MARKET FOR FARMS

Hawke's Bay Tribune, Volume XXII, Issue 147, 7 June 1932, Page 8

MARKET FOR FARMS

GOOD INQUIRY IN WAIKATO CAPITAL GENERALLY SMALL. DIFFICULTIES OF POSITION. Auckland, June 6. While there are sufficient numbers of inquirers for farm properties, representatives of firms of land agents in Auckland note that, in many cases, the amount of capital available to many of the applicants is inadequate tor the purposes of the market. A member of one large firm has returned to the city after visiting the Waikato district. He said he had gained the impression that those asking for dairy properties had become somewhat sceptical of the propositions offered on account of the decline in butter-fat values.

“Some people appear to be expecting too much for the resources at their command,’’ he stated. “In the case of a reasonably good farm, the man with £4OO or £5OO capital would probably need that amount to stock the property. This leaves little or nothing in hand for the land. My view of the sitL uation is that it is difficult at present | to obtain a going concern, where a I property of reasonable capacity and | possibilities is in question, for much under £1000.” The agent stated that a few transactions in farm properties, particularly in regard to moderately-sized dairy holdings, were being handled, but the position did not seem to be as satisfactory from the point of view of actual sales as was the case last year. It was important, however, to know that the demand for small farms was fairly keen. It remained that the great difficulty was the frequent inadequacy of capital to allow for profitable operations. “FULL OF COMPLEXITIES.” A representative of another firm stated on Saturday that the situation regarding the market for farm properties was full of complexities. He summarised the position by saying the inquiries at present were larger in numI ian they were in the autumn and i winter last year, but there was i. ~s much capital at disposal. a Here were numbers of people who were prepared to take up land, but their resources were limited. It was difficult to adjust their requirements to the actual circumstanccse of the market. The land business had obviously been very seriously affected by the economic problems of the day, and the low prices obtained for agricultural produce were discouraging. In spite of the disadvantage of the small returns for produce, a remarkably keen inquiry for farms existed. “In my opinion, could the cost of land he reduced 30 per cent., dozens of farms could be sold,” he continued. “Land was bought my many farmers when the prices for produce were high, and there was no indication that the profitable circumstances would end. Tha vendors, in many instances, cannot offer good properties at the values expected by some inquirers without being prepared to face a loss.” LITTLE PROSPECT OF IMPROVEMENT. Continuing, the agent said he was said able to see any immediate prospect of improvement in the disposal of properties. Although sales were being made, they did not compare with the volume of the inquiries. It was not possible to obtain many good dairy farms in the Waikato district at much below £4O an acre, and generally this cost was not in accord with the resources of most of those seeking to go on the land. The agent concluded by expressing the opinion that the position in regard to sheep properties was not as satisfactory as that concerning dairying country. The poor demand was due to the extremely low value of wool, and , the disappointing results of the past I selling season had greatly influenced the position. At present, the demand ! was negligible, particularly in regard to rough land in the back country.