FARMERS' WORRIES

Evening Post, Volume CI, Issue 19, 22 January 1921, Page 9

FARMERS' WORRIES

SUPER CROPS OF OATS

THE DROP IN WOOL AND PELT&

Discussing the Question of encouraging wheat growing by fixing prices, tho representative of an important firm of produce merchants remarked to The Post that farmers generally were having "v, bad run 1' just now. "With the exception of the dairymen, and to some extent the meat-producers," he said, "farmers are experiencing great difficulty in quitting this' season's products. For instance, oats are practically unsaleable. There was a surplus of 2,uC0,000 bushels last year, and owing to the splendid crops this year, there will bo a further 2,000,000 surplus — 4,000,000 bushels beyond \ normal requirements; and unless n miracle happens there is no possibility of getting rid'of this surplus. The only ray ot hope 1 can see is in the fall of overseas freights from £6 10s a ton to, say, £4, when it might be possible to unload oats on to the Home market. But the chances are that if freights drop to that extent, Home prices will fall correspondingly. New Zealand's consumption of oats has fallen tremendously of late years. To quote only one instance: A flawkes Bay concern which, five or six years ago, used to buy 20,000 sacks of oats per annum, now buys only 2000 sacks. New Zealand prices are to a large extent governed by Home prices, which in turn are chiefly affected by the American and Canadian markets. Home merchants appear to be dubious about the outlook, aoid just now absolutely decline to quote for April-May shipments. Asked whether an embargo on imports from Australia woiild have a beneficial' -effect, this gentleman said• it would affect the position very slightly, as the only oats that were brought, from Australia were mostly Algerians for aeed; hardly any white oats were imported. ■ , , "Then," he added, " there 16 barley. Last year the price was 7s a. bushel; for this season's crop the best price is 3s 9d. Cocksfoot also shows a 'big drop. Last season machine-dressed seed realised up to la 9d, and other kinds Is to Is 3d per pound. To-day I wouldn't care to give more than Is 2d for machinedressed and.4d is the best offer for the rough stuff, though I wouldn't buy even at that price. Another line which has sustained an enormous drop is .pelts. Last year we paid as high as 96s per dozen for them, but to-day they-are not a very safe proposition at 16s '6d per dozen. Further, owine to the drop in the price of wool, the fellmongers say that the, value of the' wool from shorn sheep does not pay for the cost of taking it off the pelts.-' .' ;

"So you -will see," -he concluded, " that': though the farmers have done well for the past five years, there is not much profit now in their operations. And it must riot be forgotten that tjie cost of production is higher to-day than it ever was before." ■ , ■' -