POSITION OF FARMERS.

Ashburton Guardian, Volume 48, Issue 144, 29 March 1928, Page 8

POSITION OF FARMERS.

AM ECONOMIC REVIEW. INTERESTING CONCLUSIONS. (Per Press Association.) WELLINGTON, March 28. Professor H. Belshaw, of Auckland, dealt exhaustively at the National Industrial Conference to-day with statistics showing the economic position or •farmers., and concluded: "Despite increased productive etiiciency, thereal net income of the agri- , : culturist is in general appreciably less . than in 1914. Stated more specifically, the conclusions, are as follows: — "(1) The exchange value of agricultural goods in terms of consumers' goods bought retail is considerably less than in 1914, so that even if costs had moved proportionately to agricultural wholesale prices, the farmer would be worse off. "(2) Local taxation borne by the v farmer has increased appreciably more than export prices. To bring such taxation back to a parity with export prices it would have to be reduced Ey say, £500,000 in 1925 and £1,000,000 in 1926. The increase in taxation is due only in part to improved services. I do not believe that land taxation represents an anr>reciable burden on the majority of farmers, though it may in some instances.' "(3) In 1926 agricultural wages 4 . would have to be reduced by at most £BO,OOO to bring them back to a parity with export prices, but it must be remembered that agricultural labour did not share in the substantial profits of the boom period. "(4) Contrary to the generally accepted view the disparity between agricultural prices and the wholesale prices of agricultural producers' goods Has '-■'■■■ been beneficial to farmers «ip general of recent yearSj though not necessarily to particular groups. The assertion that the Arbitration Court through its -■ on manufacturing costs has raised agricultural costs relatively to agricultural returns is untenable, but there are reasons for believing that the' margin between wholesale and retail prices is in some instances too high. The effects of over-capitalisa-tion and an increase in the number of retail businesses, together with the inflation of urban site rents, have not yet been fully worked out and are probably responsible for too wide a distributor's margin in respect of some commodities. "(5) The most pressing burden on the farmer is the inflation of capital ' charges in respect of land. "(6) With the meceding problem ig that of rural credit. "(7) There is room for further enquiry into the costs of retail distribution." '<