TARANAKI LAND VALUES

Taranaki Daily News, Volume LIV, Issue 297, 12 June 1912, Page 7

TARANAKI LAND VALUES

DISCUSSION IN HAWERA. At a meeting of the Hawera branch of the Farmers Union, a discussion took place on the question of land values in Taranaki. As Mr. Powdrell was the •prime mover in the recent discussion on land values, the chairman asked Mm to give his views on the question. Mr Powdrell said !he would try to trace the causes of the rise in the price of land during the past years.. In the earlier days, without refrigerators, eettlers were not able to to dispose profitably of their sheep, and before dairying got properly on its feet there was much waste. Co-operation in dairying had been the chief factor leading to the increase in land values, as now the farmer got the whole value of his butter-fat less the cost of manufacturing the product. Improved methods of manufacture and the greater proportion of moisture now allowed in butter were other factors —the last named alone enabling him to take 7s (3d per acre more off the land than was the case when a dry butter 1 was being made. A corresponding result followed the introduction of more moisture into cheese, to the extent of 3s per acre. Casein manufacture was anothe additional source of revenue now available, which had formerly been wasted, amounting to about 12s 6d per acre. Whey butter and starter butter, as regarded the Kaupokonui factory, enabled another Id per lb. on butter-fat supplied to be paid out, and this had also been wasted previously. Sugar of milk was another matter that was being enquired into, and if its results turned out as . stated, it would be a great thing for Taranaki farmers. Great savings had also been effected through the coolcuring of cheese, which saved an amount '. of evaporation, reprcsentating about !)d per acre. A saving in depreciation and painting was also possible by erecting factories in concrete instead of wood, and suppliers to such factories would be able to pay a higher rent than others in a less favored locality. The erection of their own freezing works had also saved factories in this district much money,; as had also the box factory, and though some local men were not yet fully awake to these advantages, men from outside, were recognising them and were buying into the district. The cry that markets would fall had been heard for years, but though much more produce was made now, there were many more to consume it, and if one section of dairy produce fell in price, the farmers of the district had now plenty of other strings to their bow. Cow-testing was another important factor, enabling farmers to weed out unprofitable animals, and the consequent increased production of their herds made •it possible to give higher prices for land. The value of land depended largely upon it, but in the speaker's opinion most of the poorer land in Taranaki was now quite high enough. Some farmers would do no good on the best land, and some would go ahead on poorer land, but an average of a number of farms should be taken, and it would then be fair to assume that most farmers could obtain the same average result. The sweating of the family sometimes talked of was not so bad as made out, as in many cases the family was better off than when the father was, say, working on the roads at a daily wage., On small areas with assured labor, the speaker continued, land values must rise, and he quoted the case of a farm (45 acres) on the •tiajfe toad, from which 1831b butter-fat per,acre had been taken this year (with ,threcmonths yet to go), which, at Is 4d —for hutter-fat—would be £l2 4s per acre for milk alone, and had also sold 30 pigs at £2 15s, and eight calves at £2 17s 6d, a total of £954, or £l4 l'Os per acre. The speaker then gave figures which he considered should be ample to provide for depreciation, labor, etc., and ■concluded by claiming that this proved the owner could have given £152 per 'acre for the land, paid for all labor, allowed sufficient for depreciation, and got 6 per cent, interest on capital. This, he considered, proved that' £IOO per acre could be paid for much of the land in Taranaki. He was, however, not advising ' farmers to pay £IOO per acre 'for land if they could get it for £6O, as the greater the price the greater was the risk. A matter to which a purchaser 'sometimes gave too little attention was ''to'sed'that second or third mortgages on land : lie purchased were for fairly long terms, as if they were not the purchaser •'mighty he called on to discharge these mortgages before he had had' time to m'ike enough out of the land" to pay tiiehjoff, which might result in his having to go off without anything for the time he had worked the land.

In reply to Mr J. Smith (Otakeho), Mr Powdrell said that since whey hutter had been made at his factory he had not been able to see any difference in the calves sold. In his opinion the fat in the whey "before whey butter had been made had been absolutely thrown away and wasted. Mr Smith claimed that Mr Powdrell had made no allowance in his calculations for brain power expended by the farmer in working his farm. Mr T. W. Owes, was of opinion that the Tise in the value of the land was due to the rise in the price of dairy products, which Was an abnormal one, and farmers could safely base their calculations of the value of land on the present vaule of dairy produce. To get the true value of land they must base their calculations on a lower basis. Aa interjector remarked that an offer of 13d per lb, had been made to a factory for its output for 10 years. Mr J. W. Harding was also of opinion that farmers should not lose their heads because of the present high prices for dairy produce. The present price had been largely brought about through dry seasons in other butter producing countries and large losses of cows by Siberian dairymen. Mr Smith, after paying a compliment to Mr Powdrell's ability, again urged that ho (Mr Powdrell) had not allowed anything for the. farmer's brain work, thpugh the speaker was prepared to guarantee that Mr Powdrell had not worked for less than £IOOO a year for a long time past. Mr Walker referred to the practice of cull cows, disposed of by a farmer at the end of the season, being again foisted oTi to dairy fanners at the beginning of next season, and he thought the practice sliould be stopped by some system of branding. Mr Powdrell agreed that if a system of branding such as suggested was put into operation it would result in improved supplies at the factories. Farmers might, with advantage, meet periodically to discuss such propositions. —Hawera Star.