FARMERS’ FINANCE

Waipa Post, Volume 32, Issue 1782, 13 July 1926, Page 2

FARMERS’ FINANCE

CRITICISING DAIRY FARMERS’ UNION. LONG-DATED MORTGAGE'S. Opinions expressed at the recent conference of the Dairy Farmers’ Union at Palmerston North were levid 1 - lently not appreciated in some quarters. The Union’s policy ton agricultural finance is being questioned. One papier puts it thus: “The farmer wants cheaper money on inflated land values and higher prices for his produce.”

•At the annual Dairy Farmers’ Conference (writes the Napiier Telegraph editorially) the opinion was expressed that the proposal of the Bank of New Zealand in regard to long-dated amortisation Loans was the thin end of the wedge in the elimination of State advances. This is for Parliament to inquire into, and possibly it is well that the question should be raised. For the rest, the conference seemed obsessed by the foolish, view that if the farmers combine to establish an agricultural 'bank they will be able to obtain loans at less than current rates of interest. This is sheer nonsense unless established government is a costly farce. This country has been borrowing recently. It raised a six millions loan in London at a cost all told of per cent, and another five millions or more in New Zealand and Australia at a cost ail charges included, of roughly 6 per cent. How can any combination of farmers hope to borrow more cheaply than the Government? Money, like everything else, has a market price.

In a lengthy editorial the '-Dunedin Star expresses a similar opinion. It says: There is a popular belief that the farmer is a chronic growler. It may be a popular .fallacy, but the speeches made at Palmerston North, where the Dairy ’Farmers’ Union annual conference was held, did nothing to enhance any reputation the farmer may have for contentment, cheerful ness, or altruism. Dairying is a branch of farming which has made ■enormous strides in New Zealand. Only a generation ago there was no Surplus production for export. If there had been the problem of transporting it through the 'tropics to a market on the other side of the world had not then been solved. But with the advent of the Liberals to power in the ’nineties great changes took place. The land was unlocked. Great sheep and cattle runs were divided, and, soon the face of the country became changed. The Edendale district may be quoted as an example. The, replacement of the sheep and tbs beef bullock by the milch cow has multiplied the productivity and populationcarrying capacity of the land many times. The consequent amazing access of wealth has gone chiefly to the farming community. The land', on its change of ownership, which was brought about by the Government, was made available to the little army of small settlers on what appear now to be astoundingly easy terms.