Farmers Express Concern At Economic Situation

Press, Volume CIX, Issue 32232, 26 February 1970, Page 8

Farmers Express Concern At Economic Situation

A suggestion t h a 1 farmers might soon have . . 1 .... . e a mutant attitude on the mcreasing difficulties of farm economics was made at _ __ A.£*a«. ktah4 k a meeting of the North Canterbury provincial executive of Federated f—«" w>«*w. The suggestion was made after Mr B H. Palmer had said there was some confusion in the minds of a large numher of. farmers on how to go about getting relief in the way of subsidies for cartage of stock and hay or any other form. The critical thing was farm

1 liquidity, said Mr Palmer, J„ h . e ®?“'’^ l * 1 ul n ?l it y i V_ ons .„?A? 'not seem to be in tune with W h at was required and the action needed to get money fr o m , the F el, e f fund w “» ®" n '!, cwTeci wJiicn put iminy i&rmeis off even ap piy ln g. The chairman (Mr W. N. Dunlop) laid he knew that ~U". on drought relief was worktag and, as had already been announced, the necessary advice for farmers would be available in a few weeks, The only short-term advice that he could give was that the executive try to meet the State Advances representstives and discuss the problem.

Mr R. H. Bedford said he believed the situation was so serious that the working parties of the Agricultural Development Council should be reconvened. Third Drought Seaaon “We are now entering the third season of drought in I many areas. I can't see how men can go on borrowing money, If we have got to thesituation where we have to borrow money under mort-| gage to pay current accounts It is time we had a look at things,” said Mr Bedford. "t believe we have come to] the day when we have to ask for subsidies whether we like it or not. “There has already been a reported drop in the number of sheep in Canterbury. The next census figures will frighten a lot of people. Some farmers are down a 1000 head.” The vice-chairman (Mr A. F. Wright) said he agreed with Mr Bedford when he said that projections made by the Agricultural Development Council two years ago bore] no relation to the present situation. “It is quite obvious that] there are many farmers in this area who haven’t a hope of making ends meet because of rising costs, let alone with the drought on top,” said Mt Wright. He said he was rather surprised to hear Mr Bedford’s i remark about subsidies and a| guaranteed price for wool which had been contrary to what he (Mr Bedford) thought] at one time. Mr Bedford said that two* years ago he believed that the] drop in wool prices was only; temporary and that the price l would rise, but it had not. It was even lower than it was then. “It is difficult to have confidence when you can’t see

any sign of improvement,” he ' said. Mr A. L. Mulholland said' Ihe agreed that the working/ parties should be reconvened.: lit was ludicrous that figures/ I two years old should be used I today. Militancy Urged I He said that over the years farmers had never acted in a militant fashion but that: the time to do so might be i near. I Mr A. C. Richards said the ! discussion was “sweet music ; to my ears” as the whole of the farming economy was in jsucb a mess no-one knew where they were. He was getting back to the stage where he had to go back to doing physical work that he had had to do 30 years ago, simply to make ends meet. “We have to tackle the problem militantly, not just sit and talk about it," he said. Mr Palmer gave some figures from a survey being done by the meat and wool section, He used as an example the average figures from 80 breeding and fattening farms worth $lOO,OOO in 1967/68. If the farm was SO per cent in debt and after he paid ' the costs on this and the ruling rate of seven per cent interest, the farmer's net reiturn would be $2400. From /this had to be paid the prini cipal on the mortgage, living. II costs and plant replacement! I costs. i A farm was still a good eni terprise for the lending concerns or if a farmer wanted; II to sell after his valuation had: ( increased, said Mr Palmer. The executive passed a mo- !! tion that in view of the changi ing circumstances the worki ing patties of the Agricultural Development Council should be reconvened to re-examine t the economics of farming.