FARMERS LOSING MONEY

Southland Times, Issue 23676, 26 November 1938, Page 5

FARMERS LOSING MONEY

FIGURES FOR SHEEP PROPERTY

PRELIMINARY REPORT OF COMMITTEE “These figures show that this farmer is carrying on at a loss and while that may seem impossible you will probably find it is a fact that on many properties farmers are losing money and are actually living on their depreciation and capital,” said Mr G. A. Hamilton at the meeting of the Southland, provincial executive of the Farmers’ Union yesterday in submitting a preliminary report for the special committee set up to inquire into sheep farmers’ costs.

Mr Hamilton said that a very careful study had been made of the revenue and expenses of a farm of 250 acres carrying up to 500 sheep. The revenue for a year was fixed at £350 from lambs, £56 5/- from ewes, £l2O from wool and £4 from skins and hides; a total of £530. Expenses were calculated to total £707 6/5 including interest on capital invested £175, interest on livestock and implements £5O, household expenses £156, lime and manures £B2. ana all other expenses in operating the farm. The balance sheet showed a loss approaching £2OO. Although it would seem to be an impossibility to carry on in such circumstances he believed that many farmers today would find if they made a careful check that they were showing a loss. Actually, many farmers probably deducted much less than £156 a year for household expenses and did not take into consideration repairs and renewals to buildings or plant. Probably the farms were being allowed to depreciate while the fanners actually thought they were making a profit The committee would be going thoroughly into, the question and would obtain a great deal more information. PROPOSALS TO GOVERNMENT The chairman (Mr G. Stevenson) said a telegram had been received from the provincial president (Mr A. R. Johnston) who was attending the Dominion executive meeting stating that the executive had approved with slight alteration the resolution passed by the provincial executive last month recommending that a conference be held with the Government to decide what action should be taken to help the farmers. Mr Stevenson suggested that several means of assisting the farmers might he suggested to the Government particularly because of the increasing mechanization of farming. , These schemes were designed to assist in the problem of farm labour and as a means towards maintaining or increasing production. They were that the Government be asked to remove the duty on tractors, tractor parts and farm machinery not made in New Zealand and that the ccst of kerosene, petrol and'fuel oil be reduced. The Dominion executive should again impress on the Government that while the farmer •was working under an economic disadvantage as was shown by farming costs the production of exportable goods would fall. Any decline would prove serious to exports. The Government had allocated huge sums of money for public works and might well divert several million pounds to farm labour subsidies. Mr E. H. Diack complained that these proposals were only palliatives and he said he was opposed to palliatives. He considered it was preferable to hasten a serious crisis out of which would emerge stability for the primary producers. LAND POLICY NEEDED Mr R. Sim said a progressive land policy was needed. At the present time farmers could not pay competitive rates of wages which were now on a level of about £5 a week. The farmer could not afford to pay even 50 per cent, of that rate. The London funds at the credit of New Zealand were declining and farmers were being asked to maintain or increase production. He was satisfied that production would be increased if conditions for farmers were improved. Real wealth was necessary for the welfare of the country and not merely fictitious money. The financial policy at present being pursued was resulting in excessive imports, everyone now wanting to buy motor-cars and radios and other luxuries. A palliative in a labour subsidy was not attractive to farmers who disliked the odium which attached to the receipt of subsidies. There was a certain hostility in other sections of the community to farmers receiving special consideration and it was sometimes thought that the farmers were “spoon-fed.” The only solution was a progressive land policy which would prove to be either the salvation or damnation of New Zealand.