MARKET FOR FARMS

Taranaki Daily News, 8 June 1932, Page 15

MARKET FOR FARMS

GOOD INQUIRY IN AUCKLAND.

CAPITAL GENERALLY SMALL.

While there are sufficient numbers of inquirers for farm properties, representatives of firms of land agents in Auckland note, says the Herald, that, in many cases, the amount of capital available to many of the applicants is inadequate for the purposes of the market.

A member of one large firm has returned to the city after visiting the Waikato district; He said he had gained the impression that those asking for dairy properties had become somewhat sceptical of the propositions offered on account of the decline in butter-fat values.

‘ ‘‘Some people appear to be expecting too much for the resources at their command,” he stated. ‘Tn the case of a reasonably good farm, the man with £4OO or £5OO capital would probably need that amount to stock the property. This leaves little or nothing in hand for the land. My view of the situation is that it is difficult at present to obtain a going concern, where a property of reasonable capacity and possibilities is in question, for much under £1000.” The agent stated that a few transactions in farm properties, particularly in regard to moderately-sized dairy holdings, were being handled, but the position did not seem to be as satisfactory from the point of view of actual sales as was the case last year. It was important, however, to know that the demand for small farms was fairly keen. It remained that the great difficulty was the frequent inadequacy of capital to allow for profitable operations. A representative of another firm stated on Saturday that the situation regarding the market for farm properties was full of complexities. He summarised ■the position by saying the inquiries at present were larger in number than they were in the autumn and early winter last year, but there was not as much capital at disposal. There were numbers of people who were prepared to take up laud, but their resources were limited. It was difficult to adjust their requirements to the actual circumstances of the market. The land business had obviously been very seriously affected by the economic problems of the day, and the low prices obtained for agricultural produce were discouraging.

In spite of the disadvantage of the small returns for produce, a remarkably keen inquiry for farms existed. “In my opinion, could the cost of land be reduced 30 per cent, dozens of farms could be sold,” he continued. “Land

was bought by many farmers when the prices for produce were high, and there was 110 indication that the profitable circumstances would end. The vendors, in many instances, cannot offer good properties at the values expected by some inquirers without being prepared to face a loss.”

• Continuing, the agent said he was not able to see any immediate prospect of improvement in the disposal of properties. Although sales were being made, they did not compare with the volume of the inquiries. It was not possible to obtain many good dairy farms in the Waikato district, at much below £4O an acre, and generally this cost was not in accord with the resources, of most of those seeking to go on the land. The agent concluded by expressing the opinion that the position in regard to sheep properties was not as satisfactory

as that concerning dairying country. The poor demand was due to the extremely low value of wool, and the disappointing results of the past selling season had greatly influenced the position. At present, the demand ■was negligible, particularly in regard io rough land in the back country.