FARMERS' OUTLOOK

New Zealand Herald, Volume LXXV, Issue 22976, 2 March 1938, Page 15

FARMERS' OUTLOOK

COSTS AT BOOM LEVEL ~ j "GROUNDS FOR DISQUIET" SHEEPOWNERS* POSITION [by telegraph—OWN correspondent] GISBORNE, Tuesday "As regards the economic position of our industry, although there appears no reason to anticipate anything in the nature of a slump, yet there are certainly grounds for disquiet," stated Mr. C. H. Williams, president of the Poverty Bay and East Coast Sheepowners' Union, in his annual report. "The peak prices for wool ruling last season were short-lived," he continued, "and the reaction, which 1 ventured to predict in my last report, already has come about. Under ordinary circumstances the sheep man would take this in his stride, for he is used to these fluctuations and prices are still quite good, but rigidly-fixed costs based on peak or boom values cannot be met by an income based on average returns and the farmer's equity in his land has to suffer. Last year's brief boom, instead of being a boon to the industry, is likely in the long run to cost us dear. "It is hoped that the present-day contempt for the old-fashioned virtues of thrift and prudence and for the custom of paying one's debts will be shortlived, and that the orgy of spending, both public and private, will spend itself. If that occurs there is little cause to fear for the future of our industry. "The farmer is naturally the least parsimonious individual of the community," said Mr. Williams, "but he can only disburse what he receives for his produce. The idea is apparently prevalent among city dwellers, and more particularly among city politicians, that the fariniug industry is a cow to bo milked and that the full quantity of milk is to be expected, whether pastures are plentiful or scarce. The sooner the public mind is disabused of this idea the better it will be both for the cow and the public." \