Farming outlook still bleak

Press, 29 December 1988, Page 3

Farming outlook still bleak

PA Wellington A continuing downturn in farm production in 1989 will have serious implications for the economy, the Meat and Wool Boards’ Economic Service director, Neil Taylor says. Releasing the service’s 1986-1987 survey of sheep and beef farms and an income and expenditure analysis for 1988-89, Dr Taylor said positive factors in agriculture were masked by more serious problems in the industry. “Nationally sheep and beef units are now down to the levels of 15 years ago, and likely to go lower,” he said yesterday. “National wool production this year will be the lowest in more than 10 years and the lamb crop likewise.

“Beef production is likely to be 12 per cent lower than last year, with lamb 9 per cent lower and wool 3 per cent,” Dr Taylor said. Gross farm income would increase 3 per cent but farm expenditure would continue to be depressed. “In real terms expenditure per stock unit remains, for the fourth year in succession, at the lowest levels since 1960-61,” Dr Taylor said.

“This situation is eroding the capital base of the industry and is clearly jeopardising future production levels.” The decline in fertiliser application particularly meant a turnaround in farmers’ fortunes would not be followed by a recovery in production for years.