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The Rural Voice, 1993-07, Page 54PERTH John Drummond, President, R.R. 5, Mitchell NOK 1NO 347-2725 PCFA Office 229-6430 The Rural Voice is provided to farmers in Perth County by the PCFA. County Federation of Agriculture NEWSLETTER If competition is given the opportunity It makes no difference whether you read a farm paper of the past or a current edition, the story is the same: low commodity prices and high input costs leave small profit margins. 1 would Tike to challenge producers to understand why there is a constant narrowing of profit margins. Competi- tion controls profit margins and com- modity prices. With regard to wages, legislation allows wage levels to escalate percentage wise. The wages of educators, hydro workers, government employees, the general work force and even basic wages keep escalating without an acquate price level check. The cost of wages and services is included in the price of products. Farmers are consumers who are glo- bally competitive and cannot pass the increasing wage costs on to their cust- omers the way secondary and service industries can. Farmers and primary producers must absorb the increased If we want it, Do you and I have any effect as civ- ilians? In our present time of gov- ernment restraints and roll -backs, what is our responsibility? Changes are taking place in the public sector and some are long overdue. Never before has there been such a need for us to voice an opinion. Whether it be by serving on local boards, whether these be hospital, school board, public health, farm focus on health, or attending an interest meeting, we must become better informed and involved and speak. am in the process of learning about health in Perth. My involvement in United Way Stratford -Perth has sparked my interest. One of the topics and certainly an imponant one is senior care. On a recent visit to a Health Care Fair in Mitchell, it was wonderful to see all the agencies that are available to assist our seniors. I was concerned, though, on asking what the cost of these services were, that the answer most times was nothing. When I stated that I knew many seniors who could afford to pay some of the cost I was told that topic does not usually come up. We 50 THE RURAL VOICE costs, leaving squeezed profit margins. When each farmer increases production to keep incomes sufficient, the com- bined production results in an over- supply to the market, leaving depressed prices. We have been brainwashed into believing that if we are more efficient and increase production that this is the answer to the problem. The goal line keeps moving when we produce to pay for increasing wage costs instead of producing for marketplace demands. (From 1960 to 1990, the consumer disposable income has increased by 334 per cent. The farmer's share of the disposable income dropped 63 per cent in the same period.) The stabilization and subsidy pro- grams try to correct the imbalance. This leaves exports open to countervail action. The governments of industrial- ized countries have no idea what wage levels the marketplace can afford. The we should pay have such an infrastructure of govern- ment agencies that make work out of senior care. Don't get me wrong, I know that our seniors have worked hard and given much to our country but can we afford to maintain all of the benefits? To me all of us are guilty of the disease of "Entitlement". Everyone feels that it is their right to have all of these services free. We must change this thought process to look at user pay cost recovery. If we want it — we should pay. There are many turf wars going on between agencies and we as civilians must question why? We in farm and rural Perth know the strength of community but if every- thing is from the top down we lose control and the cost of government goes up. To quote John L. McKnight, "The wisdom of the community exceeds the knowledge of experts", and I encourage you to become informed, involved and to ask who pays for that service and is it duplicated? You CAN plant the seed of change.° Mary E. McIntosh PCFA 2nd Vice President business community is saddled with laws that allow wage levels to be set or sustained at unaffordable levels. We must adopt a system that allows competition to have the opportunity to balance costs and profit. With the con- stant elimination of farmers and em- ployment, the balance must move to- ward the profit side. The unemployed must have the opportunity to be in the competition to set the true value of wage costs. Competitive costs will attain full employment, then profit will benefit everyone's standard of living. Without change, the farm and business community and the employed will have to keep increasing product output at an ever faster pace to pay taxes to support the unemployed and welfare recipients. The uncompetitive demands of govem- ments and their friends (unions/mon- opoly holders) is the reason the past and current farm papers have the same message. Competition is the only true way to stabilize costs and allow local or regional economies to afford local services. We can't have made -in - Toronto prices for rural economies. The solution is to have every aspect of the economy competitive, only then will the high prices received during an economic cycle, allow farmers and business to survive the low periods without subsidies or stabilization.° Larry Biesinger PCFA 1st Vice President REGIONAL MEETING Friday, September 10, 1993 Brodhagen PERTH COUNTY FEDERATION OF AGRICULTURE JULY MEETING Thursday July 22, 1993 Downie Mutual Insurance Office Sebringville 8:30 p.m. All members welcome to attend