PROFITS IN FLAX.

Hauraki Plains Gazette, Volume XXXVII, Issue 4956, 26 March 1926, Page 3

PROFITS IN FLAX.

CAMPADISON WITH DAIRYING.

INTERESTING FIGURES.

■ Comparisons between the returns from land .used for dairying and that usqd for flax farming have previously been given in this paper. The following comparison, is taken from the prospectus o*f one of the numerous flax companies that are being floated, andits not published with the intention of assisting the shareholders, but for the purpose of interesting farmers on the Plains, where the land is so suitable for flax-growing, in this; highly remunerative branch of agriculture. The figures in connection with the flax 'farming are fairly accurate averages, and* the figures in connection, with the dairying returns can be compared with the farmer’s own returns. For a farm of■ 150 ■ acres the total capital involved with 'cows., buildings, and plant at £4O per acre as| a going concern would be £6OOO. Producing 1201 b of butter-fat per acre per annum at Is 8d per lb, and. adding the value of-* Calves, pigs, etc., at| £3. per acre, the - gross return would be £1950. ■From this must be deducted the cost df labour or sharemilkers, say, £6oo', manures and general maintenance, say £3OO, and interest on capital involved at six per cent., £360, leaving a net profit of £690 or £4 12s per, acre —a-net return on capital invested of ■ 11% per cent. ’ ’ , The same sized area under - flax, with the necessary drains, cultivating, planting, maintenance, and mill erected,'would involve a capital expenditure- of £4O an acre or a total of £6OOO. Produ'cing two. tons of .hemp (16 tons of leaf) at the average price for all grades (including tow)'for the last six - years of. £33 8s .6(l—this period includes, the slump ye ays—the gross return would ■ be. £10,030. Deducting the whole cost of manufacturing, maintenance, interest, administration, freight, and grading' of £22 10s per ton, the net; return would be £3280. This represents a net return per acre of £2l 17& 4 f d, or 54 2-3 per cent, on the capital involved.