Are Farmers Wallets Ready for Opening by the Minister?Thursday, Mar 29, 2001
The perversity of politics shows through in the pressing demand by the Minister of Agriculture for farmers
to open their wallets following their good fortune.
The ministers imploring ignores completely the law of diminishing returns. On farm investment should
only be undertaken with reasonable prospect of a return. The past fifteen years has taught farmers
that calls for production for the sake of production is a bad model for farm profitability
It was not this government’s plan for primary producers to be the engine of the export led recovery.
This was the government that pronounced it was their turn for their friends to be advantaged
as a result of their election. They have no plan for the farming industry other than the conversion
of producer income into consumer expenditure as quickly as possible.
The 1930’s was such a bad experience for farmers that it took nearly 25 years before farmers began
to risk real development investment. The “long financial winter” of the 90’s
has some similarities.
Beware of ministers offering investment advice as it can be reasonably certain that he is not considering
the farmers future welfare.