The Rural Voice, 1991-06, Page 58PERTH
Matt Crowley, President, R. R. 1, Gadshill NOK 1J0 393-5716
PCFA Office 229-6430
* The Rural Voice is provided to farmers
in Perth County by the PCFA
County Federation of Agriculture NEWSLETTER
HANDLE WITH CARE/GRIP WITH CAUTION
The winter of 1990-91 was a frustrat-
ing and discouraging time. The world
watched itself slide into a war that never
should have happened. The North
American continent sank deeper into
recession with stockpiles of goods to
sell, but few cash buyers. The Soviet
Union sat with shelves so bare that even
those with money had difficulty pur-
chasing their needs. In Africa, espe-
cially Ethiopia, famine again became a
grim reality. In Europe, the GATT
negotiations ground to a pitiful halt after
nearly four years of rhetoric, stalling
tactics, and ignoring inevitable dead-
lines. Even in Canada, every thinking
person had to struggle with the concept
of a "Canada" w ithout Quebec. The cost
of doing business in Canada, and the
cost of living, took another jump with
the implementation of the GST. It was
not a particularly good winter.
HOPE is one of man's most indomi-
table characteristics.
The war ended, people started com-
ing out of their shells again. Spring
came, and farmers, the most eternally
optimistic group of humans on the
planet, began planning and planting
their crops as if S2 corn was a thing of the
past; as if the influx of American wheat
wouldn't affect them; and as if a signed
application for the GRIP program
would be a quick and easy substitute for
financial statements prepared for one's
banker each spring.
This new program will put much
needed cash into the pockets of farmers,
and it may stave off a few farm bank-
ruptcies. Some farmers may become
wealthy from its proceeds if they are
cropping a few thousand acres. Some
political figures may even get re-elected
if the "good pay -outs" continue until the
next election.
The GRIP program has been rightly
described as "the only game in town." It
may also be described as a big aspirin for
a bigger hangover, perhaps helping the
symptoms but ignoring the causes of
farmers' financial difficulty.
I am not criticizing the implementa-
tion of the GRIP program, but rather
cautioning those in power not to forget
about the reasons why it became neces-
sary: things like the botched "free trade"
agreement; the huge Canadian deficit,
which demands enormous sums of tax-
payers' money just to cover interest; and
the terrible economic situation of third
world countries and the Soviet Union,
countries which can only purchase grain
if the price is ridiculously below the cost
of production. Add to this the thorny
issue of European/USA subsidy wars.
This year, farmers in many cases are
not farming for a particular market, but
for the GRIP. Some may abandon well-
planned rotations. Collectively, they
will produce large surpluses of grains
and oilseeds barring some national dis-
NOTICE OF MEETING
June 27, 1991
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54 THE RURAL VOICE
aster, and the base market price will
likely fall a few notches more. In effect,
the GRIP will benefit the mills and grain
brokers every bit as much as the farmers.
Farmers can hardly afford not to join
the program, at least during its early
years. It is a complex welfare system
legitimized as an insurance program, by
farmers contributing premiums, but
let's call a spade a spade, we're signing
up for the "dole." Suddenly, agricultu-
ralists, — some of the most fiercely
independent professionals in the coun-
try — have signed away a little more of
their independence.
Politicians know from their bread
and circus platform, (read: cheap food
policy) that voters are not likely to bite
the hand that feeds them. They assume
farmers will react no differently.
Insurance is an important safeguard
for any business, including farming.
Fire insurance will prevent financial
ruin in case of a disaster, but it is not a
replacement for a good building and
machinery maintenance program.
GRIP may prevent financial ruin while
commodity prices remain at a disas-
trously low level. It should not, how-
ever, absolve politicians of their respon-
sibility to deal with the causes of the
weak farm economy. It is only,mor-
phine for the cancer.
John Drummond
director, Logan Township
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