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Subsidisation Keeps Growing

In: Agricultural Economics and Food Policy in New Zealand

Author

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  • David Hall

Abstract

World recession hit the export industries. The Government granted $71 million to establish stabilisation funds for farming and to hold farm costs. Special measures were introduced for agricultural servicing industries and tax advantages encouraged development of the cooperative movement in farming. Responses to the Government’s assistance demonstrate the perception of farming subsidies by others. The Federation proposed measures to control the Government’s economic policy and the Federation was invited, unusually, to attend the Cabinet Economic Committee. The Government adopted many points made by the Federation. A new Prime Minister, Robert Muldoon, emphasised the need to increase farming exports; ‘Supplementary Minimum Prices’ (SMPs) were introduced to meet farmers’ living expenses, operating expenditure and new development. Farming was now a highly-subsidised industry.

Suggested Citation

  • David Hall, 2021. "Subsidisation Keeps Growing," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Economics and Food Policy in New Zealand, chapter 0, pages 187-200, Palgrave Macmillan.
  • Handle: RePEc:pal:psachp:978-3-030-86300-5_13
    DOI: 10.1007/978-3-030-86300-5_13
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    Cited by:

    1. Nava-Guerrero, Graciela-del-Carmen & Hansen, Helle Hvid & Korevaar, Gijsbert & Lukszo, Zofia, 2022. "An agent-based exploration of the effect of multi-criteria decisions on complex socio-technical heat transitions," Applied Energy, Elsevier, vol. 306(PB).

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