Widespread economic concern among farmers

Press, 20 September 1985, Page 12

Widespread economic concern among farmers

PA Masterton Three years ago Carterton farmer, Lindsay Cairns, ran 2500 ewes on his farm. Today only a pet lamb remains on the property. Mr Cairns said he decided to move out of sheep because of gloomy forecasts for the sheep meat industry, he now fattens 500 bulls and runs about 275 goats. He sees the change as a case of survival. Mr Cairns’ position as secretary of Federated Farmers’ Carterton/Greytown branch and his own situation prompted him to run a survey on more than 20 farmers in his area to find out their views on farming today. Over the past month, Mr Cairns visited or phoned the farmers in his survey and asked them what they thought of the economic situation, whether they were employing people and how they felt about their national organisation, Federated Farmers. Without exception, all the farmers surveyed were con-

cerned about the economic situation.

Mr Cairns said three groups of roughly equal sizes emerged from the survey.

The first third were in a strong financial position and seemed able to wait out the difficult economic period by cutting down on some maintenance round the farm. The second third would survive in the short to medium term and were waiting to see if there would be any changes in the economy. The last group wouldn’t be able to balance the books if things get worse. Mr Cairns said many of this last group were wondering whether to sell. He thought some would take the money and leave if they saw a way out of their financial problems. None of those surveyed was thinking of going into diversification this season — just too expensive, said Mr Cairns. Farmers were, shellshocked. Some found it hard to believe lamb prices could really drop by about

$lO this coming season. He said they were frustrated too. They felt their voices were not being heard and wanted a more assertive stance from the federation. Most felt farming leaders had been too accommodating to Government policies which had hurt the farming community. One farmer said his view and that of others was that the federation was naive to try and lead the country and the world into a free market. “They were irritated that the federation could stand by and let even one of their members go to the wall,” he said. On-farm employment had dropped in the last three months. In May, eight of the farmers employed 10. people, now seven employed seven. Interest rates were a big issue. One bank manager estimated it would take the average farmer his first 450 lambs to pay the overdraft interest — an estimate cal-

culated on last year’s schedule prices. If lamb prices did drop $lO, as predicted by Federated Farmers, it would take the first 900 lambs to pay the same bill. Farmers also felt politicians were unconcerned with their plight. All farmers surveyed were strong in their support for live sheep exports. They said if they were forced into a free market situation they wanted it to be a totally free market. Mr Cairns said farmers were very frustrated by news of jumps in state service pay from the Higher Salaries Commission and by advice from big stock and station firms that farmers must tighten their belts. Farmers did not see why they should take a 30 per cent cut in their incomes while others took a 30 per cent increase, he said. Mr Cairns said he thought farmers were not yet ready to take to the streets in protest. But he said it was another six months until the financial crunch really hit home.