Farmers ’face money crisis’

Press, 21 February 1978, Page 11

Farmers ’face money crisis’

PA Wellington The primary product ex-| port industry faces a liquidity crisis, according to the president of Federated; Farmers (Mr A. F. Wright).l Profitability was falling: rapidly because of dramatic-> ally increased costs, and droughts in some areas were compounding the problem, be I said. The federation’s Dominion i council had debated the in-j dustry’s financial state and it was advising farmers to urgently reassess their tax liability for the year. With lower incomes, fanners would pay excess tax unless they re-estimated their earnings. Mr Wright said the federa-i tion was alarmed about a re-1

jport front the Stock and Station Agents’ Association that lit might have to curtail ad- . vances to farmers because of its own liquidity situation “Stock agents have tradlftionally extended credit to (farmers shortly before their .main farm receipts come to i hand. If there is any reduc- ' tion in these credit advance* iat this time, many farmers (will be financial! v emjbarrassed.” Mr Wright said. i The Dominion council was (concerned that the Government’s recent measures had ■ not been directed towards making more finances available to primary industry, in- : eluding the servicing sector, ; which it appeared was starving for working capita). The I council w-ould take up the i matter with the Government I urgently, he said.