Record rise in farmers’ costs

Press, 2 April 1980, Page 12

Record rise in farmers’ costs

PA Wellington Costs on sheep and beef farms, rose by a. record 22.4 per cent in- .the year to January, 1980, according to a survey. . . The reported • increase, which was more than double that of 1978, was contained in a paper tabled at the electoralcommittee meeting- in Wellington by the Meat and Wool Boards’ economic service. Commenting on the increase, Mr R. Davison, chief economist of the economic service, said the previous biggest jump in year-to-year costs for -farm goods and services purchased had been 18.6 per cent in 1976. In the last five years'

the compound increase in prices paid for farm inputs had. been 105.2 per cent, M,r Pavison said. More than one-third of the record . 22.4 per cent rise last year was attributed to the cost ..of fertiliser, lime, and seeds.' ' Actual prices for: this group of items rose 72.8 per cent because of the part removal of the fertiliser subsidy in the Budget and, to a lesser extent, fertiliser price increases. The next-biggest increases in order of significance were repairs and maintenance (27.2 per cent); vehicles, fuel, and power (21.1 per cent); rail and cartage (23 per cent); and wages and shearing expenses (13.9 and 15.9 per cent, respectively).