The impact of falling prices on Taranaki hill-country development

Abstract

The Agricultural Economics Research Unit has, over the last three years, published a number of studies relating to hill country development in New Zealand. A further stage in this continuing investigation of development economics, was initiated with a research project in the Taranaki area on which this publication reports. The project commenced in December 1966 when it was proposed that fifteen farm development programmes should be investigated in detail, and that fairly reliable estimates of the level of profitability in such steep hill country would be determined. However, downward changes in coarse wool prices rendered most of the early field work on the project obsolete, as the farmers concerned rapidly adjusted their development plans to the new situation. The aims of the project were therefore re-cast in terms of the changing situation and it was decided to concentrate attention on the adjustment process itself. Time permitted four of the original farms to be revisited in October 1967, and this report is mainly based on this latter work. The early field work is referred to in appropriate places, and is summarised at the end of the report.