The Rural Voice, 1985-09, Page 14really mean parity, then really what
happens is that the farmer would get
a little less on his labour and manage -
what farmers are really talking about
these days is survival. But with situa-
tions such as a relative abundance of
George Brinkman, professor of agricultural
economics and extension education, University
of Guelph: "It is better to discourage a son from
working with Dad at this time than getting them
both into trouble."
ment and his capital return than the
non -farmer because he (the farmer)
gets more on his capital
appreciation," Brinkman explains.
The professor, whose own family
lost a farm in Germany,
says
that
agricultural products in the world and
a neighbour just south of Canada
with tremendous production
capabilities, Brinkman doesn't
foresee any "quick fix" for
agriculture.
The Perth Federation of Agriculture held an information meeting recently
to sort out the complex issue of parity pricing. Participants in the panel
discussion are, from left, Pau! Verklev, second vice-president of the Perth
Federation of Agriculture, Gerrie Blake, a Grey County hog producer,
George Brinkman, University of Guelph, Ross Daily, CFPL Television, and
Claude Giroux, co-chairman of the concerned farmers group in Essex
County.
For example, even implementing
parity through the supply manage-
ment system has its drawbacks.
"You have to recognize when you
say parity that way, you are going to
provide it for the first generation (of
farmers) but not the second," warns
Brinkman.
"What I am trying to say is that the
first generation of farmers in a supply
management system incurs no cost ...
so you are talking about a program
that will bail out the existing set of
farmers very nicely." But using the
example of the dairy industry (where
young farmers coming into the in-
dustry today face a life of "perpetual
poverty" if they have to start from
scratch) Brinkman says that you have
to think of a parity system where all
the profit doesn't get capitalized in
the quota so there is some left over
for the new producer or second
generation.
Brinkman's suggestion for finan-
cially stressed farmers who can't wait
for a legislated bailout such as parity
is to make some difficult decisions
right now just so that they can sur-
vive. Here are some of them:
• The farmer should build equity,
which means do not expand your
operation. "Some farmers, as soon as
they get equity to a safe level, then
they think it's time to expand," notes
Brinkman, adding that that's the
wrong philosophy for the 1980s.
• "Reduce costs at all costs." That
means leasing machinery, depending
on custom work rather than owning
all your own machinery, and sticking
with used machinery rather than buy-
ing the newest equipment.
• Potential new entrants into the in
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12 THE RURAI VOICE