Farming Is A Way Of Life —it is Also A Business

Press, Volume XCVII, Issue 28481, 10 January 1958, Page 18

Farming Is A Way Of Life —it is Also A Business

By

A. H. FLAY

ASSOCIATE PROFESSOR AND HEAD OF THE DEPARTMENT OF FARM MANAGEMENT AND RURAL VALUATION, CANTERBURY AGRICULTURAL COLLEGE, LINCOLN, PROFESSOR FLAY IS ALSO A PRACTICAL

FARMER.

■C 1 ARMING is a way of life. It is also a business. Which comes first is hard to say; it depends on the point of view of the individual. A life that is full and satisfying, and at the same time offers a sufficient monetary reward would seem to be ideal. It is claimed that fanning provides these —at least for those who like farming. The only problem then is . . . How To Begin In normal times a substantial reward demands much sustained physical toil, good organising, and a high degree of intelligence supplemented by an appreciable experience and training. For the average young man in New Zealand the question of farming really boils down to whether he positively and determinedly wants to be a farmer. If so, he can be assured of success. But success at what? Success as a farm labourer, farm manager or owner-operator? Does farming to him mean that he must occupy his own farm? If it does, then there is the matter (some would say problem) of capital. If it is a matter of the open life, then the field is there now. The present wages are reasonable for both single and married men. He can learn, earn and save—all at the same time If the man is efficient a~d experienced he can command very satisfying wages as a skilled farm hand. The skill may be as a general farm hand, a shepherd, or as a cultivator (not just tractor-driver). He may work up to head shepherd or foreman on a larger unit, or he may obtain a «>pnagrnhip.

Every young man should accept ’ responsibility and executiveship t in any capacity whatsoever at the L earliest opportunity, and certainly take a working foreman or • working manager’s position, even 1 on a one-man farm, in order to r gain experience in “making decisions.’’ The running of a farm ; consists of making decisions at all t times—hourly, daily, weekly—and [ of organising one’s own time as M -well as that of the staff. Perhaps ‘ the task of organising one’a own l time efficiently is the most difficult. But the youiig man must have this experience to develop these very essential characteristics. Farm Services 1 .. " [ Besides employment on farms I there are several skilled profes- > sions servicing farmers—shearers, > aerial top-dressing pilots, cartage contractors, fencers, musterers, and contract cultivators just to i mention a few. AU are skilled f occupations in the open spaces. Some young men prefer this type of occupation to that of steady employment on a farm. The . skills required in these occupations do not directly train a man , to become an efficent manager of a farm, but they could be a 1 source of financial gain assisting towards an accumulation bf the minimum capital needed to start ■ farming. It is not expected that all r young men going into the field of • farming will become farmers of • their own properties, any more » than all shop-workers expect to I become shop proprietors. But i there will be a number who aim to occupy their own farms. I ' Can Buy Own Farm s It has been said that a pret requisite, to farm ownership is to > be born into farming, or into i wealth; that the young man who i inherits neither cannot today ever ojvn a farm; that be can never

save sufficient to start himself. It would be wrong for the impecunious youth of 17 years, who wants to be a farmer, to accept such a Statement as final and complete. Let it be stated here and now that if the young man really wants to occupy in due course his own property, he may do so. It is just a matter of training, experience and savings; the class and size of farm he aspires to occupy; and the age at which he must be the owner.

The question really is, then, how much capital does it take to start farming. We hear of £20,000 or £30,000 being required to buy this farm or that farm for cash. For the man who is determined to start farming on his own account as soon as possible, he must at the outset accept maximum borrowing on both land, stock and plant. This means, on a freehold property, about 50 per cent, of its sale value, and about 50 per cent, of the stock and plant required. Choice Of Type The farm may be a one-man dairy farm; sheep farm; or mixed cropping and fat lamb farm. Of these three classes of farms the dairy fgrm is that requiring the least amount of capital. The one-man economic unit may cost, say, £lO,OOO complete with land, buildings, stock, and plant. With a 50 per cent, borrowing on the farm, and on the stock and plant, the cash required would be £5OOO, plus legal costs, etc.,* approximately £BO. and a little working capital of £2OO or £3OO.

With a Crown lease, the “ingoing" might be about £3500 or even £3OOO, and for a private lease where there is no down payment on the land, £l5OO-£2OOO would probably do, although such farms are very difficult to find. There are also few Crown leaseholds available, so the young

man usually is forced into buying his dairy unit on a freehold basis. If he desires a one-man fat lamb farm costing about £14,000, he would require at least about £7OOO, and for a one-man mixed cropping unit, costing about £16,000, possibly £BOOO. Part-time farms, i.e., where the occupier is not fully employed, could be acquired for lesser sums as down payments. Saving Time But how long would it take to save these sums? This depends on the saving capacity of the man. Prudent young men who are careful with their spending have demonstrated recently that they can easily save an average £3OO a year. Remember, every £ saved means that with a 50 per cent, borrowing, the borrower has the use of two pouunds.

Single, competent men on dairy farms are paid up to £ll to £l2 a week and found. On special contract work, able men have saved at double the above rate, as also have some share milkers. 10-20 Years There is no doubt that some young men can save sufficient capital, over a 10-20 year period, to enable them to acquire their own farms at the age of 30-40 years. Although today the opportunity for spending is great (buy a second-hand car) there is also a great opportunity for earning. It is just a matter of the desire for a farm being strong enough. The opportunity is there.

The alternative to farm ownership for the able and competent man is farm foreman, farm managership, commercial activities associated with farming, or professional agriculture in one or other of its many branches.