WHEAT PRICE SYSTEM

Press, Volume LXXIV, Issue 22590, 21 December 1938, Page 12

WHEAT PRICE SYSTEM

False Impression Alleged

VIEWS OF FARMERS IN NORTH CANTERBURY

The allegation that the present system of fixing the price to be paid for wheat gives a false impression to the public has been made by a number of North Canterbury farmers, who, in commenting \o a lepctttec oi "The Press," have expressed their disappointment that the price was not higher this year to meet the increased costs.

Mr C. Rands, a former president of the Northern Agricultural and Pastoral Association, and a prominent farmer of Springbank, expressed opinions summarising those of other farmers. He said he did not consider the present system of computing the price for wheat to be fair. No farmer really got the announced price, which would be paid only on wheat which was at the wharves. From the announced price the farmer had to deduct freight in getting wheat to the wharves; but in the meantime the public got a false idea of the amount the farmer was receiving.

Personally, Mr Rands'said, he preferred the old system, where the farmer accepted the price offered by the merchant, and where the miller had to stand the freight. The farmer, under" that system, knew where he stood. As for the announced price this year, he added, he did not think farmers were altogether satisfied. Costs had risen, the weather had entailed considerably more work this year, freights were up, farm hands extremely hard to obtain, and the consequent working margin had accordingly been considerably lessened. Farming was becoming more of a struggle every month. Most of the farmers were expecting 6s a bushel this season, he said. In expressing his agreement with Mr Rands, Mr M. Spencer Bower, president of the Cust-West Eyreton branch of the New Zealand Farmers' Union, said the present price system for wheat gave the false impression that farmers were getting good remuneration. Actually, they would receive 4d, sd, and in some cases 6d less a bushel than the announced price. Costs and freight had risen to a marked extent; but the farmers knew that the Minister for Industries and Commerce (the Hon. D. G. Sullivan) wag doing his best to meet both sides. He knew there would be disappointment at the announced price, though the price might be economically fair on well-managed farms. In the near future, he said, it was certain that the price would have to be increased or the costs lowered.