WHEAT PRICES.

Press, Volume LV, Issue 16547, 12 June 1919, Page 6

WHEAT PRICES.

♦ OUTLOOK FOR NEXT SEASON. (special to "ttte miss.") TIMARtT, June 11. Mr G. L. Twentyman, chairman ol tho Temuka branch of the Farmers' ; Union, is in rccoipt of tho following ; letter from tho Hon. W. 3>. S. MacDonald, in refercnco to tho price to be I paid for next season's wheat crop: ' Early in January of this year I an- ! nounccd that the Government guaran--1 toed for tho 15)19-20 cron a minimum price of 5s per biithel f.o.b. for Tuscan, os 8d for Hunters, and 5s 10d for i Pearl. I also announced that tho6d j prices would be subject to upward re- | vision before the crop was dealt with, if the of tho market so warrant- ! ed. You will therefore see that yoar ; ruinark that tho Government's annauivemont of its intention is long ovcrduo is totally unwarranted. If farmers aro still hesitating to sowwheat, it is not on account of any delay on the Government's part in announis ing its proposals. The Government, while not dictating to farmers what they should do with their land, thinks that there i.s sufficient wheat-growing land in New Zealand, which, if properly farmed, would supply New Zealand's j wheat requirements. With reference to your auction as to whether the Government intond to deal with the wheat on tines similar to those of tho present year, I may state that such is their intention, hut you are in error when you state that many farmers tins year have had to accept loss than tho price fixed. You will remember that the Government oricinallv guaranteed to pay Gs -Id per bushel f.0.b., with tho rieht of a free market, but as there wero difficulties in the way of giving effect to this proposal, the Government eventually agreed to tako over tho whole of* the good milling wheat at 6s 6d per f.0.b., with *d increase in tho price from May. If. as you state, farmers have been selling their wheat at imrli less than this price, it is ft clear indication that with n free mnrkot. even Cs 4d would not havo been realised, and that, thorefore. tho Government price of Gs 6d is an advantasro to the farmer. 1 would like to point out that no farmer is obligoi to accept less than Gs Gd for good milling wheat. It is. of course, not possiblo under any scheme to take delivery of overv farmer's wheat immediately it is threshed —noither tho railways nor tho mills could handle tho crop under such conditions —but whero a farmer has to hold his wheat, it may be for a few months, he is adequately comj>ensated hy tho id increment in the price.