BROAD ACRES IN DEMAND

Press, Volume LXXII, Issue 21806, 11 June 1936, Page 22

BROAD ACRES IN DEMAND

THE POSITION IN CANTERBURY HIGH PRICES MILITATE AGAINST SALES A growing tendency is discernible in Canterbury to go back to broad acres as an avenue for investment of surplus capital. This statement was made to a reporter of “The Press” by the representatives of several firms interested in the sale of farm lands. There is, it is stated, a keen demand for all classes of farms, both from investors and farmers, but, because of the high prices being asked, an exceptional number of sales is not being made. Farmers with the necessary cash in search of hill country find it very hard, said one agent, to buy a property that will show a return for the money invested, even on presentday prices of produce. Others, again, who regard the land as a tangible asset, are in some cases prepared to pay more an acre than the land is actually worth to-day, on a .productive basis. In his enquiries, the representative of “The Press” encountered several agents who stated that they had firsthand knowledge of farms being purchased by men simply to utilise idle capital which they feared would otherwise be commandeered by the Government to float an internal compulsory loan. The foregoing aspect of the question was submitted to the Minister for Finance (the Hon. W. Nash), by the parliamentary representative of “The Press,” Mr Nash said that he had never heard of the Government proposing a compulsory internal loan, and as far as he knew it had never been thought of. The general opinion in New Zealand was that owing to the rise in store sheep values land would sell more freely. Those in touch with the market in Canterbury, however, state that this is not borne out in actual practice. Whereas formerly a man purchasing a sheep farm could stock up with ewes at, say, £1 over all, to-day the price averaged about 30s to 325. Therefore, it took much more cash to go on to a hill property to-day than it did three years ago. In point of the above contention it is interesting to compare the average prices realised at North Canterbury ewe fairs over the last seven years. In 1929 the average price over 13 fairs was 28s 6d a head, and in 1930 19s. The following year the average dropped to 8s 4d (one-third of the price in 1929), recovering to 9s lOd in 1932, but slumping again in 1933 to 7s 2d. In 1934 the average rose to 20s 3d, but last year it receded to lbs Bd, The average price for the 1936 season is not available, but for the purpose Of comparison it may be accepted that the province is approaching the 1929 average of 28s 6d, or thereabouts.

There is apparently a keen demand for mixed farms to lease, hut properties of this nature are reported to be difficult to acquire. The enquirers are men with a limited capital, who have sufficient for stocking purposes but not enough to put down an appreciable deposit.