Survey finds farm expansion incentives

Press, 24 June 1983, Page 11

Survey finds farm expansion incentives

Reduced inflation and lower taxation would clearly be the most important expansion incentives for New Zealand farmers, according to the results of a survey by the Agricultural Economics Research Unit at Lincoln College. The annual survey of New Zealand farmer intentions and opinions was carried out from October and December last year by Mr John Pryde and Mr Patrick McCartin of the A.E.R.U.

Nearly 46 per cent of the 1540 farmers surveyed said the best incentive they could get would be lower inflation.

Reduced income tax came a long way behind with just under 20 per cent of farmers seeing this as the most important incentive. >

About 15 per cent of farmers said that an increased subsidy to reduce the price of fertiliser would be the most important incentive.

Higher supplementary minimum prices were seen by only slightly more than 3 per cent of the farmers as an important expansion incentive.

The survey also showed that 87 per cent of the farmers expressed a favourable reaction to the wage and price freeze, 9 per cent were opposed, and 5 per

cent had no opinion. Farmer co-operative organisations controlled by fanner directors are seen as being effective by most farmers, according to the A.E.R.U. survey. Forty-four per cent of the farmers regarded the cooperatives as effective, while 15 per cent saw the organisations as being very effective; and 28 per cent saw the co-ops as being “soso.”

Just over one-third of farmers who responded to the survey said they took no advice before applying fertiliser to pasture. Twenty-nine per cent of the farmers got advice from M.A.F. advisers.

Ten per cent got their advice from representatives of fertiliser companies, 9 per cent from soil-testing firms, and 8 per cent from private consultants.

The 35 per cent of fanners who sought no advice were spread evenly through all farm types, dairy, sheep-beef, cropping and other.

Fewer than 20 per cent of the cropping farmers turned to M.A.F., choosing to rely more (24 per cent) on soiltesting firms, and not at all on their neighbours. Most farmers regard the cost of fertiliser as very important, but many are prepared to pay more for

better fertiliser, according to the survey. Seventy per cent of those who responded said the cost of fertiliser was “very important,” while 24 per cent regarded the cost as “important” Nearly 60 per cent of the farmers were prepared to pay extra for more concentrated fertiliser, while 30 per cent were not

Asked about whether they would pay more for better physical quality fertiliser, 41 per cent said they would, but 36 per cent said they would not. Concentrated N.P.K.S. was rated by 44 per cent as the fertiliser likely to become the most widely used on their farms.

Single super-based pro-, ducts were seen by 27 per cent as being likely to be the most used, while 14 per cent opted for liquid fertilisers, and 13 per cent for triple superphosphate. The survey found that surface ground spreading of fertiliser was used by 63 per cent of the farmers, 32 per cent spread by fixed-wing plane, and less than two per cent used helicopters for spreading. Most farmers regarded the service provided by fertiliser suppliers as satisfactory, with 54 per cent “satisfied,” and 30 per cent “very satisfied.”