FARM VALUATIONS.

Manawatu Standard, Volume LVII, Issue 200, 24 July 1937, Page 11

FARM VALUATIONS.

FOR AIORTGAGORS’ REHABILITATION. Per Press Association. WELLINGTON, July 23. Interviewed respecting representations made by Air L. T. Daniell at a meeting of the AVairarapa provincial executive of the Farmers’ Union regarding the method of arriving at valuations for the purpose of the Alortgagors and Lessees Rehabilitation Act, Hon. H. G. R. Ala son (Minister of Justice) stated that the method was determined by the statute itself. This provides that the productive value of farm lands is first to be ascertained, and this is found by finding the annual productive capacity of the farm and capitalising this at 5 per cent. T:le said that such sum as the commission thinks fit is added to or subtracted from this figure to ascertain the basic value, which is the value taken for the purpose of adjustments. “It is clear that this addition or subtraction might be required lor a number of reasons, such as in variation of the condition of repair of premises. .which may not have been reflected in the productive capacity of the property. It is clear that the gross income derived from the property is derived from both land and stock, and that to find what is referable to the land alone can only be done by deducting from the gross total that which is referable to the stock. Either item by itself can have little meaning, and Air Daniell’s argument is so hard to follow that it is difficult to understand how it can be put forward for consideration, as reported. “There does not appear any more reason for attributing income to the land alone than there is for attributing it to the stock alone. The suggestion appears to be made by Air Daniell that ‘the Court puts lip the value of stock and chattels in hard times and takes it down in good times.’ Actually the Court does nothing of the sort. It has with great care, and with the assistance of firms, ascertained the average value of stock for the past ten years, and these averages are taken as a basis for all purposes. The suggested variation is purely imaginary and has no basis in the actual routine methods employed by the Commissions and by the Court. The reported statements seem to show Air Daniell as believing that the ideas and methods advocated by him would reduce a farmer’s valuation. Actually it would impose a heavier burden on the farmer and entirely stultify the Government’s legislation.”