The Farmers and their Produce.

As to the great basic industry, farming in New Zealand had always suffered from violent price fluctuations. This was not the fault of the farmer, but of the system in which he worked. It was the duty of the nation to endeavour to supply fanners with their rightful share of the national income. One method of achieving this is to guarantee a definite price for the product. If there are any losses on the sale of the product the responsibility is then that of the Government. The Primary Products Marketing Act has set up a marketing department to organise and control the machinery for carrying out a guaranteed price procedure. For the tune, being guaranteed prices will apply only to dairy produce.

All butter and cheese exported from New Zealand now becomes the property of the Government when placed on board the steamer. At that point the farmers' co-operative dairy factory is paid in full the guaranteed price for the daify produce by means of a cheque drawn on the Dairy Industry account at the Reserve Bank.

The Govefnment's price will be based on the average price received over the last eight to ten years. For future yars the cost of production, the standard of living of the farmer as compared with other sections of the community, and the stability of the industry will be taken into account in fixing the guaranteed price. The Government's marketing department will market, the dairy produce to the best advantage, and the proceeds will be paid into the Dairy Industry account of the Reserve Bank.