FARMING AT A LOSS

Wairarapa Times-Age, 2 December 1938, Page 3

FARMING AT A LOSS

SURVEY IN SOUTHLAND. The unprofitableness of farming in existing conditions formed the subject of an investigation by the Southland executive of the Farmers’ Union. A very careful survey of a farm of 250 acres had been made, and the figures showed that 500 sheep were carried. The revenue for a year was fixed at £350 from lambs, £56 5s from ewes, £l2O from wool, and £4 from skins and hides; a total of £530. Expenses were calculated to total £707 6s sd, including interest on capital invested £175, interest on livestock and implements £5O, household expenses £156, lime and manures £B2, and all other expenses in operating the farm. The balance-sheet showed a loss approaching £ 200., Perhaps the foregoing example is not the best. Where £175 interest annually has to be paid on capital invested (without stock and implements) more than 250 acres should be provided, or, in the alternative, such a property should carry something more than 500 ewes, perhaps a few dairy cows or dry cattle. The suitability of the property to do something like this, or increase the carrying capacity to some extent, is suggested by the amount of £B2 being spent on lime and manures. However, it would appear that on the very best showing there could be no more than an existence on such a property, and it is to be feared that it is approximately typical of many farms in the country. This farm possesses the advantage of being a oneman property, and very much more production would mean the added burden of labour costs. One speaker, at a meeting of the Farmers’ Union executive, said that several methods of assisting the farmer might be suggested to the Government, particularly because of the increasing mechanisation of farming. These schemes were designed to assist in the problem of farm labour and as a means towards maintaining or increasing production. They were that the Government be asked to remove the duty on tractors, tractor parts, and farm machinery not made in New Zealand, and that the cost of kerosene, petrol, and fuel oil be reduced. The Dominion executive should again impress on the Government that while the farmer was working under an economic disadvantage as was shown by farming costs the production of exportable goods would fall. The Government had allocated huge sums of money for public works and might well divert several million pounds to farm labour subsidies.