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The Rural Voice, 1991-09, Page 52NEWS CASH SHORTFALL HITS ONTARIO CASH CROP FARMERS FARM LEADERS PLEAD FOR GOVERNMENT ASSISTANCE So far, pleas for emergency assis- tance from the federal and provincial levels of government to offset low prices that have hit the province's cash crop farmers this year have fallen „n deaf ears. The Ontario Federation of Agricul- ture (OFA), the largest farm group in the province, has teamed up with the three other commodity organizations: the Com Producers Association (OCPA), the Soy Bean Growers Marketing Board (OSGMB) and the Wheat Producers Marketing Board (OWPMB). They are calling for a series of government meas- ures to put some badly needed money into farmers pockets until the Gross Revenue Insurance Program (GRIP) kicks in next year. Currently, prices for grains and soy- beans are at a 15 -year low, selling for half the 15 -year average, far less than it costs to produce them The farm groups toured the province last month to meet with local farmers and the media to discuss the problem and call for immediate help. "The survival of the family farm is at stake," Roger George, president of the OFA told one meeting in Mitchell. He said the last decade has been particularly difficult for farmers, who have faced high interest rates, high exchange rates and low commodity prices. "This is a real crises — a final com- pounding factor of 10 years of attrition of farmers. We have tightened our belts as far as we can go," said George. Frank Anthony, president of the OCPA, said corn producers are only getting 60 per cent of 1970 prices while costs to grow, harvest, and store the crop have quadrupled. "We're getting $90 a tonne for corn when it costs $130 to produce it. And that's on the heels of a number of bad years," said Anthony. Farmers this summer are so short of money to pay bills, they are either being forced into bankruptcy by the banks, or just giving up. "We lose a family farm every five minutes," said Anthony. Bev Hill, a large successful cash crop farmer from Varna who also oper- ates a grain elevator on his farm, told the 48 THE RURAL VOICE meeting that farmers who stored last year's crop hoping for better prices this year are being hit buy a double wham- my. Prices for the 1990 crop have con- tinued to drop, so that by the time they pay storage drying and interest charges, there's nothing left. In some cases, farmers actually end up owing him money. Hill pointed out that winter wheat, which traditionally provides a cash in- jection in mid -summer to help farmers pay off bills from spring seeding, isn't helping this year. Last year, farmers collected about $230 pgr acre for wheat; but this year because of poor yields and depressed prices, only realized $130 per acre. "That's a difference of $100 per acre. Where are they supposed to get that $100 from?" asked Hill. He said that everyone in the industry is fearful about the future of the indus- try. "Most of the people coming into my elevator have gray hair. There's no young people going into farming." Many farmers and their spouses are now working off the farm just to make ends meet, said Hill. The problem stems from a gap in Ca- nadian government subsidy programs made necessary because of an interna- tional grain trading war between the United States and the European Eco- nomic Community. In the past, Cana- dian farmers received emergency subsi- dies on a year to year basis, but at a lower level than either the U.S. or the EEC. Farmers will be better off next year when the 1991 crop, now growing in the fields, will be covered by GRIP. How- ever, last year's crop is not covered and because the old stabilization programs are based on a rolling five year average of crop prices, which have declned, there is no pay out. Cash crop farmers have been caught in the gap because the first GRIP pay- ments won't come until late in 1992, leaving farmers with little money to pay off bills from last year, and fearful they won't be able get credit from the banks to plant a crop next spring. "We won't stand by and see the demise of agriculture in Ontario," said an angry George in calling for immedi- ate government assistance. George is fearful that in the long run, the loss of more farmers could make Canada dependent on foreign food imports. "When a country loses its farmers, it loses the ability to fecditself."0 By Jim Fitzgerald Three commodity groups have joined with the OFA to ask the federal and provincial governments for emergency financial assistance for cash crop farmers. Left to right are OCPA chair Frank Anthony, OFA president Roger George, OW MB chair George Demicdric, OSGMB' Dave McClary, andHFA president Brenda McIntosh.