MARKET FOR FARMS.

New Zealand Herald, Volume LXIX, Issue 21201, 6 June 1932, Page 11

MARKET FOR FARMS.

GOOD INQUIRY OBTAINS. CAPITAL GENERALLY SMALL. DIFFICULTIES OF POSITION. While there are sufficient numbers of inquirers for farm properties, representatives of firms of land agents in Auckland note that, in many cases, the amount of capital availablo to many of the applicants is inadequate for tho purposes of the market.

A member of ono largo firm has returned to tho city after visiting tho Waikato district. 110 said he had gained tho impression that those asking for dairy properties had becomo somewhat sceptical of tho propositions offered on account, of tho decline in butter-fat values.

"Somo pooplo appear to be expecting too much for tho resources at their command," he stated. "In tho caso of a reasonably good farm, tho man with £4OO or £SOO capital would probably need that amount to stock the property. This leaves lit tlo or nothing in hand for tho land. My view of the situation is that it is difficult at present to obtain a going concern, where a property of reasonable capacity and possibilities is in question, for much under £1000."

The agent stated that a few transactions in farm properties, particularly in regard to moderately-sized dairy holdings, were being handled, but the posilion did not seem to bo as satisfactory from the point of view of actual sales as was the caso last year. It was important, however, to know that tho demand for small farms was fairly keen. It remained that tho great difficulty was tho frequent inadequacy of capital to allow for profitable operations.

"Full of Complexities." A representative of another firm stated on Saturday that the situation regarding the market for farm properties was full of complexities. He summarised tho position by saying tho inquiries at present were larger in number than they wero in the autumn and early winter last year, but there was not as much capital at disposal. There were numbers of people who were prepared to take up land, but their resources were limited. It was difficult to adjust their requirements to tho actual circumstances of the market. The land business had obviously been very seriously affected by the economic problems of tho day, and the low prices obtained for agricultural produce were discouraging. In spite of tho disadvantage of the small returns for produce, a remarkably keen inquiry for farms existed. "In my opinion, could the cost of land be reduced 30 per cent., dozens of farms could be sold,"- ho continued. "Land was bought by many farmers when the prices for produce were high, and there was no indication that the profitable circumstances would end. The vendors, in many instances, cannot offer good properties at tho values expected by some inquirers without being prepared to face a loss."

Little Prospect of Improvement. Continuing, the agent said he was not able to see any immediate prospect of improvement in tho disposal of properties. Although sales were being made, they did not compare with the volume of the inquiries. It was not possible, to obtain many good dairy farms in the Waikato district at much below £4O an acre, and generally this cost was not in accord with the resources of most of those seeking to go on the land. The agent concluded by expressing tho opinion that tha position in regard to sheep properties was not as satisfactory as that concerning dairying country. The poor demand was due to the extremely low value of wool, and tho disappointing results of the past selling season had greatly influenced tho position. At present, tho demand was negligible, particularly in regard to rough land in tho back country.