NEW FARMS

Shannon News, 13 March 1928, Page 4

NEW FARMS

JiQI.JLP.UEAT COSTS.

BREAKING IN VIRGIN LAND,

A contributor to an Auckland paper who writes under the non-de-plume of "Ploughshare” has essayed the useful task of estimating the various costs of making new farms out of virgin land such as is still available in the North Island. He points out that there are variations in the cost of equipment as, for instance, between a 1000 acre sheep farm and a 100 acre dairy farm, not only with regard to fencing, buildings, shelter, etc. Taking bush country as the simplest example, as there is only one way of breaking in such land, felling contracts now run from 30s to 50s per acre according to the nature of the bush. Taking £2 per acre as the average cost of felling, 30s per acre has to be added to the cost of seed and anotheV 5s to cover cartage, sowing, etc. If bush country is to be kept in good order proper subdivision is riecessary, and this can be done at a cost of £2 per chain, provided there is suitable timber for fencing accessible. This is admittedly on the low side, as much labour may be expended on clearing the lines; it will certainly not be less if ldt by contract, and the cost of the wire and staples added. The cost per acre is less easy to arrive at. Assuming for the sake of argument, a 500-h.cre 50 chains by 100 chains, with 300 chains of boundary fence, of which we will say that neighbours erect 100. Subdivision fences to , form six or seven paddocks main paddocks will account for at least 200 chains more, and one can add 20 per cent for the fact that the lines will not run straight or level, but must follow the contour of the country. This makes 480 chains or 500 if allowance is made for a couple of small holding paddocks. This brings the total cost to £IOOO or £2 per acre. Buildings will cost another £1 per acre if £350 is allowed for a four-roomed house,' and £l5O for a small shed for shearing and the storage of wool, seed, tools, etc. To erect such buildings at this cost meansathat skilled labour must be employed to a minimum and cheap materials used. In many cases the cost would be higher. This gives a total of £6 15s per acre, made up as follows: —Felling £2; seed and sowing £1 15s; fencing, £2; buildings £l; total, £6 15s. This does not allow for any such luxuries as a dip, drafting yards or motor-shed. Open Fern Country. Although open fern country requites no preliminary clearing, cultivation and manuring have to be done. Initial discing and harrowing, after burning off will cost about £l per acre, seed and manure for a temporary pasture about £2. Fencing is the next item; there will be very little

clearing to be done, but it is probable that posts will have to be bought. If the farm is to be used for dairying only something ean be saved on the type of fence, but on the other hand, small paddocks will be required. A chain and a half of fencing per acre at 80s, will be about the minimum, or say £2 ss, Buildings again will vary with the size of the farm, but

assuming a 200-acre farm, one can hardly erect a house, bails store shed for less than £6OO, or £3 per acre this is leaving out actual equipment, such as separator and machines. The temporary pasture will be providing feed all the time but will require top-dressing at least once a year at a cost of approximately £1 per acre. A couple of crops of swedes will pay their own way, and leave a final £1 per acre for ploughing and cultivation, £2 for seed and £1 for manure and sowing with the permanent pasture. Discing, harrowing, etc., £l; seed for temporary pasture, £1; manure for temporary pasture £1 fencing £2 ss; buildings, £3; two topdressings, £(2 (.swedes); cultivation for permanent pasture £l, seed £2; manure £1; total £l4 ss; less 2J years' feed, £5; £9 ss. In many eases the land would be put straight jnto * swedes or even permanent grass, but generally a period of temporary pasture (principally clover) is best; as is shown above, the feed obtained fully covers the outlay. Ready Capital Needed. As the compiler of the foregoing information points out, virgin land which may be cheap to buy, costs a considerable sum to improve besides the capital required for the purchase of the necessary equipment and stock. It sometimes pays better to break in new land than to buy an improved farm, but whereas the man can leave the greater, part of an improved place on mortgage, lie must have ready capital and spend it freely before he can get much return from virgin land. To tackle unimproved land without financial resources means that the work is unduly prolonged and often inadequately carried out, while it is a nerve-ending struggle to make a living till the farm comes into bearing. The breaking in of virgin country is hardly the job nowadays for the man of -small capital unless he has unusually good sources of credit. Another point is that small areas must always cost more petacre than large ones, and in many cases the only way in which land can be brought in at a profit is by hand- , ling it in big- blocks. At’ the same time it must not be forgotten that a great part of the North Island has been converted from bush into profitable farms by men of small means, but conditions for doing so were no doubt then more favourable than at present. The information given above concerning the cost of making a farm out of virgin land, while more or less estimates and in actual practice, will be found somewhat under the mark, is useful as a basis upon which a man can start his consideration as to whether he could tackle such a problem or not.