deficit is over $3 billion. With the Government still restructuring, New Zealand is particularly hard hit by the 1987 share market crash.
By the mid 1990s a world economic recovery is well established. Unemployment declines and farming businesses become more market-driven. Lamb producers weigh lambs and check backfat to ensure lean, heavyweight carcasses. Some cropping farmers and horticulturalists adopt chemical-free production methods to meet the demands of niche markets in western Europe and Asia. A major restructuring of the New Zealand meat industry occurs as stock numbers fall.
In 1993, the Ministry of Agriculture adopts the promotion of "sustainable agriculture" as a key role and puts in place research and facilitation programmes. A number of community initiatives to promote sustainable agriculture begin, e.g. the establishment of sustainable agriculture "focus" farms and community Landcare groups.
In 1993 New Zealand becomes a signatory to Agenda 21 which is designed to address environmental and biodiversity' issues on a world-wide scale.
In 1995 the G.A.T.T.Uruguay Round Agreement takes effect. The G.A.T.T. makes changes to market access and export subsidies. Reduced tariffs and export subsidies in other countries look likely to provide benefits for New Zealand trade.
Agricultural Events
| 1984 | The government announces the removal or reduction of subsidies, tax breaks and grants. Farmers lose subsidies for things like fertilisers and weed control. The Supplementary Minimum Price scheme, which was a form of price support to farmers, is abolished |
| 1985 | The Ministry of Agriculture and Fisheries separates policy advice and service delivery roles and adopts a user-pays philosophy Farmers must pay for services such as meat inspection, animal health and quarantine/advisory services, |
| I 986 | The Matrimonial Property Act is passed which gives partners equal share in assets. |
| 1987 | The lands and Survey Department is abolished as part of separating government functions. The Department's function of protecting marginal land is picked up by the new Department of Conservation, The new Land Corporation or Landcorp becomes responsible for productive Crown land. The Department of Survey and Land Information is established to carry out mapping and survey functions and provide land registry services. |
| 1988 | The government starts to sell large Irrigation Schemes to farmers. |
| 1988 | Cyclone Bola causes enormous damage to the East Coast/Poverty Bay region. The damage strengthens calls for better soil and water protection measures and better sustainable agriculture practices. |
| 1989 | The Government sells the State Owned Enterprise Rural Bank, |
| 1989 | Major droughts on the east coasts of both islands affect farming. |
| 1989 | Local government reforms see responsibilities for water and soil resources devolved to new regional councils. Regional councils also gain responsibility for pest management. |
| 1991 | The Ministry of Agriculture and Fisheries separates policy advice and delivery functions and MAF Policy is formed as part of the core Ministry. |
| 1991 | The Resource Management Act is passed. The Act replaces more than 20 major statutes governing natural and physical resources, The Act brings land, water and air management together under a common purpose of sustainable management of natural and physical resources. Planning and consent procedures are standardised and the Act's focus on controlling adverse environmental effects sees tougher requirements for some farming practices, e.g. dairy effluent disposal. Regional and district councils have major roles under the Act. |
| 1991 | Crown Research Institutes are formed ending many years of research through MAF and DSIR. |
| 1993 | The Biosecurity Act is passed. |
| 1995 | Agriculture New Zealand is sold signalling the end of all government funded extension activity in agriculture. |
| 1995 | The Ministry of Fisheries is separated from MAF and the Ministry of Agriculture is formed. |
| 1998 | The Ministry of Agriculture and the Ministry of Forestry merge to become the Ministry of Agriculture and Forestry |
Community
During the 1980s the involvement of farmers' wives in the decision-making side of farming operations becomes more recognised. Women are often keeping financial records and many are partners in the farm business.
In the late 1 980s many farming families come under severe financial and personal stress. In order to meet debt commitments and supplement family income, many rural women travel long distances for paid employment.
Government restructuring leads to a reduction in some rural services and changes in the way others are delivered, e.g. many post offices are closed and are replaced by postal agencies, often located in general stores.
Government Policy
In 1984 the Labour Government announces major economic reforms away from direct government involvement in managing natural and physical resources towards a non-interventionist, 'free market' approach. This policy includes major tax reform and the removal of economic protection and excessive regulation. In 1985 the Labour Government moves to adopt a 'user pays' concept. There are increasing moves to make government operations more accountable, efficient and contestable.
Government removes Producer Board access to low interest loans and removes their income tax free status. Producer Board reform continues into the 1990s with the government updating their structures and powers and making them more accountable to farmers.
In 1987 the Waitangi Tribunal is given power to decide which Crown land is subject to Māori claims. The State Owned Enterprises Act requires that the Crown take into account the principles of the Treaty of Waitangi.
In 1988 there are increasing moves to take 'government out of business'. The State Owned Enterprise Act is designed to remove government involvement in the commercial side of its responsibilities and operate them as normal commercial businesses.
In 1989 as part of sweeping public sector reforms, local government undergoes major reform. More than 400 local authorities and boards are replaced by about 80 district councils and 13 regional councils with tougher requirements for accountability and transparency in decision making. Government continues reforms to reduce government expenditure.
Contact for Enquiries
MAF Communications
Level 9
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0300
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