LAND VALUES.

Waipawa Mail, Volume XXXVII, Issue 8360, 23 July 1920, Page 2 (Supplement)

LAND VALUES.

Speaking at the social function held at Palmerston North at which Mr. M. Colien was entertained, Mr. F. J. Nathan quoted some interesting figures showing the profits made by dairy farmers when land was worth £4O per acre compared with the profits made at the present time with land at £l2O per acre. He spoke first of the years 1912 and 1913, when land was at £4O per acre, and the price paid for butter-fat Is. per pound. Allowing three acres to run two cows, the cost of land per cow was £6O, the interest on which at 6 per cent, would be £3 12s. The return from 2001 b of butter-fat at Isper pound would be £lO, the profit per cow r thus being £6 Bs. Taking land at £l2O per acre, and the price paid for butter-fat 2s. per pound, and again allowing three acres to run two cows, the cost of land per cow would be £IBO, on which the interest at per cent, was £lO 16s. Two hundred pounds of butter-fat at 2s P e pound would return £2O, leaving a profit per cow of £9 4s. Therefore, said Mr Nathan, land at £l2O P e acre with bu f ter-fat at 2s per was cheaper than it was eight yearago at £4O per acre, when butter-ia was Is. per pound, the farmers r i turn now being 43 per cent, better.