The Daily News TUESDAY, FEBRUARY 16, 1926. FARMERS’ BALANCE SHEETS.

Taranaki Daily News, 16 February 1926, Page 6

The Daily News TUESDAY, FEBRUARY 16, 1926. FARMERS’ BALANCE SHEETS.

A move has been made on the part of the Board of Agriculture to bring home to every farmer his true financial position by means of accurate statistics embracing every item bearing on the cost of production, including land, rent, interest on capital and loans, fencing, equipment, plant, stock, labour, wages, cultivation of crops, manures, losses of ' stock, depreciation, and all .other charges and outgoings, such as rates and taxes, tools, implements, transport, commission and exchange, freights, storage, bank and other similar charges, management costs, and every other item incidental to the business, and to the family requirements of the farmer. On the other side of the account will be details of all receipts so ■ as to ascertain whether the farming venture is paying, and to what extent. It is considered, possibly with good reason, that if there is one thing lacking in this country at the present time it is a knowledge of farm economies. Now that farming is being raised to the dignity of a science, with a special college of university standard, where farm economies will be dealt with, there appears to- be a real need for the gathering of the fullest possible information as to production costs and the financial yield therefrom. A special point is made of the fact that the information supplied is to be treated as absolutely'confidential. The intention that is at the root of these inquiries is purely to render a much needed service to the primary producers, besides which the information sought for will enable a convincing reply to be giyen to the 'statement which

is constantly being made that the farmers arc getting such big profits for their produce that they are fair game for increased taxation. It may be argued that the present returns made for the purpose of assessing income-tax are sufficient for all practical purposes, but they are not and never can be accurate indications of the economic conditions of the farms dealt with. There may be a doubt caused as to whether the information outlined in the Board’s circular might be used by the taxation department to check the returns made by the farmers, but the declaration of the board that the replies will be treated as confidential should disarm criticism on this point. Some bf the large landholders find it necessary to keep an accountant and general business man, but if the Board of Agriculture, with possibly the assistance of two or three qualified representatives of the Farmers’ Union, drew out a specimen form, whereon the various details of the required information were clearly and simply set forth, any farmer of ordinary intelligence would be able to reply to the questions. It is quite likely that those producers who have taken little heed of anything but the state of their banking accounts and mortgages will get more than one surprise when their actual financial and economic position is revealed, but. whether the surprise be gratifying or otherwise there can be no question but that it is quite as necessary for a farmer to know’ for certain how his venture is turning out, as it is for a man with a large commercial or other business concern. The evolution of the farming industry in New Zealand contains many points of interest from the pioneering days until the present time. The days of makeshift and nonchalance have gone for ever, and the present order of progress demands new and precise methods to meet greatly altered conditions, especially in view of the utilisation of science and research to the problems facing the producers. Unquestionably the Board of Agriculture is endeavouring to place the industry on a sound economic footing, but it can only succeed by having the wholehearted and loyal support and co-operation of the farming community. It would certainly be a graceful acknowledgment on the pari of the primary producers of the generous action of the Auckland and Wellington Colleges over the inaugurating of a university college for agriculture, if the farmers furnished the fundamental information upon which the new college can aet in the teaching of economies and other branches of technical importance to farmers. The moment science and research enter into the operations of an industry the need for exact information becomes imperative. The board has pointed out a way in which this basic factor can be obtained, so that it is up to the farmers to do their part, for it is their industry which will benefit from reliable data.