The Rural Voice, 1981-03, Page 15Farming and depressed?
Bruce banker says you've got
a lot of company, and good reason
BY GISELE IRELAND
Are you farming and depressed?
Bankers dealing with farmers are finding
depression a common occurrence. Tony
Morris, manager of the Mildmay branch
of the Bank of Montreal, recently spoke to
a group of young farmers on this subject.
The farmers who are depressed are
usually young. have first and second
mortgages and have gone the limit on
their operating loan. he explained. They
are now facing the coming year with
trepidation. Where will the additionial
income come from to swing the operation
for another year? How long will it take to
make up the arrears that high interest
and low commodity prices have created?
Morris commented the farmer who has
succumbed to depression over his
situation is more inclined to make
decisions which have not been well
thought out, and act on impulse. He
believes bankers have to be
knowledgeable in the field of agriculture
to be able to give sound advice. Morris
has an extensive background in
agriculture himself, and is finding he is
getting more involved personally with
each individual than he would like. It is
difficult to advise someone to liquidate
his assets, he notes, and be sure that this
is best for both the farmer and the bank.
The banker believes often a bank will put
this decision off too long so neither party
benefits in the end. There is a moral
obligation as well, Morris says, since
usually the farmer has devoted his life,
and that of his family, to the business,
and the idea of giving it up is frightening.
Les Frayne, an agrologist with the
Bank of Montreal, works with farmers
over a large section of southwestern
Ontario. Frayne spoke recently to a group
of farmers in the Woodstock area at an
Ontario Federation of Agriculture
meeting. He was surprised at the
standing room only crowd and says
farmers are very aware of the economic
situation and puzzled and concerned
about what lies ahead. Frayne thinks in
the next couple months many of those
questions may be answered. 'Be banker
says roughly two-thirds of farmers are
unaffected in a major way by the interest
rates and present commodity prices. The
other third are facing uncertain futures
and they are the ones who suffer
depression. There is a general feeling
that they are no longer working for
themselves, but for the lending institu-
tions. At present, there is no help
forthcoming from either the federal or
provincial governments. and no reduction
in the interest rate. Farmers who started
in the industry six to seven years ago are
in a real dilemma.
Some bankers are advising farmers to
liquidate some of their assets to keep
operating for another year. This isn't
always possible, and there's no
guarantee if you sell part of your land
holdings or livestock that you won't be
facing the same situation next year. Also,
this solution reduces your ability to
function as a viable farm unit. Frayne
comments some farmers are finding
off -the -farm income while trying to run
their agribusiness at the same time. This
seldom is more than a stop -gap measure
and it requires fantastic stamina to do
justice to both. Ideally Frayne says
interest rates should level off and
commodity prices should rise, but
currently predictions of when this will
occur are impossible to make.
Both Frayne and Morris were able to
offer little in the way of solution, but
suggest farmers consider all possibilities
if they wish to get the hest deal possible
from their banker.
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Distributed by:
FARM & COMMERCIAL BUILDINGS
THE RURAL VOICE/MARCH 1981 PG. 13