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The Rural Voice, 1988-11, Page 67GREY 446 10th St., Hanover, Ontario N4N 1P9 519-364-3050 ' The Rural Voice is provided to all Grey County Farmers by the GCFA. County Federation of Agriculture NEWSLETTER CATTLEMEN WELCOME MARKETING VOTE: submitted the Grey County Cattlemen's Association The Grey County Cattlemen's Asso- ciation welcomed the recent announce- ment by the Minister of Agriculture and Food that a vote will be held "on wheth- level of equity should receive a return that will equal his cost of production and generate an acceptable level of profit on each unit (pound) of production. Each DATE TO REMEMBER: Bruce -Grey All Candidates Meeting, Chatsworth Com- munity Centre, November 2, 8 p.m. A similar meeting is being planned for the Wellington, Grey, Dufferin, Simcoe riding. Watch for the time, date, and place. er they want a producer -controlled regu- latory agency, with power to set prices based on the cost of production and set supply, or want to continue with the current market-driven industry." Producer -controlled, supply -man- aged marketing of beef cattle for slaugh- ter has been a long-term goal of our association. Our version of an economi- cally viable Ontario industry is based on the expectation that a knowledgeable, efficient producer with an average in- vestment in facilities and a reasonable producer's expectation of earnings from the industry would be related directly to his chosen level of production. The small producer will continue to require off -farm income. A producer able to take advantage of the economics of a larger operation and low debt will probably be very successful financially. The inefficient or heavily indebted farm likely won't be able to remain in busi- ness without outside financial support. Recognizing our industry's ability to produce with a price based on cost of 66 THE RURAL VOICE production, we are willing to accept controls on production levels. Quotas on production must be managed in such a way that they do not acquire a value beyond an acceptable licence fee. Our association supports the plan filed by the Ontario Beef Producers for Change Inc. as an acceptable initial proposal. Our understanding is that the plan will require government financial assis- tance in periods when market returns do not cover the determined cost of produc- tion. We expect this support will replace a host of programs now in place to support the beef industry. The benefits of many of these grant programs tend to flow through our industry and directly into the farm supply sector, through changes in the price of inputs or business practices. Support payments under a cost of production system would not be targeted to specific inputs like parts, fencing, or interest rates and so would be less easily captured by farm suppliers. Competitive selling of all beef ani- mals for slaughter is essential in our view of a successful producer -control- led marketing system. Our industry has a wide range of sizes of operations, from small to very large on both the produc- tion and processing sides. In our opin- ion the marketing system must treat all participants equally regardless of size or relative importance of the buyer or seller. Ideally every buyer should be able to bid on each animal offered for sale. To the extent that this principle is abandoned and larger numbers of cattle are traded privately, the supply -demand base of the market is eroded, especially the demand side of the equation. Of particular concern to our associa- tion is the apparent increase in numbers of cattle controlled directly or indirectly by processors. These cattle may never enter the market, while affecting nega- tively the market's price discovery mechanism to the detriment of a smaller market participant who hasn't the same opportunity to influence the market. We urge all beef producers, includ- ing dairy farmers who market cull cows, veal, or dairy beef to become informed participants in the voting process.0 WE Dave WANT YOUR GRAIN! • Corn • Soybeans • Feed Grains • Quality Oats • Damaged Grains CASH and FORWARD CONTRACTS Call us today for Quotes Gordon Corrine Ricard Richard Smibert 519-473-9333 H Toll Free (519) 1-800-265-1885 (416-705) 1-800-265-1874 agricultural commodities, inc. PARK ROAD, HYDE PARK, ONTARIO NOM 1Z0 LAC london 1112 HYDE 66 THE RURAL VOICE production, we are willing to accept controls on production levels. Quotas on production must be managed in such a way that they do not acquire a value beyond an acceptable licence fee. Our association supports the plan filed by the Ontario Beef Producers for Change Inc. as an acceptable initial proposal. Our understanding is that the plan will require government financial assis- tance in periods when market returns do not cover the determined cost of produc- tion. We expect this support will replace a host of programs now in place to support the beef industry. The benefits of many of these grant programs tend to flow through our industry and directly into the farm supply sector, through changes in the price of inputs or business practices. Support payments under a cost of production system would not be targeted to specific inputs like parts, fencing, or interest rates and so would be less easily captured by farm suppliers. Competitive selling of all beef ani- mals for slaughter is essential in our view of a successful producer -control- led marketing system. Our industry has a wide range of sizes of operations, from small to very large on both the produc- tion and processing sides. In our opin- ion the marketing system must treat all participants equally regardless of size or relative importance of the buyer or seller. Ideally every buyer should be able to bid on each animal offered for sale. To the extent that this principle is abandoned and larger numbers of cattle are traded privately, the supply -demand base of the market is eroded, especially the demand side of the equation. Of particular concern to our associa- tion is the apparent increase in numbers of cattle controlled directly or indirectly by processors. These cattle may never enter the market, while affecting nega- tively the market's price discovery mechanism to the detriment of a smaller market participant who hasn't the same opportunity to influence the market. We urge all beef producers, includ- ing dairy farmers who market cull cows, veal, or dairy beef to become informed participants in the voting process.0