ultural systems. Zealand agriculture is profitable without subsidies, and that means more people staying in the business. Alone among developed countries of the world, New Zealand has virtually the same percentage of its population employed in agriculture today as it did 30 years ago, and the same number of people living in rural areas as it did in 1920. Although the transition to an unsubsidized farm economy wasn t easy, memories of the adjustment period are fading fast and today there are few critics to be found of the country s bold move.
Removing subsidies, on the other hand, forces farmers and farm-related industries to become more efficient, to diversify, to follow and anticipate the market. It gives farmers more independence, and gains them more respect. It leaves more government money to pay for other types of social services, like education and health care. Zealand has a strong interest in trumpeting subsidy-free agriculture, of course, since NZ farm exporters are at a disadvantage on the global market with respect to their subsidized counterparts in Europe and the US. Almost since the reform process began, New Zealanders have been doing just that. p> New Zealand was a founding member of the Cairns Group <# "justify"> 3. How the farmer was impacted by lack of government assistance
Today New Zealand has around 80,000 farm holdings on 15.5 million hectares (38.3 million acres). The number of farms has held steady since subsidies were removed; land area has fallen slightly as marginal land has been turned over to forestry or allowed to revert to native bush [4]. p align="justify"> Since subsidy removal the agricultural sector has grown faster than the rest of the economy. Agriculture s contribution to the New Zealand gross domestic product (GDP) has risen from 14.2% in 1986-87 to 16.6% in 1999-2000. Agriculture accounts for 11.4% of the total workforce [3].
Rural population has kept pace with national population since 1986. Employment on farms has fallen somewhat, but these losses have been balanced by increased rural employment in tourism-related businesses. p align="justify"> The number of forced farm sales directly resulting from the removal of subsidies is estimated at 800, or 1% of the total number of farms. p align="justify"> Agricultural productivity has gone up 5.9% a year on average since 1986. Prior to 1986 agricultural productivity gains were about 1% a year [5]. p align="justify"> The total number of stock units on New Zealand farms has fallen by 9% since 1987. Sheep numbers are down by 29%, but cattle numbers are up by 35%. Sheep farming was the most heavily subsidized sector within agriculture. p align="justify"> In 2001 governmental assistance to agriculture was equa...
