Loading...
The Citizen, 1991-08-14, Page 14PAGE 14. THE CITIZEN, WEDNESDAY, AUGUST 14,1991. Having the best of both worlds Canadian merchants, along with many Ontario farmers, (especially those involved in the supplied managed commodities of dairy and chickens) are becoming more and more concerned about the exodus of Canadians who shop in the United States. Increasingly, Canadians are slipping across the border to buy groceries, gasoline, cigarettes and some consumer goods because the perception is that we are paying too much here. We are overtaxed in Canada, Canadians argue, and this is one way of getting even with the government. Studies have shown that in some border cities, the hemorrhaging is getting serious with many Canadian merchants unable to , compete with lower priced U.S. goods. One major dairy recently closed its Windsor processing plant, partially because of aging equipment, but also because the volume of milk processed had dropped so badly that it wasn't economically feasible to keep it open. So what's all the hullabaloo about? Well, being a tried and true journalist, I decided to investigate first hand, and report the real story to Citizen readers. For one thing, being a Canadian nationalist (a rare word these days), I see little reason to cross-border shop because I realize there are vast differences between support systems in the United Slates and Canada. As well, there are additional hassles to put up with in shopping in the U.S., such as exchange rates, toll charges, poor warranties, and different sizes and quality of goods, to say nothing of the wasted gas and time. It's a little akin to comparing apples and oranges. But our family happened to be vacationing in a cottage last week that was close to Port Huron, so we decided to slip across the border to see what all the excitement was about. First of all, it is not illegal to shop in the U.S., as long as you follow the letter of the law, declare ALL your goods to Canada Customs, and pay the appropriate duties and Canadian taxes (which we did). Unfortunately, my suspicion is that normally law abiding Canadians have lost their respect for the law and the vast majority of those returning to Canada are only declaring part of their purchases, if any at all. This makes them smugglers and therefore law breakers. On the holiday Monday we were in Port Huron, I would guess that somewhere between 25 and 40 per cent of the cars in the shopping mall parking lots had Ontario plates on them. (One of the latest jokes asks.: “how can you tell a Canadian from an American at a U.S. shopping mall? Canadians are the ones changing their clothes in the parking lot.”) Later in the evening, there were long lineups at Canadian Customs of people returning from those day-long excursions. Many were being whisked through, without stopping, so they must have lied to the customs officer by saying they had little or nothing to declare, or fibbed about being over the required 48 hours to get their $100 personal exemption. Of course, they took their chances on being subjected to a random search and having their goods seized or a least charged duty. The gamble seems worthwhile to many people, as even here in central Huron County, more and more of my neighbours are bragging about their U.S. excursions and how they duped the customs people. Although we bought about $150 worth of goods, paid the tariffs and the G.S.T. on them, we didn't purchase any groceries (except for a package of “grits,” a breakfast cereal not available here). Although many dairy and chicken products on the surface seemed to be half the price they were here, by the time one paid 15 per cent exchange on the money and duty, the differences weren't as great (and that's without judging the quality of the products). For instance, a gallon of 2% U.S. milk, (about a cup smaller than our four litre jugs) was $1.59 U.S (about $1.83 Cdn). In Clinton our family buys a lour litre jug of 1% milk for $2.99. Hardly worth the effort of running all the way to the States to save a buck. So, are Canadian consumers paying too much for food such as milk? Without giving you a three page explanation: no. Although Canadian farmers are paid more than their American cousins for raw milk, Canadian retail milk prices are determined by the dairies and the stores, not farmers. Using a complicated formula based on input costs for such things as feed, hydro, taxes etc., Canadian milk producers are paid a flat rate that has only increased two per cent in the last two years, far below the inflation rate. Contrast that to the American system, where the dairy industry is in such bad shape that the U.S. federal government has to shovel billions of dollars of subsidies into it every year to keep it alive, while many dairy farmers live below the poverty line. I have talked to American dairy farmers, and they would just love to have our dairy system there and be able to make a decent living for a change. Many are so despondent they are leaving the industry in record numbers while milk production, once the foundation of family farms, is falling into fewer and fewer hands. Canadians, then, who buy cheap dairy products in the U.S. are doing so on the backs of American taxpayers. Similar scenarios can be painted for other agricultural products, as Canadian farmers must face a world of subsidized agricultural products to the tune of $30 billion a year. Along with having tremendous advantages like economies of scale and volume in a market of 300 million, one of the biggest reasons the prices are lower in the U.S than in Canada is taxes. But because we don't have to live in the U.S., Canadians can have their cake and eat it too. Although it's hard to argue with people who only see the surface advantages, the fact is that those extra taxes on gasoline and cigarettes here go into our eduction and health care systems, and I think that if Canadians could talk to some of the Americans who daily face the threat of losing their life savings and their homes if they suffer a major illness, or can’t come up with the $50,000 to send their children to college, then we would approach taxes and cross-border shopping with a whole different attitude. Maybe the Ontario NDP government has the right idea to even up the rules. Rumour has it that they propose to change the law so that the minute Canadians step across the border, they won’t have any medicare coverage. If you happen to have an accident or become ill while in the U.S., you could face financial ruin unless you pay an expensive premium to a private health insurer. Makes saving a buck on a gallon of milk a little silly, doesn't it? Conservation Day at Dashwood When soil and water conserva­ tion day is held on August 20 it will mark the ninth such event organized by the Huron Soil and Water Conservation District The District was first conceived in the early 1980's by a group of area farmers who needed more technical support in their efforts to adopt conservation practices. The District was organized to co-ordi­ nate the soil and water conservation programs of various agencies, pro­ viding information and assistance that was of greatest benefit to local area farmers. Today the Soil and Water Con­ servation District oversees a co­ operative effort involving the Ministry of Agriculture and Food, and the Ausable-Bayfield and Mait­ land Valley Conservation Authori­ ties. Conservation Day remains one of the major activities undertaken by the District. This year conservation day is being held at Hayter's Turkey Farms, located one-quarter mile west of Dashwood on Highway 83. Like past conservation days, this event is designed to allow fanners the opportunity to view conserva­ tion practices that could be applied in their own farming operations. Tours of Hayter's Farms will fea­ ture no-till crops, nitrate trials, equipment display and demonstra­ tion, and a crop variety trial. Guest speakers will include Jack Rigby, a fanner, and member of the Rondeau Bay Conservation Group, and Peter Johnson, Soil and Crop advisor with the Ontario Ministry of Agriculture and Food. Conservation tillage practices can be defined as any planting or tillage system that retains at least 30 per cent residue cover on the soil sur­ face. Because these practices can be a little different for each site and operator, the Soil and Water Con­ servation District has focused on establishing tillage trials to learn how to use these new tillage sys-. terns in a variety of different condi­ tions. Each year the District establishes trials with a group of co-operators. Data collected from these trials is available to help all farmers establish a conservation tillage system appropriate for their operation. The District's membership is made up of co-operators, and other participating groups and agencies, including OMAF, local conserva­ tion authorities, agribusiness, and the Soil and Crop Improvement Association. For more information on the Huron Soil and Water Conservation District and the services offered why not plan on attending conser­ vation day, or contact the Clinton OMAF office, or the Maitland Val­ ley, or Ausable-Bayfield Conserva­ tion Authorities. — Combines to fit — small budgets Shopping for a combine to fit your needs and budget can be a frustrating experience. We can help! No other dealer knows combines like we do. Our reputation is built on it. Brian McBurney, Sales Rep., Res: 335-3761 We have many combines and platforms to choose from at low finance rates with convenient payment plans Examples: JD 4400 + grain head as low as $1954.00 S.A.* JD 6620 + flex head as low as $4537.00 S.A.* * payment semi annual with 30% down payment Remember, we always start your combine off in the field and our parts and service departments will support you many years after the sale. If that sounds like a good deal... let's talk IMI VEAL PRODUCERS CONSIDER THE FACTS ABOUT SELLING YOUR VEAL AT THE ONTARIO LIVESTOCK EXCHANGE WATERLOO, ONTARIO Please Follow Smokey's ABC's! SALES EVERY TUESDAY & WEDNESDAY 12:00 NOON FACT: Large market, with modern penning reduces bruising and shrinkage. FACT: Every producer or trucker, delivering 10 calves or more, is guaranteed a separate pen further reducing stress. FACT: Strong buyer support from many packing houses giving you the competition you deserve. FACT: Guaranteed same day payment for your veal. FACT: Bonded & Government Inspected scales with NO pencil shrink. FACT: Your calves sell early In the week so they are not held over the weekend before slaughter, which means Buyers will pay more. CALL US AT (519) 884-2082 FOR FURTHER MARKET INFORMATION " WE'RE HERE TO HELP" LARGE SLAUGHTER COW MARKET ON TUESDAY, WEDNESDAY AND THURSDAY WITH BUYERS FROM THE UNITED STATES AND QUEBEC AND SEVERAL LARGE ONTARIO COW PACKING PLANTS JUST MINUTES FROM OUR YARDS