STILL SOARING.

Auckland Star, Volume LXX, Issue 132, 7 June 1939, Page 5

STILL SOARING.

FARMING COSTS.

"EFFECT OF NEW ECONOMY."

REDUCTION ESSENTIAL.

(By Telegraph.—Own Correspondent)

DUXEDIX. this dav.

"There have now been two years of unfavourable farming results, and I surest that the full effect of Xew Zealand's new economy has come home to the man on the land," said Mr. R. H. Michelle, president of the Otago Provincial Council of the Xew Zealand Farmers' Union during his address at the annual conference.

"We are faced with increased costs from every direction, which are still soaring almost daily, and yet the world's markets, which absorb practically all our production, have tended to lower \ allies. With no indication of improvement, the dairy farmer now finds that with the guaranteed price above London parity for his produce, he is not receiving a reasonable return for his services. The same applies to the average high quality farms of reasonable area where mixed farming is the rule. Even less enviable is the plight of the high country man. '

Much had recentry been said about a government guaranteed price for all farm produce or allowance of free exchange as a remedy for the present troubles, but meetings of farmers were by no means agreed as to the advisability of either suggestion. Regarding guaranteed ]>rices. it was beyond doubt that any [.rices fixed would not meet the case unless they were considerably above the present export values. If the excess payment were not speedily recovered bv enhanced export values, 'the inevitable result must be an Increased capital charge on Xew Zealand or increased taxation to meet the deficiency. The farmers' salvation lay in a reduction— and a very substantial reduction—in all his costs.