Mr Pryde on farm aid

Press, Volume CXV, Issue 33774, 21 February 1975, Page 10

Mr Pryde on farm aid

“At a time when the nation needs a building up of its livestock numbers the question may well be asked as to the propriety of a grant on the disposal of animals,” says Mr J. G, Pryde, general secretary of Federated Farmers of New Zealand, in an analysis of some aspects of the Government’s measures in aid of the farming industry.

Mr Pryde’s observations are published in the federation’s newspaper, “Straight Furrow.”

He quoted the Prime Minister, Mr Rowling, who at the end of his address announcing the Government’s package, said “. ■. . there is the disturbing stagnation in stock numbers. There is still enormous scope for improvement in the total carrying capacity -f New Zealand farmland. It may be that uncertainty of future returns has reduced exploitation of this potential. If so, effective stabilisation should eliminate that source of risk.” Mr Pryde said that before the Government announced its package, 10 leading economists had made a number of recommendations as to what should be done — including a livestock maintenance grant. “Many farmers may not agree with Mr Rowling’s contention, but at a time when the nation needs a building up of its livestock numbers, the question may

well be asked as to the propriety of a grant on the disposal of animals,” he said.

Subsequent discussions on the Government’s measures had centred mainly on the adequacy of the total amount, whether the industries servicing agriculture would benefit, and whether farmer confidence would be restored. In an open, letter to the people of New Zealand during January, 10 leading economists had stated that in thei’ view the industry needed a short-term injection of funds of the order of sloom to slsom. “Government’s proposals fall considerably short of this suggested target,” said Mr Pryde. “In the light of the fall in net farm incomes over the 1973-75 period, from about ssoom to s3oom, it may be wondered whether Government’s assistance of about ssom will indeed be adequate — especially as there has also been a massive increase in farm costs during the same period.”

He said that to all farmers and those involved in agricultural policy, the measures announced by the Prime Minister were of special importance. With the minimum prices for meat and wool to be continued to the end of the 1975-76 season, farmers were assured of at least a certain—though inadequate — return for lamb and wool over the next two seasons. Maintenance by Government of the ex-factory price of superphosphate until the end of the 1975-76 season would enable farmers to budget on the basis of a stated price for one of the major farm inputs. “This superphosphate price stabilisation policy is something that Federated Farmers has been striving for ov?r many years,” said Mr Pryde. “The federation has always been seeking an assurance from Government that the price of fertiliser would be stabilised to give farmers confidence to plan ahead, and to be able to budget for at least two seasons ahead. This policy has become of even greater

significance in the light of the drastic increases in the) world raw material prices for fertiliser. “Will the additional: fertiliser grant encourage! farmers in the remaining | months of this season to decide to apply it in suf-! ficient quantity to be of! value?” he asked. “Manv of us were of the view that it would have! been wiser for Government to have told farmers that they could have an initial amount of fertiliser free of charge. This would have been a more cogent persuader than the measure announced by the Prime Minister.”

However, it might well be that Government’s decision would have the -ight effect and that the fertiliser--“adin' 'ndustri°'-

spreading industries would be provided with sorely needed work in the months ahead.

Mr Pryde said that a final factor which could tip the scales in favour of renewed activity in the fertiliser field was the Prime Minister’s announcement that Government had decided that all of the special $5OOO loans available from the Rural Banking and Finance Coloration would be free of interest until January 1, 1977, and that all capital repayments would be sus-j pended until at least July 1, | 1977.

“Early reports received at Dominion office indicate that these two measures could have the effect of making the loans appeal to a. much greater number of farmers, and (in turn) servicing industries such as the fertiliser-spreaders and aerial topdressers should benefit.

“Up to the end of 1974, I understand that only about 500 farmers had evinced interest in these special loans,” he said.

“I would expect that in the months ahead a far greater number of farmers wil be applying for this special financial assistance. “Mr Rowling said that there had been a disturbing escalation in the costs of transporting and processing produce once it left the farm gate and costs in this sector were taking an increasing bite out of the net return to the farmer. More efficient transportation and processing might well be the key to the long run profitability of the industry, and the rationalisation of these steps to the final sale of the product should be accorded the highest oriority. “Many farmers are asking us what is meant by ‘rationalisation.’ I hope the Prime Minister will explain,” said Mr Pryde.