Big drop in cropping farm incomes

Press, 7 April 1979, Page 2

Big drop in cropping farm incomes

The gross incomes of many g r a i n-growing farmers this year would be down between $lO,OOO and $40,000 because of poor harvests, the agriculture executive of North Canterbury Federated Farmers was told by its chairman (Mr K. M. Wells) yesterday. Many areas were again water-logged, he said. It appeared that most of the harvesting had been done, but a large acreage was left to do on heavier land where sowings had been late because of the wet spring. The crop was in very poor condition: heavily sprouted, discoloured, and light on bushel weight, said Mr Wells. It was hard to imagine the value of such a crop, and less than $5O a ton had been offered to some growers.

A survey of the 17 farmers at the meeting yesterday showed an average farm size of 238 ha, and an average gross income loss on this year’s estimated budget of $12,323 because of the poor harvest. The fanners’ 17 farms added up to a total of 4000 ha, and the total loss of income on this year’s estimated budget was $209,500. Mr Wells said many growers had considered an alternative use for grain as stock

feed, but found that because of the high price for store stock, it would be a doubtful enterprise.

The Ministry of Agriculture had said that only 5 to 10 per cent of the crop had still to be harvested in North Canterbury. While this amount looked small, said Mr Wells, it must be remembered that it included many growers with most, and in some cases all, of their harvest.

All grain growers had faced higher cultivation costs than usual to get their crops established, and many had applied nitrogen at considerable expense. Rural Bank loans had been suggested as a means of relief, but they were of little use when the farmers’ debtloads were at a maximum now, said Mr Wells. A higher debt would only aggravate the position, and many could just not afford it. The grain grower had been efficient and economic over recent years, said Mr Wells. Product prices had not moved with costs and inflation, and the industry was now at- such a fine pitch that failures could not be afforded.

The servicing and cartage industries would suffer because of the poor harvests.