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HomeMy WebLinkAboutThe Exeter Times-Advocate, 1976-02-26, Page 8Page 8 Times-Advocate, February 26, 194 Bill Stewart's dawn to earth Taxes reduce profits when farms sold for large amounts everyonet Adrian wishing bon Vos voyagew at o The next meeting of the Huron s County Federation of Agriculture flying to Vancouver next day for will be on Thursday, March 4th. a meeting of the Canadian All Individual Service Members Federation of Agriculture. are urged'to attend. +(*1 a" ,.\•\'". scv e ,F.,, cp (2). s\ •\ e '1/4.' e..rb- ,csA \,. .,,c1 e ,,,c3 C,,p1 c1/4\rb• rb• C.P C •.'S \ ii-s- C\ • c\r b Ri'D ,.,4 0 C P t •i ,% \\ ' ' \Cr \ro• .tai cc, oe, c,,z, .s\ 6\ ,,sk re, C., co e \ -'C NQ' 6\ ,e,s` N.\* e'z' .\\N'z' c)\ 0° _,.,n,51- • GRASS SEEDS (We'll mix to your specifications) • SEED GRAIN • MIXED GRAINS • BARLEY EXETER CO•OP DISTRICT 235-2081 Beside CNR Station ATTENTION FARMERS YOU ARE CORDIALLY INVITED TO SPEND "A DAY WITH I a TOPICS OF CURRENT INTEREST WILL BE PRESENTED INCLUDING: • "How to get an even break from the tax man" • "Your Bean Producers' Marketing Board Why and How" • "What's new in chemicals" TWO DATES 61 LOCATIONS FOR YOUR CONVENIENCE "FOOD & REFRESHMENTS AT NOON" KIRKTON-WOODHAM COMMUNITY CENTRE KIRKTON, ONT. Thursday, March 18 PINERIDGE CHALET Hwy. 84, 2 Miles W. of Hensall Tuesday, March 23 9: 3 0 a.m.—early bird coffee 10:00 a.m.—program begins 9:30 a.m.—early bird coffee 10:00 a.m.—program begins A. A Pick Up Your Free Tickets At Any Of Cook's Elevators — Hensall — Centralia — Kirkton Due to limited accommodation, admission is by ticket only on a first come, first serve basis. McCutcheon discusses planning and land use There are some attractive prices being paid for farm land these days. Many farmers are tempted to sell. And why not? With current interest rates applied on the prices that one hears are being paid for farms, income would look very attrac- tive in comparison to the risks of weather, prices, and livestock and poultry health problems. And, of course, over-production of some commodities has already resulted in curtailed in- come as witness what happened to beef prices and now to some degree, at least, to industrial milk, as well as feed grains. However, before we farmers all rush off to the nearest real es- tate agent to list our farms it Weight penalties concern producers Penalties for overweight hogs seemed to be the main issue at the Huron County Pork Producers Association Annual meeting, held in the Clinton Legion Hall, Wednesday, February 18. A resolution was passed to have a discussion with the packers, raising the question of increasing the penalty of overweight hogs gradually as the weight in- creased. The producers were also concerned with the meat packing plants. There are only 11 plants left with teletype machines. President, Eric Moore said, "I have been concerned with the number of packers dropping by the wayside. When I began as president, there were 24 meal packing plants with teletype machines. Now' due to amalgamation, there are only 11 left. If any more of the packing plants amalgate we'll have to do something to keep up the bidding prices." Huron County Zone Director, Adrian Vos said, "So far the competition system has been working. There are still enough bidders to make Toronto the highest market in North America." would be wise to take a look at what might be left over after capital gains tax and income tax have been paid. The fact that such taxes are of great concern to many farmers who have to dispose of their farms for a variety of reasons was in evidence by the rapt attention paid by hundreds of farmers, their wives and families who attended the Ridgetown Agricultural College's "Farmer's Week" Farm Management presentation. And I'm sure this was the ease where other such presentations were made. There have been so many references to the Capital Gains tax that most 'farmers must be aware capital gains commenced as of January 1, 1972. That is to say half of any increase in value from that date on farm land, stocks, buildings. machinery. certain personal property is add- ed to personal income in the year in which the asset is disposed of and therefore is subject to in- come tax. One-half the capital losses may first be deducted from one-half of the capital gains in that year. Fortunately a personal residence, usually the farmer's main house, and one acre of land are exempt from capital gains. A choice is given in that farmers can claim $1.000 plus $1.000 per year from January 1, 1972. against gains on the farm house and property. A house owned by a farm corporation or partnership does not qualify for the above exemption. In the case where a farmer sells his farm and assumes a mortgage on it. he only pays capital gains on the portion of the, mortgage capital he receives an- nually. During 1973 two amendments to the Income Tax Act were passed allowing a farmer to defer capital gains on taxable assets used in farming transferred to his children. grandchildren or great grandchildren. And of course, no capital gains are claimed against gifts or bequests between spouses. The capital gains tax may apply when that spouse transfers by sale, gift or bequest unless, of course, the farming assets are transferred to the family. It is an old cliché that the only certain things in life are death and taxes. How true! When one considers the whole plethora of taxes, including capital gains. succession duties, gift taxes, land speculation tax, and income taxes it just points up the absolute necessity of get- ting the best advice possible before finalizing a transfer of ownership of farm land, or the assets used in a 'farming opera- tion. There are several sources for such useful information. Private tax consultants, accountants or lawyers are available. Many. have found it a useful exercise to discuss their proposals with 0. M. A. F, Agricultural Representatives or Farm Management specialists before going to a professional private consultant or lawyer to have the necessary legal documents prepared where necessary. The main thing to remember is to be sure to learn as much as possible about the implications of the, transaction before any agreements of sale or options are signed. Sometimes when a sharp pencil has been used to calculate all the taxes applicable the glamour sometimes fades from what looks on the surface to be a most attractive offer. Inevitably decision's to transfer must he made either before or after the "grim- reaper" catches up to all of us. There are many ways of legally avoiding such taxes through family transfers. operating agreements, once in a lifetime $75,000 gifts. $5.000 a year gifts, or comhinations of all such methods. Few farmers or their families have the time, or the printed material, at their dis- posal to become thoroughly knowledgeable about such im- portant matters. That is why it is so very important to get professional advice before one of the most important decisions of a lifetime is finalized. Seaforth:- County planning and land-use were discussed by Huron County Warden, Jack McCutcheon, when he spoke at the February 5th meeting of the Huron. County Federation of Agriculture, which was held at the Seaforth District High School. During his speech he outlined the commitment of the County government in striving to preserve and enhance the agricultural assets of Huron County through its planning program. He stated: "It is clear that the land is the life-blood of Huron County and that a com- munity skilled and oriented to agriculture and the way of life it supports, is the heartbeat which keeps agriculture in a healthy and productive condition." Mr. McCutcheon discussedthe County Plan which was approved in 1973, and the need for the preparation and adoption of secondary plans and by-laws for each individual municipality within the County. However, secondary plans for the town- ships can only be developed at the rate of 3 or 4 per year due to the limitations of the Huron County Planning Department, although another planner will be added to the staff this year. He urged all farmers to attend the planning meetings in their area and contributetheir ideas so that the final plans will meet with their approval. He concluded by saying: "It is my personal conviction that the future prospects of agriculture in Huron County are bright. As the agricultural lands in other more populated and urbanized regions are gradually stripped away by the unrelenting pressures of non- farm developments, I feel that Huron° County, because of its protected land base, its skilled farming community, and its commitment to agriculture, will inevitably be drawn into a greater agricultural role, filling the gap of withering agricultural economies in other parts of the province, Through a sound land- use program and the efforts of cledicateed groups such as the Huron County Federation of Agriculture, I am convinced that the agricultural expectations of the County can and will be fulfilled," Following his speech, Mr. McCutcheon was kept busy fielding many interesting questions from those present who wanted further clarification of future plans for Huron County. Allen Campbell, representing the Huron County Plowing Association, reported on the plans for the Home Improvement Howick; Mae McKillop. Stephen Township Federation of Agriculture ANNUAL MEETING and BANQUET CREDITON COMMUNITY HALL Fri., Feb. 27 Dinner 6:30 Guest Speaker GORDON HILL Tickets $4.50 per person Available from Twp, Directors competition to be held in con- junction with the 1978 Plowing Match in Huron County, Although a budget has not yet been drawn up, he suggested that the Federation of Agriculture im- mediately set up a small steering committee and later expand this to include a representative from each township in the County. Ralph Foster, Ashfield Township, has been appointed Chairman of this committee. Following a coffee break, the meeting formed small buzz groups to develop ideas to be presented by the Executive to the Huron Members of Parliament at Clinton on March Gth. Maurice Bean, Regional Director for Huron East Central, gave an extensive report on the proceedings at the January meeting of the OFA. A resolution to organize a lot- tery in Huron County, which had been deferred from the January meeting, was discussed ancr passed, Proceeds from this lottery will be used to help balance the deficit budget, Lottery licences are to be otained from each township where tickets are to be sold. The meeting adjourned with For Spring Planting Choose new officers for county egg board The County Annual Meeting of flaasnoot, he Ontario Egg Producers Govenlock, Marketing Board for all Egg Producers in Huron County was held in the Board Rooms of the Ministry of Agriculture's Clinton Office on Monday, February 16, 1976. Zone Director, Bill Mickle of Hensall reported on the Board's activities since the semi-annual meeting in Toronto in November, Mike Miller, Associate Ag, Rep. for Huron conducted the election of Committeemen for Huron for the year 1976-77. Seventeen were nominated, and after the election the following will represent Huron: Bill Mickle, Hensall; Bill Morley, Usborne; Jim McIntosh, Tuckersmith; Bill Scott, McKillop; Richard Kootstra, Stanley; Howard Cartwright, Hullett ; Walter Arnold, AShfield; Bev Wallace, Hullett; Ralph Lubbers, East Wawanosh; Ken Moore, Tuckersmith; Max Demeray, Grey; Gordan ORDER NOW