VALUE OF LAND

Otago Witness, Issue 3595, 6 February 1923, Page 10

VALUE OF LAND

DAIRYING LAND PRICES. WELLINGTON, January 20. The Evening Post to-day sought the opinion of one who had spent a lifetime in the dominion in close association with stock and station interests and banking on the subject of the British Empire Exhibition Commission’s recent report on land values in New Zealand. The question put to this expert was: “Is the value placed on New Zealand land too low?” The reply was: “In stating that the best, land in New Zealand was worth only £3O to £4O per acre they were not far out, if the valuation of that laud is based on what it will return

to the farmer after making flue provision for all outgoings, his own labour, interest, rates, taxes, and other items of expenditure that a merchant would certainly take into account in estimating his net profit. A concrete instance was given of a fine dairying property in the best part of Manawatu which had been sold for £llO per acre, and had passed front the purchaser with the loss of his labour and his deposit. tie could not make a ‘do’ of it with the price of butter fat where it was when he went out. Speaking generally, in the absence of the report of the commissioners, one cannot do more than suggest that they based their ideas of values of the best land on what the land would actually return at the then market prices. Land agents’ prices for properties are interesting as far as tuey go. but the real value of farming land is what can be made out of it by intelligent and economical farming. One cannot get away from that. Farming must be conducted on the same strict lines as any oilier business, and full allowances made for outgoings in the form of overhead expenses ns in a well-conducted business of a different character. When it is so conducted then it is doubtful if to-day the average of the best dairying lanrf in the dominion, on a butter fat basis of Is 6d per lb, is worth much more than £lO per acre.”