The Times FRIDAY, MARCH 18, 1938. Farm Costs

Manawatu Times, Volume 63, Issue 65, 18 March 1938, Page 6

The Times FRIDAY, MARCH 18, 1938. Farm Costs

At a meeting of the Farm Accountancy Association ot New Zealand, held in Dunedin this week, a matter of the most serious importance was discussed by the chairman of directors. It related to the alarming increase in farming costs. Mr. Leary said that the records showed quite clearly that “farmers had just about reached saturation point so far as costs are concerned. Many are definitely eating into their capital.” The speaker declared that the prosperity of this country depends wholly and solely upon the ability of its farmers to continue to produce wool, fat lambs, dairy produce, and grain at a profit. This is sound economics. It is a statement that has never been seriously contested. In these circumstances, therefore, it is essential that the interests of the farming community shall receive the greatest consideration from the Government. Many discontented farmers voted for Labour at the General Flection, and as a mark of appreciation the new Cabinet devised and put into operation its guaranteed prices scheme. This seeming gain to the dairy farmer quickly proved to be an illusion, for us a result of the industrial legislation that was passed his costs have already mounted to a degree that is declared to be in excess of the advantage that came to him through guaranteed prices. Mr.. Leary’s statement is perfectly clear. Ho emphasises the point that few farmers grudge the increases given to capable shepherds and farm hands. What is disturbing is the fact that even with the higher rate of pay the primary producer finds that the most capable of the agricultural workers art leaving the country districts for jobs in the city and on the public works. On the question of mounting costs, the executive of the New Zealand Farmers’ Union, at a meeting in Wellington, passed a resolution of protest against the increasing costs arising from recent legislation. It declared that recent disproportionate increases in wages and reductions in hours for certain industries meant reduction of the spending power of the producers and ultimately reduced production. One speaker expressed the fear that the Government had been giving the farming community the “cold shoulder” for the reason that its ear was turned “more sympathetically to more militant organisations. ” The man on the land should have been awake to that fact at the last election. The history of the Labour movement in this Dominion should have made him realise that a Labour Government would rely for its chief support on the workers in the secondary industries, and that consequently their interests would take a prominent place in the policy of the party. That is exactly what has happened. The costs of production in both the primary and secondary industries have mounted rapidly, and it is quite clear that they have by 'no means reached the peak, in addition to that, the public expenditure is of the most lavish kind. Taxation, expenditure, and the public works vote are the highest in the country’s history. Mr. Leary says that if the present state of affairs continues much secondary land will go out of production, and the mortgage adjustment commissioners or the future will be faced with an even greater problem than that which confronts them to-day. It is difficult to see what relief the farming community can expect. The Government shows no sign of modifying its policy. Work is still proceeding on enterprises that arc regarded by many people as unproductive. The iron and steel scheme is an illustration of the intention of the Cabinet to pursue its expensive way, and Mr. Leary is naturally apprehensive about the effect that the establishment of the new industry will have on the iron and steel requirements for the farm. In this connection the New Zealand Farmers’ Union expressed the opinion that “the scheme will be another millstone round the necks of the people and another weight which will bear heavily on the primary producers.” It is probable that a recent utterance by the Attorney-General fairly represents the views of the Cabinet in. the matter of our primary and secondary industries. Mr. Mason asked whether economic nationalism wanted New Zealand always to b<* a largo farm with a few auxiliary services. It is not suggested that there is in this remark any antagonism to the farming community, bu* apparently the importance of the export of our primary produce to the Dominion as a whole is not fully realised and appreciated.