FARMING FOR PROFIT.

New Zealand Herald, Volume LXVII, Issue 20721, 14 November 1930, Page 4

FARMING FOR PROFIT.

COUNTERING LOW PRICES DEMANDS ON THE SOIL. MAINTENANCE OF FERTILITY. BY K.r. There are two classes of people, occupy ing tlio land in this Dominion—farmei and " miners." Farmers aro those wh work their land to the utmost advantag consistent with maintaining soil fertility "Miners" aro thoso who mako a prac tico of taking everything possiblo out o the land without regard to maintaininj soil fertility. The former invariably n>ak< hotter profits Low prices for primary products, such a: are ruling at present, make it difficult foi the " miner " to succeed at farming, bul to tlio farmer low prices merely mcar lower profits. Profits in agriculturo art dependont more upon the costs of production than upon the selling prices of produce. The primary producer who spends time seeking ways and means of raising the selling price of his producc-r-a factor over which ho has little or no controlis beating the air, whereas he, who spends timo seeking ways and means of reducing costs of production—a. factor over which ho has completo control—will find himself in a position to meet all competition. Costs of Production. It must be admitted that it is not easy to quote actual applications of the theory concerning costs of production, because they aro all too rare and, besides, thoso who successful are usually the most modest and do not talk loudly about their affairs. However, we have evidence of the effect of reducing production costs and even though wo do not, quote Now Zealand farmers and butter-fat figures, wo quote equally interesting details of an investigation that might just as easily have been applied to any phase of agriculturo. In a recent issue of tho American Fertiliser thero appears a report of " A (Survey of the Farm Problem," with particular reference to wheat production costs, by Mr. Horace Bowker. In all sorno 3300 farmers sent in reports concerning their wheat-growing operations, and a summary of tho wholo position shows that one class of producers, namely, the farmers, produced an average of 23A bushels per acre at an average cost of 39.22 dollars per acre, or at an average cost of 67 cents per bushel. The other class, the "miners," produced an average yield of 12 bushels per acre at an average cost of 13.73 dollars per acre, or ati average cost of 114 cents per bushel* With wheat selling at one dollar per bushel tho farmer shows a profit of 33 cents, equal to 50 per cent., while tho " miner " shows a loss of 14 cents, equal to 7 per cent. Expenditure an Acre. These particulars do not tell tho whole

story, as they do not show tho origin of tho profit on the ono hand and tho cause of the loss on the other. In the samo report appears in detail the costs as allocated by one farmer whoso experiences were fairly typical of the 3300 interviewed. This man sowed two areas of wheat on adjoining fields, ono was treated the farmer way, and one the " miner " way. Costs of ploughing, preparing seed bed, harvesting, stooking, seed, land rental and depreciation of machinery were exactly tho same, viz., 9.16 dollars per aero in each case. In the case of area No. 1 twino cost 30 cents, threshing, etc., two dollars, and fertiliser 1.64 dollars per acre, making a, total cost of 13.10 dollars per acre. In tho caso of No. 2 area, twine cost 15 cents and threshing, etc., ono dollar, making a total of 10.31 dollars per acre. Area No. 1 yielded 20 bushels per aero, whilo No. 2 area yielded 8 bushels. Now, can wo see wherein lies tho difference ? An expenditure of 1.64 dollars on fertilisers was responsible for an increase in yield.to the extent of 12 bushels per acre, which in turn increased tho cost of twino and threshing, but left all other charges exactly tho same. Actually, on this particular farm, each dollar invested in fertiliser returned six and three-quarter dollars. Application to Now Zealand. The question is, does this lesson apply to New Zealand conditions? The reply is that it undoubtedly doe:. Even on our dairying country one can find numerous instances of men curtailing' production by cutting out fertilisers, tho actual effect of which is to keep tip or even increase tho cost of producing butter-fat. The real farmers of tho community are not doing this, but it is more or less common among thoso who are really " miners " at heart. Where production figures aro kept down to 1501b. of butter-fat per acre, Is per lb. is below tho cost of production, but where the output reaches 2501b. per aero thero is still a profit in dairying at 9d per lb. for butter-fat. Thero aro areas which aro capablo of producing about 1501b. of butter-fat per aero without tlio aid of fertilisers, but which, with an outlay of from 10s to 15s an acre, would just as easily 1 produce 2501b. per acre. At no timo in our dairying history has 1 it been so necessary to use fertilisers ' as it is at present. No matter what tho 1 state of the market, the producing eost ' must be under tho selling price or thero 1 is no profit. It is all a question of whether or not you choose to work your property 1 as a farm or as a mine. Mines aro good payers of dividends when things arc booming, but it is the farms of llio Dominion that will seo us safely through times of depression.