'New look’needed at farming

Press, Volume CXIV, Issue 33673, 24 October 1974, Page 5

'New look’needed at farming

It is apparent that a “new look” is needed at ways in which greater stability of incomes can be built into the farm sector, according to the report. -

The maintenance of a viable farming industry must occupy a high place in any list of priorities for a New Zealand Government it says. Net farm incomes soared during 1972-73 after a period of declining real incomes,

but are now dropping again with lower export prices. Sheep farm incomes in particular are expected to fall sharply, the report said. Overseas prices for major farm exports are generally sharply down on those ruling a year ago. Lamb prices this season are expected to be much lower, reflecting the depressed conditions in the United Kingdom market. Beef is suffering from the effect of a world surplus which has led to sharply reduced prices and increased trade restrictions. Deflationary policies in the major economies are having a depressing effect on this season’s wool prices. In addition, the Wool Marketing Corporation will probably have to buy in

some wool this season, the report says. ' “To the extent that this occurs, we will have to temporarily forego the export income.” The situation is far worse for the farmer than indicated by the drop in prices alone. Inflation has pushed up the cost of killing, processing and shipping, in addition to an upsurge in on-farm costs. “The Government is concerned that excessive fluctuations in farm prices and incomes should be evened out. Success in this area will require the co-operation of the farming community in devising product price stabilisation schemes,”- the report says.