YIELDS FROM FARMS

New Zealand Herald, Volume LXXI, Issue 21935, 19 October 1934, Page 14

YIELDS FROM FARMS

MINIMUM FOR SUCCESS REDUCED INTEREST EFFECTS [BT TELEGRAPH —SPECIAL REPORTER! WELLINGTON, Thursday On the evidence of State departments, finance, farming and other witnesses, and from a Department of Agriculture surrey of 550 dairy farms, the Dairy Industry Commission says it is found: — 1. It is likely that at least oO per cent of the Dominion's dairy farmers are, in varying degree, unable at present to meet their financial commitments. . , , „ 2. If a farm i§ required to pay full interest at 5 per cent on the land and fixed improvements at Government valuation, and on the assessed value of stock and plant, after meeting all production costs, the necessary per acre production of buttcr-fat is 1751b. or better, and that a herd of not less than 70 cows is necessary. 3. That if interest were reduced to 3i per cent, the minimum per acre production of butter-fat could be reduced to 1001b., thus enabling 72 per cent instead of 18 per cent of the 550 farmers included in the survey to meet their commitments. 4. That where the size of the herd is the decisive factor, the reduced interest would permit the herd minimum to be lowered to 40 cows, thus enabling 68 per cent instead of 22 per cent of the farmers included in the survey to meet their obligations. The commission notes that few farmers allow for full interest payments, that full costs are seldom computed, and adequate allowance is seldom made for labour reward and farm upkeep.