Farmers’ Union Turns Tables

Manawatu Times, Volume 63, Issue 183, 5 August 1938, Page 6

Farmers’ Union Turns Tables

Mr. Ormond Wilson Taken to Task FARMERS WORSE OFT THAN IN 1929 Per Press Association. AVELLINGTON, Last Night. “In a recent statement in the House of Representatives Mr. G. H. O. Wilson, Government member for Rangitikei, stated that galloping costs are a pure fallacy,’’ says an official statement of the Farmers’ Union issued to-day. “Mr. AVilson stated that there had been no very great change in farm costs as compared with 1929,’’ the state* ment continues. “AVhilo this may be so Mr. AVilson omitted to mention that in 1929 butter was selling at bet ween 15S* and 184 s a cwt. To-day the price is fixed at 123 s Bd. In 1929, wool was averaging £2l a bale, while for the last season the average price was in the region of £l4; so that if costs are similar to-day to what they were in 1929, Mr. AVilson has established tho fact that the farmer is considerably worse off at present than he was at that date.

* < A further statement by Mr. Wilson, that tho most important single item in the farmer’s outgoings was his interest, also calls for comment. The Primary Products Marketing Department’s report for 3937, on Page 8, gives tho particulars of farm costs and allowance* as follows: Farm working and maintenance costs, 5.07 d; allowances for interest on capital, 3.06 d; labour on farm, 7.29 d; total, 15.42 d. Interest on capital is the smallest item of the three and it represents only 20 per cent, of the outgoings.

“If further support is needed for this statement it will be found in the Government’s own figures on Page 447 of the Year Book, in which costs on a standard farm are set out. If theso were worked out it would be found that they were: AVorking expenses, £304 4s; wages, £437 8s; interest, £lB3 12s; total, £925 4s. So that out of a total of £925 wo have £lB3, or about 20 per cent., for interest.

“It should be quite patent that Mr. Wilson has definitely proved the farmer is not anything like so well off to-dar as he was in 1929,” concluded the statement.