Subsidy change effects

Press, Volume CXIII, Issue 33276, 13 July 1973, Page 9

Subsidy change effects

Farmers who buy large quantities of fertiliser will receive considerably lower subsidy payments as a result of the changes made in the Budget last month, but for farmers taking up to about 30 tonnes the difference will be quite small. Mr Rowling announced in his Budget that the price subsidy of $7.50 per ton would in future apply to only the first 30 tons a year bought by each farmer. Smaller farmers would thus continue to receive the same fertiliser subsidy as in the past, he said. Mr Rowling said that fertiliser transport assistance would be reduced from 9c a ton mile to 7c for distances under 20 miles, from 7c to 6c for any part of a journey between 20 and 100 miles, and from 4c to 3c for any part over 100 miles. A look at some calculations of new subsidy payments, including both the fertiliser and freight subsidies, shows that a farmer taking 30 tonnes who is five miles from the works will receive only $3 less, at 20 miles only $l2 less, at 80 miles $3O less, at 100 miles $36 less, and at 250 miles $Bl less. But take the case of the farmer who buys 200 tonnes If he is five miles from the works his subsidy is cut by $1295, at 20 miles it is $1355 lower, at 80 miles

down by $1475, at 100 miles lower by $1515. and at 250 miles down by $lBl5. However, in practice, the number of farmers who will suffer big cuts in their subsidies may not be so great, for it is understood that the average weight of fertiliser

taken by customers of the Hornby works of Kemp thorne Prosser and Com pany, Ltd. is about 27 tons. The following table gives a comparison of fertiliser and freight subsidy payments before and after the Budget:

Miles ex Tonnes Total on Total on works old rate new rate 10 79.50 78.50 30 238.50 235.50 5 .. 60 477.00 246.00 100 795.00 260.00 200 1590.00 295.00 10 93.00 89.00 30 279.00 267.00 20 60' 558.00 309.00 100 930.00 365.00 200 1860.00 505.00 10 135.00 125.00 30 405.00 375.00 80 . . 60 810.00 525.00 100 1350.00 725.00 200 2700.00 1225.00 10 149.00 137.00 30 447.00 411.00 100 60 894.00 597.00 100 1490.00 845.00 200 2980.00 1465.00 10 209.00 182,00 30 627.00 546.00 250 .. 60 1254.00 867.00 100 2090.00 1295.00 200 4180.00 ST *“■*•**■**** 2365.00