Scientist argues for high country production boost

Press, 9 March 1984, Page 20

Scientist argues for high country production boost

In the national interest a good case could be made for incentives for increased production to be linked to freeholding of high country pastoral leases, the regional director of research at Invermay, Dr Jock Allison, told the Tara Hills field day last week. In a deliberately provocative speech to conclude the annual high country field day, held on the Tara Hills Research Station of the M.A.F. at Omarama, Dr Allison referred back to the Clayton Committee report, published in 1982. As had been recognised by the Clayton Committee, and demonstrated again at the Tara Hills field day, production from the high country could be increased by four or more times, said Dr Allison. Only a small proportion of that potential had to be realised to make a significant increase in the national export income. “The national economy is vitally dependent on the production from these lands,” Dr Allison said, quoting from the Clayton report. “But not only in justice to other Crown leases, but in the national interest, rents must on renewal be adjusted to a realistic level,” the report said.

Dr Allison then went on to say that rents for pastoral runs were at present very low. “They averaged $468 per run, or 5.24 cents per stock unit — hardly a thick bill for the runholders (p stomach,” he said. He then drew attention to the section of the Clayton report which talked about scope for engrafting some sort of development incentives into the terms and conditions of making finance available for purchase.

“Furthermore the unusual potential of this land might justify some such development incentive even ahead of the same being available to farmers across the board,” he quoted from the report. Dr Allison then said that unfortunately the Land Settlement Board had decided not to take up those suggestions of production-

based incentives for freeholding. But the Minister of Lands, Mr Elworthy, said following Dr Allison’s speech that the Land Settlement Board had not rejected that concept of production-based incentives to freeholding. It had difficulties, he said, in that concessions could equally well be extended to farmers with renewable leases who would like to freehold and where the national interest was also well served by increasing production. “I am worried that such an idea would isolate one part of the Crown lease system,” said Mr Elworthy.

“I don’t think we can handle the issue of increased production and incentives on the basis of pastoral lessees only.

“Also the community at large takes a pride in the joint ownership of Crown lease areas in the high country and there would be an understandable and justifiable reaction from people who do not want these lands sold.

“The Land Settlement Board still has to make the fundamental decisions on terms of settlement and concessions on payment. “Quite a number of leases

come up for renewal this year. “An early decision has to be made or perhaps the leases will have to be rolled over until a decision is made,” said Mr Elworthy. In exartiining what he called the “public interest in increased production from the high country,” Dr Allison said that the 370 pastoral leases had an average land exclusive of improvements (1.e.i.) valuation of $400,000, and the average stocking level was 8900, or 1.2 per hectare. “The rents are not worth collecting at present,” he said. He then examined an ex-

ample where the average run was lent $300,000 on concessional terms to go into an improved development programme at the same time as having a freehold option. It was assumed that for every $lOO spent, the run would put on an extra stock unit, worth $2O in income to the fanner and $3O export income to the nation.

An 1.e.i.-based rental of 2 per cent would be $BOOO per year on the average run, he said.

But the extra production would be worth $60,000 to the farmer and $90,000 to the country. “I say the national interest is in getting more production screwed out of these lands,” he said.

“We can have most of the protection of the high country areas which are important to the conservationists and recreationists and still have a whole lot of extra production.

“An increase of 3000 stock units is an increase of only 33 per cent of the average run and is therefore entirely achievable on many places.” At the beginning of the field day the scientist in charge of Tara Hills, Mr Malcolm Douglas, had ex-

plained that the research station carried the average number of stock units, something over 8000, but on only 3300 hectares compared with 11,000 ha average run size. Only about 6 per cent of Tara Hills had not been developed in some way. But only 20 per cent of the total improveable high country in the South Island had been improved, despite the rapid increase in the past few years. The Agricultural Research Division of the M.A.F. believed the three million hectares of high country had a huge potential and were, in agricultural terms largely unused at present. On the same theme, Dr Allison, who as head of Invermay also has over-all control of Tara Hills, revealed, the cost of the field day as $55,000. This revelation was greeted by ■gasps of surprise among the more than 1000 people who attended the event. But he maintained that it was money well spent if only one run increased stock numbers by 3000 units. He appealed to farmers to take home the big information folders they were given and read and act on the advice therein.