NO CHANGE IN U.S. FARM MACHINERY SUPPLY TO N.Z.

Bay of Plenty Beacon, Volume 14, Issue 46, 3 October 1949, Page 3

NO CHANGE IN U.S. FARM MACHINERY SUPPLY TO N.Z.

The immediate reaction of a large section of the farming community to the news of the devaluation of sterling was one of dismay at the thought that American-made farm machinery would now be out of reach. Many telephone calls, from all parts of New Zealand were received in Wellington by leaders of the farming industry and by importers of machinery. There were compensating factors, it was stated, and as far as farm* machinery was concerned New Zealand would be no worse off than it was in July, 1948, before New Zealand currency was brought to parity with sterling. Ten Per Cent. Reduction There had been recently a reduction, amounting to about ten per cent., in the production costs in the United States and Canadian factories. The reduction had not yet been reflected in selling prices in New Zealand, but would help to compensate for the increase caused by the sterling devaluation. In other words, what had happened was that New Zealand would now lose the benefit gained last year through the abolition of the exchange rate. During the past 12 months, however, not a great deal of farm machinery had been obtained from America, so that farmers expecting delivery of equipment in the early part of 1950 could expect to pay about the same price as they would have in July of-last year. Another compensating factor was the increase of 74 per cent, in the new contracts with Britain. Even if a farmer did not produce another extra pound of butterfat above what he produced last year, his income would be better and he should be better able to meet the present sterling adjustment.

The need for American-made farm equipment still existed, and a great deal of New Zealand’s requirements must still come from the United States, which produced equipment that could not be obtained elsewhere, inquiries from Federated Farmers revealed. A survey —not yet completed—of farming needs showed that there was a tremendous demand for machinery. Unfulfilled Orders One company alone had on its books 4415 unfulfilled orders for tractors of all types, the majority demand being for light, wheeled tractors. The Government, and Government officials,- had a full appreciation of the need for obtaining that equipment, and in all their actions showed a willingness to meet a difficult situation, it was stated. There has been nothing but friendly cooperation from Government departments.