Saturday, September 24, 2016

New Zealand Farmers Thrive Without Government Subsidies

New Zealand Farmers Thrive Without Government Subsidies
"In 2006, Chris Hausman, a fourth-generation Midwestern farmer long accustomed to depending on government support for survival, traveled across the world to witness a revolution in agriculture.
It had been more than 20 years since a left-leaning government in New Zealand chose to eliminate government subsidies for farmers, and Hausman was surprised at what had transpired since.
“I will tell you it was a shock to their agricultural system,” says Hausman, 58, who farms corn and soybeans on a 1,500-acre plot 150 miles south of Chicago.
“You had a system dictated by government programs that was thrown out the window overnight,” Hausman adds in a recent interview with The Daily Signal.
“But the farmers kind of reinvented themselves and now New Zealand is a powerhouse when it comes to agricultural production on the world stage.”
...“Every country is different—that’s an important caveat to put on the conversation,” said Mike Petersen, New Zealand’s special agricultural trade envoy, during an event last week at The Heritage Foundation.
“But what I can say is that we did start an incredible process of innovation, guts, and determination from those people who really wanted to make this work.”
...Facing a budget crisis in 1984, the incoming Labour government took the first step in implementing a long list of market reforms when it eliminated about 30 different agricultural production subsidies and export incentives..."

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