The Guardian And Evening Star, with which is Incorporated the West Coast Times. MONDAY, DECEMBER 8, 1930. THE PRIMARY PRODUCER.

Hokitika Guardian, 8 December 1930, Page 4

The Guardian And Evening Star, with which is Incorporated the West Coast Times. MONDAY, DECEMBER 8, 1930. THE PRIMARY PRODUCER.

ufiiOM more than one quarter the sug-gt-stu.il nas been offered that a special session of Parliament should t>e held early in thia new year for tiie consiaeratiou of tins or that problem arising out of the economic situation. Mr \y. J. Poison, M.P., Dominion president of tue . farmers’ union, Oases a request that the Government should adopt this course upon a survey Iff tne position of the primary producer. The troubles with which the farmer in New Zealand is confronted at the present time are exceedingly serious. In an open letter to the Acting Prime Minister, Mr Poison is instructively and impressively specific on some points of detail. Eor an illustration of his ease lie selects two farmers’ balance sheets, and there is no reason to suppose that his description of them as “typical” is inaccurate. They set out the position as regards both sheep and. dairy farmers. The first case cited is - that of a pastoralist, with a thousand-acre highclass farm; purchased at £lB 10s per acre and carrying 2500 sheep and 100 head of cattlo. The total annual charges on all counts, including £lllO interest on capital invested, are represented at £2£so, while the returns from the sale of wool and stick", based on hint year’s quantities and this year’s prices, are estimated at £llll, This leaves a loss of £1539 on the year’s operations, and it is pointed out that if the farmer had both his holding and his stock for nothing his loss would still be i£249. The second case is that of a dairy fanner with a property of 120 ncres —worth £45 an acre at the present time,—who milks 80 cows and obtains 2001 b of butter-fat per acre, With interest on capital at £393, and wagers at £3OO, the total annual charges come, Jto £1394, while the returns are estimated at £IOO7, leaving a balance on the wrong side of £387. Here again it is pointed out that if the farmer had his land and stock for nothing his profit for the year would amount to only £5. Tn both cases the estimates are based of course, on the present values of the farm products. There is no esca.p ing the stark conclusion that the primary producers in New Zealand find themselves at the present time working at a. loss owing to the steady decline An the prices of wool and butter-fat. The position of the sheepfarmer is particularly unfortunate. With the purchasing power of exports at 60 and farm costs at 160 it is clear. Mr Poison, says,.that “it will not be a long process before, the goose which lays the golden eggs m New Zealand will''be either dead or moribund.” An appeal to the hard logic of facts cannot be disnrssed. Everybody knows, or should know, comments the. IQtaom Times, that the prosperjtv of N«w Zealand depends upon the well-being of her primary industries. The present .experience of the primary producers is not thenown concern alone; it must react, in n most unfortunate wav unon all sef-tioir-i of the community. The question is raised of the farmers heirm able to cnrrv on their operations. Tn the exist,. ing circumstance th°v» is the damrei t.ffiyi. flier mnv abandon their farms—conm it bns been reported, are bourn already forced to do this-in which case the ranks of the unemployed would he augmented. A serious slump in nrimarv production as an unprofitable business would he disastrous for New Zealand as a country depend mg upon her primary exports to pay for her imports. Despite increased Production. there has been a drop of about, fifteen millions in the amount received for these exports. Mr Poison’s nlen for consideration of what nff’v he done to ameliorate the situation is not, one that can (be ignored. The need of providing some support, for the farming community that will enable it to weather the present stress and face the future with confidence must be recognised. There have in the past

been times a,s bad, and, remembering this, the farmers of the country will not lack the courage to meet adversity when it knocks at their doors. There is. however a clear need for some hard thinking and some prompt acting to the end that the industries of the country may be maintained until such times as prices of the primary products revive.