TARANAKI LAND VALUES

Taranaki Daily News, Volume LIV, Issue 280, 23 May 1912, Page 7

TARANAKI LAND VALUES

ARE THEY TOO ITIGH?

Mr. W. D. Powdrell, a wen-known South Taranaki landholder, writes as follows to the Hawera Star:—

' Recently the Dominion published an extract from an article or letter that had previously appeared in the Weekly Press. In this the writer deals with a subject of which he is palpably ignorant. He desires to make out that our land values are inflated, «ui'! casts doubt on land at £6O per acre being a payable proposition. Also, lie would like to see a farmer's balance-sheet for the year's ! working at that figure. He quotes but-ter-fat at Is per lb, as if that were his season's price, whereas those factories sending cheese on consignment will net Is 4d. I have grave doubts if lie lias ever visited Taranaki, much less made himself familiar with the dairying industry as it is pursued in our district. As the time has gone by to talk of '£oo per acre for our best land, I will be pleased to give him the balance-sheet of a farmer who four years ago paid £BS per acre, and, what is more, will prove by the figures that the land was a bargain at £IOO per acre, and is still cheap when its earning power under good farming is considered. Any large estates sold in Southern Taranaki in the past were eagerly sought after, not bv outsiders, but by i local men, who were buying on past results and returns from the factory, as they should know the earning power and value of their own land. In my opinion, dairy land will continue to rise, although produce may fall slightly, and every farmer must expect prices to fluctuate slightly in the future. Should our butter or cheese market fall slightly, our butter-fat yield could be increased to meet this fall by reducing our areas to 40 or 50-acre farms and weighing and testing the milk from all our cows, and culling out all unprofitable ones. At present we are milking too large a number of cows in one shed by the share system, without any knowledge of the merits of our individual cows. Some dairy factories are testing farmers' individual cows, and our A. and P. Society is also' encouraging testing amongst our growing children. The factors will aid us to get rid of the robber cow, and also aid us to give an increased price for good land in the future.

| Should our produce fall temporarily. I land would not fall, but the farmer and his family oil the 50 acres would earn a slightly reduced wage or income for that year; and'judging" from tho way that good workers and share-milkers have recently risen and become wealthy men, a slightly reduced wage for a year would not entail any great hardship except o*i those starting with an indifferent herd. Many herds at present are only averaging £9 and £lO per cow per year, whiTe others that I know of on land of c(]ual quality are averaging from £ls to £2O per cow, the former costing the same amount for feed, rent and labor to milk, j _ Several years ago we were either making butter or cheese, but now we make I butter and casein, or else cheese and ■ whey butter. Adding 1% per lb. but- £ ter-fat at Is per lb, as if that were this 5 ter (that being the amount we can get f for casein from the milk for every pound of butter manufactured, at Is per lb for the butter) would give us on a cow averaging £9 yearly an additional sum 'of over £1 per year on every cow, and if we allow one cow to two acres our increased earnings through the by-product (casein) would amount to over 10s per acre, showing.that the advent of casein has increased the value of our land £lO an acre on cows averaging £9 per year; but should we keep a herd averaging £lB per head per year and one cow to two acres, then ' the advent of the manufacture of casein has increased the earning power of the land •25b per acre, or the selling value X2U per j acre.

Again, take the moisture in butter. Some years ago "vve had a difficulty in getting 0 per cent, of moisture in butter; but now we car: get 16 per cent., or an additional Is per lb for moisture on 7 per cent, of our butter, which means <i net saving to the farmer of over %d per lb butter-fat, or a saving of over 15s per cow giving 2401b of but° ter-fat yearly. By improved methods of manufacture of our cheese and butter, by increased moisture, and coo! storage for cheese, thereby saving all possible shrinkage, a great saving has been effected to the farmer.

Now, we will take the bv-products from cheese, starter and whev butter. These two products will give an increased net price of %d t >ach lb of butterfat to the farmer. So this increased product on a cow giving 2401b of but-ter-fat yearly, at Is per lb butter-fat. means an increased annual revenue of 15s per cow, or allowing one cow to two acres, a net increased revenue per acre of 7s 6d per acre, showing that the advent of whey and starter butter has increased the value of land, according to the earning power, bv £7 10s per acre. Yet many cannot understand why land is rising! Let us take a farm of 50 acres, and see what price butter would have to drop to before the farmer would be unable to live on the land.

We will assume a farmer with two children able to milk, buys 50 acres at '£Bo per acre, the land having a carrying capacity of one cow to 1 % acres all the year round, and that his herd of 34 cows averages 2401b of butter-fat each for the year—a very low average, as some of our herds are giving over .1 K)lb per year —at Is per lb. It is at once apparent thu i the farmer has to pay £4 per acre rent per year, or ■ £6 rent per cow per year, or has to receive not less than Gd per lb butter-fat to meet the rent.

Allowing the farmer ;ind his family, who have house rent free, their meat, milk, "butter, fowls and potatoes, •which are practically free, £l5O per year to live on, together with, say, £SO per year for interest on cows, depreciation, etc. (and allowing nothing for calves and pigs), it would mean that the fanner would have to get not less than lOd per lb for butter-fat to meet all expenses, or else he would have to improve his herd and carrying capacity, live on less, or get better prices for his produce. Readers /will see than every Id per lb. butter-fat obtained over the lOd required to cover expenses would be net profit to the farmers, and would mean a profit for each penny as obtained of 13s 4d per acre, even though the cows only gave 24011) of butter-fat yearly, and the land cost £BO per acre. 'Therefore, with a tendency for cheaper money, smaller areas, guaranteed and secure family labor, better herds, modern methods of testing all cows, with more science in manufacture, together with the saving in by-products, land cannot fail to increase in value, and all our good lands having a carrying capacity of one cow to iy z acres will rise to over £IOO per acre. So it will be well for Taranaki farmers to be wise in time instead of listening to the croakers.