A postal survey of the opinions of a group of Farm Management Society members on incentives and obstacles to increasing farm output

Abstract

Following a postal sample survey of sheep farmer attitudes to incentives and obstacles to increasing farm output and other agricultural policy issues in November 1975 a postal survey of a group of members of the New Zealand Society of Farm Management was conducted to ascertain their responses to questions similar to those put to the sheep farmers. The valid responses of the adviser group disclosed that, as stated by the sheep farmer respondents, a very high proportion of sheep farms are capable of greater output if the economic and financial climate is favourable. The advisers intimated, as did the farmers, that just over half of sheep farmers are planning a deliberate increase in output this season (1975-76). From a list of suggested incentives to increased farm output the advisers ranked, as did the sheep farmers, an increased fertiliser subsidy as likely to be the most effective. Second ranking was given to a suggested subsidy on interest payments - in contrast to sheep farmers who placed this proposal much lower in their list. Third ranking was the suggestion of a cash grant for each unit of livestock carried. Inadequate farm profitability was rated by the advisers as the greatest single obstacle to an expansion in farm output. Next was the cost of farm requisites and then uncertainty due to fluctuations in export prices. The survey disclosed that farm advisers do not think the level of income tax and death duties as so relevant to an expansion in farm output as do sheep farmers. On the other hand the advisers placed somewhat greater emphasis on the need to reduce the fluctuations of farm product prices and the need for farmers to receive immediate capital via a cash grant for each unit of livestock carried. The advisers regarded the Wool Marketing Corporation as the most effective farmer organisation, ranking it ahead of the Meat Board which sheep farmers placed first on their list. The advisers endorsed more strongly than did farmer respondents those measures taken by the Wool Corporation and the Meat Board to achieve greater stability and adequacy in the incomes of sheep farmers.