Minister’s views on pastoral farming

Press, 15 November 1984, Page 3

Minister’s views on pastoral farming

By

OLIVER RIDDELL

in Wellington The viability of pastoral farming must rest on marketing and not on subsidies, the Minister of Agriculture, Mr Moyle, has told Federated Farmers. He told the federation’s Dominion Council that the Government was “absolutely committed” to restoring the strength and viability of pastoral fanning. The Government recognised the vital importance of the hill-country sheep industry to the main export areas of meat and wool, he said.

Necessary readjustments signalled in the Budget would take effect largely next year and in 1986, and not this year, Mr Moyle said.

The only immediate effect was the removal of the transport subsidy on fertiliser.

This was not merely a saving of Government exSnditure, he said. It would jus attention more, sharply on the economies of applying high-analysis fertiliser, and was part of the Government’s moves to en-

sure that the fertiliser industry best served the interests of farmers. Further moves on fertilisers would be announced soon, he said.

Mr Moyle said the interest in rural transport charges as a result of changes in road-user charges would be about 3.5 per cent, and this would occur from February next year. The price of diesel had not been increased. This was a much more important factor in farm ana rural transport costs, he said. Rural bank interest rates would gradually come into line with market rates, but this process would take about three years, Mr Moyle said.

In the meantime, the Government had provided substantially more funds for the Rural Bank to help some debt restructuring to improve the short-term viability of competent farmers who might be facing difficulties. Pastoral farmers were getting about 30 per cent more for their wool and beef than six months ago,

and the improvements in sheepmeat marketing now being put into place should result in worth-while increases in incomes next year and in the future. Mr Moyle made a commitment to the federation that the Government would resume farm settlement as soon as economic viability could be re-established for. newly settled farfiiers. In the short term, young farmers with minimum deposits could find the next year extremely difficult, he said. “We would honestly be doing them a disservice to let them get into such a situation,” he said.

“Young farmers would be well advised to delay for a year and take advantage of the easing land prices. By then, new marketing initiatives should also bring about an improvement in export prices.” The Government was committed to a balanced phasing-down of help to both agriculture and manufacturing, Mr Moyle said. He promised to watch this situation with care and attention.