THE DAILY OTAGO TIMES WEDNESDAY, DECEMBER 3, 1930. THE PRIMARY PRODUCER.

Otago Daily Times, Issue 21199, 3 December 1930, Page 8

THE DAILY OTAGO TIMES WEDNESDAY, DECEMBER 3, 1930. THE PRIMARY PRODUCER.

From more than one quarter the suggestion has been offered that a special session of Parliament should be held early in the new year for the consideration of this or that problem arising out of the economic situation. Mr W. J, Poison, M.P., Dominion president of the Farmers’ Union, bases a request that the Government should adopt this course upon a survey of the position of the primary producer. The troubles with which the farmer in New Zealand is confronted at the present time are exceedingly serious. In an open letter to the Acting Prime Minister, Mr Poison is instructively and impressively specific on some points of detail. For an illustration of his case he selects two farmers’ balance sheets, and there is no reason to suppose that his description of them as “ typical ” is inaccurate. They set out the position as regards both sheep and dairy farmers. The first ease cited is that of a pastoralist with a thousand-acre highclass farm, purchased at £lB 10s per acre and carrying 2500 sheep and 100 head of cattle. The total annual charges on all counts, including £lllO interest on capital invested, are represented at £2650, while the returns from the sale of wool and stock, based on last year’s quantities and this year’s prices, are estimated at £llll. This leaves a loss of £1539 on the year’s operations, and it is pointed out that if the farmer had both his bolding and his stock for nothing his loss would still be £249, The second case is that of a dairy farmer with a property of 120 acres—worth £45 an acre at the present time—who milks 80 cows and obtains 2001 b of butter-fat per acre. With interest on capital at £893, and wages at £3OO, the total annual charges come to £1394, while the returns are estimated at £IOO7, leaving a balance on the wrong side of £387. Here again it is pointed out that if the farmer had his land and stock for nothing his profit for the year would amount to only £5. In both eases the estimates are based, of course, on the present values of the farm products. There is no escaping the stark conclusion that the primary producers in New Zealand find themselves at the present time working at a loss owing to the steady decline in the prices of wool and butter-fat. The position of the sheepfarmer is particularly unfortunate. With the purchasing power of exports at 60 and farm costs at 160 it is clear, Mr Poison says, that “it will not be a long process before the goose which lays the golden eggs in New Zealand will be either dead or moribund.” An appeal to the hard logic of facts cannot be dismissed. Everybody knows, or should know, that the, prosperity of New Zealand depends upon the well-being of her primary industries. The present experience of the. primary producers is not their own concern alone; it must react in a most unfortunate way upon all sections of the community. The question is raised of the farmers being able to carry on their operations. In the existing circumstances there is the danger that they may abandon their farms — some, it has been reported, are being already force'd to do this —in which case the ranks of the unemployed would be augmented. A serious slump in primary production as an unprofitable business would be disastrous for New Zealand as a country depending upon her primary exports to pay for her imports. Despite increased production there has been a drop of about fifteen millions in the amount received for these exports. Mr Poison’s plea for consideration of what may be done to ameliorate the situation is not one that can be ignored. The need of providing some support for the farming community that will enable it to weather the present stress and face the future with confidence must be recognised. There have in the past been times as bad, and, remembering this, the farmers of the country Will not lack the courage to meet adversity when it knocks at their doors. There is, however, a clear need for some hard thinking and some prompt acting to the end that the industries of the country may be maintained until such time as prices of the primary products revive.