FARMERS’ PROBLEMS.

Taranaki Daily News, 21 May 1921, Page 8

FARMERS’ PROBLEMS.

TARANAKI CONFERENCE. Tl£e PRESIDENT’S ADDRESS. In his address to the conference of Taranaki farmers, at Eltham on Thursday, the president of the Farmers’ Union (Mr. E. Dunn) said:—Many people seemed to think that with the end of the war all need for anxiety, economy and thrift had ceased, forgetting that history has a way of repeating itself. All great wars have had an aftermath of financial stringency, which in turn brings about unemployment and want. We have been living in a fool’s paradise. During the war finance was easy for almost any undertaking owing to the high prices for produce bought and paid for in the Dominion, with no risks as to delivery. Land speculating became the order of the day, and people in many cases apparently lost their heads, and bought, sold, chopped and exchanged land as it if were impossible to have a reverse. But we have been pulled up with a jolt. Wool and meat have slumped, and farmers producing these lines are in for very hard times and serious reduction of income, wool, except for the finer sorts, being practically unsaleable, and very little doing at extremely low prices. But withal I have great faith in the recuperative powers of this country. We are purely an agricultural and pastoral country, with no climatic extremes. There must always be a demand for our produce, so there is no need to be unduly pessimistic. The Imperial authorities ,during the /ar were compelled to accumulate large stores of material necessary to feed and clothe the armies and the millions of people in the United Kingdom. The question is how long will it take to clear the accumulation of wool and meat if conditions were such that trade could be resumed ,with‘ Central Europe, where our wool and meat are badly needed. Matters would soon regulate themselves, but apparently we cannot establish credits there yet. My reason for considering this only a temporary glut is that before the war, British meat importers were • complaining about future supplies; they could not see where the supplies for their rapidly increasing industrial population were coming from. They showed that the sheep flocks of the world were decreasing, while the demands for mutton and lamb were increasing. The war did not cause any decrease in consumption, nor did it increase its flocks. Mr. J. B. Condliffe, Professor of Economics at Canterbury College, says: “I believe the present lo;v prices are unreal and only temporary. The prospects ’ ahead are very much brighter than they seem at the present moment. I for one see no cause for pessimism in regard to the future of New Zealand. While realising the dangers of the future we ought to take a long view, and not let them obstruct our perception of the cheerful prospects ahead.”

LAND SETTLEMENT. Owing to the fact that the prosperity of this Dominion depends almost entirely on the volume and price of our primary products, it is imperative that morn and closer settlement be pushed on by the state, Of course, owing to the present financial stringency, the Hon. Minister of Lands may say that the time is inopportune; but I am sure that no time should be lost if by any possible means more land can be brought to a productive state and help to bring more money to the Dominion. There are indications that there will be a good deal of unemploy-. ment for some time to come, and all single men'should be given work in the back country preparing unoccupied land for occupation. Money spent in this way would bring a return more quickly than if spent in relief work, which might not bring a return for years. Any public work carried on in these times of stringency should be chosen which will be quickly revenue producing. It will be admitted that the establishment of hydro-electric power is of vital importance to the producers of the Dominion, and it is imperative that activity should be concentrated on this work, as it is most essential that as far as possible apd as quickly as possible the users of power in the Dominion should be in a position to be at least partly independent of any section in the community using their powers of combination in an arbitrary and unjust manner and holding up the industries of this country. If anything is needed to impress on our administrators the urgency of the moment, I would draw attention to what is taking place in the Old Country, where a strike in one of the key industries is holding up the trade of the whole country and causing loss and suffering to millions, and it is clearly the duty of the State to push on a scheme which will minimise the risk, of such a thing taking place in this Dominion.

CUSTOMS TARIFF, There are certain peo'ple wp/’ contend that a high protective tariff is necessary to defend industries from languishing. High tariff falls most heavily on the public at large, and particularly on those least able to pay. Direct ‘taxation such as the land tax sometimes falls heavily on the farmer who makes little or no profit on his year’s work, and he has also to pay jiis share of Customs duties. Calculations show that for every £1 collected in duties the public has to pay £2, and to a poor man with a family it becomes a. tax,out of all proportion to his ability to pay. We arc told, how many men could be employed if New Zealand manufactured her own requirements, but forget that it would pay better if these men were producing raw material. In a country producing only primary products it is no use producing a surplus of industries for export, for we have little chance of competing with industrial countries. All the advocates of protection want is •to keep out the* imported article and got high profits. We require ships to pome here to take away our produce, and if those ships had loading only one way what would we have to pay in freights. Professor Condliffe says that another danger was the proposal for a high protective tariff. He was prepared to admit that economic ■ free trade was an abstract idea. What I he did not admit was that a high tariff ‘should be imposed in place of the p.ye<*tmt moderate protection. The true line of development in New Zealand was not the line of town development, but was to- be found in a policy of rural development—closer* settlemeht of land-in suitable areas, the encouragement of the dairying industry, .and especially the development of that industry through hvdre-etecw'ic power

COST OF PRODUCTION. Everyone is directly interested in the cost of production. The costs of production are principally made up of wages, freights, and material used. Since 1914 wages have, been rising to correspond with the increased cost of living, overlooking the fact that every increase beyond the economic value of their labor returned like a boomerang and aggravated the trouble; for every increase seemed to bring about a corresponding increase in the cost of the necessaries of life, which goes to prove that attempting to control economic laws leads ultimately to confusion. Shorter hours and ‘’go-slow” tactics increase the cost of production. At the present time the high freights and costs of handling have practically killed the beef export trade, and until some reduction in charges is brought about this’ business will be unprofitable. The shipping companies say that the increased cost of running the ships warrants the high freights, and when looked into it is to some extent warranted owing to the conditions on the waterfront in New Zealand and in England —the higher wages paid, 'increased costs of coal and equipment, combined with the delays in loading and sometimes not getting full ships. But on the other hand how can the shipping companies explain the high dividend paid to shareholders ? • It seems to me if competition could be brought about a reduction in freights would naturally follow. It is to be hoped that with decontrol of insulated space some relief will be afforded to producers. At the present time there appear to be no real values in the Dominion. Everyone seems to be waiting to see what the prospects will be for next year. Speaking from a dairyman’s point of view I believe the future prospects are decidedly hopeful so far as New Zealand is concerned. The season here, providing shipping is sufficient and regular, enables- us to place our dairy produce on the market in England before the Canadian and English dairy produce comes on the market, and, as I have said before, there were indications of -short supplies coming into the Home markets even had there been no war. At the same time it would be well for everyone to economise as far as possible and prepare for contingencies, for dur prosperity depends on the spending power of the consumer in the Old Country; and if through labor troubles, unavoidable through readjustment of wages, there is a great deal of unemployment, therefore the spending power of the people is reduced, we in turn will be~affected, so my tip to producers is curtail unnecessary expenditure and do your utmost to increase production. PAST SEASON REVIEWED. The past season has been rather a short one for dairying, more especially in South Taranaki, being rather too dry in the latter part of the summer and autumn, rain coming too late to bring on the grass. Those who were provided with a good patch of lucerne .scarcely felt the dry spell. There is no doubt whatever that if dairymen will only put- down a sufficient acreage of lucerne in proportion to the number of cows milked they will be provided with a succulent green feed and will be enabled to keep up their supply of milk “during a dry spell; and not only that, but will increase the carrying capacities of their farms, and so increase the volume of their output. But I would like to say just here that lucerne is not a lazy man’s crop, and unless farmers are prepared to tackle lucerne growing in earnest, cultivate, cut and keep it free from weeds, they are not likely to make a success of it; but given a chance it will in the true sense of the word prove to be the dairyman’s friend.

Owing to the unprofitableness of sheep farming it is to be expected that a good number who have suitable land will turn their attention to dairying, and if so will there be a sufficient number of cows and heifers to go round? Usually we have none too many of the right sort to meet requirements, and should there be a big enquiry from a number of sheep farmers who’ intend to take up dairying it will mean keen competition. But this year, owing to the stringency in fihe money market and the very low prices offering for stores, the dairy farmers will not cull so heavily, and unless a cow is really useless they will endeavor to go on in the hope of store cattle prices rising. I would be inclined to offer the advice to a good many to cull out some but do not replace, and I am quite certain that on many farms if fewer cows were milked the returns at the end of the year’s working would be greater. How often do we hear of farmers losing a number of cows in the winter and spring which can be traced to nothing else but overstocking. Dairying is this year apparently saved the situation, the estimated returns lor the Dominion being as compared with last year: 1920-21, butter 608,6130w>t, cheese 1.059,182 cwt; 191920, butter 364,77-Bcwt, cheese 1,135,958 cwt. The value of the butter for this year is £9,360,582, and the estimated value of cheese £6,672,852, giving a total of £16,033,434, which’-gives some idea of the importance of dairyingi to the Dominion. The total exports from Taranaki for the year ending March 31, 1921. totalled £4,564,055,' of which £2,211,906 went through New Plymouth. £1,948,534 through Patea, and £403,615 through Waitara. -