INCREASED PRODUCTION ON MARGINAL LANDS

Press, Volume XCIV, Issue 28128, 17 November 1956, Page 9

INCREASED PRODUCTION ON MARGINAL LANDS

ADVANCES PUT TO GOOD USE

Canterbury Farms Developed

Loans made available to farmers under the provisions of the Marginal Lands Act are helping to increase the volume of New Zealand primary products by aiding the development of lands for which moneys cannot be obtained from normal lending sources. Probably because Canerbury has relatively less undeveloped land than other land districts the call on these funds has not been so great in this province as in some other districts, but marginal lands finance has nonetheless been responsible for striking increases in production on individual farms. Since advances for marginal land development became available about five years ago 1111 applications for loans were received from all parts of the country up to March 31 this year. The Marginal Lands Board had approved of loans being made in 418 of these cases and by March 31 it had authorised advances, which had been accepted by farmers, totalling £1.482,509. The main interest in the scheme has been shown in the North Auckland. South Auckland. Nelson and Southland districts. In the North Auckland district, for instance, applications to March 31 totalled 416, of which* 185 had been approved. In Canterbury total apolications to that date were 51, of which 17 had been approved, but only 12 applicants had accepted the offers made to them. Now onlv 10 loans are in force in the district as two borrowers have repaid moneys loaned in full. Advances approved in Canterbury land district for capital purposes amount to only a little more than £40.000. but in addition some of the early applicants were assisted with the purchase of stock and in footing seasonal expenses, but the Marginal Lands Board now expects applicants to obtain advances for these purposes through normal lending channels.

Covered With Gorse Between three and four years ago a property of 94 acres on sandv loam near the Canterbury coast changed hands. At that time gorse six to eight feet high covered 70 to 75 acres and there were no fences on the farm. With a three and a half ton tractor with solid steel wheels fitted with 22 inch bars of angle iron at intervals of about a foot and massive bush and bog discs the new owner set to work on the gorse. By September of last year when he made application for marginal lands assistance he had already cleared about 40 acres of gorse and sown it down in new pasture. With marginal lands funds a further 29 acres was cleared of gorse last summer and 22 acres sown in pasture and seven acres in lucerne last autumn.

The practice in tackling the gorse has been to drive the tractor and discs over it before the winter. The process is repeated in the summer and about a month afterwards when the gorse has dried out it is burnt. The heavy equipment is then used to tear out roots and stumps. Subsequently some oats and grass is sown. This is fed off after Christmas *and in the autumn the area is worked over again and some greenfeed is put in. In the spring, when the area is alive with young gorse seedlings, it is grazed over again, and during the summer, preparations are made for permanent sowing down. An eight acre paddock of pedigree perennial ryegrass and red and white clover has just recently been closed up for seed and 14 acres of short rotation ryegrass, perennial ryegrass, crested dogstail, cowgrass, and white clover is feeding more than 30 cows. The seven acres of lucerne has been given its first cut. It has produced about 500 bales of hay. From 20 last year, the herd has increased to 36. and the property is now carrying 30 pigs, where there were none last year. Before it came under its present ownership there were never more than about 16 cows on the place. The ultimate plan is to increase the herd to 45. with replacement stock and pigs. Isolated patches of gorse still remain to remind the visitor of the forest that once existed, but even these patches should disappear this summer. Marginal lands finance has been used to erect fences, build a new cow shed and yards, purchase a three-cow milking plant, and sink an irrigation well from which 30.000 gallons of water can be pumped an hour. •

The owner of the farm is enthusiastic about the opportunities provided by marginal lands finance, though it is in no sense a gift. He says that conditions governing advances are reasonable and the farmer is not subject to any interference, provided he does what is expected of him. A high standard of farm management is nevertheless expected. Foothills Property On a Canterbury foothills property where sheep are the main source of livelihood. production has been doubled in the last five years, with marginal lands finance. When the present owner took over the property a little more than five years ago, fences were down, pastures had deteriorated, there was widespread gorse, and the house on the property was uninhabitable. After paying cash for his farm the owner had found that he was short of funds to buy implements and sow down pastures. The marginal lands loans have been used to sow down about 150 acres of pasture, to build new fences and repair old ones, to repair outbuildings and the house, and to buy stock and implements. On all the ploughable land two tons of lime has been spread to the* acre, and an annual dressing of one and a half hundredweight of superphosphate has been given. “There is no doubt that We are getting the results all right,” says the farmer. When he took over he was carrying 550 ewes and about 10 rams on the 520acre property. Now it is wintering 980 ewes, 220 hoggets with a few killling sheep and rams. Production has practically doubled in the last four and a half years, while marginal lands assistance has been available and it is hoped to still further increase production by about one half. While recognising that the loans have made possible this increase in production the property owner is critical of some aspects of the administration. He believes that more elasticity is needed in the actual distribution of the seasonal finance.

“In my experience it is an excellent piece of legislation.” said the chairman of the marginal lands committee in the Canterbury district, Mr T. W. Preston, referring to the act. “Some of the properties we have taken on would not appeal in the least to ordinary lending institutions, but our faith in the men on them has not yet been misplaced, and there have been quite striking increases in production.” In one case where a loan was granted in 1953, stock carried totalled 500 ewes

and 150 dry sheep. With fencing and topdressing production had increased by this year to 980 ewes and 350 dry sheep. In another case where a loan was granted in 1953 for liming, fencing and grassing stock numbers had increased from 610 ewes and 196 dry sheep to 1200 ewes and 362 dry sheep.

Production Increasing According to the annual report of the Lands and Survey Department for the year ended March 31 carrying capacities on marginal land on which advances had been made were expected to increase by 5700 dairy cows, 4800 fun cattle, and 80,000 sheep. The Marginal Lands Act seeks to increase production on lands that are at present not fully productive. Applicants for assistance have to show that their farms have a potential and can be built up into economic units with further development. They have to make a full disclosure of their finances and show that they are not in a position to get loans from normal lending sources arid that they have the qualities necessary to develop the land and secure the increased production. The Marginal Lands Board attaches particular importance to personal qualities of applicants and is much more concerned with this aspect than with the margin of security offering. Mr Preston said it was noticeable that some applications had come from persons affected by the credit squeeze, and, in general, the board was not able to do anything for them. Where farmers already owned a substantial unit they should be able to finance further development out of revenue, he said.

One or two groups of farmers had inquired about assistance for developing land for irrigation—for border-dyking, fencing, and grassing. As irrigation did undoubtedly increase production, it fell within the scope of the act. Such applications would be dealt with on their merits, but provided the applicants were able to satisfy the board under the headings already mentioned they would qualify for a loan. Banks and stock firms had co-oper-ated well in the scheme, said Mr Preston. The attitude of firms was—“you provide the money to grow the extra grass and we will provide the money to buy the extra stock to graze it.”