COST OF PRODUCTION 217 



CHAPTER IX. 



COST OF PRODUCTION. 



1. A Controversial Question. 



An investigation into the present position of the 

 wheat industry in New Zealand, of necessity involves 

 an estimate of the cost of producing a crop. This 

 estimate must be sufficiently accurate to enable us to 

 draw a conclusion on the much discussed question, 

 whether wheat growing in New Zealand is really a 

 remunerative pursuit. In recent years there has been 

 much discussion of this matter. Much public controv- 

 ersy has resulted, and the arguments revealed in this 

 controversy have shown a lack of knowledge on the part 

 of those who are directly concerned with the industry, 

 and who should make it a matter of first importance to 

 collect reliable information on the question. On the 

 other hand, those who complain of a "dear loaf" have 

 affirmed much but proved little. The farmer stoutly 

 maintains that he is unable to produce wheat at a profit 

 under present circumstances, and the miller sympathises 

 with him mainly for the purpose of keeping up the 

 import duty on wheat and flour, the abolition of which 

 would, in his opinion, be most disastrous to the com- 

 munity at large, not to mention the shock it would give 

 to his interests in the country. Equally unreasonable in 

 his arguments is the average consumer, who sees the 

 farming community prospering, and who fancies fabulous 

 profits must fall to the farmer's lot from every field of 

 wheat he grows. It is not expected that he should 

 know what are the expenses incurred in producing a 

 crop, but the producer himself should be held guilty of 



