LAND VALUES

Bay of Plenty Times, Volume XLVIII, Issue 7439, 28 June 1920, Page 3

LAND VALUES

Speaking at the social functio 1 held at Palmerston North at which Mr M. Cohen was entertained, Mr F. J. Nathan quoted some intesesting figures showing the profits made hy dairy farmers when land was worth. £40 per acre compared with the profits made at the present time with land at £120 per acre. He spoke first of the years 1912 and 1913, when land was at £40 per acre, and the price paid for butter-fat Is per pound. Allowing three acres to run two cows, the cost of land per cow was £60, the iuu\

est on which at 5 per cent, would be £3 12s. The return from 200lb of butter fat at is. per pound would be £10, the profit per cow thus being£6 Bs. Taking land at £120 per acre, and the price paid for butter-fat 2s per pound, and again allowing three acres to run two cows, the cost of land per cow would be £180, on which the interest at 6 per cent, was £lO 16s. Two hundred pounas of butterfat at 2s per pound would return £20, leaving a profit per cow of £9 4s. Therefore, sai d Mr Nathan, land at£l2o per acre with butter-tat at 2s per pound was cheaper than it was eight yenrs ago at £40 per acre, when butter-fat was Is per pound, the farmer's return now being 43 per cent better.