How my farm coped with loss of subsidies.

MY WIFE and I have a family farm in the South Island of New Zealand, 100km from Mount Cook. We own 865 hectares. In the summer we have nearly 10,000 sheep, 100 beef cattle and 100 hectares of barley and lucerne crops.

We farm with two and half permanent employees--I'm the half--but use the services of many agricultural specialists--people who dip, spray, shear and pregnancy-test sheep, and other contractors who spray seed and fertilize our paddocks, by truck and plane.

When I was 30 I had an increasing conviction to return to New Zealand to take responsibility for the farm that my father had left me. I had spent over 12 years abroad in voluntary work.

What were the challenges? My back was not 100 per cent; I had never received agricultural university training; farm product prices were depressed and, shortly after my return, we were snow-bound for three weeks, with one metre of snow and with all our animals living outside to feed. Four days after the snow, all the stock were reached by bulldozer or helicopter with feed. Regular exercise greatly improved my back.

Amazingly product prices went through the roof two years after we returned. This covered many of my mistakes and helped me to set up on a good financial footing.

My father, still living on the farm, was completely blind. After four previous operations for glaucoma, he reluctantly accepted one more for a cataract removal. To his astonishment, he regained 90 per cent of his sight--in his words a miracle. He could see his wife and children for the first time in 10 years and threw away his white stick.

I was on the National Council of the New Zealand Farmers Federation when the Labour government decided to drastically change the economy. A 10 per cent goods and service tax was introduced. The New Zealand dollar was floated, the reduction of tariffs was started, and, overnight, all farm subsidies terminated. We were receiving 20 per cent of our income from the New Zealand taxpayer. Our farmers marched in the streets, but as one of their leaders I knew in my heart that New Zealand had no alternative. We exported 90 per cent of our agricultural production and our trading partners had threatened us: remove subsidies or face tariffs.

The next years were difficult. Some farmers, big and small, lost their farms. Some committed suicide. I worked so hard my hips wore out. We survived by selling a city property we had been led to purchase when we were receiving subsidies. But the fact was we were overproducing a product that was hard to sell.

During the past 20 years there has been an enormous turn around. New Zealand's sheep population has fallen from 70 to 40 million. Farmers have become very innovative and, where possible, successfully diversified into alternatives, such as producing trees, venison or dairying. Sheep farmers and our meat processing industry have substantially improved efficiency, and quality. We now cannot meet demand, and product prices are the best they have been.

During this time I could purchase farm advice from specialists, but by far the most secure, satisfying and stimulating daily advice came from my early morning times of silent reflection. If God could steer us through such changes, I am convinced that he can supply the answer to the problems and challenges of world agriculture, if we choose to listen to him.

For instance, for 20 years we baled our wool in jute packs instead of synthetic packs, to give trade to the jute growers of Bangladesh. To keep things transparent all our farm sales go through the company books.

Historically there has been division between farmers and trade union leaders in our meat processing industry. My wife, Helen, and I have met these leaders, had them to stay in our home and arranged meetings with local farmers.

Alcoholism is a big problem among our sheep shearers. Although contravening custom, we ran an alcohol-free wool shed. But with Helen giving excellent meals, the shearers were always keen to return.

In a global world, where the need for change and innovation is always constant, for New Zealand agriculture there has definitely been good life after the removal of subsidies.

Garfield Hayes, New Zealand