FARM VALUATIONS

Waikato Times, Volume 121, Issue 20255, 26 July 1937, Page 2

FARM VALUATIONS

MORTGAGE ADJUSTMENTS. | . MINISTERIAL ANNOUNCEMENT. DETERMINATION OF METHOD. (By Telegraph.—Press Association.) WELLINGTON, Saturday. Interviewed respecting representations made by Mr L. T. Daniell at a meeting of the Wairarapa provincial executive of the Farmers’ Union regarding the method of arriving at Valuations for the purpose of the Mortgagors and Lessees Rehabilitation Act the Minister of Justice, the Hon. H. G. R. Mason, stated that the method was determined by the Statute itself. “This provides that the productive value of farm lands is first to be ascertained, and this is found by finding the annual productive capacity of a farm and capitalising this at 5 per cent,” he said. “Such, sum as the commission thinks fit is added to or -subtracted from this figure to ascertain the basic value, which is the value taken for the purpose of adjustments. It is clear that this addition or subtraction might be required for a number of reasons, such as In a variation of the condition of repair of premisos, which may not have been reflected in the productive capacity of the property.

“It is cleaf that the gross income derived from a property is derived from both tne land and the stock,” said the Minister, “and that to find what is referable to the land alone can only be done by deducting from the gross total that which is referable to stock. Either Item by itself oan have little meaning, and Mr Daniell’s argument is so hard to follow that It is difficult to understand how It can be put forward for consideration as reported. There does ijot appear to be any more reason for attributing Income to the land alone than there is for attributing it to the stock alone. “The suggestion appears to be made by Mr Daniell that “lie Court put up the value of stock and chattels in hard times and took it down in good times.’ Actually the Court does nothing of the sort. It has with great care and with the assistance of firms ascertained the average value of stock for the past ten years, and these averages are taken as the basis for all purposes. The suggested variation is purely Imaginary, and has no basis In the actual routine methods employe 1 by the commissions and by the Court.

“The reported statements seem to show Mr Daniell as believing that the Ideas and methods advocated by him would reduce the farmer's valuation. Actually it would impose a heavier burden on the farmer and entirely stultify the Government’s legislation,” concluded the Minister.