First published 2014
Copyright Neal Wallace
The moral rights of the author have been asserted.
ISBN 978-1-877578-72-4 (print)
ISBN 978-1-927322-97-0 (Kindle)
ISBN 978-1-927322-98-7 (ePub)
ISBN 978-1-927322-99-4 (ePDF)
A catalogue record for this book is available from the National Library of New Zealand. This book is copyright. Except for the purpose of fair review, no part may be stored or transmitted in any form or by any means, electronic or mechanical, including recording or storage in any information retrieval system, without permission in writing from the publishers. No reproduction may be made, whether by photocopying or by any other means, unless a licence has been obtained from the publisher.
Publisher: Rachel Scott
Editor: Vanessa Manhire
Design/layout: Fiona Moffat
Index: Diane Lowther
Ebook conversion 2016 by meBooks
Cover photography by Stephen Jaquiery
This book is dedicated to my father David Wallace, who instilled in me a love and respect for farming, my mother Mary Wallace, who instilled a love of news and the written word, to my wife Liz for her unyielding love and support, and to my wonderful children Joshua and Grace.
It is also dedicated to rural New Zealanders, who throughout my career have shown me friendship, respect and hospitality and, with this project, enthusiastically opened their lives and their doors to me in the realisation this is a story that needs to be told.
MAGPIES, UPDATED
(with apologies to Denis Glover)
Tom and Elizabeths grandsons
bought the farm at a mortgagee sale.
Most of the old pine windbreaks
blew down in a winter gale,
And when they felled the standing pines
the magpies fled.
Borrow more money. Diversify!
the mortgage people said.
Day in day out they laboured
while irrigators spread,
bought a thousand cows on credit,
built a computerised milking shed.
Rely on market forces!
farm advisers said.
The farms still there but now its owned
by a foreign bank instead.
And Ive seen two magpies nesting
in that pine tree overhead.
Waiata Dawn Davies
Foreword
New Zealands political scene between 1984 and 1990 was marked by the most ambitious and far-reaching economic reforms since European settlement. At the forefront of those reforms was our largest and in terms of export earning revenue, most important industry, agriculture. On being elected, the incoming Labour government abolished subsidies and grants virtually overnight. Farmers found themselves caught between rising costs and falling income, under severe stress and questioning if they could survive.
New Zealand farmers endured a lot of hardship during that era. But the period also marked the start of a new chapter for agriculture: farmers learned to thrive or fail on their own merits as they took control of their future and their businesses. As these pages reveal, farming in 2014 is very different from what it was in 1984. Freeing up sectors such as labour and transport certainly made getting produce to markets much more efficient, but changes to the methods of production have been nothing short of spectacular. The reforms were difficult for many farming families and caused significant changes in the way they operated, but they also allowed farmers to import new technology. Information from markets about what consumers require allowed farmers and scientists to develop animal genetics and selection systems, new pasture and crop cultivars and fertilisers to supply those markets. Modern tractors and implements use cutting-edge computerised technology that makes them faster, accurate and more efficient. In short, farms today are biological systems that are much more efficient and productive than those of 1984.
The Agricultural and Marketing Research and Development Trust (AGMARDT) is an independent not-for-profit organisation, established in 1987 by the New Zealand government with $32 million from the wind-up of the British, Christmas Island and New Zealand Phosphate Commissions. Since that time it has invested more than $60 million to encourage innovative ideas, foster research capability and develop emerging leaders in New Zealands agricultural, horticultural and forestry sectors. When AGMARDT was approached about funding this book we realised it was the first comprehensive social history on the impact of those landmark political reforms on agriculture. Such was the importance of this period, the book is a perfect fit for our brief of fostering a positive contribution to the primary sector.
Jeff Grant
FORMER CHAIRMAN
Agricultural and Marketing Research
and Development Trust
April 2014
Preface
The faceless men in boiler suits atop ladders, working on telephone lines in a remote corner of Central Otago, were unusual enough to attract attention. There hadnt been any problems with the telephone service in the days leading up to the mens sudden appearance on the dead-end back-country road in April 1986. Suspicions over their actions were heightened when the Strath Taieri Hotel in nearby Middlemarch warned a family served by the line that their telephone conversations could be heard over the hotels television set.
Among those served by the phone line was Gill Shaw, one of the organisers of a pending farmer protest against the impact of economic reforms, planned for when Prime Minister David Lange was to open the refurbished Invermay Agricultural Research Centre near Dunedin later that month. Gill also noticed a sudden increase in noise on her telephone line; but the idea of linking that to the anonymous men up ladders, telephone conversations being heard over television sets and her organising of a protest all seemed too surreal in April 1986. We couldnt say anything or people would think we were paranoid, recalls fellow protest organiser Frances Copland.
Soon after the rally, normal telephone services resumed; but the incident served to highlight the apprehension, tension, consternation and anxiety that permeated government and rural communities as the most wide-ranging economic reforms in New Zealands history, colloquially known as Rogernomics, started to bite following the Lange-led Labour Partys landslide victory in the 1984 election. Looking back, the protest organisers believe the men were secret service agents, seeking intelligence ahead of the farmer protest.
Certainly rural New Zealand was battered and bruised by the almost overnight ending of price support and production subsidies. Hurting and angry, farmers felt the government had betrayed them. The mood was volatile and irrational, and there was a real fear the protest could turn ugly. Many despised Prime Minister David Lange and his reforming Finance Minister Roger Douglas. This was certainly a view shared by two of my brothers, who, like thousands of others, were finding their livelihoods squeezed as incomes were slashed by a third, land values were halved and expenses rose by a third, driven by interest rates of 18% and above, three times what they had previously been paying. The term Rogernomics would become farmer shorthand for a period of New Zealand history synonymous with pain, anguish and misery but also a period that would irreversibly alter farming and the structure and attitudes of rural New Zealand.