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HomeMy WebLinkAboutThe Huron Expositor, 1977-03-24, Page 16• HE HURON EXPOSITOR MARCH 24, 1977 roe furrow'', tr allit . Letters are appreciated by Bob Trotter, Male Rd ,•Elmira, Ont N3B2C7 Farming costs plenty! Money talks but all it ever says to me is good bye. Money, is talking all over Ontario today and recent figures from a Royal Bank official, given at. the Western Fair Farm Show this March by John Murphy, prove that farmers are taking tremendous risks to get into and stay in business. Ten years ago, said Mr. Murphy. a large farm might have required $109,000 in capital investment. But now that figure has skyrocketed to the point where some farmers are borrowing as much as $500,000. • "These aren't, the farm corporations but farm families .— a man, wife and a couple of kids." he said. The money is needed for land, fertilizers, fuel, tractors and all kinds of other equipment which a technically-oriented farm needs these days. Not every farmer needs such huge sums to keep going but many do, What must be galling 'to those who need to finance such amounts is that rarely can a farmer get a reasonable return on his labor and investment. A 10 ,per cent return, whib is what most investors strive to get these days, would give him a net profit of $50,000 a year before taxes. But few farmers, can boast of 'a profit that' high even if' they do not recognize a figure for.family labor and for man- agement. A. few year's ago.when the Ontario Federation of Agricul- ture presented a brief to the Ontario Cabinet.- figures were quoted which proved that the average constructiOn worker in Ontario in 1972 — five years ago — earned approximately $20.000, figures quoted from Statistics Canada. Yet those same laborers had no large investment. certainly nowhere in the neighborhood of $500,000. In addition, the laborer who earned $10,000 five years ago is probably making more today and he doesn't have a: family working for him for next to nothing which is what most farm wives and children do. That' brief. one of the most comprehensive documents ever presented to the Cabinet accurately reflecting the farm dilemma, suggested that thost 'farmers would be better off to. sell out and invest their $500,000 in Canada Savings Bonds where they could expect at least seven or eight per cent return. Some farmers, of course, have done just that: sold out and left the farm. Unfortunately. not ,enough vOting farniers are getting into business these days. The last figures I have on file maintain that the average age of the C.anadiataarm- er is 52. What's going to happen when all the old fellows bow out or die on the tractor if some incentives are not available to young men? It is happening right now, Between 1961 and 1966. one On- tario farmer went out of business every 3.8 hours. The rate accelerated between 1966 and 1971 to one farmer every 2.8 hours. This trend has declined in the last five years, I'm told, but is still too high. • I listened to one of the most articulate young la'rmers in Ontario in early March at the annual marketing seminar sponsored by the Rural Learning ASsociatAon Douglas Hol- liday..a thicken producer from SL_Marys, told seminar dele- gates that he was worried because quotas imposed by mar- keting boards make entry into runny sectors of agriculture alrhost impossible. • You can't produce eggs, broilers, turkeys, Milk or tobacco in Ontario if you don't. have a quota. Those who own' them are hanging on to them which discourages young men from getting into production. ' .'Let's not waste our potential to produce on protection- ism." he said. Young farmers in the milk business were hit horribly hard when the federal government ordered -cutbacks in prOditt--- tion a year ago. Some of them were hit so hard 'they went broke: • It seems a shame, especially when yoaconsider how much money is needed today to get into farming, .- 4 1 • 1.1 t.,H ,Correction Word left out of Huron F of A story ,1 In a story concerning a meeting between Huron 'F. of A • Officials and area members of parliament which appeared on page 13 of last weeek's-'Brussels Post and P age 1 of 'the Huron Expositor, Bert Elliott of the Huron County Cream Producers was reported as having said that 'land should be taxed for education but unfortunately the-word "not" was omitted. The,' quotation should have• read "land should not be taxed for education ---". - Federation urges tax reforms Here Now at O'Shea's GREG & KAUFMAN SAFETY Work' BOOTS STEEL . SHANKS TOES PROTECT YOUR FEET! Keep Dry with RUBBER —BOOTS by CEBO° IN HIGH & LOW CUT STYLES Avoid Pain and Injury this Season' BILL O'SHEA Men's Wear Seaforth You're nvited o attend a EAN SEMINAR the SEAFORTH LEGION' HALL Wednesday, April 6 12:3Q p.m. }or Dinner :30 to 2:15 p.m. Fertility Program and Micro nutrient recommendationajor. White Beans. ' Dori Cotton - Agronorhist 2:15 to 2:45 p.m. • Control .for• all grasses in white beans. Mike Ingratta - Elanco 2:45 to 3:30 p.m. • I NI I I in I el I I I I I I I I I I I I I I I Mani I 1 I I I I I I • IN • "0.4% " • . . • ATTENTION FARMERS WHAT YOU SHOULD KNOW ABOUT F''LAX AS A -CASH CROP IN 1977 1.. Flax Futures for 1.977 continue at an attractive level. 2. Flax Plantings in our area have continued to grow., 3. Input Cost for seed, fertilizer and spray less than $20.00 per acre as of March 31, 1977. 4. A market is available immediately for all Ontario grown flax. 5. Quick_unIpad as compared with other-cash crops. 6. Forward selling available (ask Manager for details) 7. Storage available (ask Manager for details) 8. Contracts available (ask Manager for details) 9. Crop, Insur_a_npe for flax is available in 1977 (See your Agent "for details) Don't delay because interest in this seed is high. To avoid disappointment- call today. • For OPNOTCH TOPNOTCH rtcos LIMITED Milverton, Ontario... `phone 595.4041 seed. please contact: or ANDERSON 'FLAX (114O1),UCTS Lucknow, Ontario phone 528.2026 • • .• A I ..2•1•10111•-c.m.. ..04. • • Credit generally depends on five factors according to Royden Ritz, of Kitchener, Agricultural Specialist of the - Torcinto •Dominion Bank, who addressed guests at 'the annual Seaforth Liens Urban Rural -dinner were - 'told. Heading the list is credibility and next is, a determination that ones goals are realistic;. that they' are not in excess of the capacity' of the farm-or of the individual, Motivation is important because it indicates whether the applicant' has the determination and necessary extra effort necessary on a• continuing basis to . achieve an objective. In the' involved economy and • was afraid the, faimer would eventually lose control of his land with' the government paying most of the taxes. The Blair Commission, who prepared the 'report released Thursday on tax reform, recommended assessing farmland and buildings at 100 per cent of their market value rather than a reduced rate and then having the go vernment pay 90 per cent of the land tax.' Edighoffer said the tax proposals and subsidies "are a long way down the road" but one problem that could be encountered was higher taxes on farm homes if they are to be aSsesged at urban market values. "You could be paying as, much on your house as on your land"' Edighoffer told the 'Members. Edighoffer and Jarvis also' fielded questions on a variety' of topics," including nuclear waste pollution. The' 'CiFA expressed dissatisfaction with their ability; "to gain small things, 'but fail to see efforts by big cities to have complete, and Of course, costly waste disposal plants." Edighoffer said the province looks more at the "prbblem of getting rid of the waste rather than what to do, with • it." he suggested they should be looking for a way in which to utilize it. Jarvis agreed with the point and added that he hoped "The federation didn't have, too many 'rejudgements. I hope you don't c y .ou minds 49 it (nuclear energy) because scientists are telling us that even in terms' of safety it may be one of our best, options." Jarvis warned the fanners that they could " expect stiffer competition from Quebec, farmers who Were entering the intensive farming field with enthusiasm.. "They are no longer satisfied with 40 chickens and four cows" he said. I Water Well! !DRILLING' W.D.; Hopper - ands Sons 1 4 MODERN' ROTARY RIGS '1-'PHONE "Nell 527,118/ Dun 521400 Jim 817:47/8 ••04 .? Changes in tax laws in Ontario 'Needn't go as. far a$ taking all responsibility away from tlic fai,ritei" Pcitir County Ontario Federation of!Agriculture Members told Perth-Wilmot MP Bill Jervis 'and MPP Hugh Edighoffer Saturday in Mitchell. Ken Green, Local OFA Presidefil said the reforms could' lead to an. eventual , takeover of private 'property. He Marketing boards • • ,,,,10•.•411.. criticized . Unilateral action on the part of the United Statek.or European Economic Coitununity, members would cause long - term agricultural plans "to blow up in our face" 'the MP Tor Perth Wilmot told, the .farmers. • A National meat authority, like " the one.adv.ocated by the National FArmers' Union, would be • a bureaucracy that wouldn't work" largel y because it would 'not take into 'account the regional differ&ites in Canada. Besides that, • Jarvis Said, . Marketing boards, should be producer controlled.. • The OFA chine out in support of marketing boards in the brief presented to JAMS and Perth MPP 'Hugh g.dighofter'prOtiteth for•dairy proditterein.1976 would likotti,beett ua•far ger nieSS without our Marketing;h big ritirdq:the gquitable tariffs and border protection as well as an examination Of import policies are needed to. stabilize the Canadian agricultural• industry Perth WilmOt ,IYIP Bill Jarvis and MPP Hugh gdighafer Were told Saturday when they met with Perth Ontario • Federation of Agriculture members in Mitchell. The OFA polidy was outlined in a six page brief given to the two legislators and prisented by OFA' president Ken Green of St, Pauls. The OFA is "not asking for a stone wall around agriepure" Green said, but want what it feels is an inequitable tariff systems which favours industry changed to protect farmers from imported goods. "We no. longer accept being sold down the drain to Canadian indistry in support of a cheap food policy and demand •equilibrium in the Canadian economy" Green said. He used two research tables prepared by the OFA to back his demands. buildings and` iffeir - maintenance he asked. "Credit availability all boils down to how efficient is the applicant, has he got the capaCity, the abilitY to prqduce and to do what' he says he will do" the speaker concluded Mr. Ritz was introduced by Stewart Coupland and, apprecia- tion was expressed, by Ross RibeY. During the dinner, which was arranged by Keith Snell, the Town and Country Quartette of Marten Vincent, Ken Campbell, Geo. Riby and Bill Campbell contributed several numbers. Community singing was led by Marten Vincent with Mrs. Nominal tarrifs are always applied on goods, while effective tariffs are calculated to' reflect the measure of protection given to the value of the goods,.added by an industry. This results, the (OA said, in producers .being able to charge prices above the world market level while they pay near competitive prices for raw materials and can add the protection into processing costs and charge above average prices which "indirectly robs the Canadian farmer of potential exports" and may cause a lower consumption ,rate. Green pointed out that the_ chemiCal industry here was given protection in order to maintain its market when its prices were- being] undercut by foreign firms. According to the OFA nominal tariffs on agricylture are 2.05 per cent but effective ly they are .52 per cent. While the normal tariffs on manufactured goods are lower ..than the effeotivP toriffc Vincent accompanying. In a draw for the car club tickets winners were - Glenn McNichol and Grace Titford and Mr. McNichol won• again as the first three of the monthly club prizes of $25.00 were "drawn. Others winning $25.00 were • Helen Garrick, Seaforth and Win. Sallie, Hillsdale and Norman Richardson of Strand. Ontario, • who held a ticket j 'ointly. Draws for the $25 prizes will continue monthly until 'the major draw which is set for September 20th this year. Chairman for the event was Dr. W.J.Thompson and others taking part were J.W.Talbot and Gordon Rimmer. He also Owed' out that corn tariffs'for imported corn are eight cents a bushel while corn exported to the United States has a '2S cent per bushel tariff enforced, "Historically, we've used agriculture as. a pawn,'t Jarvis with the farmers' plight, but commented, addling that "-we added that "we have the unhappy have been very poor negotiators habit of purchasing cheap imports in terms of agricultural at' the expense of the home products..u. industry." governmental presence with' which all businesses operate today no longer is it possible to carry on except on the basis of complete business records, Mr. Ritz stressed;--""" The factor in a credit assess- ment is the flexibility of the individual - an ability to adopt to change in plans, as a result of changes in the market place. He must be able -to appreciate new developments and to change plans accordingly. Referring particularly to rural credit assessments Mr.Ritz emphasized that the physical, characteristics of the farm plant were important. How is the drainage, " the layout of the Neither .national marketing boards or long* term commodity policies will bring the agricultural industry any' stability BilL Jarvis told member of the Ontario Federation of AGriculture when they met, in Mitchell Saturday. Jarvis was responding to a question from an OFA member who suggested that amore stable agricultural industry would provide a basis for a farm supply . industry in Canada and would eliminate the need of farmers to purchase imported equipment. "National marketing boards are a solution" Jarvis said, "but •, they are bigger • and - less personal." He pointed out that a national system would eliminate much Of 'the contact between ., producers and the marketing 'board. The bean h erblcide which removes broadleaf and perennial weeds in beans as well as-newly licensed for corn. Scotty Robertson - B,A.S.F. Please pick up *your 'free tickets at either of the sponSor's stores by Meirh,30:th . SPONSORED BY: ,S.AFQRTE1 MILTON J• FARMERS DIETZ LTD, poi At Urban Rural dinner Agricultural specicilist speaks on credit Jarvis. suggested that during the .chaotic dairy preducer Situation of 1976, a 15 PI cent's ; reduction of cheese imp.orts- w;tild not have solved the dairy ,farmers problems thottgli, Jarvis said that he sympathized