FALLACIES

Press, Volume LXVII, Issue 20168, 21 February 1931, Page 14

FALLACIES

XXVII.-THAT THE FARMBI MUDDLE THROUGH;

(srVCULLT Mlimx MB m mill '*■-

[By M. J. Scott, 8.A.. B.Sc., Canterbury Agricul

The present low prices of farm produce create a liability for the fanner that will take years to' pay off. . This liability is caused not only by the low prices of the stock that are sold but almost equally by the depreciation in capital value of the breeding ewes, the farmer's machinery of production. The national revenue is reduced by low prices for lamb, etc., but through these low prices the farmer has to bear an additional, and almost equal, loss through depreciation. If by any process the earning capacity of a sheep were fixed as far as the farmer were' concerned the internal losses now going on would be avoided, the price risk would be done away with, and a farmer could set out to produce a definite revenue with only the weather and accidental risk to carry. v On the other hand, under existing circumstances, when prices of fat stock are high the fanner has to pay high ' prices for breeding ewes, and his profits are watered down, the main, profit going to the high country seller of ewes, who undoubtedly is also taking the biggest loss when prices are low. Nationally we come through bad price years and good price years with a continual annual improvement over, a period .of years: individually farmers go through bad years vwhen they can pay nothing, and' so they , stagnate every other industry, and create unemployment; and-'through good years in which/ after theychave paid off their back debts, they/give themselves a little treat .for, all theu; past hardships and spend thcirmoney on some luxury process that they,ultimately iave to forgo. " vWf• . In the 1930 Year Book\$& export value (declared) of the, is quoted, <and Jieside it she value'of the same materials last year's prices. In generdHhere* is a better return (a profit) as [a result of price improvement, but in . years

Government up 20 per cent. ™jT deer |