HomeMy WebLinkAboutThe Citizen, 1988-06-22, Page 14PAGE 14. THE CITIZEN, WEDNESDAY, JUNE 22, 198«. Even price increase won't save farms, speaker says Canadian agriculture is still carrying too much debt and the farm situation won’t really im­ prove until something is done about it, Ron Phillips a farm financial consultant from the Kingsmount Group from Arva told members of the Huron County Federation of Agriculture Thurs­ day night. . Mr. Phillips, one of three speakers in a panel discussion on farm financing at the meeting held inHensail, saidfarm debtin the United States has dropped from $220 billion to $125 billion while in the same period farm debt in Canada has gone up from $21.9 Farm billion to $23 billion. This means, he said, that when commodity prices revive, U.S. agriculture will be in an excellent position to capitalize on the situation but Canadian farmers will still be burdened by too much debt. The U.S. farm debt was reduced at tremendous cost, Mr. Phillips said, with more than 100 small banks going bankrupt. American banks weren’t large enough to absorb the losses, he said, but Canadian banks are. Mr. Phillips said he is against write-downs of debt but if the Ron Phillips financial consultant makes a point during a discussion at the Huron County Federation of Agriculture meeting in Hensail Thursday night while Ken Kelly, executive member of OFA listens. A former banker, Mr. Phillips said banks must accept their share of blame for the mess agriculture is in. equity isn’t there for banks to be able to recover loans, it is only realistic that they re-examine a situation and not make things worse by putting more farmers off the land, reducing farm prices even more. Before Canadian agricultu re can become healthy again, he said, farm debt must come down from $23 billion to $16 billion. It would mean that the Farm Credit Corpor­ ation (FCC) would have to absorb $2 billion in debts while another $5 billion was absorbed by banks, credit unions and companies fin­ ancingfarm equipment purchases. If all farmers in debt could be lumped together, he said, they would create a debt five times as big as that of Dome Petroleum and look at the attention Dome gets as compared to the attention farmers get. Banks played a part in creating the problem so they should play a part in the solution, he said. Mr. Phillips, who worked for a chartered bank for 17 years before opening his consulting business eight years ago, said it was no small coincidence that the farm industry got in a shambles a few years after banks got involved in loaning to farmers in a big way. In their thirst for profits, he said, banks made too much money available to farmers for the purchase of farm assets. They were equity lenders, he said, and felt they couldn’t lose because land prices kept going up. Even if a farmer lostmoney in operating, banks were ready to loan more because land values had gone up. Continued on page 15 SLABWOOD APPROXIMATELY 1/2 PRICE OF BODY WOOD 17 CU. YD. BOX OF HARD MAPLE & ASH DELIVERED WITHIN 20 MILES $140 GNAWED tinae OFFER For every extra order you place for you C A * or your neighbour_$15 will be rebated on your original order. CRAIG HARDWOODS LTD. AUBURN 526-7220 Brusse/s Stockyards Choice cattle meet strong demand Friday The market at Brussels Stock- yards mera strong demand Friday on choice steers and heifers, with good steers and heifers selling slightly under pressure. Cows traded $2 to $3 lower. Pigs sold steady to higher. There were 337 cattle and 431 pigs on offer. Choicesteerssoldfrom$89 to $93 with sales to $96.25 while good steers were $86 to $89. A Charolais steers consigned by Maple Emblem Farms of RR 1, Dungannon weighing 1240 lbs., sold for $96.25 and was purchased by Norwich Packers of Norwich, while their total offering of 28 steers averaged 1233 lbs., sold for an overall price of $91.29. Two steers consigned by Joe Hodgins of RR 8, Parkhill, averag­ ing 1200 lbs., sold for $95.25 with his total lot of 41 steers averaging 1149 lbs., sold for an average priceof$91.74. Five steers con­ signed by Stephen Flynn of RR 1, Clinton, averaging 1136 lbs., sold for an overall price of $91.39 with sales to $95.25. Twenty-five steers consigned by Bluemont Farms of RR 1, Bright, averaging 1103 lbs., soldforan overall price of $90.27 and they had sales to $95.50. Three steers consigned by John Dorsch of RR 5, Brussels averaging 1160 lbs., sold for an average price of $90.59 with sales to $91.25. A Hereford steer consigned by Stanley Marshall of RR 3, Durham, weighing 1260 lbs., sold for $91. A steer consigned by Gordon Mar­ shall of RR 3, Durham, weighing 1440 lbs., sold for $89.25. A red white-faced steer consigned by Jim and Les Stephenson of RR 1, Ethel, weighing 1140 lbs., sold for $89. Choice exotic heifers sold from $89 to $92 with sales to $95.75. Good heifers were $84 to $88. A red heifer consigned by Tom Wylie of RR 4, Durham, weighing 950 lbs., sold for $95.75 and was purchased by Schoeman Meats of Jerseyville, Ont., while his total lot of five heifers, averaging 988 lbs., sold for an overall price of $90.52. A heifer consigned by Earl Bennewies of RR 1, Bornholm, weighing 1100 lbs., sold for $90.75 with his total lot of seven heifers, averaging 1056 lbs., selling for an average price of $86.20. Four white heifers consigned by Wilfred Shortreed of RR 1, Walton, averaging 908 lbs., sold for $88.75. Eight heifers consigned by Robert O. Sim of RR 5, Embro, averaging 909 lbs., sold for an average price of $84.94 with sales to $85.50. Six heifers consigned by Bert Elliott of RR 2, Blyth, averaging 1007 lbs., sold for an average price of $82.18 with sales to $88. Choice cows sold from $58 to $62; good cows brought $54 to $57; and canners and cutters fetched $50 to $53. Twenty to30 lb. pigs traded to a high of $1.05 per lb.; 30 to 40 lb. pigs traded toa high of 90 cents per lb.; 40 to 50 lb. pigs traded to ahigh of $1.01 per lb.; 50 to 60 lb. pigs traded to a high of 89 cents per lb.; and 60 to 70 lb. pigs traded to a high of 86 cents per lb. Hay & Pasture Fertilizer Special June 15 to June 30 0-26-26 6-26-26 For each tonne bought you will receiveafree bag of either Essential Minerals (20-9-0) or Minerals & Vitamins (14-14-3). Let us spread it on with our Spreader Unit or use one of our spreaders & do it yourself. ORDER YOURS TODAY Howson & Howson Limited BLYTH 523 4241