WHEAT AND FLOUR

Evening Post, Volume CXXI, Issue 36, 12 February 1936, Page 12

WHEAT AND FLOUR

GOVERNMENT SCHEME

OPINION OF GROWERS

INCREASED ACREAGE

The view that the increased return to the grower resulting from the Government's wheat and flour stabilisation scheme would bring about a solid improvement in the status of the wheatgrowing industry and would encourage an increased wheat acreage, was expressed by the chairman of the United Wheatgrowers (N.Z.), Mr. H. F. Nicholl, in a statement. "The points that wheatgrowers will be considering are the price we will receive for our wheat, the increased cost of growing it, and the security of the protection of the wheat industry," said Mr. Nicholl. "The extent of the increase in price will be dependent upon two factors; firstly, whether in any year it should be found necessary to export wheat, in which event world prices would have to be accepted for the export surplus, and as in 1933, the price so obtained would go to the credit or debit of the growers' account. Secondly, upon the balance obtained from the bran and pollard equalisation fund; since that scheme came into being in 1933 there has always been a credit balance to be transferred to growers' account, and this, although th» price of New Zealand bran and pollard has always been kept below the price! at which Australian bran and pollard could be landed duty and primage free. Bran and pollard prices under this scheme will not be increased beyond today's quotations, despite the fact that today's Australian quotations warrant a substantial rise in New Zealand. The Minister has made it plain that there will be no increase, and wheatgrowers will realise the wisdom of checking the upward trend of the cost of bran and pollard for the benefit of the poultrykeeper. "This season growers will benefit by the elimination of their contribution to the North Island flour subsidy, which last year cost them about 2£d per bushel over the whole crop. "The increased cost of growing wheat depends upon so many factors that cannot be determined over a period that it is impossible to decide to what extent the increased price to be paid to the wheatgrowers will benefit them in ,the future; but, as the Minister has stated, the average price for this season's wheat should return to the grower about 5Jd per bushel over the average price >for the last three seasons, and this, together with the security guaranteed against any interference with the protection afforded to growers, must be counted as a solid improvement in the status of the industry and an encouragement to increase the wheat acreage."