HomeMy WebLinkAboutThe Brussels Post, 1981-09-02, Page 5Wingham Memorial Shop
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• CEMETERY LETTERING
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e6 i ii44...4%r
END THE SEASON WITH A BOOM!
emicols, Feed's, Farm Supplies, lardwore
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THE BRUSSELS POST, SEPTEMBER 198.1 A5
Communication with banks is important
by JACK HAGARTY
AREA COORDINATOR AND
FARM MANAGEMENT
SPECIALIST
"When I saw our banker
coming up the sidewalk I
knew we were in trouble. He
didn't smile--gruffly shook
hands, sat down and said 'Ok
you'd better sell the farm'."
That's how one beef farmer
described the dealings with
his banker. It was obvious
that trust and respect were
"long gone". Each was ac-
cusing the other of being
dishonest, unfair . and stub-
born.
It was time for a divorCe.
Not from his wife--but from'
his banker. When communic-
ations break down to such an
extent there is no alternative.
But this farmer would need
to get remarried to another
banker very quickly. And he
had never courted another
banker on the side. He didn't
know what to do when the
bank presented hhil with a
written ultimatum--"pay up
one million dollars' in sixty
days". It was the "divorce
papers" and now he knew
that some very difficult decis-
ions had to be made.
There are farmers paying
over $1,000 per day in inter-
est dialges. There has to be a
profit margin or very soon the
farmer starts losing equity.
This farmer soon realized
that he could afford to pay
about one-half the interest
costs. He was losing the
equivalent of a 100 acre farm
every year!
We could learn some less-
ons from growers of fruit
trees. They routinely do sur-
gery on their trees. They cut
out the dead and weak
branches. Sometimes the sur-
gery needs to be quite severe.
But, the trees usually recover
and bear good fruit.
Surgery might take the
form of lowering inventories,
turning assets into cash and
paying off high interest rate
loans. Most farm manage-
ment specialists agree that
highly leveraged farms can-
not survive for long where
much of the credit is on
floating interest rates (now
23%plus). High equity farms
can ride it out and 'look for
,opportunities to expand.
Medium equity farms need to
get finances restructured and
ride it out--purge loss centres
in. business. Low equity and
You and quackgrass have an,onrgoing
fight. And at harvest time you can see
exactly where you're losing the battle.
Those patches of quackgrass are rob-
bing you of your yield. Plus they make
combining very difficult. Worst of all, when
you plow the quackgrass under... it's just
waiting to reappear next spring.
This fall, try something different. Use
Roundup®... and get along-krm control
program for quackgrass.
It's sure and easy. After your crop
comes off, let quackgrass.regrow the-
proper stage and spray.with Roundup.
Wait five days and then.continue normal
fall plowing. (You can treat even after
a mild frost if quackgrass is, actively;
growing.)
If harvest is late and you don't get good
regrowth this fall ...don't plow. Leave the
quackgrass alone so you can treat it next
spring before planting.
Can
help you .
early Warning signals and
correct problems before it's
too late,
When used in conjuction with your nor-
mal seedling weed control program, you
can control qudckgrass forup to three
years.'
Sothis fall win themar againSt quack-
grass. For, effective control of quackgrass
:.. nothing works like Roundup.
Monsanto Canada Inc.
Winnipeg, Mont-real,
Toronto, Regina,
Saskatoon, Calgary,
Vancouver,
RCN-I3.81
Monsanto
negative equity farms may , maintain good communic-
have to undergo very severe ations with the banker. Both
surgery. It's important to partners can then be aware of
Financial assistance
Management counselling
Management training
Information on government
. programs for business
See oui• Stratford Office Representative
Pete Huxtable
AT: The Wingham Motel, R.R. 04, Wingham
ON: The 2nd and 3rd Tuesday of each month
[Next visit date!] Tues. Sept. 8
For an appointment or further infOrMation On the
Bankoi tervidet all 271.5650 [collect] or write
i036 Ontarli, Street; Stratford, Ontario
ppoirievr neWdodetio&ttailbasinets,;.
Nothing works like Roundup.
ALWAYS READ AND FOLLOW THE LABEL DIRECTIONS FOR ROUNDUP°.
Roundups is a registered trademark of Monsanto Company. Monsanto Canada Inc., registered User. CMonsanto Company 1981.
For further Informotiono contact yopt, locol,dealer_
MILTON LIMITED
Purina Chow Sanitation Products Seed Corn'
Ventilation. '(Wholesale ge Retail) Pesticides —Spraying Equipment
SEAFORTH,.ONTARIO NOK
Phone 519,5274608
If you require financing to start, modernize or
expand your business and are unable to
obtain it elsewhere on reasonable terms and
conditions or if you are interested in the
FBDB management services of counselling
and training or wish information on
government programs available for your
business. talk to our representative.
FEDERAL
BUSINESS
DEVELOPMENT BANK