THE GOOD YEARS

Waikato Independent, Volume XLIV, Issue 6176, 22 March 1948, Page 7

THE GOOD YEARS

HOW LONG WILL THEY LAST? CONSOLIDATION RECOMMENDED For 15 years now our farming has enjoyed a period of ever-rising prices, says the farming correspondent of a southern daily. How much longer this will remain so and what changes will occur are important questions to all concerned with the management of farm property, bearing upon plans for improvement ahd all other financial matters. The 15-year period starts from the depths of the depression in 1933 and includes three bad years until 1936, but subsequently there have been 12 good years. 5- At the last annual meeting of the stock and station firm of Abraham and Williams, Ltd., the report presented by the chairman, Mr J. T. Martin, contained a table setting forth good years and bad since 1880. This lists seven depression periods, some brief and others lengthy, that aggregate 17 years out of the total . of 68, so leaving, 51 normal and good years. That gives a ratio of three good years to one bad year. It is stressed that we are now in the longest period of satisfactory prices we have ever experienced. It is suggested that on the present prospects good prices may be .realised | for 1949 and even 1950, but that lower levels are probable thereafter. Wisdom calls for a consolidation of position by every man responsible for the operation of a farm. Unfortunately, there are considerable difficulties in The way of getting shipshape. High taxation absorbs money that could havft been well used for the setting aside of cash reserves; money invested, say, in Government stocks. Then shortages of labour and materials, which do not seem to have improved, have made it difficult to safeguard the position in another and excellent way. The reference here is to putting a farm into firstcondition as regard pastures, fences, buildings and so forth. With all in good condition, a farm is not only highly productive, but can also stand the siege of low returns. I believe that more use might be made by the farming community of the deferred maintenance clause in - the Income Tax Regulations.