Farming at the Crossroads

Press, Volume XCVII, Issue 28701, 26 September 1958, Page 8

Farming at the Crossroads

Man may not live by bread alone, but without bread he does not live. For that reason, New Zealand can be assured, as an important world food producer, of continued prosperity in the future. But the temporary recession in world trade, which has caused heavy reductions in the prices paid for New Zealand primary produce, has presented farmers with problems that must be overcome if they, and the people of the Dominion, are to retain the standard of living to ■ which they have been accustomed. In a sense, the change in the economic climate has put farming in New Zealand at the crossroads and that is the theme of a supplement we print today in which some of the leading authorities in Canterbury and New Zealand examine the problems facing the farming community and suggest solutions to them. In essence, the conclusion they reach is that lower returns for primary produce can be offset in three ways: by increasing production, by diversification of production, and by the reduction of farm costs. New markets, of course, are a necessary complement, and both the Government and the producer boards are seeking them diligently, and with some success. But it is on the farm that the principal changes are necessary and few can doubt that the challenge will be met. New Zealand farms, and those of Canterbury in par-

ticular, have the capacity for increasing production. The era of high prices for primary produce has enabled new land to be developed and the fertility of developed land to be raised to a high level. Though fat lamb production is still likely to dominate farming in the

province, there has already been a noticeable swing to cropping. Indeed, the doubling of wheat production in Canterbury in one year will be a spectacular demonstration of the ability of farmers to diversify their production. This achievement has been assisted by the higher price offered for wheat, the changed outlook for other produce, and the development 'of, higher-yielding wheat, but it is of particular national importance because it will assist directly in conserving overseas funds. The crux of the problem is the reduction of farm costs. They have risen steadily since the war with the rise in prices, but they have not fallen with the fall in prices. If costs eat too heavily into the farmer’s income, investment expenditure on the farm is inevitably reduced and production will fall. By cooperating to reduce the cost of the goods and services the farmer needs, the rest of the community not only helps him to meet the challenge with which he is faced, but helps itself, for there cannot be a prosperous national community without a prosperous farming community.