A postal sample survey of sheep farmer attitudes to incentives and obstacles to increasing farm output, and other agricultural policy issues

Abstract

Since 1968 agricultural production in New Zealand has been virtually stagnant. In 1975 studies were undertaken at the Agricultural Economics Research Unit to investigate some of the main causes of the fall off in the rate of growth in output from the sheep industry. This enquiry included a postal survey of sheep farmer opinions to ascertain their views on obstacles and effective incentives to increased production, income stabilisation measures, the effectiveness of the main organisations, land acquisition and some other issues. There was a 70 per cent response from the random sample of sheep farmers throughout New Zealand supplied by the Ministry of Agriculture. The survey disclosed that while almost all the farmer respondents affirmed they had the potential to expand production, only half of them stated they were planning to do so in the 1975-76 season. From a list of suggested obstacles to output, the farmers rated the lack of effective restraint on incomes in the non farm sector, inadequate farm profits and the cost of farm requisites as the most important. From a nominated list of suggested incentives they indicated that an increased fertiliser subsidy and a reduction in income tax rates would achieve the greatest effect. The respondents supplied a lengthy list of additional obstacles and incentives to increased farm production. The answers to the questions revealed a shift in sheep farmer opinion towards greater support for wool marketing reform. Farmers also indicated their endorsement of the meat and wool price stabilisation measures implemented in 1975. When asked to assess the effectiveness of their main organisations they rated the Meat Board as the most effective. Answers were given to a number 6f other questions from the sample of sheep farmers whose average age was 45, and whose replies were, on some issues, age related.