In Interests of Greater Strength

Press, Volume CVIII, Issue 31754, 10 August 1968, Page 10

In Interests of Greater Strength

Farming was a business and a business management approach to the investment return on capital and labour must be the criteria, Mr D. K. Mackenzie, of Ealing, told a conference of former Nuffield farming scholars, of which he is one, at I Palmerston North this ; week. “Too much emotionalism usually enters into discussions on size of farms,” he said in a paper on scale of farming. “Although we all concede that the family farm has played, and will continue to play, a vital role in the development of this country, this should not restrict the freedom for farming enterprise to establish or expand in whatever way conditions dictate. . . .

“With the present attitude to expansion of farming units, many farms are too small to be in a financial position to withstand declines in income that we are now experiencing, or climatic adversities,” Mr Mackenzie said.

“In recent years some districts have experienced climatic conditions which have affected sufficient farmers to warrant declaring disaster areas. This situation has become embarrassing to the Government to the point that an investigation is now being completed to establish more precise guide lines. “I believe that units have become over-capitalised in the light of present and forseeable prices, to the point that the smallest adversity puts a whole district in the category of a disaster. “The Agricultural Production Council and the Minister of Agriculture have gone to some length to explain why they cannot advise, predict or encourage what avenues of production farmers should enter or diversify into. Yet

by our restrictive land aggregation laws, the Government is hindering one method of achieving low costs of production.

“I suggest that the Minister of Lands, place less importance on the prospect of rabbit or deer farming and accept the recommendation of the working party (of the Agricultural Development Conference) on scale of farming ‘that the Government be recommended to repeal provisions of part II of the Land Settlement Promotion Act, 1952, dealing with the aggregation of land.’ “The Federated Farmers’ conference in 1967 also recommended to the Government that provisions of part II of the Act dealing with aggregation of land be reviewed . . . yet I heard the Minister say (at Rakaia) that Federated Farmers’ did not know what they are talking about.

“It appears that the future development of the country will be towards industry and although agriculture will continue to supply most of the overseas exchange earned, it can expect less consideration than in the past. Therefore I suggest, as an industry, we exert all oiur endeavours to establish economic conditions where those engaged in agriculture can expect similar wages of management and interest on capital invested as other sections of the community.”