Change in fortune

Press, Volume CXII, Issue 33094, 8 December 1972, Page 10

Change in fortune

“Never has there been so complete a reversal of farming prospects than has happened in the last year,” says the issue of Pyne, Gould, Guinness Ltd’s “Annual Review,” which has just been released. “The spring of 1971 was a time of prices for wool and lamb so low that the Government, alarmed at the many signs that the sheep farming industry was running down for lack of capital to keep it moving, decided on the stock retention payments to inject cash, and it was hoped confidence, into the industry. The money from this scheme enabled many farmers to meet debts which there had seemed only poor prospects of paying, and as usual, this money circulated rapidly throughout the business community. “As a welcome change from the droughts which seemed to many to have become a standard part of Canterbury weather, the autumn of 1972 was good with rain enough to keep feed growing on well. The favourable streak did not last and the winter was amongst the worst for very many years. June was a cold, wet, miserable month with the mean minimum temperature lower than for any year since 1913, and was followed by a spring which was too dry for good growth.

“At the end of the 197172 wool season prices were showing a steady rise which gave some reason for optimism, but nobody

expected the spectacular climb wool has since made to near Korean boom levels. No doubt the big wool cheques will be welcome, but farmers remember what happened after 1951 and their joy is somewhat restrained. “Lamb also promises well and the opening schedule for this season was about double what it was for the opening last season.

“Altogether, with beef and grain reasonably profitable, the farming outlook is very good indeed for the moment. “Certainly a great many farms, which could not have continued to produce satisfactorily under the low prices, have been able to wipe off pressing debt and find enough left to invest in increasing production.”