Real gross farm income plunges
The gross farming income of Canterbury and Marlborough will fall by more than $260 million in real terms during the three years from 1984-85 to 1986-87, according to figures produced by the Opposition spokesman on provincial issues, Mr Tony Friedlander. He has calculated that gross farming income from sheep and beef and dairy in the two provinces was $791 million in 1984-85 and will be $528 million (in 1984-85 dollars) during the farming financial year to June 30, 1987. Mr Friedlander’s figures assume 25 per cent inflation during the period of comparison. But although his figures are corrected for inflation, they do not include other primary industries, such as forestry, horticulture and arable farming. So the figures cannot give a complete picture of gross farm income for a region such as Canterbury and Marlborough. Nor has he yet included a multiplier,
commonly 2J> to 3, for a calculation of the flow-on effects into the rural community of such a drop in farm income. “The figures are graphic evidence of the decline in spending in rural areas, leading to a collapse in provincial economies,” he said. Nationally sheep, beef and dairy incomes have dropped at least $1.5 billion in real terms from 1984-85 to 1986-87, he said.
The information was supplied by the Meat and Wool Board’s Economic Service and the Dairy Board.
On the dairy side the Opposition Research Unit took an average payout during 1984-85 of $3.82 a kilogram of milkfat and a projected payout this season of $3.30, although production is estimated to be down 13 per cent. In real terms the gross income this year will be only 66 per cent of 198485, said Mr Friedlander. “It is why thousands of people are being laid off
and why many businesses are closing down in every part of the country. “Failure by the Government to do anything with this knowledge before them and knowing the exciting potential which should be in front of the regions would border on the criminal.
“You simply cannot savage the agricultural sector as this Government has done and expect to get away scott free,” he said.
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Press, 10 April 1987, Page 11
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358Real gross farm income plunges Press, 10 April 1987, Page 11
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