New Zealand’s farming history
In the past two years the changes in regulation has created uncertainty for farmers – this uncertainty isn’t new in farming history in New Zealand. Amelia reflects on New Zealand’s agricultural history and the challenges that farmers have overcome.
Back in the 1800’s, European Settlers began arriving and started farming soon after, developing bush land into farms, causing dramatic ecological modification to our landscape. Farmers adjusted their practices to cope with the New Zealand environment. The South Island’s tussock lands carried large numbers of sheep whilst in the North Island sheep and cows were preferred. The mix of new technology (refrigeration) and the lift in standard of British living increased the demand on New Zealand produce and increased profitability in the late 1890’s.
The North Island climate was better suited to dairy cows; in 1814 the first dairy cows (two heifers) arrived in New Zealand. As numbers grew, groups of farmers built butter and cheese factories, expanding exports beyond wool and meat.
In 1923 the Department of Agriculture established the Fields Division, where officers were engaged full time in advisory work - production was the main focus not environmental regulation. This was a major step forward as it enabled those engaged in advisory work to gain the farmers' confidence at a time when the benefits of a more scientific approach to pasture management were becoming apparent. Furthermore, cheap phosphate allowed for further development of New Zealand’s young soils.
During the First World War, Britain believed that food from New Zealand and Australia was critical and scientists came to help increase production. Ryegrass became prevalent in the success of pastoral farming. However, the increased production did not out weigh the struggles faced by farmers worldwide during the Great Depression – prices plummeted in the 1920’s. The combination of low prices and high land debt meant many returned soldiers who took over these farms failed, leaving land to go back to scrub.
The late 1950’s bought technology developments with the use of aerial topdressing - increasing NZ’s hill country production allowing for easier development. Sheep and beef stock numbers rose rapidly from 1950 to 1980. The collapse of commodity prices from 1967 caused farmers to revise their systems and become more efficient. Diversification occurred with farm forestry, domestication of deer, and kiwifruit orchards becoming part of New Zealand’s agriculture picture.
In the early 1970’s the Government bought in support mechanisms such as subsidies, debt write-offs and tax incentives. These were aimed at supporting farmers through the roller coaster that is commodity pricing and encourage them to increase production. As a result, farmers became less responsive to market signals reducing productivity.
1984 saw economic reforms by the Labour Government, removing all of farm subsidies and income support. Sheep numbers decreased substantially, along with farmer and rural community confidence. The positive was that other markets in Asia and Europe were slowly opening up for niche products.
1991 was truly the first taste of regulation for New Zealand’s resources, with the Resource Management Act (RMA) 1991 passed by Parliament, promoting the sustainable management of natural resources.
From 1995 to the early 2000’s dairy farming boomed, and sheep numbers had a revival. Irrigation allowed for increased pasture production to take place in Canterbury and North Otago, furthering dairy land development. Markets focussed on feeding a rapidly growing population, lead educators to focus on production and profitability through the use of tools such as Nitrogen fertilisers, chemicals and new crops.
Over the past 10 years, farmers have had to focus on efficiency, due to multiple drivers including the RMA, market signals and consumer demands. The overriding strategy is quality products that can feed many sustainably. Efficiency in resource use, animal welfare and the impact on the surrounding environment has been at the forefront, leading agricultures’ social license to be threatened.
Over the past two years the government has amended the RMA and the new Essential Freshwater policy will lead to further adaptation. There is potential for some farm systems to be completely spun on their heads to ensure that catchment mitigations are met.
When reflecting on New Zealand’s farming history there is no doubt in my mind that farmers can take on these new challenges. However, this not for farmers to tackle alone, advisors, accountants, bankers, regulators and the general public need to have ownership in this environmental shift.