VALUE OF FARM LANDS

Dominion, Volume 16, Issue 153, 16 March 1923, Page 9

VALUE OF FARM LANDS

Sir,—I have read with interest your correspondent’s refutation of M r - Beauchamp’ s sweeping statements that no land is worth more than £4O per acre, for farming purposes m New Zealand. Now, we have before us two points of view to study, Mr. Beauchamp's and Air. Newman a Ai itll Air. Newman’s letter in front of us let us endeavour to look at Air. Newman s figures through Air. Beauchamp s_ eyes. ''Before doing so let us agree concerning the value of land, viz., that land for farming purposes is valued according to its producing qualities.and proximity to a market. This is quite a wide statement, inasmuch as there is a long range of farming, i.e., from the extensive to the intensive, and according to tho nature of the farming proposed' to be carried on so is the value of the farm to the farmer. Naturally, a man would not propose to milk on" laud suitable only for grazing, but, or. the other hand, -what was at one time grazing land has in many cases becn__turned into, dairy farms, and successfully so. In this case the value of the farm has increased, because the change in the method of farming has rendered it productive of greater value. The advent of homo separation has certainly been a factor in the increased value of land situated at some dis. tance from a railway station or port. AVe must mind that oile m..n with better farming methods and better application will succeed and make a profit whore another may fail, and further, that by a more intensive stvlo of farming, one man will produce more butterfat from a farm that another who is content with a lesser ■ return. Then again, this is a new country and most of our dairy farms have not been brought into tho highest, state of fertility, and remarks similar to these might bo made on our herds: some are bred to produce more butter-fat than others.

AVe will dismiss from our argument the very intensive form of farming, viz., market gardening, such as is carried on at Pukekohe. near Auckland, in the growing of early potatoes, etc., and deal with dairy and sheep land for which your correspondent gives figures. Now, Air. Beauchamp is essentially a business man, and he expects a farm to be run on business lines, and. at th-s end of each year, to show to the owner such a profit that will, allow bank rate of interest on the capital invested, write off depreciation, and place something to reserve fund, and leave a fair remuneration to the farmer for his labour and management of his farm, and surely this should be worth at least labourer’s wages. If a farm does not return such a profit as I have mentioned tho owner would surely be better .off to invest his capital and go and earn wharf labourer’s wages by handling the produce of those who arc content to produce at low wages. Tn the case of a man who is dealing with unimproved land his profit, cannot be shown in cash, but -will be. shown » , yearly increasing value of his farm as represented by increasing producing power. Mr. Beauchamp, however, is dealing with the farm when it has been brought to its highest- producing value, and, he says, no such land is worth more than £4O, i.e.. will not, at tho end of each year, show a good sound business profit and loss account under present conditions. Air. Newman is looking at a particular farm, and, like many farmers, makes a general statement as to th<? profit that is. being made off it without analysing the cost of production Now, I would ask Air. Newman-to follow my figures concerning this particular farm of 51 acres which he quotes as producing 90001 b. of butter-fat. which represents 3001 b. of butter-fat per cow. The gross return per annum we put down as under: — \ £ 90001 b. butterfat at Is. Gd. ... 675 Pigs and calves, , say, 125 Total ..'£Boo From this we must deduct the cost of, production made us as follows:— Capital Value of Farm. £ 51 acres at £l6O 5100 Stock 800 Milking plant 200 Implements, cart, etc 200 £6300 '£ Interest on £6300 at G per cent ... 378 Rates, insurance and taxes, say, 35 Topdressing 50 Loss and depreciation 100 ■ General axpenses 50 £613 Leaving to the owner for his management, labour and risk £lB7 Now. with this balance sheet before one, who is going to give £lOO per acre for this particular farm ? Certainly not a man who proposes to run his farm as he would his business, and it is essential to the progress of the farming industry in particular, and to tho dairy prosperity in general, that a- farmer must bo adequately paid for his thought, knowledge and labour. It would make this letter too long to deal similarly with tho sheep figures given. 1 would close with this remark, that the producer, has every right to •hope to run his farm on business lines in the same manner as those merchants and other middlemen who don’t produce, but simply handle tho farmer’s produce and his requirements. Surely the producer, if ho cannot wt tho -samo social advantages is entitled to, nt least, tho same profit. If he pays too much for his land he certainly cannot hono to bo so rewarded.—l am etc F. G. WYNYARD. ” Te Awamutu, March 14. 1923.