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12 THE BRUSSELS POST, APRIL 11, 1979
Support stabilization F of A hears
BY RHEA HAMILTON
Local producer reaction to
the proposed changes in the
federal governments
stabilization program in-
dicates that few have
seriously considered the
changes.
Huron Federation of
Agriculture members heard
OFA director Albin Kormos
speak on the changes at their
monthly meeting at Grey
Central school, Ethel,
Thursday night. Mr. Kormos
is a member of the OFA
committee studying new
proposals for the
stabitization act,
"Farmers tend to treat the
stabilization act the same as
marketing boards" Mr.
Kormos said.
Mr, Kormos said income
instability and increased
costs of production which
take away from efficiency,
are reason enough to accept
the new farm stabilization
proposals.
The present program has
come under fire from various
producer groups claiming
support levels were too low,
no advance notice of support
prices was offered and the
annual program did not
provide adequate protection.
"The Ontario plan is more
complicated compared to the
present plans inboth British
Columbia and Quebec and
farmers still have strong
disagreements about the
whole plan being welfare"
Mr. Kormos said. He
challenged members to
support the development of
programs for general ap-
proval of stabilization plan.
The federal policy is
similiar to the B.C. plan and
involves farmer par-
ticipation.
"1 feel it is the ideal we
should be shooting for" said
Mr. Kormos. The main
function of the plan is to take
out the lows in the market or
nut the brakes on a down
eriod, Mr. Kormos told
members.
The fedreal government
has' proposed four major
changes.
The first change the basis
or the calculation of support
,,rites to a gua. anteed
margin approach with
..upport at the 100 percent
The difference
•e.tween the price a farmer
rotieves for a commodity and
s cash production re-
7resents his margin over
cash costs and is the return
for his labour, management,
and capital. Under the
guaranteed margin approach
the support price would
equal cash costs in the
support year plus some per-
centage on the average
margin over cash costs in the
immediately preceding five
years.
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current cash costs and the
support price and a
guarantee at the beginning
of the support period that the
farmer would receive a
return for labour, manage-
ment and capital that would
be no less than their average
return in the preceding five
years.
Joining would be voluntary
and farmers could enter
plans for the commodities
they produce. Costs would be
shared, 1/3 by producersand
by the federal
government. To alleviate
inadequate protection for
slaughter cattle and hog
producers a quarterly pro-
gram has been proposed
rather than a yearly one.
Mr. Kormos compared the
program to insurance against
poor prices.
Tony McQuail, director for
Huron North West was
concerned that such a plan
would protect larger instead
of smaller or especially
younger farmers.
"Younger farmers have a
greater monetary investment
and are most hurt by market
fluculations", Mr. McQuail
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said. Mr. Kormos assured
members that both minimum
and maximum standards
would be set to avoid
nuisance claims.
INVOLVED
"It is important that farm
representatives are involved
to establish where the
majority of farm sizes are
and what levels farmers want
set" said Mr. Kormos.
There was some discussion
concerning the merits of a
federal as opposed to
provincial programs.
John Van Beers, director
from Huron east central cited
the example of the Western
provinceskeeping calves and
Ontario wanting to establish
their own source.
"A federal level would
have solved the problem"
said Mr. Van Beers. "But it
was provincially run and had
problems."
Mr. Kormos pointed out
that provincial programs
would only compete with the
federal level.
"I don't think the federal
plan would work and that is
why we must have a co-
operative between the two."
said Mr. Kormos.
Mr. Kormos said the OFA
does not support the federa:
proposal because it does not
allow active farmer input,
just advice. Although the
farmers are paying one third
of the program they are
allowed no "input".
Mr. Kormos did not feel
the program would interfere
with market indicators.
"It is a tool designed to
stop declining markets and
yet leave room for a free
market place." said Mr.
Kormos.
With the new proposals
the beef cow calf producers
would be included.
"If the federal proposal is
enacted Quebec and B.C.
will not recieve an y
compensation for their own
cow calf operations". Mr.
Korrnos said. "That does not
mean there will not be any
support for other provinces."
Members agreed the
federal method of
determining support levels
by historical market prices
was outdated and believed
costs of production would be
a fairer method,