New Zealand agriculture is the least subsidized of the OECD member countries. This was revealed by a report by the Organization for Economic Cooperation and Development, according to which kiwi farmers receive state funds equal to 1% of the total turnover of the business, against an OECD average of 18%.
The study also reveals that government support distorts production and trade and does little to improve productivity and competitiveness. Ken Ash, director of trade and agriculture for the international organization, says the time for reform has come. "With increasingly reduced government budgets and farmers who take advantage of the high prices of agricultural products - warns Ash -, governments should use the funds for policies that guarantee real benefits in the medium to long term". New Zealand's lowest level of support is followed by that received by Australian (3%) and Chilean (4%) farmers. In the European Union, aid amounts to an average of 22%, with Norway reaching a peak of 60%.
http://www.nzherald.co.nz/news/print.cfm?objectid=10753565
