FARMERS' AND THEIR WHEAT

Dominion, Volume 10, Issue 2966, 2 January 1917, Page 8

FARMERS' AND THEIR WHEAT

PROFITS OF 1915-16 SEASON IN AUSTRALIA

AT-LEAST £12,000,000

..■ Th'o value of the wheat scheme to ■tie growers, and the" prospective returns from the continuance of the ~"pooL" formed the subjects of a statement made in Melbourne last week by r iho Aoting-Chairmah of the Victorian .[Wheat Commission:—

~ "Now that the balauco of our old ■ crop, and practically, tho whole of tho ■exportable surplus of the new, has been sold to the British Government," said Mr. Adamson,. "it Is a fitting time to review the operations of the Australian meat Board., The Board has regretted ita; inability "to take growers more, fully, into'its; confidence, hut in the conduct of its business bs a wheat merchant it has been under -the necessity of adopting comercial principles. The effecting of the present sale enables the Board to be more candid, and henceforth farmers will have fuller opportnnity of • following its operations. .Weekly accounts have hitherto been -published, but it is now proposed to publish monthly statements, which will ■set out tho'accounts in more complete '■form. .'

■' "What the wheat grower is mainly interested in at present is, What is lie '.'going to get out of the pool? The .present sale, involving both old anr] Jiow crop, has raised tho question how ■the proceeds of realisation of the 191516 and 1916-17 harvests are to be distributed among the growers. This is "n. point which the Board has not finally Jdocided, but a proposal now before it .appears to make for equity, simplicity, ..and economical administration. It is -that there should bo no division be- -. tween the operation of the two pools— ■ that the two harvests should bo re•?arded as one continuous pool. The effect would bo that growers in each State would throughout that State recoivo the samo, return per bushel for f each year, that is after making allowances for variations in rail, freight, .and for dockages. If this principle -'be followed, and it is unlikely that any other principle that may bo adopted ■will make for any material alteration, "a return for each year of about 4s. 9d. ' : per bushel may be expected. From .this '■ return, rail freight, handling interest and administration ..expenses must be deducts. The first -item will be a varying one, but.known ■to each; grower and indicated on his -certificate. The-'other charges will -vary slightly in tho different States, "and majj average about 4}d. What "appears assured is that growers of J.a.q". perhaps . in districts far inland—should receive 4s .ner bushel"net. The payments still -to he made on this account mav be -taken as follow:—Balance of 15)15-1 fi -crop, £8.000.000: payments on 1916-17 ■wop, £22.000.000. which win be the means of distributing among the growers of Australia a further sum of £30.0(10,000. At this rate of 4s per bushel, payments to 1915-1G growers

will have been £32,400.000. Tho previous record year, 1913-14, will afford a useful comparison of payments. Then the.value of tho crop on an f.o.b. basis was £16,900,000. Deducting from this, say, £1,700,000 for various charges, thero is a net return of. £15,200,000. Tho return for 1915-16 should exceed this by £17,200,000, or 113 per cent. . "If a more extended comparison is desired, the figures for tho decade 1901-05 to 1913-14, which excludes the drought year 1914-15, will servo the purpose: Tho average net value for that period may he taken as £11,000,000; the return for 1915-16 bettering this ,by £21,400,000, or over 190 por cent. "Owing to the length of time required to realise the harvest, the present cost of handling and interest I charges are much in excess of normal. It having been shown what the grower may now expect to receive, it may be asked what would his position have been withoiit tlie' scheme? At the outside his wheat would have been worth 2s. 6d. on his farm? Ho is doing Is. 6d. better than' this. The scheme has been worth a^/lenst , £12.000,000 to 1915-16 growers./ Even after the scheme had been started—as late as , last month— sales have been made of certificates, which indicates that growers expected no more than 3s. 4d.per bushel net. On tliat basis growers will be paid £5,400,000 more than they expected. These results .would have been impossible 'of' achievement .without Government intervention. The Commonwealth control of shipping has been a most material factor in securing the success of the scheme. The impossibility of private persons securing freight at the ratbs paid by farmers is obvious. I'reight to remove wheat from Australia could.not he obtained through usual channels at less than 200s.- ft ton, and oven then only in limited amount.* Tho average rate paid under the scheme has been less than 100s. :

"When tho London market touched 48s. 9d. (equal to 6s ljd. per/bushel), with harely one-third of the crop , sold, and freights threatening to mop up all the result of-farmers'.labour, prospects were not cheerful. However, except in the case of parcels, which could not bo permitted to go into store, tho board refrained from making sales until the market had effected a recovery, and the wisdom of this course has been amply justified." Next Year's Wheat Crop.' In reply to a question asked in the House of Representatives by Mi\ Foster (S.A.), the Prime Minister said ho was not able yet to make any state.ment with regard to arrangements for the disposal of the 1917-18 wheat harvest.