THE FARMERS’ UNION

Te Aroha News, Volume XLI, Issue 6438, 15 January 1924, Page 5

THE FARMERS’ UNION

NEWS FROM HEADQUARTERS

(By R. Alexander, official reporter.)

For some considerable time past a feeling has been growing amongst those interested in the N.Z. Farmers’ Union that the activities of that organisation have not been given sufficient publicity. Branch meetings have received generous recognition by the press, but much of the important work accomplished by the influence of the Union escapes notice. The Auckland Provincial Executive at its last meeting decided to try and overcome this difficultp by sending out to the press each week a news budget from headquarters. Between the meetings of the executive a Avhole month elapses and farmers frequently look for guidance from their leaders on many important matters during that period. It is therefore proposed in these letters to record the work and activities of the Union and discuss topics of interest to the farmers. The opinions expressed will be endorsed by the executive and can therefore be accepted as authentic. With the assistance of the press it is then hoped that farmers in all parts of the province \yill be kept in close touch with work which is being carried out in their interests. It is also that greater knowledge of the Unism’s aims and objects will add to its popularity and usefulness. MUTUAL INSURANCE One of the subjects which has recently engaged the attention of the executive is the revival of interest in the operations of the Farmers’ Mutual Insurance Associations with the object of extending their ability. It will be recalled that Mr W. Kirkbride, one of the early presidents of the Union, was responsible for the legislation enabling the formation of these associations. His Bill was carried into' law during the season of 1923. Four only of these associations were formed and they have been reasonably successful, but in so limited a field that the farmers generally have not received much benefit from them. The Act provides for any body of persons guaranteeing £40,000 of insurance cover on isolated property forming an association. To insure some measure of financial security each insurer is required to sign a promium note under which he becomes liable for calls of not less than 1 per cent, of the sum insured in addition to the premium paid for his cover. The amount guaranteed is not to be called up except, for the payment of fire losses or the expenses of the association. t HANDICAPPED The progress andi utility of these associations, however, have been retarded considerably. In the first place their stability is not looked upon as being very sound by the large financial institutions,, and 1 a farmer requiring- assistance often finds his policy in a mutual not acceptable to his mortgagee, although government lending departments have accepted the policies, but in some cases, however, with certain limits. The necessity for the premium note has also kept many farmers from joining and the difficulty of getting these notes renewed from time to time is considerable. Then again isolated risks can only be accepted and this prevents many desirable risks being taken over the property of retired farmers in towns. Other companies also refused re-in-surances, and it would not have been possible for the mutuals to carry on without the help of the State Fire Department. But the re-insurance commissions allowed were 15 per cent, on tariff rates and the mutuals suffered loss on their sums reinsured as their rates were, for the most part, 20 per cent, below the tariff. IMPROVEMENT WANTED Considering that insurance .is so essentially co-operative it is incredible that so little has been done in this field. There is not the same risk as in ordinary trading because insurance is free from market fluctuations. Insurance is based on average losses over a period of years, and success is a question of rates, plus good management. If the farmers desire cooperative insurance—and the difficulties in the way are not great—an organisation must be formed without the disabilities of the present mutuals, so thdt a greater variety of risks can be taken. The Farmers’ Union organisation offers an almost ready made and effective machine for the initial work. A certain amount of capital is necessary, but the provision of that does not appear to offer di&culties. The Union has received a very valuable report upon the matter and some details may be available later. The first essential to such an organisation would be the co-operation of the existing mutuals with due regard to individual interests.