N.Z. Land Values “Dangerously High”

Press, Volume CII, Issue 30050, 7 February 1963, Page 8

N.Z. Land Values “Dangerously High”

Compared with the output per ewe and labour costs it appeared that New gedlnnd land values had risen to a dangerously high level which he could see would create serious problems and entoarnassment to the next generation succeeding to the land, said Mr M. Passmore at yesterday’s meeting at the Dominion agriculture section council of Federated Farmers in Christchurch.

Mr Passmore is a large tenant farmer of Earl Spencer in North Hampshire who specialises in agricultural farming. A member of the advisory council on meat research for the Minister of Agriculture, he is also a governor of the plant breeding station ait Cambridge, chairman at the experimental animal husbandry station at Drayton and a farmer governor at the grasslands research station at Hurley.

Mr Passmore warned that farmers should make arrangements to pass the land on to their successors to avoid heavy death duties. In Britain it was possible also to make marriage settlements.

Mr Passmore said that he considered New Zealand lamb producers would have been better off under the E.E.C. with a 20 per cent, tariff than with British farm subsidies. With the failure of negotiations with the E.E.C. he presumed the subsidy scheme would be continued. He said that the effect of the subsidies had been to keep import prices down and help home production. He quoted one occasion when he had sold 541 b lambs at 85s a head and had received 85s in subsidy. “The result of the subsidy . . . has kept New Zealand lamb prices down by 4d, 6d, Is—no, not as much as Is —per pound.” he said. Subsidies had kept the cost of living down in Britain, which was important to an exporting country. Discussing dumping of produce, Mr Passmore said that at present French wheat was being dumped in Britain at £l7 a ton, compared with the price the French Government was paying for the wheat of £34 to £35 a ton. On his own property he grew a lot of wheat which was sold at £26 to £27 a ton, but the storage increment for

holding on the farm was £5 a ton for September to MayJune storage (compared with about £3 a ton storage payment in New Zealand). Mr Passmore said he was at present storing about 800 tons of wheat in silos holding 50 to 60 tons each. The wheat was grown on heavy clay land which was ploughed in furrows 18 inches wide by 12 inches deep. His average yields this season had been about 75 bushels an acre. Harvesting was carried out at about 18 to 20 per cent, moisture and was (fried for storage at 14 to 15 per cent, on the farm. Mr Passmore said that his drier had cost him £12,000 10 years ago. . Farming costs were high and the British farmer had 10 times as mdbh tied up in capital equipment but allowances were made for taxation.

Mr Passmore said that New Zealand farmers Should not look at taxation in a negative way. If a farmer was reluctant to produce more b«ause he would be more heavily taxed he was moving downhill.