LAND AND PRODUCTION.

New Zealand Herald, Volume LXIX, Issue 21098, 4 February 1932, Page 12

LAND AND PRODUCTION.

Sir, —I have just read the latest of Sir Harold Beaucliamp's statements that the price of land is one of the main causes of our troubles. As usual, he points to the £IOO per acre dairy land and the £3O per acre sheep land. As a farmer I must strenuously deny the accuracy of Sir Harold's statement in the form in which it is put. Areas that changed hands at the above figures were infinitesimal compared to the total area of improved land, and in any case these deals were mostly paper transactions and long ago the bulk of these contracts have been rescinded and the areas resold at far lower figures or the original vendors have resumed possession. f fear that it is the old, old story, and that Sir Harold cannot see the wood for the trees. He is in daily contact with business men and financial institutions, and seeing their present plight unites with thern in throwing the blame on to the price of land. Now, supposing we admit that, to be the basic cause, what is the actual position ? 'l'his over-valued land is actually producing far more than when no complaint was made as to its cost. Likewise, in point of fact, the gross monetary return of produce per unit is about on a par with that for a long period of years. Why then are the producers not prosperous ? The answer is seen in the taxes that obscure Sir Harold's view. The farmer, unaided, has to bear the whole cost of administering the Dominion, together with that of the shipping services carrying his produce ami bringing his necessities. Not only that, but in addition he has to pay the salaries and pensions and maintenance and all other expenses of the whole community. It is not the cost of the farmer's land, but the burden of the cities and all that they entail that is crushing us. When we sec Sir Harold Beauchamp taking the first step and leading a crusade to limit the payment of bank dividends to 4i per cent., then we producers will have more confidence that a genuine desire exists to make agriculture possible on a remunerative basis. G. H. D a vies.