The Exeter Times-Advocate, 1977-04-14, Page 11The Zurich Chamber of
Commerce was told it is a
declining breed at the Chambers
rural urban night last Thursday
evening, Guest speaker Gordon
Hill, past president of the
Federation of Agriculture and
Stanley township farmer in-
formed the 35 members and
guests at the meeting the number
of Canadians who own their own
businesses or farms is rapidly
declining,
Mr. Hill said only one-third, as
Many people own their own
business now compared with
1946. Part of the reason for this
decline, says Mr. Hill is the lack
of interest the government pays
to the small businessman
whether rural or urban.
"All the advantages have gone
to big operators, whether far-
mers or businessmen," claims
Mr. Hill, "and it is going to be
increasing difficult for small
businessmen to operate in the
years ahead."
Mr. Hill urged the farmers and
businessmen to "recognize the
interdependence of farmers and
small businesses within a small
community."
"Nowadays a farmer Can't
function without the banker, the
farm supplier, the farm
machinery dealer, it's not like it
used to be,"
The farmer, says Mr. Hill, is
equally important to the economy
of the country. In 1975, says Mr.
Hill, Canadian farmers spent $4.6
MONEY GROWS ON TREES — A recent draw at Victoria and Grey Trust in Exeter proved that money
does grow on trees. The winner of $50 in the draw Allan Rundle, Exeter at the right accepts his winnings
from V 8, G accountant Joyce Black and branch manager Dennis Smith. T-A photo
Vegetable growers pact may change
Recommend term contracting
Both urban and rural Times-Advocate, April 14, 1977 Page H
Hill says small businessmen a dying breed
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creased significantly in the past
few years. A producer can no
longer rely on a one year com-
mitment if he is to make „im-
provements and maintain ef-
ficiency of production.
The regulation evolved under
the guidance of °the Farm
Products Marketing Board and
several meetings between of-
ficials of the vegetable board and
the executive of the Ontario Food
Proce:Ssors Association.
Board officials predict very
few disruptions as a result of the
new regulation, The regulation
formalizes what ha's been the
practice of most producers and
processors in the past. Unlike
quotas and job security
provisions, there is no mometary
cost to either the producer or the
processor. The board views
contract security as a
progressive step for the industry
that will enhance the future
viability of vegetable processing
in Ontario,
The essential elements of the
regulation are:
1, Three year term contracts
signed each year unless the
producer or processor wishes to
terminate the contract. There is a
two year commitment beyond the
termination date.
2. Term contracts shall be for a
pro rata share of a processors'
.reggirexpents equal to a pro rata
share of a processors'
requirements in 1976.
3. The processor operated
acreage is exempt.
4. Processors or producers may
terminate contracts for a valid
reason(s),
5. In the event of a dispute over,
termination,there is provision for"
negotiation and third party
settlement,
The vegetable board will be
holding a series of producer and
processor information meetings
throughout the province.
Computer may help
in farm decisions
A computer may be able to help
you decide whether to buy, sell or
keep your farm.
At Ridgetown College of
Agricultural Technology, a new
program called Land Pricing
Analysis is offering farmers
computer assistance to help
make such critical decisions.
R, W. Ross, an agricultural
economist and head of the
program, says the computer
helps the farmer analyze all the
variables before buying or
selling,
"There are two things the
farmer wants to know," says Mr,
Ross. "He wants to know whether
the purchase is a good in-
vestment 'and whether he can
afford it."
The computer is helpful
because it highlights 11 points
which should be considered. For
example, it analyzes prices of
recent sales, tax rates, net in-
come, interest rates, land in-
flation and mortgage costs. But
before the computer can give an
analysis, the farmer must
provide it with accurate in-
formation, If he does, the com-
puter will tell the farmer what
price he can afford to pay for the
land. It will take about five
minutes.
"This program can be useful as
an investment tool," says Mr.
Ross, "However, it cannot make
the final decision for the far-
The program has been
operating for three months and is
available to any farmer seriously
considering land purchase or
sale. For more information
contact R. W, Ross, Ridgetown
College of Agricultural
Technology, Ridgetown, Ontario.
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,•
The Ontario Vegetable
Growers' Marketing Board has
been advised that the Farm
Products Marketing Board is
prepared to amend the
marketing regulations to provide
for term contracting in 1977.
Under the new regulation,
Ontario vegetable producers will
have a formalized system of
contract security which is unique
in North America,
The need for, contract security
arose from the fact that land and
capital commitments of Ontario
vegetable producers -' have in-
billion on goods and services.
Most of this money wound up as
income to workers, in taxes, or in
profits for many other
businesses. In addition the far-
mers paid $179 million in
property taxes.
"Farmers and businessmen
Farm credit
rate dropped
Agriculture Minister Eugene
Whelan has announced a
reduction in the interest rates
charged by the Farm Credit
Corporation. The interest rate for
loans under the Farm Credit Act
will be 91/4 per cent and 9 per cent
under the Farm Syndicates
Credit Act.
"These rates are reviewed
twice a year and changed on
April 1 and October 1. The rates
are based on the yields on
government bonds and in-
vestments," said Mr, Whalen.
The rate for the period ending
on March 31,1977 was 10 per cent.
"We also foresee that the
Corporation will have adequate
funds to meet the projected
demand for the coming fiscal
year. Approximately $500 million
will he available for FCC loans,"
said Mr. Whalen.
He said that this represents a
return to more normal times for
the Corporation, In 1975-76, $641
. million was loaned as a result of
the amendments to the Farm
Credit Act and because of a
general optimism in the
agricultural sector. About $170
million of this total had to be paid
with funds from the 1976-77
budget. This coupled with a lower
demand for loans resulted in
about $308 million in approved
loans for 1976-77.
are partners, one can't function
without the other." says Mr. Hill.
"It will be to our mutual ad-
vantage to try and have a better
understanding of the problems
faced by each other."
Mr, Hill went on to explain
some of the problems faced by
farmers as he sees them.
Mr. Hill explained that with
most products the supplier simply
figures out how much the item
costs to produce and then adds on
a profit for himself and sells at
that price. In the farm market
this 'is only possible through
control of the quantityof products
produced which is the reason
marketing boards with supply
managementauthority or a quota
system.
"If we want to sell our goods at
a certain price, then we must be
Wet° controlthe supplyand have
the selling done through One body
only," he added.
Mr. Hill went on to say, "To
Ontario six companies handle 95
percent of the food business. This
concentration of power is not
good for the farmer or for the
small businessman who is trying
to compete."
Marketing boards are the
answer, says Mr; Hill, although
there are still a lot ofproblemsto
be worked out he added. For a
marketing board to work it has to
have a large percentage of
support from the supplier of the
commodity it is marketing, and
farmers tend to be the last of the
"rugged free enterprisers"
particularly in the beef industry.
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Ed-El-Fa Farms Ltd.
Box 344 HENSALL, ONT.
262-2627 262-6048