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The Citizen, 1987-07-15, Page 12PAGE 12. THE CITIZEN, WEDNESDAY, JULY 15, 1987. Farmers big losers in tax reform, McEachern says If federal finance minister Mic­ hael Wilson’s White Paper on tax reform presented on June 18 ever becomes law, farm tax consultant Bill McEachern of Grand Bend says that only tax accountants will benefit, while “legitimate” farm­ ers will wind up as the big losers. If the reforms are passed by parliament, Mr. McEachern says that while Canadian farmers will still be required to file an annual tax return on a cash basis, they will also have to file a statement of accrual income, a step which he says will make the accounting so complicated that few farmers will be able to handle it themselves. “Itwillbearealgold mine for accountants from here on in,” he said, speaking to more than 50 members of the Huron Federation of Agriculture who had gathered in Clinton on July 8 to hear him speak on the proposed changes to farm taxation. However, Mr. McEachern says that he would be very surprised if the white paper will ever be passed in its present form, because he feels that it will meet with massive opposition from both the federal and provincial agriculture mini­ sters, as well as from farm lobby groups such as the Ontario Federa­ tion of Agriculture. “The whole thing is based on foolishness, as far as I can see,” he said. “It certainly does not accom­ plish what it set out to do, which is to block some of the tax loopholes which benefit hobby farmers at the present time.” In fact, Mr. McEachern says, the reforms will come as a great boon to those whose major source of income is from off-farm employ­ ment, since such people will now be allowed to deduct up to $15,000 in losses against other income, as compared to the $5,000 allowable under the present system. “The new system will also help the civil servants (in the tax department) as well,” he joked. “Now they won’t have to make a decision on whether any loss of less than $15,000 is legitimate.” In answering questions from those present, Mr. McEachern also warned that if the reforms become law, farmers could be Chris Palmer of RR 5, Wingham, second vice president of the Huron Federation of Agriculture. At the end of the meeting, HFA president Paul Klopp of RR 2, Zurich received an indication of almost solid opposition to the suggested tax.reforms when he asked for a show of hands from the assembled farmers. ‘‘I’d like to go on record by saying that (it is apparent) that the HFA will oppose this legislation,” he said. Ross Veitch family hosts Holstein Club barbecue pretty badly hurt in other ways as well, since both block averaging and forward averaging of farm meeting and barbecue on July 9 at income will be disallowed under the new system. “ I’ve always fel t privileged to be a farmer up to now, but after tonight, I’m not so sure,” said The Huron County Holstein Club held its annual twilight ‘‘Breezy Braes” Holsteins, the farm of Ross Veitch and family of RR 2, Brussels. 180 people attend­ ed the event, which was catered by Campbell Cardiff. In the cow judging contest, Elwood Seili won the men’s class followed by Fraser Hayden. The ladies’ class was wonbyChrista Eckert followed by Barbara Mar­ tin. The 4-H winners were Pam Carter, Jeff Seili and Richard Donaldson. Farm Road widening on agenda at Federation meeting The proposals to widen and upgrade both Highways 4 and 8 will be one of the topics on the agenda at the Huron Federation of Agriculture’s Directors’ meeting to be held next Monday. For third year in a row, several representatives of Huron County Council have been invited to attend the meeting to take part in an open discussion of matters of mutual interest to both groups. County Warden Brian McBurney, Weed Commissioner Joe Gibson, Roads Commissioner Russell Kernighan and Agriculture and Property Committee chairman Bob Bell are all expected to attend, according to HFA secretary Carol Finch. The topic of highway upgrading has come to the fore in recent weeks, with HFA president Paul Klopp of RR 2, Zurich on record as cautiously opposing any such work because of its possible detrimental effect on agricultural land. However, when the subject came up again at the HFA members meeting in Clinton last week, John Van Beers of RR 1, Bly th, expressed concern that the issue may blow up into a larger controversy than he feels is warranted. “We (the HFA) has had a good relationship with our towns over the past few years, and I don’t think we should change this with a disagreement with the mayors and (villages) reeves over a relatively minor issue like this,” he said. “We are not talking about putting in another Highway 401 or creating a hazardous wastes dump here.” Ontario Federation of Agricul­ ture regional director Doug Gar- niss of RR 4, Wingham pointed out that the OFA has taken no stand on the issue at this time. The meeting is scheduled for 8:30 p.m. on Monday, July 20, at the OMAF boardroom in Clinton. All HFA members are welcome to attend. • Newrv •Silver Corners -'Perth Cty. Rd. #6• Henfryn Rd. #16 Twin * County Grain Elevators—L sh:r\~u r z_T £> LBllECOlElC VIE Wheat Red or White, Winter or Spring Canola Commodity Contracts Barley Twin County Grain Elevator R.R.3, Brussels, Ont. Brussels Huron Cty. + N_________________ ___________________________, Phone: (519) 356-2292 Manager: Glenn Thorpe Ontario Wheat Producers County to lose director Huron County will lose one of its five Ontario Federation of Agricul­ ture regional directors of the OFA annual convention next Novem­ ber, making it necessary to re­ distribute the five regions of the county presently making up the Huron Federation of Agriculture. The county-wide membership drive which took place June 22-26 netted only 72 new Federation members, 12 short of the minimum number required to support five regional directors. The regional directors of each county attend the monthly meetingsofthe OFA in Toronto, as well as having a vote at the annual meeting each Novem­ ber. “Losing one director will mean that Huron County has just that much weaker a voice on farm issues, but it can’t be helped, ” said Chris Palmer of RR 5, Wingham, Regional Director for Huron North­ west. “A lot of farmers just can’t afford to be members any longer, and of course, there are a lot fewer farmers out there than there were a few years ago.” “The volunteers and fieldmen who took part in the Membership Drive really worked hard, and we are all really pleased with the number of new members they did get,” said Carol Finch, HFA secretary. We are agents for the Ontario Wheat Producers Marketing Board, and we also Buy, Sell and Store Barley * Fast Unloading * Accurate Probe System * Trucking Available Forward Contracting of corn and soybeans Come in or give us a call - We'll help you care for your crop.4-H Regional Conference great place for kids Regional Conference is not your typical conference. There are no brief cases, business suits or sensible pumps. The delegates to this conference will be clad in shorts, T-shirts, and running shoes. Instead of an attache case of briefs, they will bring lots of enthusiasm. This conference is designed especially for the 15-year-old 4-H member. Approximately 100 4-H’ers from Bruce, Grey and Huron Counties will be attending the Regional Conference at Cen­ tralia College July 22nd - 24th. The 1987 conference theme is “You are the One - Make’ it Count!” Delegates to the conference will be Continued on page 13 WINGHAM 357-2700 Howson & Howson Limited Flour & Feed Millers, Complete Farm Supplies, Grain Elevators BLYTH 523-4241 CARGILL 366-2225 OWEN SOUND 376-5830