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HomeMy WebLinkAboutThe Brussels Post, 1980-02-27, Page 12VALLEY MONK TON 347-2241 INCOME TAX BRUSSELS 8876663 PREPARATION • FILING • CONSULTING HIGH RATES ON Wt. INVESTMENTS the rural The magazine for the whole farm family • owe The farm magazine especially for Bruce, Huron and Perth counties * THOUGHT PROVOKING FARM STORIES * THE LATEST RURAL NEWS * SPECIAL SECTION FOR THE YOUNG FARMER * FAMILY PAGES WITH YUMMY LOCAL RECIPES * COLUMNS, PHOTOS, FREE WANT ADS and much much more Only $3.00 for'12 issues OR $5 FOR 24 ISSUES in Canada in Canada SEND NOW TO The Rural Voice Box 10, Blyth q Yes, I'll subscribe II I enclose $3.00 for 1 year In I enclose $5.00 for 2 yrs. Li Bill me, Name Address Post Office Code 1 12 — THE BRUSSELS POST FEBRUARY 27, 1980. Interest rgtos. :hurt F of A tel BY ALICE GIBS, High interest rates are getting a strangle hold on many farm businesses and making it increasingly difficult for young farmers to enter agriculture, according to Jim McIntosh, a member of the executive of the Huron Federation of Agriculture, Mr. McIntosh presented a brief on problems created by the current high interest rates to MPP's Jack Riddell (Liberal Huron-Middlesex) and Murray Gaunt (Liberal, Huron-Bruce) and newly-elected, MP Murray Cardiff (Cons.) at the federation's annual members of parliament dinner in Clinton on Saturday. Mr. McIntosh told dinner guests the increase in interest rates from 10 to 15 per cent has "added six cents to the cost of milk, 39 cents per pound of beef at the retail level and 27 cents per bushel of corn, to cite only three examples." He said established farm operations can withstand the high interest rates for a longer period than the younger farmer just starting out. He said many Canadian provinces offer either a farm loan program or an interest subsidy on specified existing loan programs to qualifying"-farmers but added, "Ontario may be the ()illy, province which does not offer any incentive to young farmers borrowing the large sums of money necessary to get established in agriculture." Mr. McIntosh told the members of parliament that the province of Quebec for example offers term loans to farmers at an interest rate of only !eight per cent per annum. The federation director said the province of Ontario should either consider reintroducing the Junior Farmer Loan Program or else establishing a program in which the interest rate to qualifying farmers "is reduced to a manageable level." Mr. McIntosh said a $100,000 loan, amortized over 20 years;w1Ma 15 per cent interest rate, ends up costing the farmer $381,455." "For the survival of agriculture, the government of Canada should do everything within its power to reduce the Bank of Canada interest rate. For Ontario agriculture to be truly competitive in the future, the province of Ontario should operate a loan program with a preferred interest rate or, offer an interest rate subsidy to existing loan programs," Mr. McIntosh told the politicians. The federation director said Ontario must' initiate loan programs "to keep us com- petitive with sister provinces". He said while farmers in the European Common' Market countries can borrow money at three per cent interest rates, and many established farmers in Ontario have outstanding loans at five per cent interest, "we are asking our young people to get into agriculture and pay 12-15 per cent interest rates." John Van Beers, second vice-president-of the county federation, delivered a plea to the politicans to keep Saturday rural mail delivery in effect. RURAL MAIL DELIVERY Mr. Van Beers said there are again rumours that the Saturday delivery is going to be curtailed. He told the members of parliament that a farmer often receives important business mail on a Saturday "which gives him the weekend to deal with it: time which would not be available on Mondays." "The government has removed passenger train services from rural communities and bu' service is practically useless. Now our rural mail service is being diminished. It would appear that:the federal government is trying to increase the isolation of rural Canada, Maybe the government is hoping that if they just close their eyes, the rural areas might disappear altogether," Mr, Van Beers told the politicians. "Murray Cardiff told federation members he bad already heard "we should expect a lot better mail service in the future." Paul Klopp, a member of the federation's* energy committee, outlined some of the increasing uses of energy in ,today's farming operations, but pointed out "food production has gone up in comparison to the fuel ratio used." He said food producers feel strongly that "farmers must be .kept in the number on priority in regards to fuel supply. The small amount of fuel used to produce food for this entire country, as well as others, must be available at affordable prices," he told the members of parliament. Mr. Klopp said his committee is under- taking a survey in Huron County regarding the energy use of different farm operations. He said the committee holies survey results will allow them to compare the amount of energy used to produce products the most efficient way. Provincial Agriculture Minister Lorne Henderson's farm drainage loans program came under fire in a brief presented by the wheat and white bean producers' in the county. Under the loan program used in the past, a farmer could borrow up to 75 per cent of the cost of his tile and installation at a subsidized rate of . six per cent. Under the scheme introduced by Mr. Henderson, a farmer can now receive only up to $10,000 a year with a maximum outstanding loan of $40,000 at any one time. The brief, which called the new scheme "inefficient", said now a farmer must schedule his, drainage program over four years, rather than completing the project in one year. "The problems associated with having part of a field drained and part not drained should be obvious, even to Mr. Henderson," the brief said. Jack Riddell told the audience that he fails to understand "why we have to have a ceiling on farm drainage loans" and said he will be bringing the matter up with Mr. Henderson in the future. Frank Wall, a member of the OFA executive from the Niagara region, said 'he agrees formulas for calculating tile drainage loans must be changed and said the federation plans to take a strong stand on the issue. Mr. Wall said, "farmers can't any more afford to grow crops on land that isn't drained." The Stephen Federation of Agriculture also attacked the tile drainage loan program in their brief and asked the government to reconsider the program. Mel Knox, speaking on behalf of th Huron County milk committee, asked that the federal government establish their new dairy policy early in the calendar year "so that producers can make the necessary changes early, and maintain a proper level of production." ASK FOR PROTECTION Neil Stipleton, presenting a brief on behalf of the " Huron Cattlemens' As- sociation, asked that amendments be passed to the Bank Act to allow absolute priority of rights in respect to claims of a grower of any agricutlural product and without limitation on value in the event of the bankruptcy of a meat , packer. Inthe past, the act has, guaranteed priority of rights only to producers of !`direct products of the soil and dairy, products" which leaves cattlemen without protection, in the event of a bankruptcy. High interest rates again came under attack in a brief presented by John Paul Rau of the Huron County Pork Produaers. Mr. Rau said high interest rates combined with lower pork prices have brought many producers into financial difficulties. - He said some economists are predicting that the lowest prices are yet to come. Two years ago, pork was selling for about $72 $77 per hundredweight and is now selling for approximately $5 per hundred weight: Mr. Rau said, "the tragedy is that it is the young farmers, who are the real hope for the future of the industry, who are in trouble." Mr. Rau told the politicans the govern- ment must help if th eindustry is to survive, either by lowering "the crushing interest rates" or by introducing a subsidy program for pork producers. "If no assistance is:given soon, too many producers will leave the industry," he said. Allan Campbell, reeve of McKillop Town- ship, pointed out when hog prices were high, "a Jot of people jumped in like they were going to have a cheap swim and they built pig barns until they were coming out your ears," He said when pork production isn't on a 4uota system like many 'Other farm, commodities, "how in GOd's name can they regulate them?" John Van Beers said the problem can't be blamed entirely on young farmers getting into pork production, saying "it's, the cost of production, not the number (of producers) that is getting us into trouble." Frank Wall pointed out' taxpayers com- plain when subsidies are paid to pork producers due- to overproduction, but they also are critical of marketing board quotas which implement a system of -supply management. Mr. Wall said it is just a matter 'of time until hog ,producers will have to have 'a system of supply management. Two other groups presenting briefs to the members of parliament were the Huron County Egg Producers, represented by Bill Scott and Barry Miller, president of 'the Huron County 4-H leaders association. ' MEMBERS OF PARLIAMENT DINNER—Stanley Township reeve Tom Consitt (left) visits with Huron County warden Bill Morley, newly elected - MP Murray Cardiff and Merle Gunby, president of the Huron County Federation of Agriculture, before the members of, parliament dinner on Saturday. The dinner, provides federation' committee and other county producers' organizations with a chance to present briefs to the three politicians representing the area. , (Expositor photo)