Drought aid for Kaikoura; other districts plead

Press, 23 February 1978, Page 2

Drought aid for Kaikoura; other districts plead

The Acting Minister of Agriculture (Mr Bolger) yesterday announced Government approval of assistance for farmers in the Kai-

koura district who have been badly affected by the present drought. The assistance approved is: I Refunds of up to $lO a tonne on hay or other stock feeds carted by a commercial carrier.

Refunds of cartage costs for stock feeds carried by farmers’ own vehicles, at the rate of 6c a tonne-kilometre, and for livestock cartage at 6c a tonne-kilometre, payable on their return journey only up to 160 kilometres.

Refunds of commercial freight charges on livestock cartage, payable on the return journey only, up to a limit of 160 kilometres.

Access to suspensory loans through the rural bank in cases of severe hardship.

A decision to ask for the area between the Waipara River and the Conway River in North Canterbury to be declared a drought area has been taken at a public meeting at Culverden. The chairmen and vicechairmen of the Cheviot, Amuri, Hawarden-Waikari, and Omihi branches of Federated Farmers were appointed to a committee with Ministry of Agriculture and Rural Bank representatives to negotiate for appropriate drought relief. The feeling of the meeting was that much more assistance than given under standard forms of drought relief in the past was required now, and that if only existing relief could be obtained this should be rejected. A suggested approach, which was not taken up, was that a sub-committee should first be appointed with the Ministry of Agriculture to investigate what assistance could be obtained and report back to another meeting after the outcome of a similar application had been dealt with by the Government.

The senior farm advisory officer of the Ministry of Agriculture at Rangiora (Mr G. D. Miller) said that the object of drought relief was not to compensate for expected losses in production but to enable capital stock to be maintained.

He said that the subsidy of $lO a tonne on the transport of stock feed did not amount to a great deal now, but he believed that in Wairarapa this had been increased to $25 a tonne. Mr Miller said he believed that the same areas had also sought an extension of the sibsidy on the return freight on stock sent out to grazing. This applied up to 160 km or 100 miles. Other forms of assistance included taxation relief where there was forced sale of stock (this could be obtained without the formation of a drought relief com-

fmittee) and Rural Bank 1 Loans. Mr J. J. McLean, a mem- • ber of the electoral com- • mittee of the Meat and Wool

boards, said that if they were to go into a drought relief area farmers would need a lot more money on this occasion. He said that he knew of few farmers who would be able to go out and buy many tonnes of hay and pay cash for it. He said that the Government should have stepped in much earlier on its own volition. It should have declared the area a dry one in December and secured an increased allocation of ■ killing space in the freezing works for it. Another speaker suggested that the committee should “get its teeth into the meat industry.” There were references to the extra problem that was being caused by the fact that old ewes had not yet been killed to any extent; and the meeting heard suggestions that these sheep might be shipped either overseas or to the North Island to relieve the situation. There were also suggestions that subsidies be paid on grain for feeding to stock and that there be a subsidy on stock units to help farmers in the present situation. “I do not think that many farmers will balance their books this year, let alone part out money for stock feed,” said one speaker. Another said that many farmers did not want a handout but there was a feeling that they would like some form of tax relief. Mr Miller said that farmer’s accountants could help them with amended income assessments to reduce taxation payments. Mr S. M. Wright, district appraiser of the Rural Bank, told the meeting that where farmers were unable to sustain stock increases under the livestock incentive scheme they should approach the bank, which would consider an extension of the period over which increased stock numbers should be maintained. Mr Miller said that in the Culverden area the soilmoisture level had been at wilting point since early December and there had been no significant growth since then. To get grass growth started again in any quantity, he said, there would first have to be 75mm to 100 mm of rain.

The meeting received reports from farmers of very much reduced hay crops this season — one report spoke of 7000 bales being made

where 34,000 had been fed out last season. Mr Miller warned farmers against paying high prices for hay. He said this would not indicate that their incomes were running low. When a bale of hav cost more than $1.70, barley at $lO5 per tonne w r as cheaper, and he believed that harley could be obtained even more cheaply. Hay at $2 a bale was “out of the question” and where hay was landed on the farm at $2.40 a bale, even Hilgendorf wheat, on which a premium was payable, was much cheaper.