THE WHEAT PRICE

Otago Daily Times, Issue 26228, 12 August 1946, Page 2

THE WHEAT PRICE

Sir,—A correspondent, Mr Frank Hood, considers that the present price of wheat is a very fair one. and in justification for this belief quotes the gross‘returns from three areas in the Ngapara district. Gross returns are of little value, for they do not indicate the farmers’ real earnings. The returns quoted do. however, indicate yields of over 50 bushels to the acre, and in that case they certainly would show a profit. The past season was exceptionally favourable for wheat yields m most parts of Otago. The average yield for New Zealand is 32.6 bushels per acre, and it is on the average that the merits of the price must be judged. The Ngapara district may be highly suitable for wheat growing, but other and poorer lands must be brought into wheat production if the objective of 250,000 to 300,000 acres is to be attained. The Government appeals to all farmers to grow wheat, but arbitrarily fixes the payment on what it considers to be the production costs of the best wheat lands. Hence the sincerity of the Government is open to question. Mr Hood's reference to the price paid for two-tooth ewes as an indication of the farmers’ prosperity is irresponsibly misleading He quotes the record price paid in North Otago this year, but fails to mention that throughout Otago there was a drop in the price of two-tooths of from 8s to XOs a head. An indication of the farmers' economic position is ability to compete on the labour market. Every year more men are drifting off the land to the subsidised 40-hour week jobs of the cities. Labour is essential for production. If more labour is not available for the land, the outlook for increased food supplies is far from bright. —I am. etc., J. S. Elliot. Middlemarch, August 5.