The Lucknow Sentinel, 1993-03-17, Page 41Crop
insurance
changes
•from page 22
coverage, from 85 per cent to 90
per cent over the five year contract
period," explained Jongejan. "This
is guaranteed whether you make a
claim or not.
"But because of this change you
have a situation of inequity between
the claimant and the non claimant,"
continued Jongejan. "So that is why
we added the premium sur-
charge/discount to the program."
As for the crop insurance
premium increase, Jongejan said
this was in response to the enormity
of claims In 1992, the new benefits
to the program, and the result, of a
new premium rate calculation
methodology that the federal
government imposed on all the
provinces.
"This increased premiums by
roughly $2," said Jongejan. "I think
premiums are increasing at an alar-
ming rate and I can tell you that the
CIC is very concerned about this.
So much, in fact, that we may.
possibly have to offer various op-
tions 'in coverage levels in the
future. But no matter how you look
at it, this is still the best deal in
North America."
Jongejan added that changes made
to this year's CIC program was
done in consultationwith the Oii-
tari'o Corn Producers Association,
"In 1992, everything went. out of
whack," said Jongejan. "Just when
you think you have found a norm,
you get a year like 1992. I'll admit
that there were some problems with.
crop insurance last season, and I
realize that some fanners are still
waiting for cheques. I can say Sony
if that will help, but the problem is
workload and lackof staff. We are
presently processing claims at the
rate of $6 million a week."
Growers who enroled with the
CIC in 1992 will be receiving infor-
mation in the mail about the -com-
mission's. new enrolment
procedures: Growers who were not
insured in 1992, but want to insure
in 1993, should call the CIC agent
in their area. To find out who the
agent is, contact the CIC at (416)
326-3276, or the local Ontario
Ministry of Agriculture and Food
office.
Ag Canada's
predictions
• In . 1993-94, supplies of wheat
worldwide, especially high-quality
wheat, are expected to increase
slightly mainly because of higher
production in the U.S. and Eastern
Europe and improved crop J ondi-
tions in North America
• IreatradaTtoutl whearpi d tiotr-
is expected to decline slightly while
exports are expected to increase
slightly.
• The Canadian Wheat Board,
(CWB) price for durum is expected
to remain at a discount 'to, spring
wheat because of higher exporting
costs.
9
Farm Progress '93 -Page 25
Reaction to ethanol has been positive
•from page 23
"Farmers can buy ethanol in bulk
and have it delivered to their farm.
We also offer a members' card for
$5.00 to use at a 24 hour ethanol
pump that works with a card -lock.
Members receive patronage
dividends on purchases of gaso-
line," comments Rimmer.
Mitchell Co-op ethanol is pur-
chased through U.P.I. (UCO Petro-
leum Incorporated, which is a joint
venture petroleum company owned
equally by Sunoco, Inc. and the
farm -supply co-operative, UCQ).
Larry Dolmage, co-owner of
Archie's UCO in Seaforth says
customer reaction has been positive
"It's been picking up all along.
More people try it. More people
like it,' says Dolmage. He also
commented, "A recent farming
show on television reported that the
United States sells more ethanol
than Canada's entire gasoline sales,
in a year."
UCO's ethanol blended fuels
carry th6 `EcoLogo', the Environ-
mental Choice symbol of certifi-
cation which means the product has
been approved by Environment
Canada and will help reduce the.
burden on the environment.
UCO Petroleum Incorporated
reports the significant investment.
employment and economic benefits
of ethanol.
The construction and operation of
ethanol facilities, to meet current
and future gasoline octane require-
ments, would provide significant
employment and investment oppor-
tunities in non -urban areas of
Ontario. The ,Canadian Renewable
Fuels Association, in a January 12,
1987 presentation to the Minister of
Energy, Mines and Resources,
stated that "we have the potential to
start rapid construction of up to 25
regional ethanol facilities across
Canada."
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1986 Discussion Paper on Oxygen-
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In terms of employment, it stated
that the construction of 17 ethanol
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supplying 20 million litres each per
year (340 million litres in total),
would provide 3,820 people years
of employment during the construc-
tion phase and 4,480 people years
during the operational phase over
an estimated 20 -year plant life.
Larry Dolmage of Archie's UCO
of Seaforth adds his optimism for
ethanol:
"I think it's going to take off. It's
the fuel of the future."
Benefits of Ethanol
Ethanol benefits both the farmer
and the environment. According to
the United Co-operatives of Ontario
(UCO), fuel ethanol represents a
potential market for corn and other
grains. An Agriculture Canada
analysis indicated this would raise
Ontario corn prices by an average
of six per cent, sufficient to benefit
corn growers but not to cause sig-
nificant increase in the cost of
producing food products made from
corn.
The increase in demand for corn,
caused by fuel ethanol production,
would occur gradually over a num-.
ber of years, In reality, usage of
corn 'for ethanol production can be
expected to correspond with
increases in corn productivity
(higher per acre yields) in Ontario.
UCO believes if all the gasoline
consumed, in Ontario was enhanced
with 10 per cent ethanol' it would
create a market for 3.2 million
tonnes of corn. At a 5 per cent
•turn to page 29
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