FARMERS' BURDEN

Evening Post, Volume CII, Issue 138, 8 December 1921, Page 6

FARMERS' BURDEN

LOW PRICE, HIGH MORTGAGE

REDUCTION IN AMOUNT URGED

DEPUTATION TO PRIME MINISTER.

. Emphasising the fact that a large percentage of the farmers are at present in financial difficulties, a deputation from the Dairy Farmers' Union waited on the Prime Minister this morning with proposals embodying the reduction, where necessary, of mortgages and of the rate of interest. The Prime Minister, while refusing to admit that the deputation was right in its ; statement that "scores of farmers have left their farms," said the problem was an extraordinarily difficult one, concerning which he would have to consult his colleagues^ The deputation suggested that a Commission should be appointed to investigate the position, but Mr. Massey indicated that he did not think this necessary. He was prepared, however, to give the services of an experienced officer to assist in bringing about an agreement in cases where the mortgagee and the mortgagor were willing to negotiate in the manner suggested by the speakers. Mr. A. E. Fear, of Te Awamutu, said a large percentage of the dairy farmers were at present in financial difficulties, and in scores of cases had left their farms. The Prime Minister said that was a serious statement to make, and he would like to know where these men were. Mr. Fear : "They are in my own district." Mr. Massey : ''Can you give me their,, names?" Mr. Fear replied that he could, but he would have to get their permission first. Mr. Massey eaid that nothing of the' kind waß happening in his own district. COMMISSION SUGGESTED. Mr. Fear said that for these men to cease producing and the land to fall back into the hands of the, mortgagee/ who would not farm the land, would be detrimental to both the" .individual and the State. To obviate this trouble the union recommended that a. Commission should be eet up representing the Government, the mortgagee, and the mortgagor, and arrangements made where the mortgage was -unusually high, brought about by land speculation and in many cases unpaid principal or purchase money, that the mortgagee should reduce the amount of his mortgage and also the rate of interest to what a farmer could reasonably pay. It was further suggested that where a farmer was holding more land than he could farm after the mortgages were readjusted, he should divide the farm in two or more parts, and lease with a compulsory purchasing, clause to the incoming tenant, the mortgagee to divide the mortgage in equal parts. Legislation was sought to give the Government power as the third party to settle any disputes, and it was suggested that the necessary surveys and transfers should be conducted by State Departments at the lowest possible cost. Incoming men, where subdivisions took place, it' was suggested, should receive an; advance from the State up to £300 on a pound-for-pound basis at current rates of inSPECIAL VALUATION. Mr. T. C. Grace, of Pirongia, said if these proposals were not acceptable, the union had an alternative. This was that a Commission should be set up to investigate all post-war second and subsequent mortgages, with a view to advising the Government to enact legislation so that, in all cases. where the total value of existing mortgages on the property excee3ed"9O per cent, of the average cash selling value during the year 1919, the Commission might request all the parties concerned to attend \and • show reason why the amount should not be reduced to that level. Further, it was suggested that there should be made a> special valuation of all agricultural land, basing the new value on productive capability and proximity to commercial facilities. This alternative .also provided for subleasing, and then proposed the regulation of the sale and purchase of all agricultural land to a posiTive / productive and facilities'value based on the farm's returns for "the year previous to the special valuation; the price per acre not to exceed a sum equal to 5 per cent, of the gross earnings fortho year previous' to the special valuation. He said there were many mortgagees willing to reduce the amount 'of the mortgages. BUT WHAT FIVE YEARS HENCE? The Prime' Minister said that, like the deputation, he was anxious to increase production, as that was the best way to lighten the burden. He understood the difficulties of many farmers who Jiadi come in dnirdng the time when valuations were high. The Jaw, of course, provided a way out if a man was unable to carry the burden' he. had voluntarily undertaken, and many a man had taken advantage of the law, and recovered his position 'again after, years of industry. From what the deputation had said;,he gathered it wished a commission to fix the value .of the land of* farmers in difficulties, reduce the amount of the mortgage, reduce the rate of interest, arid- give the man a fresh start.- That looked very fine-just now, but what would the deputation do in, say, five years or less, when values, returned to normal ? When that happened the mortgagee might come along andi ■ say hia values had been reduced when things were bad, part of his money' had been confiscated, and what is the,' Government going to do about it now? Was the Government to reverse the position in five years for the benefit of the mortgagee? If he could see that a commission would do any good the deputation would be welcome to it. He would go into the matter, for if there was anything the Government could' do to assist industrial people it would be done..' Tha^, fact was emphasised by what had happened as a result of the increase in the. amount of exemption from land tax grant/ed in respect to mortgages. No less than 5000 small farmers had secured exemption by this means. . ' • , After. furthei discussion, in which, it was. again\ •emphasised' that many mortgagees were filling to reduce mortgages, the Prime Minister said that if he could send along a good officer to assist in bringing the parties to an agreement, he would be glad to do ao.