INCREASED FARM INVESTMENT URGED

Press, Volume CI, Issue 29880, 21 July 1962, Page 15

INCREASED FARM INVESTMENT URGED

(New Zealand Press Association)

WELLINGTON, July 20. The Government was urged to consider the Monetary and Economic Council* suggestions on primary industry by the annual conference of Federated Farmers. A conference resolution said this was necessary as "neither the decision* of the Arbitration Court, nor the present trade and Industrial policies being pursued” encouraged the necessary expansion of the farming industries, and there is growing difficulty in getting investment in farms. “Increases in farm output are largely dependent on maintaining . an adequate rate of farm investment which in turn is primarily dependent on farmers having sufficiently high incomes to permit such a level of investment. "In recent years, as a result of rising internal costs and lower export prices, real incomes of farmers have been falling and so has farm investment. Thr part of the council’s report referred to said: "Our investigation would indicate that the rate of increase in farm production which has helped to sustain export income during the last few years is now falling off and is likely to fall further. “The council believe* that.

in view of the economic importance of this matter, the Government should, in collaboration with the producer board*, inveatigate current trend* in farm output and investment “If the result disclose* that th* likely rat* of increase in farm output is below that required in the Interest* of faster economic growth, the Government must be piepared to formulate pol:cies to Increase the rate of fsrm investment."

This extract was embodied in the conference* resolutions.