FARM COSTS.

Northern Advocate, 25 June 1937, Page 3

FARM COSTS.

I . To the Editor. Sir.—According to the balance sheet figures presented by the Maungatapere and Hikurangi Co-op. Dairy Companies. published in yesterday’s “Advocate,” the prices including the estimated surplus paid out, are — Maungatapere, 13.652 d (last year ; 12.049d), and Hikurangi, 13.511 d (last year 12.266 d). Both factories show an increased output, as well as the increased price mentioned above. Now, this appears to be very satisfactory. A proper comparison, however, cannot be made until we know what the increased costs on the farm amount to. Until that is ascertained, it is difficult to form a reliable opinion on the industry and its prospects. There are, of course, iwo factors which make it difficult to correctly assess farm costs. These are—(l) The payment of wages, if any, and (2)—the employment of the wives and children in the sheds, if any. It looks as though farm cost assessments will have to be subdivided under three headings:—(l) The farmer who employs neither his family nor labour to assist him; (2) the farmer who employs only his family; and (3) the farmer who employs only labour, There is almost need for a fourth division—the farmer who employs both his family and labour. By these means only can labour costs on the farm be properly valued. Materials used in the industry—machinery, manures, wire, timber, cartage, etc.—can easily be compared with prices in 1936. I am. etc., CORRECT COSTS.