BACK TO THE LAND

Hawke's Bay Tribune, Volume XXII, Issue 153, 14 June 1932, Page 8

BACK TO THE LAND

EX-FARMERS LEAVING TOWN FINDING TIMES FAVOURABLE. LOCAL HOUSE AND LAND MARKETS. “First-class men who are firstclass farmers—men who will do a very great deal to bring this country back to prosperity again, and who are aiming at building up a home and producing as much as the land will produce, and not of buying a farm to-day and selling it to-morrow, are going on the land,” said Mr. W. A. Taylor, Hastings manager for Messrs. Harvey, Fulton, and Hill, to a “Tribune” reporter in an interview to-day.

“They are fine fellows, and they know what they are doing,” Mr Taylor added. “They are men who have had experience in tanning, but who came into the towns and went into business; and now they are going back to the old life, but with the added advantage of a busiess experience that will stand them in good stead. The day of the casual farmer is ended. There is no room to-day for the farmer to whom a farm was only a hobby. The men who are buying farms at present are men who for various reasons drifted into trades or professions that are now petering out, and they are taking up the holdings of men who are glad, also for various reasons, to leave their properties.” In reviewing the land market generally, Mr Taylor said that second-class land not ploughable and in larger areas could find no market at all. Nobody wanted it. The returns for produce were not high enough to warrant the prices that were being asked for second-class land, and the demand today was for the better class land, though at prices appreciably lower than had been paid three or four years ago. There were plenty of buyers for that sort of property, but at the same time it was rather difficult to obtain. FAMILIES’ GROUP LABOUR. Small farms on which there was little immediate outlay needed, and on which the returns came in under the form, more or less, of wages—as, for example, by way of periodical cream cheques —were in good demand. Families were taking up such properties and working them themselves, knowing that the employment of outside labour was not warranted. Tho former practice of owning a farm and employing someone else to do the work had changed, and families were working in a group and performing all the necessary labour. Recently his firm had sold a number of what might be termed one-man farms—properties of 100 acres carrying 50 cows, or 80 acres with 30 cows, and now and again properties of about 200 acres carrying say 30 cows and 150 ewes. In most cases, however, dairying properties were the principal demand. There had been a good sale of properties in Southern Hawke’s Bay, particularly about Takapau and Dannevirke, where land that was originally bush had been brought into closer settlement with the aid of top-dressing and artificial feeding. The better class land in the' Hastings neighbourhood had not dropped in value to any appreciable extent during the past three years, for during those years the farmer had found that by more personal labour and closer supervision, and by the use of more scientific farmin gnietliods, he had reduced his expenses while increasing his production, and thus had maintained the value of his land. In many instances local businessmen who owned farms, but who lived in the town while their sons or someone else looked after then properties, had given up their homes in town and had gone back to their farms, thus bringing about a considerable saving in their personal expenses. A greater use of ensilage and lucerne, and the adoption of a more intensive system of farming, had also been contributing factors in maintaining tho value of land near this town.

Second-class land had always been too dear, said Mr Taylor, and there was nothing surer than that the price had to come down. No one could afford to farm it at present costs. The present was not a time for experimenting with land of poor quality. Tho application of science and business methods to land of good quality was what paid in these days. At present there was a good deal of culling out of poor farm properties. At one time a Land agent could sell any sort of land, but now it was a different story. SMALL AREAS WANTED., For areas carrying a thousand owes or thereabouts for the production of fat lambs off the mothers, Mr Taylor added, there was not much business, for there was a considerable discrepancy between the notions of the buyer and of the seller. Where tho value was reckoned on the basis of to-day’s values for stock and produce, however, there was a fair demand. There was no very brisk enquiry for sheep-fa ruling properties, but for small tho demand was considerable. “It is surprising,” said Mr Taylor, “how much readv cash there is to be had when tho sale is on a fair basis of value.” Leaseholders were in constant demand so long as no goodwill! was involved. Tho demand comes from people who are sound, but who have limited capital, and the prime motive behind the demand is a feeling that one is better keeping to a fair financial level on the land rather than remaining idle in the towns and waiting for the outlook to brighten On the land, such people feel, they are producing more than they are spending. “Agents can find a good market for any number of one-man farms at reasonable prices and terms, and for areas of good country up to a thousand acres,” Mr Taylor continued. “It does not rest entirely with tho price, however. Tho terms must be reasonably good. In my opinion the short-term mortgage is gone for ever. Peopfe today will not consider the former threeyear and five-year mortgage at six and seven per cent. They want at least from seven to ton years, and we are coming back very fast io the good old five per cent, interest.” HASTINGS HOUSE MARKET. “The selling of houses in Hastings is dead,” said Mr Taylor in reference lo the house-property market. “Things are so uncertain that no one will buy,

and. owners cannot make up their minds whether to sell or not. To have bought or built a house for £lOOO eighteen months ago, and to find that to-day it is worth only £BOO, has been a common experience. The buying public have come to the conclusion that, at least in the meantime, it pays better to lease or to rent a house, or to live in apartments till matters improve. “We are of the opinion, however, that that time has come to an end. We have quotations which, to our mind, prove that prices for building are at bedrock, and that they have never been so advantageous before. For instance, we have plans and specifications of a modern four-five roomed house— not by any means poorly built—with the latest conveniences, and with a reasonablysized section, very conveniently situated, which can be built for £6OO, including everything. Any better house can bo built on that basis of cost. Such an investment appears safe enough to satisfy anyone, and to build at such prices would be a favourable bargain even in these times. There is so fine a district surrounding this town that I cannot believe that things will always be as bad as they are now, and if there is a move fo r the better, I believe Hastings will feel it first. Any man speculating on to-day's basis must win. “The leasing and letting of houses arc as keen as over, but Hastings has reached the limit, or nearly the limit, of vacant dwellings. Of those people who camo hero from other districts after the. earthquake, ninety per cent, will remain here. If they leave, where can they go to if they want to improve their position? They may as well- stay here, and they will stay. So far as the house shortage goes, there is plenty of scope for building for letting or leasing, but it does not appear to be a very attractive investment today. Surely, however, we are at bedrock,” Mr Taylor concluded. “I believe that New Zealand, like New South Wales, has reached the turning-point.”