The Evening Star THURSDAY, JANUARY 12, 1928. AGRICULTURAL ECONOMICS

Evening Star, Issue 19762, 12 January 1928, Page 6

The Evening Star THURSDAY, JANUARY 12, 1928. AGRICULTURAL ECONOMICS

It is now becoming widely recognised that if higher prices cannot bo looked to as the means of a return to rural prosperity, the remedy must be found in lower costs, in more economic and efficient production. The science of economics has to-day arrived at a place of importance in the world of trade and commerce generally. It gives sound basic principles for the study of the forces at work in our modern civilisation. A further development is the application of these principles to current problems. In New Zealand, of course, this means that a place should be given to the study of agricultural economics. The value of the pure sciences in relation to agriculture is now becoming generally admitted; yet with but few exceptions little attempt has been made in this country to use the science of economics in this connection. In Great Britain both of the universities at Oxford and Cambridge have departments of rural economics, with special staffs for the training of students and for giving advice to farmers on the keeping of cost accounts and other matters of economic importance. Speaking to the farmers of Metlivcn last week, Dr A. G. B. Fisher, of Dunedin, maclo an important point in this connection. His subject was ‘ Rural Credit.’ Ho showed the difficulty that arose with investors that, whereas in regard to ordinary companies a good deal of information was available, yet the ordinary investor had no knowledge of the financial prospects of farmers who were seeking capital. And he urged the need of collecting information and making it available about the financial position of farming units. “ Everyone would agree that it was absurd for a business man to refuse to make any accurate statement which could be checked about his costs, and at tho same time complain because he could not get sufficient capital. That, however, was not unlike the attitude of some farmers. The details involved in scientific investigation of farming costs were matters on which it was not easy for an outsider to give useful advice. But it was a problem which, if tackled by the farmers’ organisations themselves, would go far to settle the question of rural credit, and many of the other economic difficulties which beset the farming community to-day.” A lead is, however, being given by tho agricultural colleges. It is gratifying to notice that both Lincoln and the new Massey Agricultural College are proceeding to the appointment of lecturers in agricultural economics, and that part of their work will bo among farmers and in research as to the best methods of costing. It is understood that the new Department of Industrial Research also is making inquiries in this connection, which should have the whole-hearted co-operation of tho farmers’ organisations. Such work is essential to tho sound development of economic research, and essential also to give the teaching of economics in the university colleges tho right bias and basis. There should undoubtedly be a close connection between the departments of agriculture and economics in our universities. In the United States the Department of Agriculture has instituted a special bureau of agricultural economics, and placed at its head tho most distinguished agricultural economist in tho country. This has given a great fillip to the study in the American universities. North-western University has an institute of land economics to carry on special research in this field. Wisconsin, again, has a special division of economics in the general School of Agriculture, which co-opcrates with the extension department of tho university in providing information for farmers. This is a lino that could be explored in New Zealand. The travelling tutors attached to the colleges working under the auspices of the Workers’ Educational Association usually have special qualifications in economics, and, possibly with the aid of such bodies as progress and expansion leagues, it should not be difficult to arrange lectures, and ultimately form classes in agricultural economics. Dr Fisher, the professor of economics at Otago University, has already done some important spade work in this connection, working with the Farmers’ Union, as has Professor Strong, in the field pf home economics, with the farmers’ wives. There is no doubt whatever that farming in New Zealand has now reached the stage when accurate thought and far-sighted calculation arc needed quite as much as hard work.