FARMERS’ FALLING INCOMES

Hauraki Plains Gazette, Volume 52, Issue 3249, 7 April 1943, Page 5

FARMERS’ FALLING INCOMES

(To the Editor.)

Sir, —In your issue of April 2, I notice a letter by Mr J. Thorn, M.P. for Thames, on dairy production, in answer to a resolution passed at the Northern Thames Sub-Provincial Farmers’ Union meeting at Thames favouring an increase in the guaranteed price. I would like to say that the resolution was passed after a discussion on the drop of butterfat per cow, not on the production at, a whole. It was pointed out that when Mr Nash instituted the guaranteed price the amount of 25’01b. butterfat per cow was the basis worked upon. Now, according to the latest figures published, the amount of butterfat per cow is only just over 2001 b. per cow which means a drop of nearly onefifth in the return per cow to the dairy farmer.

Now why is it that the Government of to-day when making comparisons of pay-out for primary produce’ will only compare wartime period against a slump period'. They remind me of two men. discussing the amount of sunshine in their respective districts. One said: “Why, we had eight hours of sunshine on June 22.” “Pooh,” the other one replied, “we had 14 hours on December 22.” Now that’s just about as reasonable as the Government’s comparison.

We are now in a position to compare two periods more or less alike. Let us take the third year of the first world' war. As a dairy farmer at that time, supplying cream, I find that a cow producing 2401 b. of butterfat gave me an approximate return of £l9 and I had no National Security, Social ■Security or Income Tax to pay. In the third year of this war a cow producing 2401 b. of fat would give me an approximate return of £lO 10s in New Zealand currency, less 121 per cent. National Security and Social Security Tax, also less Income Tax according to the amount of nett income. If you like to reduce this to Stirling values you will be surprised at the difference in the farmer’s return to-day compared to a similar period in the first world war.—l am, etc>> W. H. CHEALE. Netherton, 5/4/42.