DAIRY FARMERS.

Franklin Times, Volume 9, Issue 705, 7 February 1922, Page 5

DAIRY FARMERS.

AND THE FINANCIAL STRESS. STATEMENT MADE BY UNION. The Dairy Farmers’ Union has issued a statement on the subjeqt of farmers’ finances, which contains a suggestion that a commission be set up in connection with the adjustment of mortgages for farmers who are financially embarrassed. The manifesto states :—“A large percentage of the farmers -at the present time are in financial difficulties, and in scores of cases have left theis? farms.. For these men to cease producing and the land to fall back into the hands of the mortgagee, who will nqt farm the land, will be detrimental to both the individual and the Sjtate.. With reference to the Valuer-General’s visit to the Waikato regarding an inquiry into the farmers’ financial position—in view of the fact that the overwhelming evidence forthcoming by written statement and personal interview with the Valuer-General shows the draqtilc position of 80 per cent, of the farmers financially embarrassed —the farmers have stated that unless the Government pass legislation at once to keep the mortgagee from selling them up on accounnt of non-payment of interest they would, be forced to leave their farms. All they ask is time so as to adjust their interest and mortgages wi|tn the mortgagee, who has already, in many cases, reduced their mortgages by several thousands. The farmers are prepared to work for years without profit so as to retain theif- holdingsThe Dairy Farmers’ Union feels that all proceeding in connection with foreclosures should be stayed until March 31, 1923, to allow time for the tribunal to investigate each case of distress. “To obviate this trouble, the Dairy Farmers’ Union recommends that a commission be set up representing the Government, mortgagee and mortgagor, two farmers in each district to be gazqtted as arbitrators, and. arrangements made that where mortgages are unusually high, brought about by land speculation and in many cases unpaid principal or purchase money, the mortgagee be approached to reduce the amount of his or her mortgage and also the rate of interest to what a farm el* can reasonably be expected to pay. “Where a farmer is holding more land than he can farm after the mortgages are adjusted, we suggest that he divide the farm i<n two or more parts and lease with a compulsory purchase clause to the incoming tenant, the mortgage! to divide his orf hor mortgage i,n equal parts, and thus relieve the farmer of half of his liabilities Legislation should be pased at once so as to givs he Government power as the third party to settle any dispute that will 1 arise between the parties concerned. Necessary surveys in connection with subdivisions of property and the necessary legal expenses in connection with transfer and re-adjustment, should be conducted by State Departments at the lowest possible cost. Seeing that in many instances incoming men will only have available a limited capital, we would suggest that a means be devised whereby the State Advances or some such Department advance an amouryt up to, say, £3OO, on pound-for-pound basis at current rates of interest. “By this means the production of the Dominion will be increased, and the burden of the fanner will be lightened ,tlius stabilising the finances of the country, placing mortgagees on a sound footign and inducing confidence in the farmer, who is anxious to carry on and face the present critical position.”