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HomeMy WebLinkAboutThe Citizen, 1987-02-18, Page 12PAGE 12. THE CITIZEN, WEDNESDAY, FEBRUARY 18, 1987. So far so good for debt review, lawyer says Debt review panels in Ontario received praise Wednesday night from a lawyer who has been fighting for farmers causes for six years and has several cases before the panels. Larry Ryder, a Port Elgin lawyer told the Huron County Federation of Agriculture that although the cases he has been handling before the newly-appointed debt review panels under federal legislation have not reached resolution yet, “I’m optomistic that they’re going to help. I think there is progress.’’ Mr. Ryder told about 50 farmers gathered in Blyth that the panels have had a lot of work dumped on them because of the delay in getting the debt review process underway but that the panel members he had met seemed to be good people who want to do a good job. He had heard of some panels that did not seem to be so helpful but hadn’t experienced any per­ sonally, he said. He said that if reports were true that some of the panels elsewhere in the country were disposing of one case a day, the panel members there can’t be doing a good job. Ontario panels are getting heat, he said, for taking too long to do their work and not moving fast enough but they are doing an excellent job. Mr. Ryder gave farmers a quick tour of the debt review process and gave tips on how farmers could make use of it. He advised them to make sure they have some sort of advisor, either a lawyer or accoun­ tant or consultant with them because “the banks are using their best people’’ in the hearings. The banks are concerned with each case and with setting precedents. He warned too that it is not the intent of the review system to have the review panel negotiate for the farmer but only to open up areas for negotiation so the farmer, or his advisor, must put his own case forward. He advised farmers whose main problem is with the Farm Credit Corporation to hold off as long as possible going through debt re­ view. While in many cases banks have been willing to writedown loans in order to keep the farmer going and prevent throwing more landonthe market, the FCC has beenreluctanttodoso. “We’re working to try to get some changes,” he said but people who are in the review process before the changes come through will lose the benefit of those changes. He warned farmers who are still getting credit from suppliers to think carefully when they think of applying for debt review. He advised talking to all creditors before applying to let them know what’s going on so they won’ t panic and cut off the credit needed to keep the farm operating. Once the application for debt review has been accepted the field representative of the three-person panel will contact the farmer to gather information. This field rep will work as a resource person to the panel throughout the proceed­ ings. A guardian will be appointed for the farm. His purpose is to see that the status quo is maintained on the farm throughout the review pro­ cess. From reading the legislation it appears plain to him, Mr Ryder said, that it was intended that the farmer should be the guardian but the legal staff of the debt review board is advising that if the bank doesn’t want the farmer as the guardian then someone else must be appointed. “It has happened in probably less than a dozen cases thatthebankhas done itbutthe potential is there if the bank is out to get you,” Mr. Ryder said. The importance of the guardian is that although the guardian is supposed to just make sure the business continues, in other words beneutral, ifthebank gets their own appointment the guardian can act as their eyes on the farm. If the bank has an old incomplete inventory list, for instance, the guardian can help the bank update it by getting serial numbers off equipment on the farm. The guardian can also be expensive. While he didn’t have figures to prove it, Mr. Ryder estimatedthat since a guardian other than a farmer is ususally an accountant, the cost would likely beabout$500a day. The farmer would still be expected to carry on the actual farming, however, and Continued on page 13 A ■BILLION SPECIAL CANADIAN GRAINS PROGRAM Helping Hand for Grain Ihrmers The Special Canadian Grains Program is assisting farmers with $1 billion. This initiative, announced by Prime Minister Brian Mulroney, is the largest of its kind ever undertaken by any Canadian government on behalf of farmers. It is a national program that responds to a national need. It will help offset low grain and oilseed prices resulting from the subsidy war between the European Community and the Government Gouvernement of Canada du Canada United States. The first $300 million will be in the hands of grain and oilseed farmers this winter. Another $700 million will be paid out in the spring. The details of this historic program are as follows: IYou will benefit if, in 1986, ■ you grew wheat, barley, oats, rye, mixed grains, corn, soybeans, canola, sunflower seeds for crushing or flax. Pedigreed seed, high moisture corn, high moisture barley and farm fed grain are also covered. 2 The first cheques are ■ being mailed directly to Western farmers based on Canadian Wheat Board permit book data. 3 If your crops are not ■ included in permit book data, or if you are a qualifying producer who doesn’t receive a cheque, you can pick up an application at the following places: • Offices of Members of Parliament • Grain elevators • Grain producer organizations • Agriculture Canada offices and research stations • Farm Credit Corporation Offices. You can also have forms mailed to you by contacting the Administrator, Special Canadian Grains Program, Agriculture Canada, Ottawa K1A 1J3. Phone (613) 957-7078. APPLICATION DEADLINE IS MARCH 31 st, 1987. The Government of Canada is committed to ensuring that agriculture remains a strong and vibrant part of our country’s economy. The Special Canadian Grains Program is a part of that commitment. Canada