PRICES AND COSTS

Taranaki Daily News, 1 September 1930, Page 12

PRICES AND COSTS

POSITION OF SHEEPFARMERS. The relation of farmers’ income to cost of production was illustrated in terms of bales of wool by Mr. H. D. Acland in his presidential address at the annual meeting of the New Zealand Sheepowners’ and Farmers’ Federation at Wellington on Wednesday. “In 1927-28 wool averaged 19{d per lb at the third Christchurch sale, and in 1930 it averaged 7Jd per lb,” Mr. Acland said. “This means that if a sheepfarmer who had 100 bales of wool in 1928 was able to pay the wages of four men with 20 bales of wool, county rates with two bales, the storekeeper with 12 bales, the Government rent with eight bales, shearing with, say, six bales, totalling 46 bales, leaving o 4 bales for other working expenses, and something for himself, then the payment required today for the same services would be as The four men want 50 bales; county rates, 5; storekeeper, 30; Government rent, 20; shearing, 15; a total of 120 bales. ' . ■ “Here we have demands for the services I have mentioned exceeding the total product of the sheepowners’ wool. That is the position to-day with thousands of farmers. It is no good theorising, or making speeches, but it is necessary to face the position. “The farmer is now realising the terrific burden of local rates, and it is sometimes pointed out that these have doubled in ten years in many cases. Applying my method of thinking in terms of wool or produce, rather than in terms of money, it is a mild statement to say that local rates have only" doubled. Suppose a farmer’s rates were £25 in 1919, and that his rates were £5O to-day, it might at first sight appear that such rates have .doubled. But in 1919 the farmer paid his rates with one bale of wool at £25. To-day it takes four bales at £l2 10s. The rates when looked, at this way have quadrupled. “It may sound a truism to say that a sheepowner pays a man working for him, say, £l3O a year and found, and the storekeeper £2OO for the year’s stores, but he does nothing of the kind. What he. actually did when wool was at £25 a bale was to give his man the proceeds of. five bales, and the storekeeper the proceeds of eight bales, and these two to-day ask for 33 bales for the same services. They cannot have it because it is not there.” Money was only the common denominator, and the farmers really paid out not pound notes but bales of wool, store sheep, fat lambs, pigs and butter. The ordinary person and the Government should realise that the sheepfarmer could not hand out more wool and meat 'than he actually produced. j