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The Rural Voice, 1990-11, Page 66BRUCE 446 10th St., Hanover, Ontario N4N 1P9 519-364-3050 • The Rural Voice is provided to Bruce County farmers by the BCFA. County Federation of Agriculture NEWSLETTER OPINION: ANOTHER RING THROUGH THE NOSE? The "machinery ring" concept has been recently introduced to Ontario by Canadian Agra. The idea is imported from parts of Europe and has been espe- cially "successful" in Japan, where ap- proximately 400,000 farm families are members. The machinery ring is pro- posed as "an agricultural non-profit or- ganization providing farm machinery match -making services for its mem- bers." Sound like a good idea? Could you sometimes use such a service? Many farmers could. But beware! There's more to it than meets the eye. Let's consider the darker side of perhaps a feasible project. Many family farmers in Ontario have created innumerable machinery - sharing and work -trading arrangements among their neighbours. Thesearrange- ments depend on the willingness and ability of both parties to co-operate. There is great strength in a locally -based share -agreement built on non -economic factors such as mutual trust, friendship, and local identity. These kinds of ar- rangements speak well of rural On- tario's ability to work together, with the resources and needs at hand, for mutual benefit, in other words, a common good. The machinery ring, as proposed, attempts to replace this successful, long- standing system with a pure business model designed and regulated by only economic criteria. This proposal con- flicts directly with the goal to preserve the family farm and the cultural heritage dependent on it. If one could project a little into the future, it seems apparent that the great- est economic benefit would come to the growers of larger individual crop acre- ages (demanders). Their continued use of the machinery ring would promote the growth of larger, professional cus- tom operators (suppliers), willing to travel further to capture a large acreage contract. These "contractors" will tend to overlook the smaller acreages more apt to be grown by diversified family farmers. The lower rate charged by these custom contractors will cause the smaller machinery owner to lower his prices to compete and soon will be un- able to replace his worn-out machine because of the lower margins. In the short term, better custom rates, but in the long-term matching of these larger busi- nesses will again add pressure to the already struggling small family farms. Some of the more visible costs of this proposal would include: membership fees ($200), annual fees ($100), transac- tion levies (4 per cent) and liability in- surance for all members. Suppliers would also be responsible for greater travel costs as well as an advanced communications system with head of- fice. Can farmers really afford all these "extra" charges to get the job done? Add to this list the collection and reclamation of GST. Bruce County Federation Of Agriculture AWARD of MERIT for contributions to agriculture I nominate: Reason: Send to the Bruce County Federation of Agriculture, 446 1 oth St., Hanover, Ontario N4N 1P9 1 62 THE RURAL VOICE Another large and unnecessary cost borne by members will be the set-up and maintenance of a computerized data- base. There is no doubt how much power and influence can eventually be wielded by those who have access to such an extensive data -base. Machinery ring members must have a current account at a bank together with authorization for the machinery ring manager to debit and credit this account as he finds necessary. Flow many farm- ers are willing to give control of their bank account to another agency? At present, flexibility best describes the payment schedule between farmers. Payments tend to be made when cash flow permits, not necessarily when the job is complete. Each family has their own set of circumstances and should find a friend or neighbour much more flexible than a machinery ring. Do we really need another large business to control more of our farm economy? It would seem logical that less dependence on large agribusinesses would improve farm stability and eco- nomic viability. A short-term opportu- nity may prove to be a long-term liabil- ity. Perhaps it is time for the farm com- munity to recognize the necessity for co- operation between farmers and encour- age each other to work towards the full- est use of farm machinery on an infor- mal basis. Remember, farm unity, strength and co-operation begin at home!O NOTE: Each month this page will con- tain an opinion on a current farm is- sue. We would like to know what YOU think. If your opinion differs from the one you have read here, or if you sup- port our view, call the office at 364- 3050. Bruce County Federation 49th Annual Meeting & Banquet Friday, October 9,1990 Chesley Community Centre, Chesley Social Hour: 6 p.m. Dinner: 7 p.m. Guest Speaker: Elmer Buchanan, MPP Ontario Minister of Agriculture Tickets: $25/couple, available from township directors or the federation office.