THE GUARANTEED PRICE

Matamata Record, Volume XIX, Issue 1789, 7 December 1936, Page 5

THE GUARANTEED PRICE

FARMERS’ BUDGETING Mr. F. M. Strange’s Views Writing to the Te Aroha News, Mr. F. M. Strange, a prominent farmer and member of various local bodies in Thames Valley, states: — “ In your issue of the 25th inst., udder the heading ‘Stabilising Farming,’ the Minister of Lands is reported to have stated ‘ that as the guaranteed price was for butter and therefore not on the butterfat as received from the farmer, every farmer realised that for each pound of butter there was the over-run, which amounted to another 20 per cent., and increased the price to Is 3d.’ This is true; but is nevertheless most misleading. The guaranteed price is Is 9-16 d for butter. This, with the over-run of 21 per cent., gives Is 3 3-16 d for butterfat, which has to be manufactured and delivered to the grading stores. These costs last year amounted on an average to slightly over lid per lb. This year, with the increased costs of manufacture, they will be in the vicinity of 2sd per lb.- Farmers should be careful not to be misled by incomplete statements. Instead of a return of Is 3d per lb for butterfat, they will be well advised to budget for a return of not more than Is 03d or is Osd.”