Hard To Follow

Press, Volume C, Issue 29518, 20 May 1961, Page 7

Hard To Follow

Answering a question about prices paid for land at Lincoln College farmers’ conference this week Mr R. C. Stuart, superintendent of agricultural information of the Department of Agriculture. said he was at a loss to understand the prices that had been paid for some classes of land. Mr Stuart said that the de. partment had been asked to value properties as a productive unit but when they had suggested £4O to £45 an acre prices of £7O or £BO had been paid. It was assumed, he said, that these transactions were between a willing vendor and a commonsense purchaser. It

seemed obvious that factors other than profitability were involved.

At the prices being paid it did not seem that reasonable returns could be earned which would allow for a reasonable standard of living and a 5 per cent, return on the investment. He said that they were wondering what would happen in the case of properties where the purchaser was providing half the purchase price with the seller leaving the balance for five years. It was. however, a different picture with mixed arable farm land. Prices asked for and paid in this instance were justified, but what was beyond understanding were the prices paid for land where there was not the same elasticity of production.