Money “Diverted” From Farm Development

Press, Volume CIII, Issue 30453, 29 May 1964, Page 8

Money “Diverted” From Farm Development

Money spent by farmers in insurance policies to safeguard their properties against death duties, and in land tax, could be better spent in the national interest in developing their farms, the retiring president (Mr A. C. Wright) said at the annual conference of North Capterbury Federated Farmers. A constant concern of farmers today was the safeguarding of their properties, not so much for themselves as for their descendants, he said. Large life-insurance premiums were paid merely to have a fund to meet estate, duty. This money would be more profitably employed for both were it invested in the propthe farmer and the country erty with a consequent boost in export returns. Another diversion of funds from reinvestment on farms was land tax.

Money which was diverted in these ways could be a very potent force in maintaining and increasing production, said Mr Wright If put to

better use it would be returned to the Government many times over In increased tax on income and overseas receipts. Noting that the targets committee of the Agricultural Development Conference had expressed the view that stock increases would fall short of the tentative target of 111 m ewe equivalents required by 1972-73, Mr Wright said it was fairly obvious that the most effective means of promoting the desired increase would be through Increased returns to the farmer, making it possible for him to undertake development with confidence.