FARM COSTS AND PRICES

New Zealand Herald, Volume LXXV, Issue 23109, 6 August 1938, Page 19

FARM COSTS AND PRICES

MR. G. H. 0. WILSON'S VIEWS REPLY* TO UNION STATEMENT [BY TELECRAPH —PRESS ASSOCIATION] WELLINGTON, Friday "I am glad to observe that the Farmers' Union docs not attempt to deny my statement that farm costs have not, on the whole, risen since 1929, and that therefore propaganda based on the assumption that ' they have increased abnormally is fallacious," said Mr. G. H. 0. Wilson, M.P. (Government — Kangitikei), in an interview to-day, referring to a statement issued by the Farmers' Union commenting on his speech during the Budget debate. "Criticism of the speech appears to have been based on the abbreviated press reports," said Mr. Wilson. "I was at pains to point out that the farmers' gross returns from their exports were approximately £10,000,000 more last season than in 1929. If, therefore, their costs had not increased, their position was better. " Finally, I would .point out that by far the largest item in the working expenses, as shown in the Year Book figures from which the Farmers' Union statement quotes, and, as the majority of farmers will know from experience, is manure, which has been substantially reduced in price since 1929. Interest, however, this statement shows, costs on the average farm nearly three times as much, and the reduction in average interest rates since 1929 is 12 per cent.

" I did not quote figures for the amount allowed for wages on farms, but as the great bulk of the farm work is done by the fanners themselves, the greater part of the increased margin between the gross returns on the one hand and maintenance and interest charges 011 the other, must go to the farmers themselves."