The Peruvian Paso continued to flourish in the northern regions because it was still needed for transportation on the haciendas. This changed with the harsh Agrarian Reforms instituted by the government of Juan Velasco Alvarado in the late 1960s that had a devastating effect on the Peruvian Paso horse within Peru. Major breeding operations were broken up and breeding stock was lost. Because interest in the Peruvian Paso horse was growing in the United States and Central America at the same time, many of the finest Peruvian Paso horses were exported, leading to a period where it appeared the Peruvian Paso horse would fade in its homeland.