New Zealand's recent movement toward liberalization of all economic activity provides a unique case study opportunity to both observe and evaluate the effects of deregulation on the agricultural section of the New Zealand economy. This cooperative research award supports visits over a two year period by Dr. Warren Johnston of the University of California at Davis to work with Dr. Gerald Frengley and colleagues at Lincoln University in Canterbury, New Zealand. The research focuses on the impact of deregulation on adjustment of farm firms to changes in input, commodity and capital markets. Emphasis will be on changes in financial conditions and differential abilities of farm firms with respect to survival. Analysis includes financial and efficiency assessments, and is extended to include consequences for family farm households incorporating expectations and financial stress. The research results should be of interest to agricultural economists, policy makers and to farmers not only in New Zealand but also should have important implications for agriculture in North American and Eastern and Western Europe.
