WHEAT PRICES FIXED.

New Zealand Herald, Volume LVII, Issue 17371, 19 January 1920, Page 4

WHEAT PRICES FIXED.

BASIS OF 7s 3d A BUSHEL.:; 1 ' MINISTERS MEET FAEMERS. FUTURE POLICY NCT DECIDERS I 88H&?-".-'. '•■'• ':■■".-' " "■"■\v-!j»™| ; [BX TELEGRAPH.—PKESS ASSOCIATION*,! ] ;', : ;;';/?■■- CHBISTCHUBCK. Satnrtuy. j -The prices to be paid to farmers-.forl'SK- j the present season's wheat were fixed at " conference this afternoon between a committee representing wheatgrowers and, I the Government, represented by the : Prime Minister, the Hon. W. Nosworthv' : - ; Minister for Agriculture, and Mr. W. 6. '.'"'; J McDonald, chairman of the Board cf '- Trade. This meeting was preceded by a' '! general conference in the morning. . j An official announcement was madeW'M that the ,conference agreed upon a price VV"; ! of 7s 3d a bushel, f.0.b., for liaa-20 ; t' wheat. This year the principle of dif. % ferentiation for varieties will apply and'"'"an increase will be given for Hunter's--.-of 3d-.a bushel and for Pearl of 6d.3 This increment, however, applies to only;---a. small proportion of the' crop. Tha-'.,' 1 question of price for subsequent years fe was left for further consideration. '/'.-■ The extra price of the loaf of bread " has not been worked out yet, but it ig-V- - stated that with the extra price of wheat and assuming that the irovernment dis- V'■' continues the subsidy to' millers, the in--.ln-crease in the price of the 41b loaf will be';-/:•■ twopence. • After the conference, Mi. Massey said : 'V'\ the arrangement was fair to both sides. ■ V;> . It settled the price for only one seesoa. >'.'. The reason for that was that there had - been a difference of opinion on the part -' of the larger body Qf growers which met' A.'' - in the morning, making it impossible lor the smaller conference in the afternoon'". to arrive at a decision covering, a longer Vperiod than the current season. 'Jllfe The chairman of the conference, Jlr/-."t ' David Jones, M.P., said the arrangement't>. was satisfactory. It wa3 simplf that the farmers accepted the market price for S" this season's wheat which was arranged ■ by the Government ' recently. The Gov-?:?.-.-ernment was carrying out the agreement with the farmers which was made, last Si year, by the 'Hon. W. D. S. MadDoaald, '-'. regarding the 1919-20, crop. ' 'V;::. QUESTION 0? FLOUR SUBSIDY. STATEMENT BY ME, MASSEY. - [Bst naBJBAPE— COEEESPOSDEST.J • WELLINGTON, Sunday.' The Prime Minister returned to We2«' lington to-day. .-Referring/ to "the prices- =•' fixed .for" the different/Varieties of wheat, Hy.r [Mr. 'Massey remarked that 80' per cent."*•-';.-: of. the wheat grown . in / New Zealand' is "fv' of the variety for widen the lowest price, 7s 3d : a bushel, will be paid. ;.'.' ;> ; : --'•.'As: to the suggestion that the Govern- . meat may discontinue the subsidy te mil- ~ lew,, Mr. Massey said: "I made no sug. gestion . that we should do away with the - present "subsidy* to millers. Furthermore ".•■• we shall average the price of tie Aew, Zealand 'wheat with that of the Aostra-' lian wheat purchased some time ago, arid - -' the effect of this will ba to reduce tha selling ,price-..t0 milters -below the• J'evr. - Zealand pra-msse price;: This puis out of - - accosEt the calculation of a rise of tws||p pence in the 41b loaf.* ' ' S ~: "Figorsa on th-cost of production btft| wheat - were ',•* submitted to me "at' the eon«|£|| feranee, : -f arid-; I was informed ■ that the cost to the farmer, of growing wheat was ; ; £10 ' an acre '"; and • that the average crop " was 50 bushels to the acre. At these.; prices the profit to tie farmer, .in view of tie risk he takes of bad seasons, isnoj J extravagant.".^ : ''- "''' ': s ;', '' ;■ .^} : . y

['•'■' YZABte SUPPLY ASSUESP. .'■•' - •';/■//./■•■ ■■■ -'■' ' ./- " ; ; '■• ' : '.-' ~! .■':■<'■ ' r #S& PROSPECTS FOR THE FUTURE. ,'---"..•'•-.■ .■■; .■ -v ; . - ~■' [BI TELEGRAPH—OWN CCIBSISSPOND3OT4 ' ■■'-> ■ l '-ismm ;.;-; CHEISTCHURCH, Saturday. ". .'" "We want the -wheat. We want you to/// grow it for us at a price that will be satis-/- / factory to you, leaving you a fair margist.'.' - : of profit,' but a price which will not be too - much for the. consumer when he comes to ~ . get his bread -over^the/ counter." ■-.; The , essence; of ! the Government's atti- v tude on the wheat question was stated in those /words? by the Prime Minister to;' farmer ; assembled .in ' Chiistchurch this . morning. : . '^ .. ; ./ ,'"' • \ \_ i ;,;| .- ' ! v- The idea of -a conference with the. pro*.' ducers originated with' the Minister fof -." -■ Agriculture (Hon. W. Nosworthy), and ha. j." was present to-day in company wither. . ••' C. J. Reakes (Director-General of Agricul- - ture) ; and members of the Board of Trade. Mr. David Jones, M.P., president of thaj;".;:; North/' Canterbury executive of the.;/./*' Farmers' Union, presided at the con'-in-ference, -which was attended by' representatives of the growers In both islands. '/"./" ~ A preliminary meeting held under the///v auspices of the Farmers' Union discussed possible prices, and it is understood that///; the feeling there was in favour of asking-;: 8s a. bushel for Tuscan, 8s 3d for red chaff, and Bs.6d for pearl. ; -'. ; ; /-.^ At the -opening of the conference Mr.- .; M Massoyjsaid he was hopeful they might! /.? arrive at some satisfactory understanding. Never before had the Government been im /;. such.a difficulty over the wheat position. /.;. Always hitherto they had had a sufficient . supply of wheat in view, and generally it,/./ had been produced in the country. . This time there had not been a sufficient area:///

sown,.'although' even now the position/ might not be so very serious, so far as next-season was concerned. The estimated| New Zealand production for this harvest was about '4,000,000 bushels'. Then tha Government had 2,000,000 bushels in Australia,'and there was in the Dominion a "carry-over" of approximately 500,000 bushels. If everything worked=out all right there would be sufficient fa- the present year, but they must look beyond that. The enormous increase in the cost of production and the better profits being returned by other branches cf farming had. resulted in a lesser area' being sown. Ha hoped they would be able to change that position, although the cost of production was likely to remain high for some time. He hoped they would be able to fix a price at which it would pay to produce wheat, and yet at a price which would bo fair to the consumer. Australia seemed to have come to an arrangement with the pr ducers, although he did. not know that the price (6s 6d a bushel) would be satisfactory to New Zealand growers, but that price was making it possible for Australia to offer New Zealand any additional wheat which might be required here at the price of 6s 7d f.o.b. Mr. Nosworthy said he recognised the' question had to be settled, and the more promptly it was settled the better it would be. He trusted they would get down, to business, and that before the Prima

Minister left for the north tonight a satisfactory; conclusion would be reached. (Applause.) The conference then went into committee.