Rise In Net Farm Income Forecast

Press, Volume CX, Issue 32396, 8 September 1970, Page 24

Rise In Net Farm Income Forecast

(New Zealand Press Association) WELLINGTON, September 7. An increase in net farming income is predicted for the coming season by the New Zealand Institute of Economic Research.

In its latest quarterly predictions the institute forecasts a rise of 9) per cent in net farming income in 197071. It has raised its estimate by 3 per cent since its last review.

“The expected over-all increase in farm output during the 1970-71 season in combination with continuing favourable meat prices, a 5 per cent increase in the price of bulk butter purchased by the Dairy Board, and the uniform subsidy on fertiliser usage announced in the Budget lead us to forecast a higher estimate of farming income for

1970-71 than previously,” the institute said. “We are now forecasting an increase from s32om last season to $359m n?xt season.” The report said that because of rising costs net farm income had not been growing as fast as gross income. During the 11 seasons between 1957-58 and 1968-69 groks income increased at an average compound rate of 3.7 per cent. Costs rose at an average rate of 5.6 per cent, while net income rose at an average rate of 1.1 per cent. The volume of farm production during the same period increased at an average annual rate of 3.4 per cent.