UNECONOMIC LMDS

Otago Daily Times, Issue 24326, 17 June 1940, Page 6

UNECONOMIC LMDS

A SOUNDER BASIS POLICY OF AMALGAMATION COMPENSATION FOR TENANTS : (From Our Parliamentary Reporter) WELLINGTON, June 16.. The Government’s policy of amalgamating uneconomic Crown lands to facilitate the establishment of;a basis .for economic farming was referred rto by the Minister of Lands (Mr F. Langstone) in an interview. The Minister said that in Canterbury, where a start was being made, 87 acres ! were being worked by 47 occupiers. The process of adjusting farms which ’ were uneconomic because they were too small had been carried out in cooperation between the Lands Department and the State Advances Corporation, the Minister said. ... . The properties had been made economic farms, and_ the basis of amalgamation was to give the occupier at least a ■ minimum standard of living based on about 500 ewes and 200 dry sheep, or mixed farming equivalent in. value to the sheep production. “ Every consideration has been given by way of writing down mortr gages to sustain values ,and to put rentals on a sound basis,”' said Mr Langstone “ Steps have also been taken to relieve the outgoing occupiers or tenants of their responsibilities, and, a cash payment has been made to compensate for the upsetting, of their tenancy and to enable them to obtain dwellings and other occupations.” In many cases the farms were so small and the returns so inadequate that the Lands Department and the State Advances Corporation were receiving neither rent nor interest, and had to contribute towards the living expenses of the occupiers. Under the new system future losses would be avoided, and farming would be placed on a sounder economic basis. The Brookdale estate in Canterbury was quoted by the Minister as a typical case. The property had been bought for £35,000, and the value was later written down to £21,000. Even on that valuation settlers were unable to meet their commitments. Therq were 13 holdings originally, and the occupiers had fallen behind financially. Under the amalgamation. the estate was now farmed by six occupiers. “ Since I have been Minister of Lands I have endeavoured, to establish a basis for economic farming,” said Mr Langstone. “Dairy farms must produce about 60001 b ot-butter-fat to provide sufficient income for the farmer to have a standard of living and to meet his commitments of rent, interest and other charges. If a farm cannot provide that income it is uneconomic. The same applies on the sheep farms and the mixed farms. The basis of true land settlement is a decent area of land, giving an annual value of productivity to meet all the charges of a farmer who utilises the land in a businesslike way.