HomeMy WebLinkAboutClinton News-Record, 1970-05-14, Page 14Piinfon NewOloorird, Th4rsOoy4 May 14_, 1970
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Stabilization levy requested
Spring planting for corn will soon be taking place and in a fem/ months the corn will be high and
the ears will be filling out. But for growers of grain corn the picture is not too optorristic
according to officials of the. Canada Department of Agriculture.
Three executive members of the Ontario Federation of Agriculture were the'first dairy farmers in
the province to renew their O.F.A. Individual Service Memberships through a new commodity
check—off system. Work is continuing to include producers of commodities other than milk in the
program. Left\ to right, are: Keith Matthie, Grenville County, Second Vice—President; Delmer
Bennett, Renfrew County; and Charles Munro, Oxford County, Past—President. Mr. Munro is also
President of the Canadian Federation of Agriculture and a Vice—President of the International
Federation of Agricultural Producers. (Photo Courtesy O.F.A.)
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.Argentine livestock and.
meat exports Aticrease
above the 1968 level Hog
numbers are forecast at 4.2
Million head for Mid-1970.
Poultry meat production in
1969 totalled about 140,000
tons, an increase of 20,000 tone
Over 1968.
The Ontario's Wheat
producers' lehirketing 13oaid has
announced plans for a vote of
producers concerning an increase
in to hoard's stabilization levy.
Board chairman, M. R.
McDougall, R.R. 2, Blenheim,
said the decision to call, a ,vote
op the issue was made by the
board of directors( following
intensive studies of financial
requirements for the board's
purchase and sales operations in
handling the 1.970 crop of
winter wheat.
Mr. McDougall explained that
the board's present stabilization
levy of 17 cents per bushel is
based on 10 percent of the
negotiated minimum price and
that producers will be asked to
support a levy based on a
maximum of 17 percent, an
increase of 13 coots' per bushel.
This means the levy maximum
could be 30 cents per bushel.
However, Mr. McDougall
pointed out that the board
would not necessarily set the
levy at the full amount approved
by producers and that the levy
would be subject to rebate as in
the past.
The levy, which is deducted
from producer sales, is pooled as
a stabilization fund and is used
exclusively for paying losses
sustained by the marketing
board in handling and selling
excess production into
secondary markets at lower
prices than the domestic flour
and cereal markets.
The board chairman said there
are four basic reasons for the
requested levy increase: 1 ,
Continued marketings by
producers in excess of domestic
requirements; 2, Lower 'export
price; 3, Feed grain price
competition; 4, Higher cost to
the board.
In expanding the four points,
he said that regarding point one,
domestic flour milling and cereal
manufacturing requirements
amount to about nine million
bushels annually and any volume
sold by producers in excess of
that amount has had to be sold
in either export or feed markets
by the marketing board.
"As for point two, the export
price of, winter- wheat hae-:
&lipped 36 cents per bushel
since 1966 with the present level
at $1.60 per bushel for grade
No. 1 and 2 at Montreal. This
means a net at the farm of $1.23
per bushel if the export price
controlled the price to
producers."
"Regarding point three,
Ontario winter wheat must
compete with other feed grains
such as Ontario corn, western
grain and imported corn, all
priced lower than winter
wheat."
“On the fourth Point,
because of the other three
factors and in particular the
lower export prices,'marketing
costs to the board have increased
to a point where the present levy
is inadequate, The board must
purchase wheat at the minimum
negotiated-price and absorb the
deal6r handling charge; freight
and elevation to terminal
storage; storage and interest plus
toes on export or feed price."
Mr. McDougall further
explained that based on
expected board purchases for
the 197Q crop and the usual
volume sold by producers,
projections show losses could
exceed $1,500,000. Because of
this, he continued, it is essential
that the board . be sufficiently
financed to overcome the most
extreme eventuality.
Projected figures based on
372,000 acres of winter wheat
seeded last fall -indicate the
board expects production to
total 14,8 million bushels with
12.5 million being sold by
producers. Of the volume sold
• by producers, it is expected four
million bushels will have to be
handled by the marketing board.
Last year, production totalled
14.3 million bushels with
slightly more than 11 million
bushels being sold by producers
to date. Marketing Board
purchases to date total 3.2
million bushels.
Mr. McDougall said board
stocks have nearly all been sold.
But, he asserted, if it had not
been for the fact that three
million bushels ,of last year's
purchases were low grade
sprouted wheat bought at $1.35
instead of $1,82 for top grade,
losses would have. been much
higher resulting in depletion of
all stabilization funds including
reserves.
He advised that plans are
being made to conduct the 35
county meetings required to
cover the province where
producers will be asked to
attend presentations and vote by
secret ballot on the issue.
He said that although all
dates are not finalized as yet, it
is planned to have all the
meetings held between May
11th and 21st and that all
producers will receive notices of
the meetings by mail within the
next few days.
"While it is unfortunate the '
board must request additional
funds", he concluded, "it is in
the producers' interest that the
board remain in a strong
financial position to obtain the
best price possible from all
markets and the board of
directo rs sincerely hope
producers will support our
request."
Membership in one of three that this check-off system also
possible ways: in one total, allows an Individual Service
payment, monthly payments, or Member to renew his
so much per unit of production. , membership for coining years. A
This means that an individual number of dairy farmers have
farmer can pay for his service already renewed their Individual
membership over a period of one ' Service Memberships with the
year. - 0 .1? . A. through this new
Federation officials point out commodity check-off system.
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.04 ttic numbers in the.
Argentine totailed million,
heed on June :a0, 1969, an.
increase of about one per cent
from 1:968.. Forecasts indicate
cattle count of 52.5 million head
at mid-1976..
Beef and veal production is
expeeted to be 2.65 million tons.
in 1970, compared 2,75
million tons in. 1969, During
1969 producers irept animals to
a heavier weight becauw of good
pasture conditions and a
favourable outlook for meat
exports.
Argentine exports of meat,
meat by-products, hides and live
animals last year totalled U.S.
$533 million, up from a 1963
value of $462 million. The
increase Was largely due to
renewed shipments to the
United Kingdom to a volume
almost as large as in 1966 when
the U,K. market imported
119,300 tons of beef and veal
from the Argentine..
Sheep numbers were
estimated at 47.5 million head in
June, 1969, and are expected to
continue to decline in 1970.
Hog numbers apparently
increased in 1969. as a result of
the high prices a year earlier.
However, the increase in
numbers came late in the year
and consequently, 1969 pork
production was only slightly
The Ontario Federation of
Agriculture has developed a
commodity check-off system for
milk producers wishing to
purchase an O.F.A. Individual
Service Membership.
Work is continuing to expand
the check-off system to include
producers of other commodities.
The new check-off system
allows a producer to purchase
his O.F.A. Individual Service
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PORK .IMPORT,S DROP
CONSIO.RARLy
, First quarter imports of pork
from the U.$,A, were down
substantially from a year ago as
shown by the following. data
from the Canada DePartment of
Agriculture,
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