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HomeMy WebLinkAboutFarming '89, 1989-03-22, Page 34FARMING ‘89, WEDNESDAY, MARCH 22, 1989. Bll. Use of credit needs proper consideration BY BARRY L. SINCLAIR OMAF FARM MANAGEMENT SPECIALIST REGIONS OF PEEL AND HALTON Credit can be a valuable tool for Earth worms vital to improving soil texture If you have good soil, you have earthworms. Farmers and garden­ ers have always known that earth­ worms can improve soil texture, but the results of a University of Guelph study on radioactive fallout offer additional scientific evidence about the role earthworms play in maintaining soil quality. Prof. Richard Protz of Guelph’s Department of Land Resource Science said that under optimal conditions, earthworms could com­ pletely ingest and turn over the top 15 centimetres (six inches) of a plowed field every three years. In doing so, they help stabilize the soil structure with fecal material rich in silt and clay and distribute import­ ant organic matter throughout the depth of the soil. To help determine the extent of earthworm activity, Protz has stud­ ied the depth distribution of the radioactive element Cesium 137 in soil. The presence of Cesium 137 is related to the fallout from above- ground nuclear testing. Such test­ ing was halted in the late 1960s, giving scientists the opportunity to conduct distribution research with­ out having their results altered by increasing amounts of the element. Pork Congress wants innovators Once again, the Ontario Pork Congress is sponsoring the Innova­ tions Competition for Ontario pork producers. In recent years this competition has expanded to where last year there were over 40 entries of which 22 were or will be published in Hog Market Place Quarterly. For 1989 the Innovations Compe­ tition becomes innovative itself. To make it a more integral part of the Congress, we wish to display at the Congress up to 21 of the actual innovations as selected by the Innovations Committee. This will give everyone a chance to see and understand your idea more clearly. Since the innovations will be at the show, this seems an ideal opportunity to ask those attending the Congress to do the job of selecting the best innovations. All those paying admission will be eligible to vote. JACK RIDDELL 476 Main Street Exeter, Ontario NOM 1S0 [519] 235-0170 43 West Street Ontario Goderich, Ontario N7A 2K5 [519] 524-9444 Zenith 14730 LEGISLATIVE ASSEMBLY HONOURABLE JACKRIDDELL M.P.P.-HURON the farm manager to operate the business or to make capital invest­ ments. It can also, however, cause the failure of the business if not used wisely. After coming through the high interest rate period of the Cesium 137 fallout from the Cher­ nobyl disaster is not expected to reach southern Ontario. “We are not totally aware of the potential of earthworms in main­ taining health soil. The contribu­ tions of all fauna, fungi and microbes need more study," Protz said. He said optimal conditions for earthworm activity - basically, an entire frost-free year - would never be found in Canada. Nonetheless, his studies of earthworm influence on soil quality in southern Ontario have convinced him that the activi­ ty of the creatures is significant enough to make marked improve­ ments in soil conditions. Protz is developing a faunal activity model that will further quantify the importance of earth­ worms and their effects on soil. A better understanding of biological activity is an important part of the province’s effort to reduce farmer dependency on agri-chemicals. “We have to be concerned for the land, the soil and its living components. The caring ethic must be based on a better understanding of natural systems,” he added. Prize money will be awarded to the winners with a Grand Prize of $1,000 for top place. To encourage Congress attendees to vote there will be a draw for a weekend for two in Toronto for those casting ballots. What kind of innovation can be entered? They may pertain to any segment of pork production such as feeding, breeding, production, ventilation, energy or labor saving devices. The innovation need not be complex - often a very simple or novel idea can catch people’s fancy. Entry forms with full contest details will be available at your local OMAF office. The Ontario Pork Congress reserves the right to interpret contest rules as outlined on the entry form. Their decision will be final. The deadline for entries is April 29. 1989. As both the Minister of Agricul­ ture and Food andtheMPP for Huron, I am proud to represent this great county in the Ontario Legislature. As the leading pro­ ducer of food in the province, Huron's record for giving us top quality, wholesome food at the affordable prices is world renowned. I wish all a successful and prosperous growing season for 1989, and as always, I remain at your service. 198 Josephine Street Wingham, Ontario NOG 2W0 [519] 357-2463 Zenith 14730 Parliament Buildings Queen's Park Toronto, Ontario M7A 1A2 [416] 326-3066 early 1980s, many producers learn­ ed valuable lessons on the wise use of credit. If you have made or are consider­ ing making a decision to hold to some crop commodities hoping for a better price, be sure to consider all of the costs and factors associat­ ed with this type of decision. Don’t let the lessons learned previously be forgotten or overlooked. If a producer does decide to hold a portion of his crop for sale at a later date, there are the obvious costs of storage fees, shrink, insurance, handling fees, etc. In addition, there is a potential loss of return on the invested profit if the crop had been sold as originally planned. This return on investment or opportunity cost is all right in good years when there is a profit in growing the crop and a profit is left over to invest. If, however, the proceeds of the crop sale would have been used to pay off current debts and loans, the additional costs to maintain these PETROCANADA® Stock up on top quality lubricants and save money too! • XHD Motor Oils • Super Plus • Dexron II Fluid • Duratran Fluid • ATF Fluid • Outboard Motor Oil • 2 (Cycle Engine Oil • Harmony Hydraulic Oils • Greases • Universal Tractor Fluid • Gearlube Most products available in 1L, 4L, 10L & 20L containers & 205L drums work gloves $3.99 value M11 With every 75 litres of lubricants which you buy, you can purchase a pair of heavy-duty split cowhide all purpose work gloves for only 9% while supplies last. your local agent is BOB FOXTON FUELS LTD. Agent of Petro Canada inc. WINGHAM, ONTARIO NOG 2W0 1-800-265-3069 [519)357-2664 debts or loans for extended periods may be considerably larger than the eight to 10 per cent return on investment that is used in general “storage” versus “sell now” cal­ culations. This becomes especially impor­ tant if outstanding debts and loans are with regular suppliers (i.e. feed or crop supplier, machinery dealer, etc.). Generally, suppliers would prefer to receive prompt payment for the goods and services they provide. If they have outstanding ac­ counts receivable on their books, it will affect how they must operate their business as well. If a supplier offers credit terms or extended terms, they will ask for an interest rate that will compensate them for it (usually in the 24 to 36 per cent annum range). If you start putting figures of this size in your calculations, the stor­ age option may not be as attractive as originally thought. If you are planning to hold a only until April 75" GET A GRIP ON GREAT SAVINGS! per litre per case 12 x 1 S»<e per 20L pail per 205L drum 24-150 litres 15'T.80 s3.00 s30.75 151-300 litres 20's2.40 s4.00 S41.00 301-600 litres 25's3.00 s5.00 s51.25 601 litres or more 35'54.20 57.00 s71.75 commodity for later sale, also look at the effect it will have on all other areas of your business. How seri­ ously will your cash flow be affected? Are you going to be able to meet your current debt obliga­ tions and major debt repayment obligations (i.e. mortgage pay­ ments, bank loans, etc.)? What effect will outstanding debts have on your present and future borrow­ ing capacity? If you have done all of your calculations and are still consider­ ing storing your crop beyond the originally forecasted sale date, keep your creditors informed of what you are doing. If your calculations are realistic, they will likely support your request for increased or extended credit terms. If not, take a second look at your calculations and projections. Always shower, wash your hair and clean under fingernails imme­ diately after spraying. Remember, ‘Farm Chemical Safety Is In Your Hands’.