HomeMy WebLinkAboutThe Citizen, 1986-04-16, Page 29Federation's Finance
Committee takes hard line
with area politicians
The Finance Committee of the
Huron County Federation of Agri-
culture took a hard line with local
political representatives when it
presented its brief to the Federa-
tion's Member of Parliament
dinner in Clinton on Saturday.
Paul Klopp, chairman of the
committee, in a long brief called on
Ontario Agriculture Minister Jack
Riddell to take stronger action to
stop large corporate ownership of
farms. "You have said that the 20
per cent surcharge has stopped
foreign owners from buying huge
parcels of land without living on it,
which it possibly has, but large
food companies have been buying
farms and producing their own
crops or livestock on them."
He supported legislation similar
to that passed in Saskatchewan
which prevents such firms from
owning more than 20 acres of land.
In answering, Mr. Riddell said
that the 20 per cent surcharge has
kept foreign owners from speculat-
ing so much on land. If they are
going to buy now they are going to
live on the land, he said.
He also pointed out that there
are some rather large farming
corporations that are made up of 10
or 15 members of the same family
Mr. Klopp took on Murray
Cardiff, M.P. saying "a common
problem is wondering just where
you stand on the issues affecting
our rural communities."
He challenged free trade saying
"Groups such as the Huron County
Federation of Agriculture who are
concerned about people rather
than just profits, don't think it's
such a good idea."
"Big business' idea of free trade
is dumping their products into
another country and driving prices
down, forcing domestic producers
to quit, leaving them (the big
businesses) controlling the mar-
ket." Such action in Canada would
leave the country at the mercy of
the multinationals, he said.
He sited books like The Mer-
chants of Grain and Hunger of
Justice that pointed out that 90 per
cent of world grain trade is
controlled by six companies.
Mr. Cardiff said he didn't
believe in "free trade" but in fair
trade. If it's not a good deal for
Canada it won't be made, he said.
He said the U.S. Farm Bill is a
concern but that in other programs
like the Payment in Kind program
there have been benefits for
Canada and he felt we should be
looking to the advantages for
Canada in the new legislation.
Mr. Klopp's brief attacked the
commodity price -based mortgage
plan announced by the govern-
ment saying it could hurt rather
than help farmers.
Mr. Cardiff defended the pro-
gram saying it was never intended
asasubsidytofarmers,justas a
way to postpone payments.
Jack Wilkinson, vice-president
of the Ontario Federation, said that
when farmers sign these loans they
sign up front for the full interest
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Mr. Klopp's brief called for
implementation of a new version of
the Farm Creditors Arrangement
Act but Mr. Riddell stepped in to
defend the federal government on
that point. He said that at a
federal -provincial meeting of agri-
culture ministers, only Manitoba
supported debt review boards with
teeth. To his surprise the western
ministers were against the pro-
gram, he said. Many farmers as
well as banks got hurt when the
legislation was used in the 1930's
to reduce mortgages. It wasn't just
the banks but also Credit Unions
that could be hurt today, he said.
He had been interested in the
Manitoba minister's proposal, Mr.
Riddell said, which would have set
aside the accumulated interest on
the loans above the 8 per cent
interest rate because of the
abnormal interest rates that had
helped farmers get into trouble in
the first place. None of the other
ministers had been interested, he
said.
But too tough action by the
government could hurt farmers in
the long run, he argued. Fie said
insurance companies had once
provided funds for farm financing
but after imposition of the Farm
Creditors Arrangement Act they
had pulled out of the farm
financing market.
THE CITIZEN, WEDNESDAY, APRIL 16, 1986. PAGE 29.
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