FARMWORKERS SHARE PROFIT

Greymouth Evening Star, 8 December 1945, Page 3

FARMWORKERS SHARE PROFIT

10-YEAR EXPERIMENT RESULTS. LONDON, October 1. All land available in Britain could be put under good agriculture, horticulture, and pasturage, if the principles of a 10-year experiment m scientific agriculture on the Fordson estate at Boreham, Essex, were applied nationally. This claim is macle in a 24-page report, written by Lord Perrv, chairman of Ford Motor Co., Ltd./and Henry Ford and Sons, Ltd. By this experiment light has been thrown on problems hitherto obscure, asserts Lord Perry. He sets out these four conclusions: Capital, that is, accumulated earnings from past labour, can be put to work to assist basic industry, such as food production and without speculation earn sufficient reward; labour can earn wages. to maintain adequate standard of living and make provision against sickness and old age; rising generations can be educated and can live amid healthy surroundings giving ample inducement and prospects for a good life in the task of food production; fertility of land can be preserved and in many instances improved. The experiment was begun by Mr. Henry Ford, after he had seen the state'of British agriculture in 1930. He bought 2,000 acres, the remainder of Lord Kenyon’s Boreham House estate, near Chelmsford. The joint stock company, Fordson Estates, Ltd., which he founded, bought land and buildings at £2O an acre. Another £lO an acre was spent in putting the land into good heart. Two years were taken in preparing the land. Mr. Ford decided that agricultural labour should pay only a fixed sum for the use of land and other capital employed. Reward to the workers was specified as the whole of the yield of the land after expenses. The share to every worker was fixed when earnings were ascertained. An increase of 25 per cent, on the then prevailing wage of 30/a week was paid to workers. By the end of the first year participation in earnings was equal to another 60 per cent.

Workers were encouraged to save cash received in lump sums. After 10 years the distribution of surplus earnings had amounted to £147,246, and 181 workers saved £60.651. Interest at 4 per cent, is paid on savings. Permanent employees averaged 200.. All received an annual sum, additional to weekly drawings, equal to 45.6 per cent. Weekly drawings have always been greater than the statutory minimum, now 70/-. IMPROVEMENT POLICY.

Though the farms and associated interests are now charged 4 per cent, on capital, used, Mr. Ford has never been paid rent or other capital charge, but has used this income for improvement and extensions. Total sales in the decade were £914,63!.'. Labour cost £469,634, or 50 per cent. The other 50 per cent, went in these items: Fetrilisers, ’ 8 per cent.; rent and interests, 6i; livestock, 6; foodstuffs, seeds, s£; packing, 4; repairs and renewals, 4; office expenses, 3£; petrol and oil, 3; depreciation, 2|; sundries, 11. As an experiment within the experiment, a co-operative society, Danbury Co-operators, Ltd., was formed in 1933 and is still managed, though not financed, by Fordson Estates, Ltd. Capital of £31,000 is invested in this 124-acre holding, which is now run by 27 employees. For men the minimum drawing weekly wage is £3/15/3. In 10 years Danbury Co-operators earned an average of £353 a person each year, and the society made £110,260, expenses leaving a balance o£ £632 for transfer to reserve.