CEREAL CROP PRICES

Press, Volume LXXXIIi, Issue 25214, 19 June 1947, Page 8

CEREAL CROP PRICES

INCREASES HELD ESSENTIAL ENSURING SUFFICIENT PRODUCTION (P.A.) WELLINGTON, June 18. The claim that substantial increases are essential in the prices of cereals to ensure sufficient production is to be advanced by the Dominion conference of the agricultural section of Federated Farmers. ' lhe conference expressed the opinion to-day that such increases should not be governed by statistical analyses. A remit was before the conference from the Marlborough executive which proposed that the agriculture section should express dissatisfaction at the firesent price of wheat, oats and barey, and asked that all means be taken to obtain an increase. Mr G. C. Warren (North Canterbury) said there were indications of a heavy decline in the acreage sown in wheat in North Canterbury this year. Although the Australian Government had agreed to release wheat at 5s 9d a bushel (in Australia) for up to 4,000,000 bushels for this year, and each of the succeeding three years, it was unlikely that if New Zealand want d more than 4,000.000 bushels Aust, alia would agree to sell any more at that price. They would want a higher figure. Mr S. Crosson (Mid-Canterbury) said it had been recommended to the Wheat Committee that no increase should be sought from the Stabilisation Commission for this year, or for the succeeding three years, in the present price of 7s 4d a bushel- to the New Zealand wheat producer for wheat, unless additional costs could be proved by the industry. Determination of Prices The secretary of Federated Farmers, Mr A. P. O’Shea, said that in the determination of prices to the producer, the practice of taking averages on the costs of production was not in the interests of increased output. Under that system there were always too many people below the average who would go out of production. The aim should be to encourage output from every possible acre. Mr George Stevenson (Southland), chairman of the section, said the policy of the Stabilisation Commission would determine the extent to which wheat would be grown in New Zealand, and the extent to which it would have to be imported. If the farmer was not given an adequate price, production would be discouraged. Tnis would affect not only the production of flour, but of stock feed. The question was whether the commission should depart from the statistical method of arriving at prices. There was ample evidence that this method had proved unsatisfactory.

The following motion, moved by Mr T. L. Hayman (South Canterbury) was carried: “That this conference resolves that substantial increases are essential in the prices of cereals to ensure sufficient production for New Zealand, such increases to be granted irrespective of statistical analyses.” A Marlborough remit was also adopted, together with one from South Canterbury, proposing that en increase should be sought in the price for white oats. The chairman and three other members met officers of the Stabilisation Commission during the day to discuss prices. Mr Stevenson reported that a further meeting would be held on Friday. Price of Potatoes The conference further decided to ask that the price of potatoes should be increased sufficiently to obtain the desired increase in acreage. After a long discussion on the future of the export seed market since the imposition of the embargo in Britain, the conference decided to recommend that the Department of Agriculture be approached with the proposition that qualified departmental officers should be sent overseas to further the interests of New Zealand-produced seeds. It was also .decided to ask the Government to fulfil its pledge, given during the war, that the seed-testing station at Palmerston North would be moved to the South Island after the war. Urging that a commission be set up to inquire into economic conditions brought about by the 40-hour week, the conference decided also to recommend that the price of agricultural produce should be incressed to compensate farmers for long hours worked, compared with the hours of those in other walks of life. These proposals were put forward by the North Canterbury district, and will go before the Dominion conference of Federated Farmers next month.