LAND AND PRICES

Feilding Star, Volume 9, Issue 3795, 12 August 1932, Page 8

LAND AND PRICES

(The Editor, the Star). Sir, —With necessary limits con- , veniont lor the parties and from a j figure mutually agreeable to them tho fluctuation of produce prices could bo nice and overcome by each ■ taking a. fractional part of the un- • avoidable risk. The vendor and purchaser of rural land should co-oper-ate in sharing- loss and gain solely due to the rise and fall from the normal export price, when there is any material change from it. This may be done in the agreement for sale or lease by arranginga sliding scale of payments of inlere.st or rent, relating them definitely to market prices of butter, cheese, meat or wool. So will the greatest obstacle be removed; for all else, in the business of farming offers tho primary producer a choice for which lie i s fairl\ responsible. lie knows that so much per acre can be paid for land when its produce is sold in London for so- much per pound. Present prices of exported produce max , therefore, form the j basis of valuation and future prices • determine automatically adjustments which correct any previous error made by the parties in valuing the land. Rising prices indicate its cheapness, and the producer shares the gain ; falling- prices shows clearness and the vendor reduces interest or rent. Possibly the valuation will be based on average prices of produce. Who can do it, so as to relate value j and productivity? The principle of . sharing can, however, be advantageously applied in all cases—whether of sale or lease; or even of relief tj mortgagors—tin* consideration for it being- their promise to share the gains when high prices prevail. Ii is especially beneficial during the firsl couple of years, for anxiety is doubtless greatest then, and the avoidance of the possibility of bearing the whole loss brings the most encourage men t. It is said that there are many with sufficient capital lq occupy land, but they wait for surer prospects of sue- : cess. Applying this plan would engender the indispensable measure of : confidence. Until ho can effect a sale the risk of falling prices ' s with the present occupier, who for various reasons may wish to retire fronfarming. Either party would no long or hesitate, as he knows that tlv possibility of receiving a total* gnir is far less significant than the avoid ance of a total loss. This causes the feeling of insecur ity among primary producers and instability in their business. And the degree of co-operation undertaken will be the measure of security felt by the farming section of this community and retained as long as any payments shall be due. It is neither fair nor expedient to permit tho re pudigtion of agreements while the better way of previously making their provisions obviates the later .possible necessity (for interference remains available. And it is high time for the wide extension of this prnctief.—J am, etc., H.R.B.