Ashburton Guardian Magna est Veritas et Prævalebit THURSDAY, FEBRUARY 25, 1937. THE PRICE OF WHEAT.

Ashburton Guardian, Volume 57, Issue 115, 25 February 1937, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit THURSDAY, FEBRUARY 25, 1937. THE PRICE OF WHEAT.

According to inquiries made by the "Guardian” the general opinion among wheat-growers in this County is that the schedule of prices for their product, just announced by the Wheat Committee,‘is not high enough to foster the industry, dhe contention is that the cost of production has increased so much this season that a return of about six shillings a bushel would be necessary to benefit farmers. The consumer, who will have to bear the burden ultimately, no matter what methods are adopted, is anxious that the wheat-grower should be encouraged, because it is realised, as the “Guardian” has pointed out on various occasions, that for several reasons it is essential that the Dominion should be self-supporting in this matter. The crux of the problem is not to provide the producer with a fancy price but to ensure that the best interests of the whole community should be conserved. There is thus an economic basis beyond which the producer cannot expect the country to go. But in the present instance, the farmer can make out a good case for an increase. The costs of production have undoubtedly risen, and the season, as last, has been unfavourable, the yield being estimated at several bushels below the average. A considerable importation will be necessary to fill requirements, and this purchase will have to be at a higher figure than is paid for the local output. For 1936-37 the world crop is expected to be smaller by some five per cent, than that of the previous one, and the carryover last July was estimated at 244,000,000 bushels available for export, compared with 624,000,000 at the end of the 1932-33 season. Tl)us world prices will remain firm, with the possibility of an appreciable i advance in the northern summer. If the Dominion imports, the expenditure is lost to this country except so far as the actual return in wheat is concerned, whereas the equivalent amount paid internally leads to the employment of a larger amount of labour than is required for most of the other branches of farming, with consequent, benefit to trade and industry generally. The need for increasing the acreage under wheat is recognised by the Committee, which is considering a plan with this object in view. The success of that plan depends upon the farmer being assured of a reasonable return and the general opinion of farmers is that the present schedule does not fulfil that condition. It will be interesting to learn if the committee can formulate a successful plan that does not entail an increase in price.