Economic deregulation in New Zealand has forced farmers to adjust their management in order to survive without Government support in the globally competitive agrifood and fibre industry. In addition to managing a greater exposure to risk, farmers must now also obtain and interpret information about markets and new technology without the aid of a state-funded extension service, and be prepared to modify their production system and land-use according to international market signals. In this paper, aspects of the new economic environment for farming in New Zealand are described and some of the ways that farmers have adjusted their management to remain financially viable are presented. While the adjustment period has not been easy, farmers have benefited from increased efficiency in the finance, processing and transport sectors, and as a consequence, few wish to return to a highly regulated and subsidised economy.