LICENSING OF WHEAT GROWERS

Dominion, Volume 34, Issue 139, 8 March 1941, Page 8

LICENSING OF WHEAT GROWERS

Australia Meets A Crisis

Australia is one of the leading wheat exporting countries of the world and has been accustomed to growing some 200,000.000 bushels annually, of wliich about three quarters is exported. With wheat stocks piled high in Canada, Argentina, and in the United States and with a greater part of Europe eut off from the importation of wheat, wheatgrowers the world over face a problem of extreme difficulty. Australia, being the most distant wheat shipper, naturally was in the most difficult position at this period of shipping shortage and so to meet the crisis the Australian Federal Government has had to take quite drastic steps. The two principle features of Australia’s wheat policy are a guaranteed price to growers coupled with licensing to maintain control of -the area grown. “No person who is not a wheatgrower shall sow or harvest any wheat for grain after September 30, 1941.” The scheme has not been implemented immediately, as drought had so reduced the Australian crop that no immediate problem in its disposal was faced. All growers must now apply for licences and registration if they wish to grow wheat in the coming season. When all applications are in growers will be advised of the acreage they are permitted to sow. In making application growers are to ask for a basic acreage, which may or may not be granted. In supreme control of the whole Australian wheat industry will be a Wheat Industry Stabilization Board of three members. Apparently a wheatgrower is defined as one who has grown crops for harvest at some time during the past three years. To the date of the latest information, wheatgrowers have been advised that they would be safe “in preparing to sow normal areas representing their average sowings of previous seasons,” but it is made clear that there is no guarantee given that they will be permitted finally to sow such acreages. And- even though a given acreage be licensed, growers are still under control in that they may be instructed to harvest a percentage of their crops as hay. A well-informed opinion in Australia suggests that this idea is at the back of the encouragement given growers to sow a normal area-—that such an order will be made and thereby reserves of fodder will be created as a stand-by against, drought conditions. The price guaranteed, 3/10 a bushel, is reasonable, and would in New Zealand be comparable with, say, lid. a lb. for wool or 1/3 for butterfat. This is based on a comparison of the 3/10 with past seasons’ wheat prices to Australian growers. .Should the wheat' realize above the guaranteed price, then any excess would be shared on a 50-50 basis by the grower and the Commonwealth. Finance will be provided by the Commonwealth Bank.