THE VALUE OF AGRICULTURAL LAND. [To TEE EDITOR OF THE
"SPECTATOR."] SIR, I am not surprised that an Australian farmer in your issue of July 5th should express surprise at my statement, namely, that the net rents that we receive from our estates do not exceed between three and four per cent. on the actual hard cash spent by the landowners on farmhouses, outbuild- ' ings, cottages, improvements, repairs, water supply, roads drainage, hedges, and ditches. The balance-sheet for this, favoured Midland estate from March 1912 to March 1913 is now in my hands, and the figures bear out the above state- ment. Let me put it in another way : out of every £100 in rent that I receive I pay away about £45 in income-tax, rates, tithes, wages, and materials. As I manage my own estate, I pay no management expenses, and we are right careful not to be guilty of any unnecessary extravagances. Financially, the possession of an agricultural estate is foolishness, and if I had not inherited this estate, and did not its management afford me work and interest, and did not I feel that I am spending my income in a more useful manner than if I were to spend it in a crowded centre, I would sell and retire a richer man. But that beautiful saying stays my hand, " Man does not live by bread alone," and the experience of my life has confirmed its truth.
The Australian farmer is quite out in saying that estates in this country sell for £50 per acre. Some few close on populous centres, with rich land suitable for intensive garden culture or with prospective building in sight, may fetch that figure, but they are exceptions. Between £20 and £25 per acre is nearer the mark. I should deem it a favourable purchase if I could obtain £30 per acre for this estate, and the estate is in all respects well above the average. The average rent of this estate works out at about 26s. per acre, and out of that has to be deducted all expenses, which makes the net rent received about Bs. per acre, and if this were capitalized it would not exceed, say, 4 per cent. on the hard cash spent by the landowners on this estate. It is difficult to get at the profits that the farmers are making, because the majority do not keep accounts. I think (I do not assert it) that with good seasons and average prices, and if he lives in a moderate manner, a skilful farmer may out of his farm pay all his domestic expenses, and make in addition 5 per cent. on his capital. In average years he may make 2i per cent., but in years such as the last and the year before that he is a clever farmer and good manager if he makes both ends meet. Successful farming in this country for the average man, and under favourable conditions, means long practical experience, hard work, clever management, and careful personal living. Sometimes farming is heart-breaking work. A man spend thought, money, and labour in obtaining clean good land and a good crop, and then towards harvest the sun refuses to shine, and the rain continues without mercy, and the dis- appointment is enough to break a man's heart. I have watched and noted it for years. Owing to the free importa- tion of all foodstuffs, and the tussle with the fickle climate, s
farmer can never forecast the quality of stuff he may harvest nor the price he will get for his produce. The whole agri- cultural position, rents, wages, cottages, cultivation, and marketing, requires placing on a sounder and more rational basis. The problem for the reformation of the countryside is a mighty intricate one to tackle, and it will require a much longer head than mine to suggest a practical solution.—
Previous page
