7 Feb 1986 Spending intentions of farmers studied

New Zealand farmers will be spending less on new cars, home improvements, overseas trips and luxuries such as video recorders, stereo equipment, spas or swimming pools in the next two years, according to a recent survey of farmer spending.

In a survey by the Agricultural Economics Research Unit at Lincoln College farmers were asked their spending intentions for the next two production seasons.

Their responses are in preliminary results of the AERU annual survey of farmer intentions and opinions.

The spending intentions of the farmers were compared with their intentions for the 1983-84 and 1984-85 seasons.

Only 13 per cent of the farmers said they would be buying a new car ; two years ago a third of them intended buying a new car.

Slightly fewer than half of the farmers asked two years ago said they would not be buying a new car.

In this latest survey two-thirds of the farmers said no new car.

Sixty-nine per cent of the farmers said they would not be spending on an overseas trip, while 13 per cent said they were planning such a holiday.

Two years ago nearly a quarter of the farmers surveyed said they were looking towards an overseas trip.

Extensive home improvements also have taken lower priority in farmer spending, with only nine per cent saying these were planned, with 81 per cent having no plans to improve their homes.

Luxuries such as video recorders and stereo equipment are low on spending priorities for farmers, and their intentions show little change on the ·previous survey.

Last survey 78 per cent of farmers said they would not be spending on a home computer, and this has risen to 85 per cent.

Only five per cent of farmers intend buying a home computer, against six per cent two years ago.

And bottom of the buying list and top of what will not be purchased are spas and swimming pools.

Interestingly, those who were not sure about buying new cars, computers, VCRs, stereos, spas or swimming pools, making home improvements or taking overseas trips in the last survey are even less certain this time.

Further information from Mr John Pryde, Agricultural Economics Research Unit, Lincoln College