GUARANTEED PRICES

Otago Daily Times, Issue 26354, 8 January 1947, Page 6

GUARANTEED PRICES

Sir,—Your correspondent “ Inc^® a ? e /? Production *’ is still a little astray in his references to the dairy farmer and the guaranteed price. It is not the most pr - perous period to date for the dairy farmer. After the last war butter-fat was. 30d per lb, over 8d better than to-day s price, taxation was much lower, goods wer more plentiful, and there was not a 40hour week, even though wages and tne cost of some goods may have been almost as' high as to-day. All farmers will agree that the guaranteed price is sound in principle, but i could be improved in practice to give corresponding benefits to all sections ot farmers concerned in each produce sea n o “; The schedule for ewes and wethers should be advanced in comparison with the advance allowed for lambs. The guaranteed price for wool was not of equal benefit to all farmers. It was very satisfactory to the man with crossbreds who couiu fatten most of his lambs, and who also had the advantage of shorter cartage costs compared to the man with a fine-wooled flock who depended solely on the wool cheque, or it and proceeds of a tew store sheep. This brings up a matter tnat has puzzled me ever since it was brought into practice. It is the 71 per cent, taken off wool sold this season to cover the cost of selling wool bought under the guaranteed price when it is being sold at about 100 per cent, profit. Why all our hard headed farmers take it is hard to understand. In any ordinary business deal such a thing would never be heard of. J. O. and the stock firms were even arguing who should pay commission on the 75 per cent. Why should the farmer pay it when he does not get the money? I consider this is a matter that could be scrutinised closer by the wool and meat section of the Farmers' Federation. —I am, etc.. Son of the Soil.