LAND VALUES.

Hokitika Guardian, 29 May 1924, Page 4

LAND VALUES.

PROD UCTIVE CA PA CITY OUTSTRIPPED.

BLENHEIM, May 27

In the course of an interesting paper read before the Farmers’ Union, Mr F. \\. Greenwood, of the Agricultural Department, referred to land values. He .said the period from 1914 to 1921 i.e. from the beginning of the Great War until the height of the boom was readied, witnessed a rapid increase in land values in New Zealand, For some time before the war values had been steadily increasing, but it was not until August, 191-1. that the price of land in the Dominion began to soar to heights far beyond its productive capacity.

“With tile causes of the rise in values," lie said, “wo are most of us familiar, hut it is doubtful indeed whether many farmers at tlie time of making their purchases at inflated p.lives, or even at the present time, have brought themselves to calculate the probable consequences of the present trend of events. That the price of our products on the Home market or in the main market for our produce determines the price of land ill N’cw Zealand is an accepted oeonmie fact. The increased demand at Home during the war for our wool, frozen meat, and butter-fat. caused inflated prices, the result being that farmers, well established and otherwise, began to sell their land on the basis of the inflated valuation. So long as butlerfat continued to bring 2< and 2s (id per pound, dairying land of the first quality might- continue to be worth CSO per acre. At no time, however, was it worth £IOO, or oven £lo(), a price paid in the vicinity ot 1.-evin. mid Hastings, and unlnrtunatoly oven in some portion of our own distiict. With the fall in darying products, we may safely say that we are well within the margin in placing the production value of the best land in New Zealand at £OO per acre—provided, of course, this land is used for farming purposes. “1 am well aware that it is argued by those who buy and -sell land at extremely high prices that this land may bear a very high value for market gardening purposes. In support of their arguments, they quote what is being done in tile United Stales of America. A few years ago 1 made an extended tour through that country, and although I found that in exceptional instances horticultural land with trees in full I.caring - in. for example. the San Bernardino county of Southern Califot iiin bad reached the fabulous price of 2000 dollars, or £IOO per acre, I think that investigation will show that even at the present (lay land is mil bought and sold -mi as inllated a basis in the United Stales as in New Zealand. “I’riees must be said to le iiillaied when they roach a level at which the land fails to return interest at (i per cep... and vrolit in addition siiHicieiit In allord the tanner a livelihood. Omthing we have to remember is that, even if land of the same quality in the two countries were at- the same

price, the scope for market gardening in America, where there are io many large cities, is infinitely greater than it is in New Zealand, where our large cities are few and relatively scantily populated, and heme the scope of the market, gardener is correspondingly limited.

“I do not wish to dwell unduly on the lad that some rf the most experienced and able produced of our country arc living in retirement on the inteicsl eiii ioctci I I min heavily mortgaged purchasers of their farms. The position is probably felt most keenly by returned soldiers, with little capital., many of whom arc tr-il.ay working at other occupations In enable them to pay their rent. These preliminary remarks on my part are merely lneznf t;> show t’le important hearing of increased land values upon the position of the farmer 10-day. In eomnaiison with other New Zealand pnuinies. Marlborough is in a reli-tively happy l'esil ion. as s’ ooubiticg lias been loss rife here, and < onsci|noi:t!v l rices, n!I hough higher l ban formerly have risen less.”