The Rural Voice, 1987-09, Page 78PERTH
COUNTY Pork Producers NEWSLETTER
Clare Schlegel, R. R. 4, Stratford, 655-2750
ALL -CANDIDATES QUESTIONNAIRE:
The three provincial candidates were asked
to make theirr responses as brief and com-
prehensive as possible. Our request should
be taken into consideration. We promised to
leave their answers unedited.
1. ROP and A1: Ontario pork producers
have achieved a competitive advantage
through the testing of breeding stock in the
ROP program and the dissemination of supe-
rior genetics by Al. How do you foresee the
Ontario government's continued role in
maintaining these two services?
CHRISTIE: Al in the hog industry can't be
viable at present without government sup-
port. The advantage is that genetics are more
mobile and can be introduced into a herd
without the risk of disease by introducing a
new boar.
EDIGHOFFER: The Liberal government
will continue to support research regarding
artificial insemination in swine, as it does for
cattle and sheep, because there are still many
technological problems to resolve. Since
swine Al is in its infancy, there could well be
continued direct government support for up
to 15 years; certainly to the end of the On-
tario Pork Industry Improvement Plan,
which is March 1991.
It is the government's intention to study
having ROP privatized within three years.
However, we anticipate a continuing grant to
a private organization will be needed. This
money would be in payment for records from
pork producers, for use in research, educa-
tion and extension, and should not be consid-
ered a subsidy.
HAM: We have arrived at this level of com-
petitiveness because of the experimental
funding that was made available at first.
Now we have not only a good export prod-
uct, but technology systems and ideas to sell
as well, as is evidenced by the number of
foreign governments monitoring our pro-
grams. If we are to seek markets beyond our
traditional base, which may or may not be in
jeopardy from protectionism, ROP and Al
must be continued and monitored as to their
funding needs and goals. Privatization of the
ROP program in New Dundee is fine as long
as the per head subsidy is maintained to
allow meaningful research.
2. Stabilization: At the present time,
livestock and poultry producers are disad-
vantaged by not receiving stabilization on
grains grown and fed on the farm. For
example, in hog production the difference
between the cost of growing feed and the cost
of buying it is $6.30 per hog. Also the tri-
partite stabilization formula for hogs uses
the market cost of grain, not the cost of
growing it, in determining the level of sup-
port. Do you favour the Ontario government
assisting livestock and poultry producers in
76 THE RURAL VOICE
obtaining stabilization of fed grains?
EDIGHOFFER: Stabilization payments
are intended to assist producers only after
they have suffered a loss in the marketplace.
Since stabilization programs cover both
grain and livestock, both these sectors re-
ceive the benefits of stabilization.
The issue of stabilizing fed grain must be
evaluated in terms of: program cost, qualifi-
cation criteria, creation of artificial incen-
tives to produce grain or hogs, and program
administration.
Agriculture ministers from across Can-
ada have directed a task force to review
current stabilization programs and report on
their effectiveness this summer. The Minis-
ter of Agriculture, Jack Riddell, has asked
his staff to look at different ways grain is fed
to animals and identify where payments
might be allowed. The minister wants to
consider this forthcoming information be-
fore making any decisions.
HAM: The current approach is inadequate.
Deficiency payments are based on averaging
of historical prices. When prices fall over a
period of time, support drops. When prices
rise, many farmers do not qualify. This is not
help, but willful blindness.
First a floor on support prices is needed
to insulate farmers from international trade
wars, and then return to them their produc-
tion cost. If the past and present govern-
ments are as serious as they say they are
about land-based family farms that grow
their own feed, they must go beyond these
deficiency payments which are only after the
fact, and a response to a given drop in prices.
If a measure of insulation is to come, and
income stability is to arrive, crops grown and
fed on the farm must be encouraged by lifting
the present restrictions.
New Democrats will be pressing the
government to bring more commodities un-
der marketing boards, whether the mecha-
nism is established price, negotiated prices,
or regulated supply. It will allow farmers to
keep pace with the cost of production and
ensure a decent rate of return on investment
and labour.
CHRISTIE: Livestock and poultry pro-
ducers deserve to be protected in their own
stabilization programs from taking losses on
crop production. It must be stressed that
livestock producers do not incur the costs of
drying, shrink, trucking, and marketing (at
least 40 cents/bushel) and stabilization pay-
ments to them must reflect that difference.
3. Freer Trade: Last year Canada ex-
ported 30 per cent of its pork production, of
which 80 to 90 percent went to the U.S. This
trade is being threatened by growing protec-
tionism in the U.S. The best way to preserve
our access to the American market is by
some form of free trade agreement?
HAM: Definitely not!
Questions 1, 2, and 4 deal with govern-
ment support of the pork industry specifi-
cally and agriculture in general.
Given the present level of support by the
U.S. government to their farmers and their
intense mania for "a level playing field" in a
free trade agreement, all Ontario and federal
government programs would come under
scrutiny as to whether they are unfair sub-
sidization. Protectionism has historically
been a losing proposition for those jurisdic-
tions which have employed it. For us to align
ourselves with an economy that is trying to
shut itself out from the world could be folly.
If the same intensity were to be applied to
finding markets in Third World countries
emerging from their economic slump, as
well as working to quell trade disputes that
have been worked out in the past, we would
be able to stand on our own and work from a
position of strength rather than react to the
whims of another jurisdiction.
CHRISTIE: The only sensible option we
have is to attempt to negotiate an improved
trading environment with the U.S.
EDIGHOFFER: The idea of access to the
large American market may seem attractive
to Ontario farmers, but an agreement is not
going to give Ontario producers wide-rang-
ing access without giving American produc-
ers similar access to Candian markets. Pre-
mier Peterson has said that we must be con-
cerned about some of the negative impacts a
free trade deal would have on our agricul-
tural industry. To quote the premier, "Some
suggested that Canada's marketing boards
restrain competition. There can be no free
trade if it requires us to change that policy,
while the U.S. government is providing $70
billion in farm support payments over the
next three years.
As far as Ontario is concemed, there can
be no free trade deal if it prevents us from
creating made -in -Canada solutions to Cana-
dian problems.
The second largest employer in Ontario
is the agriculture and food industry. But
according to a study prepared by the Minis-
try of Agriculture, many family -run opera-
tions would be replaced by large, vertically
integrated operations. Under a free trade
agreement, net farm income would decline
by up to 50 per cent.
At the same time, my party has recog-
nized the threats of U.S. protectionist ac-
tions. This is why Premier Peterson has also
maintained that any free trade deal must
include agreement on a dispute settlement
mechanism to protect our industries from
unfair harassment.
It is hard to pronounce judgement on the
free trade negotiations when we don't yet
know what the package may, or may not,
(cont'd)