AGRICULTURAL INTEREST.

Dunstan Times, Issue 526, 17 May 1872, Page 2

AGRICULTURAL INTEREST.

In pursuance of the ihquiry respecting the condition and prospects'of the great producing interests of the country. I purpose in this letter to consider the question of agriculture in. its economic aspects present and prospective ; restricting the review to the interests dependent on arable cultivation and tillage generally, as distinct from pas-' turage or other utilization of tho natural products of tjhe soil. From Hie facts and evidence previously adduced, it appears that the southern Provinces have, in respect to quantity of supply of cereals and dairy produce, a surplus over and above the requirements of the local and established markets; and, as a consequence of this circumstance, a large and general reduction of prices of agricultural produce has resulted. That these di miuished prices Lave not beenmuch affected by the admitted deficiency inthe'yield of the crops of tho present season, is a confirmation of the facts, both of the abundance of the supply and of the limitation of _the available markets. Hence an opinion has become prevalent amongst those who, by their position and circumstances are the most competent judges,—the agricultural classes themselves —that cultivation has already been carried to excess, that farming is an unprofitable pursuit, and if extended markets and improved prices are not obtainable. Cultivation must be restricted, and the natural vegetation again usurp the dominion of the soil. Markets already exist in England and elsewhere for any amount of produce that New Zealand is likely to have to spare, but the prices at which it is offered in the markets must bear relation to the general and average cost of production in the several countries that are the sources of supply. The New' Zealand farmer has to compete with the cheap labor of Europe, the fertile prairies and valleys of North America, the extensive and suuny[plains of Australia, &c., and under the disadvantage of greater distance and more commercial intercourse with the emporium of trade. Under these circumstances it does not seem probable that the extension of the corn-trade in the direction indicated, would he accompanied by any corresponding improvement in the local prices of grain. A demand for all the surplus produce may exist or may be created, but its permanence must depend upon cheapness of supply, Now this is precisely the difficulty with which the New Zealand farmer has to contend. He cannot produce cheap coni, or afford to sell it or any other produce at low rates. But, Why not ? Because the expense of cultivation, the cost of production, is greater in New' Zealand than in other countries. While the quantity of home grown com was insufficient to supply the public necessities, though importation from other countries was unrestricted, the farmer participated in the advantages of the current high scale of prices ; which, in some degree compensated for the high price of labor, and interest on the greater amount of capital required to be invested in cultivation. But where, by excess of supply, exportation becomes expedient, prices tend to recede to their natural level in the general market, but no corresponding reduction takes place contemporaneously in the expenses of cultivation. Thus the New Zealand farmer is placed in the disadvantageous position, of disposing of his produce at the prices current in a foreign market ; prices determined by a low'cr general cost of production in the countries with which he has to compete. It is obvious that under these circumstances, tho prospects for agricultural enterprise arc not encouraging; and that unless some countervailing advantages, as greater fertility of soil, more favorable conditions of climate or proximity to markets, ■fee., exist, the labors of the agriculturist will not receive an equitable recompense ) and the progress of agricultural settlement will be impeded. That the expense tf tho production of a bushel of wheat fur instance, should not bo in fair proportion and correspond its market value is an economic ai omaly. The causes doubtless, is the diversion of labor by the greater attractiveness of other occupations, and particularly of mining. It is to be regretted that the prosperity of one branch of industry should be inimical to the progress and prosperity of another : yet such is the case at the present time and in the existing social and political circumstances; of New Zealand. It is no wonder that agriculture is comparatively neglected, and that capital accumulated by mining or other pursuits, is diverted into the channels of trade-in buying and selling—or seeks investment in speculative enterprizes or is transmitted to England, North America, Australia, Hong Kong, and elsewhere. This is no faney picture, but the real fact. I speak from experience. Tho tendency of the changes now in progress in society, is too remove the anomalies in tire relations of different classes at present existing, and to establish on a natural basis, the reciprocal relations of capital and labor ; but in the meantime it is only on fertile soils under economical management ami with the aids of the improved implements of husbandry, and with sufficient capital, that farming will yield a just profit to the cultivator. But. notwithstanding these unfavorable circumstances, there is no ground for apprehension that agricul lire will not be progressively extended; though the rate of progress—impeded by the causes above enumerated—will probably be alow. There is no other occupation capable of affording reproductive employment to tho increasing numbers of the population of tho colony, and the necessities of the people will oblige them eventually to resort to the land, as a r efugo from the unceasing toil and precarious recompense caused by the over-

crowding of other,occupations. j mediate consequence of this ! extension of aettlemeiiii will he the creatiop of a large surplus of agricultural ' produce : and whether exportation of grain be a good policy or not, it must become of necessity, temporarily expedient. In new countries possessing large tracts of unappropriated cultivable! land the Malthusian’dogma is not orthodox, which asserts that “population has a continual tendency to increase its numbers in a rate greater than that of the increase, by the extension'and improvements in agriculture, of the means of subsistence.” On • the contrary, in new countries the supply of the stapde articles of food constantly tend to exceed the requirements of population, although its numbers be augmented at the quickest possible rate of increase. Hence it is apparent that an abundant supply and cheapness of agricultural produce will be the ruling condition in the future of the colony ; and this will be the basis and primary condition for the establishment of other branches of industry within the colony, and to the utilization of its various products in locally established manufactories, &c. The conclusion to be drawn from consideration of the circumstances and causes in operation and from the analagous experience of other countries, respecting the future condition and progress of agriculture is, that the production of corn, <k., will increase, where there is a probability of a settled population, will be supplied from au agricultural area in its immediate vicinity. That, in the aggregate, an excess of produce will be available for exportation, and this will probably be carried on to the injury of the productive capabilities of the soil, which by unceasing repetition of corn crops will become impoverished. That low piicos of produce and the consequent inability to obtain, by the profits of agriculture, more than a very moderate share of luxuries and conveniences, &c., will tend to promote the establishment of various local industries, for the production of articles and commodities now imported, and the consequent utilization of the home grown produce—corn, wool, flax, and other raw materials, in locally established arts and manufactures. This will provide permanent occupations for the increasing number of the population, give a new impetus to the extension of agriculture, diffuse throughout tho community a more healthy condition and a more independent spirit, raise the general standard of domestic comfort, improve the tone of society, and tend to promote--as far as material prosperity can promote—the grand object of social existence and the final purpose of government—the contentment and happiness of the people. Yours, &c., AGRICOLA. Alay IG, 1872.