WHEAT PRICES

Ashburton Guardian, Volume XXXIX, Issue 9632, 12 June 1919, Page 5

WHEAT PRICES

NEXT SEASON'S OUTLOOK

(Per Press Association.)

TIMAJtU, June 11. Mr G. L. Twenfcymau, chairman" of the Temuka branch of the Farmers' Union, is. in receipt of the following letter from tho Hon. W. D. S. MacDonald, in reference to the price to bo paid for next season's wheat crop:— Early iv January of this year 1 announced that the Government guaranteed for the 1919-20 crop a minimum price of 5a per bushel f.o.b. for Tuscan, 5k 8d for Hunters, and 5s lOd for Pearl. I also announced that these prices would be subject -to upward revision before tho crop was dealt with, if the starto of the market so warranted. You will therefore see that your remark „ that the Governments announcement of its intention is lung overdue is totally unwarranted. ii farmers ©re still hesitating to sow wheat, it is not on account -of any delay on the Government's part in announcing its proposals. The Government, while not dictating to farmers what they should do with their land, thinks-.that thore is .sufficient wheatgrowing laud in New Zealand, which, if properly' farmed, would supply New Zealand's wheat requirements. With' reference to your question as to whether the Government' intends to deal with the wheat on lines similar to those of the present year, 1 may state that such is their intention, but you are in error when you state that many farmers this year have had to accept less than the price fixed. \ou will remember that the Government originally 'guaranteed to pay 6s 4d per bushel f.0.b., with tho right of a free market, but as there were difficulties in the way of giving effect to this proposal, the' Government eventually agreed to take over the whole of the good milling wheat at 6s 6d per bushel fob., with id increase in tho price from May. If, as you state, tanners have been soiling their wneat at much less than this price, it is a clear indication that with a free market even 6s 4d would not have been realised, and that, therefore, the Government price of 6b 6d is an advantage to the farmer. I would like to point out that no farmer is obliged to accept lei than 6b 6d for good muling wheat. It is, of course, not possible under any scheme to take delivery of overy farmer's wheat immediately it is threshed—neither the railways nor the mills could handle the crop under such conditions—but where a farmer has to hold his wheat, it may bo for a few months, he is adequately compensated by *he M increment in tho price.