IN 



APPENDIX No. VI. 



Extracts from u yxiyw rntd before the Cambridge and District Farmers' Federation . 

 April 5/A, r.U'., lj J. 1). ODKLL VINTBR, F.8.S. (See his evidence at p. 147 of 

 Minutes of Evidence.), handed in with his evidence given on 19th August, UU'.t. 



PRESENT DAY C<>- 



I will now present an estimate for the current year on 

 prwent cost*. 



r.i/M</. This I find baa increased to not lew than 

 15 per acre ; I am justified in raising the rate of interest 

 to 6 per uent., as investments in Government Stock (about 

 the best security in the world) yield well over 5 per cent. 

 The interest on farming capital would therefore now 

 amount to 18s. per acre. 



Labour. This now amounts on light lands to 3 10s. 

 per acre. 



Rent. I take the figure of 25s., the same rate an for 

 the last four of the seven pre-war years. 



Manure* i>nn:ha*ed. This I put at 10s. per acre. 



Horse keep (corn <nily). At 20s. per acre. 



Trtuleineii'i< iiri-oiinlit. At 20s. per acre. I am not xurc 

 that this rate is high enough, including, as it does, coal 

 for threshing, blacksmiths' l>ill-, binder twine, and sundry 

 items, nearly all of which have still a tendency in the 

 upward direction. 



K'itf and taxet. -I estimate the*: will amount to 15s. 

 per acre. Whereas the assessment in 1908 was on one- 

 third of the rent, and the maximum tax at that time was 

 Is. ; it is now on double the rent with a maximum of 6s., 

 which means the income tax is 36 times more than in 1908. 



On the credit side I take, for the purpose of estimate, 

 the approximate present controlled prices per quarter, 

 namely, wheat 76., barley 70s., oats 60s. These figures 

 slightly exceed the scale fixed by the Government. 



I estimate the quantities at 4 quarters wheat, 4 J quarter* 

 barley, 6 quarters oats. Government fixed barley at 4 qrs., 

 and oats at 5 qn>. I again take net meat. I have not 

 explained what I mean by " net meat " ; it is the balance 

 remaining after first cost of stock and cake or other feed- 

 ing stuffs consumed by the stock, chaff and roots being 

 taken as an equivalent for the dung or foldings. The 

 total receipts I estimate at 10 10s. per acre. 



NET PROFIT *12s., AS AGAINST 15s. 2d. 

 I will now tabulate the two periods : 



The net profits, as shown, therefore, after charging 

 interest capital on the present controlled prices of corn, 

 is not only actually less than before the war, but, measured 

 l>y the purchasing power of money to-day, is very con- 

 siderably less. The estimates for the current year show 

 that of the 9 18s. cost per acre for the carrying on of 

 the occupation, 4 15s. is represented by rent and labour. 

 Rents in most cases will probably remain the same. 

 They should not be less. The labour bill will not be 

 IHK 



The balance of 5 3s. per acre is the total sum upon 

 which any savings or economies could be effected ; the 

 cost of seed, manures, and keep of horses would auto- 

 matically fall with lower values of farm produce, and 

 tradesmen's accounts would be less with a fall in the cost 

 of raw materials. Rates and taxes, judging by the 

 appalling sum which it is proposed to -spend on civil and 

 local services, will soar to an alarming height. 



THE PRICE OF WHEAT. 



It is a very difficult problem to solve as to what may 

 eventually be the price at which wheat can be produced in 

 this country to be a sound commercial business. I am 

 inclined to think that, allowing for the possible decreased 

 costs which I have just indicated, that 60s. per qr. is tin- 

 very lowest price at which wheat could be produced to 

 show a living profit. (" No, no.") 



NII i K. Since I wrote the above paper, the Agricultural 

 Wages Board has issued a proposal to further increase the 

 wages. An average increase of tis. on the top of the 

 present scale would mean an additional cost of 9s. per 

 acre on light land, and 12s. on the heavier soil. If you 

 deduct such increased charges from my hypothetical 

 trading account for the present year you will see that the 

 estimated profit per acre is nearly wiped out. 



On the question of my estimate for taxes. 1 wonder 

 whether you are aware that on the new basis of nnocm 

 meiit the charge under Schedule B is thirty-six times 

 more than in the years 1900, 1907 and 1908. Take, for 

 example, an assessment on a rental of 600 in those 

 years on one-third at the Yimximum of Is. tax would 

 amount to 10. This year the assessment would be on 

 1,200 at the maximum of t!s. would amount to 360. 

 That is thirty-six times greater. I name this to show 

 the very great importance of keeping such accounts as 

 will enable a person to return under Schedule D, that is 

 on actual profit or loss, as the case may be. 



