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HomeMy WebLinkAboutTimes-Advocate, 1978-10-26, Page 15piiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinijiUHiniiiininHiimn^ 1 CUSTOM CORN COMBINING Former chairman issues warning ean board faces so SR Wide & Narrow Rows Ready When You Are Donald Geiger 236 4865 ^iiiiiiuiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiuiiiiiiiiiniiiHiiimiiHiniHuuHm^ FARMERS PUT THESE NUMBERS BY YOUR PHONE FOR FALL CUSTOM PLOWING AT REASONABLE RATES GRENIER BROS. George , 237-3444 Rick 237-3402 By TOM NUNN Cash Crop Farming The Ontario Bean Producers Marketing Board must make some tough policy decisions soon or face its own demise, according to former Board chairman Phil Durand. “If major policy decisions are not made immediately, I believe producers will de­ mand dissolution of the Board,” said Mr. Durand during a recent interview on his RR1 Zurich farm. There has been talk among producers of cir­ culating a petition to acquire the 1,500 signatures necessary to have the Board’s dissolution con­ sidered by the Ministry of Agriculture and the Ontario Farm Products Marketing Board, he said. Phil had a hand in adop­ tion of the current agency marketing by the Board 10 years ago but policy towards dealers and producers prompted him to abandon positions as Board chairman in 1976 and finally as a direc­ tor in December 1977. He was elected Board chairman in 1972 and decided to resign completely from Board business in December, 1976 but some growers talked with the agency marlfeting system and dealers cc/ld be offering incentiys to producers witho/t the Board’s knowledge. “The whole syste/i is bas­ ed on honesty,” /aid Mr. Sherman. “Honesy is fine but it’s like a spe^ limit. If you can break it, X)u can get away with it. It’^mpossible to police.” ThtyBoard can pass regulatiA18 on the dealers but enforcing the regulations ire another matter, he sail. “We don’Vreally have a viable alterative to the agency matfeting system,” said Mr. /herman. “The producers 4o not have an elevator rpr does the Board have an qevator. Somebody has to pr/cess the beans and if you’re not doing it yourself then the dealers have toioit.” Dire/t sales by the Board could /'ause other problems, Mr. german said. Dealers are currently handling and marleting beans “and if you /emove part of their job, and’you end up still having then employed to handle th/ beans, you would have soneone working for you mcFj hen employed to handle h7 b ;c/ne Times-Advocate, October 26, 1978 Paae 15 tough decisions who wouldn’t like their job. I’d say you’d by schnooked,” he said. Mr. Sherman said there is a clause in a Board agree­ ment with dealers which would allow the Board to sell “in conjunction, with” dealers. “There are certain instances where we could handle the marketing but we haven't really seen a time where we can use that clause. The clause could be used in marginal markets but it would define that the Board and producers are responsible if a buyer doesn’t pay,” he said. Mr. Durand cited the wheat marketing system as an example which could be followed by the Bean Board. The wheat board requires dealers to report the quality, quantity, price, grade, and present a certified cheque before wheat is shipped to trade and the same re­ quirements should be made of dealers acting as agents of the bean board, he said. Bean producers are also docked 9-10 cents/lb. by dealers receiving bad beans but dealers are still allowed to sell these beans, he said. “Producers should not be charged for the removal of bad beans if dealers are allowed to sell their intake.” Besides the problems with receiving and dockage for bad beans, the Board also has a definite unwillingness to formulate policy and stick to it, he said. “The Board has made policy and, after a meeting with dealers, has been prepared to change it. Most of the major policy decisions were made to satisfy dealers Mr. Durand cited the 1976 Hickling and Johnson report as providing the Board with some good recommen­ dations but the report has remained confidential and few of the recommendations have been adopted by the board. Specific information regarding dealers’ handling capacities and other private information should remain confidential but most of the report, about 95%, should have been released to producers, he said. 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In December, 1977, he resigned as a director for several private reasons “but mainly over disagreement with Board policy.” “One of my major dis­ agreements was our receiv­ ing system from producers. My major concern was that the Board had not held dealers responsible for the quality they receive from producers.” Currently the Board accepts reports from dealers that they have received all no. 1 grade beans and then .when the beans are sold to trade, dealers report selling lower grade beans, he said. “I believe that all the beans purchased from the producers should be bought on the same basis as they are sold to the trade.’,’ The Eastern Pea Bean Grade Standards, currently used by dealers to sell beans to trade, should also be used when dealers purchase beans from producers. If dealers originally report receiving all no. 1 beans they should not be able to sell them to trade at a lower grade, he said. With the Borad price pooling mechanism, grpwers who actually deliver no. 1 beans will lose money, said Mr, i Durand. / “Every ’time we allow a/ bag of no. 4 beans to bd removed from the pool, x replaces no. 1.1 believe th/t to be most unfair /o producers who deliver nd 1 beans into the pool. I thini it is very wrong.” ■ No. 4 beans are usually priced $5-$121ower tharjno. 1 beans and when a bagM no. 4 beans is removed frpn the pool, the money iomes directly out of producers’ pockets, he said. The Board should make dealer^ respon­ sible for selling be/ns at the same grade as /they are reported as bein/ received from the producer, he suggested. “I believe it is very wrong for a dealer to sell these beans as no. 4'after he has taken them in is no. 1,” said Mr. Durand. “There is no reason why the dealer is not 0 held responsible for what he takes in.” An agreement between the Board and dealers states that dealers cannot offer producers an incentive to ship through their facilities. “Not docking producers ac­ cording to the agreement could be an incentive. It is quite possible that they don’t dock producers the way they should be,” he said. Other incentives the dealers could offer producers would be a lower charge for drying or pay­ ment for shipping the bean to the dealer’s plant, he said. 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