Farm aid delay?

Press, 13 November 1985, Page 2

Farm aid delay?

By

HUGH STRINGLEMAN,

farm editor The release of a package of help for farmers in financial difficulties might be deferred beyond the end of this month, said the Prime Minister, Mr Lange, at Lincoln College yesterday. Assistance must be provided in the context of economic reality, he told the opening session of the fifth world congress of young farmers, which is taking place in and about Christchurch this week.

“I am reluctantly realising that not all our farmers are going to survive this transition process,” Mr Lange said.

“Inevitably, less competent will fall by the wayside.”

Immediate factors such as the high New Zealand dollar and high interest rates were exacerbating the pressures on farmers of the adjustment, process. The Goverhment was well aware of these short-term problems and was working on a package of assistance. However, the main reason for deferring the package to the end of the month or longer was that the Government did not intend to implement short-term measures which, if change did not occur in other areas of the economy, would land farmers in a similarly bad

position at this time next year. “We must have time to address those distortions within and outside the farm sector that if removed now, would have a more permanent effect on long-term viability,” Mr Lange said. The impending announcement should not be anticipated as a panacea for the almost daily news media reports of farmers in trouble.

Farmers were not telling him that they wanted a return to the old subsidy system, Mr Lange said. Two strong themes in the Prime Minister’s speech to international young farmers were the growing trade barriers and the opportunities for agricultural technology transfers to Third World countries.

“Agricultural exporting countries must tackle the protectionism problem head on,” he told delegates. “Export subsidies and the surpluses they create lead to a badly distorted international market and have disastrous effects upon developing countries.” He also encouraged young farmers in developed countries such as New Zealand to promote self-reliance and sustainable development in Third World agriculture. The Mayor of Christchurch, Sir Hamish Hay,

opened the conference and welcomed the overseas delegates to New Zealand. The conference split into two during the afternoon. Third World delegates visited a Tai Tapu dairy farm and a Weedons milking goat herd. Others visited a mixed, irrigated cropping, deer and dairy farm at Bankside and then a goat breeding unit at Templeton.