LAND VALUES

Greymouth Evening Star, 31 January 1923, Page 2

LAND VALUES

AN EXPERT’S VIEAV.

AVELLINTON, January 29.

Tho “Evening Post” to-day sought the opinion of a man who has spent a lifetime in the Dominion in close association with stock and station interests and banking on the subject of the British Empire Exhibition Commission’s recent report on land values in New Zealand. A question put to this expert was : “Is the value placed on New Zealand land too low?” The reply was that in stating that the best, land in New Zealand was worth only £3O to £4O per acre, they were not far out if tho valuation of land was based on what it would return to the farmer after making due provision for all outgoings —his own labour, interest, rates, taxes, and other items of expenditure that a merchant would certainly take into account in estimating his net profits. A concrete instance was given of a fine dairy property in the best part of the Dlanawatu district, which had sold for £llO per acre, and had passed from the purchaser with the loss of his labour and deposit. He could not make a “do” of it with the price of butter-fat where it was when he went out. AVith butter-fat at Is 6d per pound—a fair price (and better, as were cheese and mutton and lamb today than before the war), £4O per acre was high enough. Dlore was too high. ‘Speaking generally, in the absence of the report of tho commissioners, one cannot do more than suggest that they based their ideas of the values of the best and on what the land would actually return at the then market prices. Land agents’ prices for properties are interesting as far as they go, but the real value of farming land is what can he made out of it by intelligent and economical fanning. One cannot get away from that. Farming must be conducted on the same strict lines as any other business, and full allowances be made for outgoings in the fonn of overhead expenses as in a well-con-ducted business o£ a different character. AVhen it is so conducted, then it is doubtful if to-day the average of tho best dairying land in the Dominion on a butter-fat basis of Is 6d per pound is worth much more than £4O per acre-