“Farmers Have Profited From Inflation”

Press, Volume C, Issue 29526, 30 May 1961, Page 12

“Farmers Have Profited From Inflation”

(New Zealand Press Association)

INVERCARC4LL. May 29. No-one has profited mpre from inflation over the last 30 years than the farmers. This statement was made by Professor B. P. Philpott, professor of agricultural economics at Canterbury Agricultural College, Lincoln, at the annual conference of Southland Federated Farmer* today.

He had been asked by a former provincial president of the federation. Mr T. Double, whether he agreed that death duties were too high Professor Philpott said he did not support a general reduction of death duties. “I must say. even at the risk of never being invited back, that no-one has profited more from inflation over the last 25 to 30 year* than the farmer." said Professor Philpotf. Those who had bought farm* over the last 25 years had had tremendous as»*tance in paying them off by rising prices, and the farms were now worth a great deal more than had been paid for them, said Professor Philpott On the other hand, other people who had helped in the

development of the nation by investing, for example, in Government loans, had not got nearly the same return. Interest earned on the loan money had been absorbed by rising" prices, and the value of each £lOO invested had decreased in the period to perhaps £6O. There were some farms in some areas where the nation would profit by death duties, which would force them to be split up, and they would then produce more highly Professor Philpott said. “Production in Southland « the highest in New Zealand. This is because the units here are not too big, and are farmed efficiently,” he said. “You should not expect a revolutionary change in death duties,” Professor Philpott warned the conference. There was no discussion on Professor Philpott’s remarks.