Loading...
HomeMy WebLinkAboutThe Citizen, 1991-03-20, Page 22PAGE 22. THE CITIZEN, WEDNESDAY, MARCH 20, 1991. 200 farmers hear GRIPing details High interest in the new Gross Revenue Insurance Program (GRIP) program brought a crowd of 200 farmers out to a meeting sponsored by the Huron County Federation of Agriculture, March 12. The crowd, one of the largest in recent years at a farm meeting, filled the cafeteria of Central Huron Secondary School to hear Bill Mullen, Area Supervisor for the Ontario Crop Insurance Commis­ sion explain the program, called Market Revenue in Ontario that will act as a safety net to protect farmers who enroll from disastrous farm prices. The program will be sold by Crop Insurance Agents in Ontario who can sell a farmer the Market Revenue Program, the Crop Insurance plan, or both. Mr. Mullen explained that under previous stabilization plans such as the Agriculture Stabilization Act of 1977 or the provincial Farm Income Stabilization Act or the Western Grain Stabilization Program the problem was that prices just kept going down. The new program will pay 80 per cent of the 15 year average for the commodity, adjust­ ed by the Farm Input Cost to take into effect increased costs of pro­ duction over the years. Under that system corn will be guaranteed at $3.38 this year compared to $2.95 ui. l?r the old system and soybeans will bring $8.41 compared to $6.75. The Market Revenue plan uses Ontario prices only and fed grains are also covered under the plan. It’s estimated that 90 per cent of Blyth council loans $5000 to Rutabaga Festival Blyth Village Councillors ap­ proved a $5,000 loan to the Blyth Rutabaga Festival Committee at their meeting March 12. The grant will help the commit­ tee pay for the early expenses such as ordering souvenirs, which must be paid before money starts coming in. Councillor Steven Sparling said he was glad to see that Don and Judy Carter had come forward to co-chair the committee and he didn’t think the village was taking a high risk in the loan. The village had loaned the committee $5,000 last year and the money was repaid soon after the Festival ended. Jane Gardner of the Rutabaga Festival said that most of the events at the event cost little money but purchasing the T-shirts, etc. requires money in advance. The biggest expense at the Festival is the parade but it’s hoped that groups will come forward as they did in the past to help sponsor bands and special attractions. Meanwhile Judy Carter asked if council would permit a midway to be put up at the fairgrounds. Last year, she said there were com­ plaints that there wasn’t enough for young people to do so it was thought an amusement park might add to the event. John McLaughlin, owner of the midway was present to discuss the situation with coun­ cil. Councillors said they didn’t feel there was any problem with the event. PITCH-IN AND RECYCLE! grains and oil seeds acreage will be covered. The program is to be self-sufficient in the long term but in the short term deficits will be shared by the federal and provin­ cial governments. It’s estimated that the 1991 premiums will bring in $140 from the farmers, federal and provincial governments and there will be $300 million in payouts. So far from early calls by Crop Insurance agents 50 per cent of the farmers have taken up the plan. Corn, soybeans, spring grain, win­ ter wheat, red spring wheat, and canola qualify for Market Revenue coverage. More crops will likely be added in future. The farmer must purchase the floating price option. Farmers must give three years notice to withdraw from the pro­ gram so that they can’t pull out after two years of large payouts. If a farmer does pull out he must stay out for two years then in the first year back gets only 50 per cent of the payout and 75 per cent in the second year out. “If everybody stays in the program it will work,” Mr. Mullen said. Farmers will have to pay a deposit of $1 per acre when they enroll before the May 1 deadline and give a post-dated cheque for Nov. 1 for the remainder of the fee. The Market Revenue program will work the same way as crop insurance using established long­ term average farm yields but including trend adjustments to compensate for improved yields due to technology. Farmers who have never bought crop insurance will. have their beginning yields based on averages of others in the area who have been enrolled in the program. Premiums will come 41.66 per cent from the federal government, 25 per cent from the provincial government and 33.3 per cent from the producers. The urgency is for farmers to sign up by the May 1 deadline. “You have to act if you want coverage,” he said. “After May 1 you won’t have it. Pick up the phone and an agent will be out to see you and explain the program.” The program will aid in long­ term planning, Mr. Mullen said. All crops should be worth growing based on the prices set. farmers shouldn’t have to grow a lot of acres of some crops just because the crop looks profitable. “1 don’t think there’s anybody in the room who doesn’t think the price will be lower than the support price this year,” he said. Still, he said, the economists feel that over a 15 year period the program will pay its way. One questioner wondered how much premiums might increase after the first year. It was explained that the maximum the premium could increase or decrease over a five year period would be two per cent. There was a considerable amount of cynicism based on the failure of the white bean tripartite plan with farmers worrying the same thing might happen to GRIP. One farmers said he had heard that the plan must break even within five years but Bill Jongejan, the Goderich-area farmer who heads the Ontario Crop Insurance Com­ mission assured him, “This is no five year plan; this is the future.” Bill Wallace of the Federation said there was a lot of frustration among farmers about the white bean problems which endangered the new program making it difficult to sell the new program. Mr. Mullen said there is likely to be an advance payment in Febru­ ary or March of 1992 to give farmers cash to put into crops next spring. The full payment won’t be until the fall of 1992 after the crop year-end for the various crops. One questionner suggested that farmers could sell off their product at a low price right after harvest and take that cash, then collect more money later when the price is set. But Niel Edgar, one of the Crop Insurance Agents present, warned farmers that wouldn’t work. “For God’s sake market the way you’ve always marketed,” he told the farmers. “If you sell at $2.50 in November and the price goes over the target in the new year for the Ontario average, you won’t get paid.” He pointed out the floating price option means that farmers who sell at a high price and the market goes down afterward so the Ontario average is below the target can win doubly, keeping the high money they earned and gett­ ing a payment as well. “We’re not pushing it (the program)”, he told the farmers. “It’s up to you to decide if you are going to buy.” Mr. Jongejan said the program is designed by the federal govern­ ment and his commission is just administering it but “I personally feel this is one of the programs that will see us through the ’90s.” SMALL SIZES LADIES’ RICE'S SPRING SPECIALS CANADIAN MADE RUBBER $0 BOOTS ALL SIZES NAVY OR GREEN WORK SIZES*/»A PANTS 3(W2 $20. NAVY OR GREEN WORK *17 SHIRTS ? 1 / • LINED WORK <35 JACKETS BEST QUALITY TERRA THINSULATED LIGHT SAFETY WORK BOOTS TURF MAC SAFETY SOLEBOOTS $OU. FLEECE-LINED FUUOVtRS $10. MEN’S, LADIES’ & CHILDREN’S GOOD QUALITY RUNNING SHOES MEN’S BLACK JEANS*] r 30-38 WAIST 4^ 1 J OVERSIZED • PANTS • SHIRTS & •JACKETS MEN’S SPRING <Ofi JACKETS SMALL, MEDIUM & LARGE a T-SHIRTS 2/$5. SECONDS ' T-SHIRTS $4. XL-3XL ~ £A TALI SIZES tOC COVERALLS 34-46 OVERALLS $35. NAVY STRIPED STRIPED $20. RAIN SUITS $20 -35 RAINCOATS $15. JACKETS KIDS NYLON KIDS SPLASH PANTS $10. Rice's Store IR.R. 1 BLYTH CONCESSION 12, HULLETT OPEN 9 A.M.-9 P.M. CLOSED SUNDAY