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The Lucknow Sentinel, 1994-08-31, Page 23Calf prices for this fall by Colin Reesor Cow -calf farmers have real con- cern about lower calf prices this fall. Beef markets don't ,look as good now as they did a few weeks ago. Dr. Harlan Hughes has done some analysis work on making the best of a poor price situation. You may recall him as a guest speaker at the Grey -Bruce Farmer's Week last winter. Based on his price expectations, he sees extra profit in retaining ownership of the calves and selling them as '800 Ib. feeders. I. realize that there are a.lot of considerations that must be met before a farmer would try this.' Every farm has a different mix of resources that must be looked at. Availability of extra fee, barn space and labor must be. gauged. The delay of income is very important. Will the family need to borrow to meet living ex- penses? Is the retained ownership plan in the Feeder Finance Clubs the 'best way to go? Can you stand the additional worry? Expenses go on as usual so any lower calf price is a blow to family income. Dr. Hughes is forecasting a 20 to 25 per cent drop in net in- come this fall. Nobody knows but thebest defence is to pencil out some strategies before the selling season. starts. We will send you a copy of Hughes' article if you wish. You will have to convert the prices to Canadian dollars 'and ideally, use :your own .real costs. We would be willing to help you budget out some alternatives.. , Report All Crop Damage Those carrying Crop Insurance are reminded of the requirement of reporting . crop damage to their district coordinator. Failure to report damage •could result in claims not being paid. White mold affecting white bean and soybean crops in the area is an example of crop damage that should be reported. If• you are insured, the name and telephone number of your District Co-ordinator can be found on documents sent to you by the Crop Insurance Commission. Brussels livestock report The market last week at Brussels Livestock saw all classes of cattle selling fully steady. • Steers There were 278 steers on offer selling from 89.00 to 94.00 to the high of 106.00. Russel Kernighan, Goderich, 11, avg. 1153 lbs., avg. 90,83 to 99.75. Dale Gammie, Lucknow, 1 weighed 1150 lbs., and sold for 91.00. Peter Minkenberg, Moorefield, 3, avg. 923, lbs., avg. 98.95 to I06.00. Maple Ridge Farms,' Brussels, 11, avg. 1388 lbs. avg. 94.91 to 104,25. Mark and Paul Pennington, Mildmay, 3, avg. 1453 lbs:, avg... 93.17 to 100.00. There were 126 heifers on offer selling from 89.00 to 94.00 to high 95.50. Russ Faber, Kippen, 10, avg. 1019 lbs., avg. 91.59 to 95.50. • Jeff Campbell, Seaforth, 8, avg. 1004 lbs., avg. 93.53 to 94.70. David Bowles, Brussels, 2, avg. 1085 lbs., avg, 91.63 to 91.75: Cows There were 196 cows on offer selling from 50.00 to 67.00 to high 77.25 Ross Gammie, Lucknow 2, avg. 1170 Ibs.avg. 62.70 to 70.00.. Keith: Kerslake, Kincardine, 1 weighed 1350 lbs., sold for 67.75. Fred Henderson,' ,Ripley, 3 avg. 1333 lbs., avg. 61.97 to 65.00. • Veal There were 202 veal .,on offer selling from 75,.00 to 105.00 to high 130.00. Don Wheeler, Holyrood, 2, .avg. 560 lbs., avg. 102.50 to 129.00. Josey D. Shelter, Lucknow, 1 weighed 650 lbs., sold of 111.50. Mathew Staehli, Lyrcknow, 5, avg. 606 lbs, avg. 91.52 to 97.50. Calls for extension of farm tax rebate The Ontario Federation of Agriculture (OFA) is demanding the • Ontario government extend the farm tax rebate program immediately. "If this isn't done, this fall's 1994 rebate could be the last one Ontario farmers see," said President Roger George. A resolution passed at the OFA's Aug. 17 board of directors' meeting calls on Minister of Agriculture Food ' and Rural Affairs Elmer Buchanan and the government to renew the Order -in -Council that provides for the rebate program so . that it would continue for the next five years. Mr. George said "the Order expires this year, and the OFA is not interested in hollow election promises of support for farm tax rebate program. If we allow ourselves to believe election platitudes, the next ' government could very well come back and tells us its sorry, .but there's no money available." Mr. George told the OFA board that . "this is the only . existing instrument that addresses the on- going farm property tax disparity, and farmers need the security of knowing there will be a rebate despite the upcoming election." Minister Buchanan announced, the following day, that the rebate for this year would be raised to 75 per cent from 73 per cent, and . while the OFA feels this was encouraging for Ontario farmers, it is demanding a continued commitment from government. "This government still lacks the fortitude to address the fundamental issue of education tax on productive farm land and buil- dings," Mr. George said. "Despite encouraging recommendations in the Fair Taxation Report, Premier 'Rae shows no sign of fixing this inequity. Farmers need longterm assurances while they continue to wait for a government with enough political backbone to grapple with this situation." Learn about good and bad crossbreeds Lucknow Beef Club The fourth meeting of the Luck - now Beef Club was held at the home of Gary and Steven Scott on Aug. 17. Discussion centered on good and bad crossbreeds and members judged market heifers. On Aug. 21, the group had a show day where members brought their calves and learned grooming tips. Lucknow Sentinel, Wednesday, August 31, 1994 — Page 23 Ethanol cause should move quicker by Mark MP Huron -Bruce MP Paul Steckle said he "apologizes" to Ontario Corn. Producers for claims that the federal government is jeopardizing construction of a . $170 million ethanol plant in Chatham' and two others in the province. "I'm sorry that things aren't Moving fast enough on this issue," said Steckle. The Ontario Corn Producers are asking the federal government to show support for ethanol -blended gasoline .the same way the U.S. government has. Ethanol, a renewable resource, can be made from corn and blended with conventional automobile gasoline to crate a cleaner -burning fuel. • ' In the U.S., it is estimated that renewable fuels will reach a 30 per cent market share by 1996. if constructed, the Chatham plant would use 20 million bushels of corn, producing 200 million litres of ethanol. The economic spin-off to Ontario corn producers is estimated at $60 million. "I support the ethanol cause," said Steckle. "We (the federal government) should be moving quicker. There is ' a will, and a number of members have put together a strong lobby to move the ethanol cause through Cabinet." Steckle said.- it's important 1 Canada to move quickly on ethaii„, production, and 'added that the • Americans are looking at construc- ting 49 new plants. ' "If we don't have the production here, we'll wind up importing it,” he said. . "Why would we do that when we have the resource?" In a press release, The Ontario Corn Producers Association 'said, "if jobs are a concern to the federal government, then $300 million in capital project and $100 million in grain sales in 1996-97 should be enough of an incentive." . The OCPA .said the stumbling block to . investment in ' ethanol plants in"Ontario lies in the exten- sion of a current excise tax break of 8.5 cents a .litre for ethanol -blended fuels. The current arrangement is for four years, but the OCPA is asking for a 10 -year extension. "That's a lot of tnoney," said Steckle. "Finance Minister Paul Martin has to balance the books. "But my argument is, it seems we (federal government) can find money for other causes that I feel are less important. This money should be committed wisely and where it will do the most good." OCPA executive vice president Terry Daynard said rural MPs like Steckle have been "very supportive" when it comes to ethanol. "There are close to 60 Liberal backbenchers who have written letters to Prime Minister Chretien," said Daynard. "But the Cabinet continues to drag their heels, and they're the ones who make the rules. "Because of this, we're all paying the penalty and getting frustrated." Daynard criticized the Liberal Cabinet, saying it is "essentially' urban. "I'm not being partisan, but in the past, we' have a strong rural lobby in the Cabinet," he said, referring to the previous Conservative government, and the Liberals before. them. • "They just seem to be reluctant On the ethanol issue." Daynard also criticized the Canadian oil industry for the government's delay in voicing commitment to the ethanol industry. "The oil lobby .in this country is very strong," said Daynard. "They've been lobbying flat out to defeat ethanol." . Daynard • said the Canadian oil industry is "afraid" because of the quick emergence of ethanol fuel in the U.S ' "What began as a small industry, has now become huge," said Daynard. "Eight per cent of all U.S. 'gasoline is ethanol. That eight per cent represents more than the total amount of gasoline used in Canada. "So the Canadian oil industry is saying to themselves, 'Let's nip this in the bud'. And they've found a very strong oil -supporting bureaucracy in. Ottawa,. that thinks oil is God. . Daynard said the ethanol issue is a "test of Chretien's election promises to support rural develop- ment. "The frustrating thing is that the . consumers seem to like it (ethanol)," he said. "Sales are up by leaps and bounds. The demand is greater than the supply., "So what do we have to do? "WE have to import ethanol from the U.S. "Unless we get a guarantee that the excise tax will be extended, no one will build the large scale plants we need." Ethanol is a relatively new product, sold mainly. in rural areas of the province. There are few large scale production facilities that exist, in Canada, and because of this, the cost for ethanol fuels is greater than conventional fuels. )ut Daynard said that trend will ' range in the future. "The long term trend for oil is up, while the long term trend for corn is going down. "Sooner or later, ethanol will be cheaper than gas." Conventional gasoline uses a heavy metal additive called MMT. MMT has been banned in the U.S., after studies found it had damaging effects on the"ozone layer and could cause cancer. "But in Canada, it's in all of our gasoline," said Daynard. "Why is it still here? Because of the oil lobby, who want to keep this cheap way of adding octane to fuel. "But the' totally absurd thing is that we import all our MMT from South- Carolina." • Daynard said the OCPA and potential ethanol investors, "aren't asking the. federal government for a 'cent. "All we want is an assurance that there will be no changes to' the excise tax exemption, and that it . will be extended for a period of time as to allow the ethanol in- dustry to develop." Daynard , said the Kincardine - based agricultural 'company Canadian Agra is very. interested in expanding their ethanol production capacity, and that other areas, like Hensall, "are also looking at it." Impose year moratorium on rbST said the government's request for a voluntary delay on the marketing 'of rbST will "give us an opportunity to look towards the task force to put forth the positive benefits of this product. "rbST is relatively technical, and it's difficult to communicate that type of information tothe con- sumer. "In the medium to long term, I think the one year moratorium will serve us well. People will discover that as, a supplement, rbST has no impact on the health, safety or quality of milk." Clark said rbST has already been endorsed by the World Wide Health Committee, and is receiving positive feedback from the U.S. consumer. "Gallup did a survey in the U.S., and 59 per cent of respondents had heard of rbST," said Clark. Opponents of rbST in the U.S. claimed that the release of the hor- . mone for use in the dairy industry would cause a 25 per cent drop in the sale of fluid milk. But figures released by , the U.S. Department of Agriculture on Aug. 8 show that consumption' of milk actually increased by 1.2 per cent in lune, compared with the same time last year. This follows a 'steady pattern of increases in milk con- sumption levels since rbST received U.S. governmental approval in February. One possible recommendation from the Canadian task force could sec rbST controlled country -wide as a veterinary, product. Clark said, ''We 'would support this. "But it's their call." by Mark Cripps A one year moratorium has been imposed by the federal .government on a controversial hormone for dairy cattle. "This is good news for fanners, consumers and the whole Canadian dairy industry," said Huron -Bruce MP Paul Steckle, "The delay will allow time for increased public consqltations and for the rest of our committee's recommendations to be carried out." The hormone, Bovine Somatotrophin, or rbST, was introduced in the United States last February. The product was offered in Canada, but diary farmers asked the government to delay its introduction until studies could be done, to determine effects on the U.S. industry. "We were worried how the Canadian milk consumer would react," said Huron Milk Committee chairman Barry Elliott. "We want to make sure they accept it." rbST is a natural hormone produced by dairy cattle, and is an important component in the produc- tion of milk. • Through artificial supplements, rbST can help dairy, cattle produce greater quantities of milk, with no ill effects to the animal. "We just want to be cautious about it," said Elliott. "We want to know it's safe, rather than say, we think' it's safe." In response to industry concerns, the federal .government asked the Standing Committee on Agriculture and Agri -Food to look into rbST, and make recommendations. The major recommendation of the `Huron farmers not keen on using it' committee was to obtain a one year moratorium on the use of rbST in Canada. The moratorium on the sale and use of rbST was obtained volun- tarily' by manufacturers, and will extend until, July 1, 1995. During this period, a task force made up of consumer, government and industry representatives will review rbST's impact on the dairy industry, animal health and genetics, human health and con- sumer reaction in the United States. "I've never got the impression that dairy farmers in Huron County were that keen on using it," said Elliott. "We are improving milk production all the time, and we. really didn't see the need. "But we will wait' and sec, and use the U.S. as a model." Elliott said that if rbST is introduced on the Canadian market, it will have to be used under strict management and feeding practices. "That's the only way it will work," he said. Ole of the companies offering rbS'i' to Canadian dairy farmers is Prove!, a ' veterinary products division of El. -Lilly Canada. ' A spokesman for the company