WHEAT PAYMENT

Ashburton Guardian, Volume 55, Issue 165, 26 April 1935, Page 5

WHEAT PAYMENT

DISTRIBUTION OF £312,000.

ELEVENPENCE A BUSHEL.

TOTAL OF 4/6 A BUSHEL,

(Special to the " Guardian.")

CHRISTCHURCH, This Day

Within the next month, the wheat growers of New Zealand will receive a total of £312,000, which is represented in the final pay-out by the Wheat Purchase Board on the 1934 crop. Because of the comparative shortage of the crop this year, the Wheat Purchase Board was able to dispose -of the surplus locally at prices considerably better than those realised for the wheat exported »two years ago, and has enabled a pay-out of lid a bushel compared with 6d last year. Most of the amount of £312,000 will go to growers in Canterbury. The pay-out was decided on at a meeting of the Board held on Wednesday, when the following statement was made:—

"At its meeting to-day the Wheat Purchase Board passed the final accounts for wheat of the 1934 harvest handled by it. These showed a credit balance of £312,000, which will enable a final payment of lid a bushel to be made, thus making the total payment for 1934 4s od a bushel for Tuscan f.o.b. Canterbury ports for March delivery, and, with increments, for other grade as follows: Velvet or Tusc'n Hunters. Pearl.

"This very satisfactory result has been brought about largely because of the short crop this season enabling the Board to sell the carry-over from 1934 of 1,800,000 bushels for local use instead of having to export it, as had to be done in 1.933 with a considerable portion of the surplus of 2,000,000 bushels resulting from that haryest. "However, the Board decided in that season that in order to safeguard the national supplies it was its duty to carry forward 1,000,000 bushels to guard against the possibility of a crop Failure in 1934. This was, of course, held at the expense of the Board, that is to say, the wheat growers; but it has proved something of a small windfall as it has been possible, to dispose of it in addition to the surplus from last vear's harvest, at local prices, representing a. profit on the price at which it was taken over, even oitei paying costs of storage for nearly two years. Heavy Surplus.

"When the 1934 haryest turned out so well, the Board was faced with another heavy surplus; but in View of the very unfavourable weather for wheat sowing operations last year, continuing from the autumn through the winter and spring, it decided that it was its duty to hold the whole of that surplus in the interests of the Dominion, at least until some "Rations of harvest prospects were available. As the season advanced and the prospects became more and more unfavourable it was evident, that this decision had been a wise one,; and the Board's holding of old wheat has now been reduced to a reasonable quantity, thus enabling the balance of 1934 to be taken over by the 1935 accounts (as las done last year) and the accounts Er 1934 to be closed with the satisfactory results indicated. "While at the present time the returns from this season's harvest are not sufficiently complete to enable exact ConSS to be 1 drawn, the P robab Ihty 1 hty is that with the wheat earned forward Ihere will be sufficient for the year >s requirements, notwithstanding the disappointing autumn crop. "The policy of the board has been entirely justified from a national point of view, while farmers have received at W* double the return that they could have obtained without its assist- " The final payments to growers will, it is anticipated, be made to their brokers about the middle oi May.

Early Difficulties, The Wheat Purchase Board was formed by the Government early in January, 1933, to deal witn a surplus which it was felt would cause a disastrous level of prices to growers. The board was empowered to deal witn all the milling wheat produced in Mew Zealand, to sell what it could to millers in the Dominion, and to do with any surplus what it considered best Hie board started with no funds at all, and as it was the essential part of the board's function that it would take all milling wheat of a certain grade that was offered it by farmers, the formation of a fund with, winch buying could be done was the first great problem it had to face. • Wheat was bought from the farmers at a certain price, and was sold to millears at a higher price. Also, monthly increments in the price were put on to induce millers to take as much as possible of their year's stocks in the early months of the year. The scheme worked admirably, and the millers gave every assistance in setting the new regulations in motion. The, formation of the board raised a storm of protest throughout the country, but more particularly in the North Island. However, with the prospect of an eleven million bushel crop, and a surplus of 2$ million bushels the position needed drastic measures. The price Was a disappointment to many growers, as few expected that there would he any considerable increase in their returns from payments from the sale of the surplus. When the final payment was made last year, farmers we're satisfied with the working of the board, and since then there has been very little criticism. After the 1933 accounts were closed, there was in hand an amount of a little more than £200,000 which represented a payment of 6d a bushel on all the wheat handled by the board. The amount in hand after balancing of the 1934 crop accounts is £312,000, and this will be paid out to growers in a

few weeks as a payment of lid a bushel. The number of growers fanning 10 acres or more of wheat on the books of the board is 6990.

.... 4/5 4/7 4/9 .... 4/6 4/8 4/10 May ... 4/7 4/9 4/11 .... -4/8 4/10 51July .... 4/9 4/111 5/1 .... 4/91 4/illi s/ii September .... .... 4/10 515/2