Club's Striking Results In Difficult Years

Press, Volume XCIX, Issue 29270, 30 July 1960, Page 8

Club's Striking Results In Difficult Years

FARMERS who Have been members of the Lauriston Farm Improvement Club since its inception in 1956 are now making 3 per cent more on their total capital investment and their annual net incomes have increased by more than £7OO a farm in spite of lower prices for farm products, higher costs, and two very dry seasons. This spectacular result was reported this week to the annual meeting of the club —the first of its type to be established in the South Island—by its field officer, Mr Peter Falconer, who is a member of the staff of the farm management and rural valuation department at Canterbury Agricultural College, which provides the advisory service for the club. From the beginning of September, Mr Falconer will be employed full-time by the club, which will become an independent organisation. For the 14 original members’ farms, Mr Falconer said that the average interest surplus—the money available for paying interest or dividends on the total capital involved—had increased from £1285 in 1956-57 to £1442 in 195758, £1693 in 1958-59, and an estimated £2048 in the most recent year. Over the four years this represented an improvement of 59 per cent, and at the same time interest earned on capital had risen from 5.2 per cent, to an estimated 8.2 per cent, in 1959-60. Contrast "It is not possible to quote any really comparable figures for nonclub farms but' it is interesting to note that a survey of 35 farms in the Malvern county, in process of preparation for publication, showed that their interest surplus for 1958-59 was 23 per cent, lower than that in 1956-57,” said Mr Falcbner. “The figure for the Lauriston club represents an increase of. 32 per cent, over this period. This must be deemed satisfactory when we consider fallen prices, risen costs, and two very dry seasons.” Mr Falconer said that budgets for the coming year showed that a further significant increase in returns was certain unless prices changed drastically. Besides the immediate and obvious benefits from the increased returns shown he said that there had been much improvement of the farms themselves, which would have a longterm effect on the three rewards

expected from successful farm management—net profit, total net worth or asset increment, and'an enjoyable, way of life. As well some farmers were achieving a further reward, the passing on of the estate with a minimum of duties. Increases Twenty-one farmers on 8698 acres were members of the club last season. During the year the area in wheat and cash crops on their farms increased by 9 per cent, in each category, and at the same time ewe equivalents carried increased by 4 per cent In the four years that the club has been functioning the accumulative increase in ewe equivalents carried has been 45 per cent. It. is expected that the area in cash crop will further increase as few farms have reached the maximum area suggested in the previous year's report. “The results obtained by the Lauriston Farm Improvement Club are further evidence of what can be done when farm management is critically examined and farmers make a serious attempt to improve their lot,” said Mr Falconer. country we desperately need cheaply produced products to be- able to market at competitive prices. If we increase our farming efficiency we greatly assist this end. We also have a greater personal reward and can consequently live a fuller life. “It is up to every farmer who is interested in the future of our country to do his utmost to produce more at less cost. The farmers of the Lauriston club may well be proud of their achievement as the first club in the South Island. It is to be hoped that their example might convince more farmers of the benefits to be derived from this system of self help—the farm improvement club movement.”