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HomeMy WebLinkAboutThe Citizen, 1991-10-16, Page 17THE CITIZEN, WEDNESDAY, OCTOBER 16 1991. PAGE 17. Speaking of Farming By Jim Fitzgerald Make cropping pay Feds kick in $800 million to help farmers in crisis Most of you are likely familiar with the so-called Chinese water torture test. That's where a person is tied up, and water is dripped one small drop at a time on their forehead with precise regularity. Waiting for each drip becomes so excruciating, that the victims willingly confess to any impropriety. Each drop, you see, is by itself completely harmless, it's the accumulation that hurts you. When I ran my own small business full time, we called it being "nickeled and dimed to death". We never lost money on major items, but it was all those little things that went wrong that seemed to eat into the profits The latest farm crisis for Canadian producers of grains and oil seeds over the last eight or nine years is something akin to thaCwater torture. The prices inch down in small increments — nickels and dimes — until we have reached the point where farm incomes in those sectors are falling far below expenses needed to grow the crop, leaving little for living costs, let alone a return on labour and investment. The federal and provincial governments have come through with last minute emergency assistance packages of about $850 million. Farm groups, trying not to appear as if they are looking a gift horse in the mouth, are grudgingly saying thanks and quietly pointing out that it's not enough. And they're right. The new money will only stop the haemorrhaging temporarily, but won't keep many in business. Even the new jointly funded government-producer programs, set to kick in next year, are far from adequate. The new GRIP program will only cover farmers' prices to the 1985 level, while expenses have risen to 1992 levels. How many of us would put up with living on 1985 incomes? So, what is the answer? Canadians, especially those from the Prairie provinces, have been told for generations that we were the bread basket of the world with three out of every four bushels of wheat grown sold on the export market. In the last decade, this has been reinforced by reports that the world population, now over five billion persons, is exploding by some 90 million souls a year, with many of them dying of starvation. But do those people want our wheat, com, and soy beans? Are they even part of their diet? With incomes far below ours, can they afford to pay enough to keep our farmers in business? Douglas Mutch, director of economic research for the Livestock Feed Board, a Crown corporation, addresses the first presumption we hold dear: is there a world food shortage? Writing in the latest edition of the Board's Grain Facts ,Mutch contends that the global food demand has not increased as much as was projected in the mid 1970s, while food supplies have exceeded expectations, because of factors such as increased yields better technology, mechanization, and increased feeding efficiencies. He points out that while global grain acreage in 1990 was the same as 1967, output has increased 70 per cent, while meat output is up 120 per cent. Continued advances in biotechnology and techhological transfers will mean grain yields will continue to increase in the foreseeable future, Mutch contends, and that will result in continued excess grain production capacity for years to come. As well, most importing countries are striving for national self sufficiency. Mutch says that with a few exceptions, only those countries with a significant trade surplus of non-agricultural products can afford to be a net importer of food. To which I might add, look out for all those former communist countries, whose farmers, once they get their act together, will be able to flood the market with cheap grain. All these questions are in need of answers, and about the only good thing to come out of the farm crisis, is that we may get them answered once and for all. That will lead to some solutions to truly address the problem. It’s obvious that the Canadian government, carrying a huge deficit from subsidizing other sectors of the economy, doesn't have pockets deep enough to subsidize grain growing for the export market at a level high enough to keep farmers in business. Although the public is sympathetic, farmers are so few in number that the latest interest the media has in the farmer's plight will soon end, and they'll move on to other stories. So it's up to farmers to sit down and put their own house in order. The same chaos faced the dairy and poultry sectors 25 years ago. Plagued by low prices, high debt loads, bankruptcies, and despair, farmers decided to end the lunacy and match domestic supply with domestic demand. Maybe it's time that grain, pork and beef farmers did the same thing, and quit deluding themselves that they can be "world competitive" and make a decent living al the same time. After nearly two months of inten­ sive lobbying, demonstrations, and desperate pleading, Canadian grain and oil seed farmers will finally receive an $800 million relief pack­ age from the Federal government. While farmers agreed the new money will help, Federal agricul­ ture minister Bill McKnight's announcement last Thursday won't go very far to address the depressed prices for wheat, spring grains, com and soy beans, which were at 15 year lows. The “Line in the Dirt” grass roots farm movement, which was started by farmers in the Lucknow area, is still concerned that Ontario farmers get their fair share of the new money, and had planned a demon­ stration and meeting in Dresden on Tuesday night. So far, there haven't been any indications of how or when the money will be paid out, and all McKnight would say was that it would be “before seeding next spring.” And that has many farmers and farm leaders concerned that the money won't be enough and won't come in time to save thousands of Canadian farmers who are on the edge of bankruptcy. McKnight said that of the new money, $700 million will go to grain farmers, and $100 million will go to producers of horticultural crops. Canadian grain farmers have been caught in the crossfire of an international grain trading war between the United States and the European Common Market. A feel forjudging A judge gets in touch with a lamb at the Huron-Bruce 4H lamb and calf sale at Brussels Livestock Saturday. 4H club members from across the two counties showed their projects inthe morning, then had them sold in an afternoon auction. Jack Riddell wins award for ag. contributions A former member of the Ontario Legislature and minister of agricul­ ture and food, Jack Riddell, was chosen to receive the Huron Coun­ ty Award from the Huron Federa­ tion of Agriculture at their annual meeting Friday night. Mr. Riddell, who served as MPP from 1973 to 1990, was minister of agriculture from 1985 to 1989. He was taken by surprise when the announcement was made by regional director Bob Down of Usbome township. He called Mr. Riddell a person who grew up with agriculture along side his dad Keith, who was a long-time agri­ cultural representative for Middle­ sex County. "Jack was an ag rep and farmer as well, and was also concerned about the plight of the industry throughout his 17 year political career," Down said. Ip other business, Brenda McIn­ tosh of Tuckersmith township was re-elected to her second term as president of the Federation, while Bill Wallace of Tuckersmith is the new first vice president and Nathan Peel of Tumberry is the new sec­ ond vice president. The six direc­ tors at large are Tom Hayter, Stephen Township; Gerald Johns, Fred Hem and Merlon Brock from Usbome; Jody Durand, Hay; and Ken Scott, McKillop. Stephen Thompson of Blyth was reconfirmed as the auditor, and fieldman Blaine Stephenson gave a rundown of the past year, which was an extremely busy one for the Federation. One resolution was approved and will be forwarded to the Ontario Federation for approval at the provincial level. It wants all farm­ ers to boycott this year's Ontario Ministry of Agriculture and Food Outlook Conference in November. Members felt this year's annual conference is putting too much emphasis on organic farming and environmental concerns, without discussing what area farmers are more worried about this year: the farm financial crisis, and manage­ ment and marketing techniques. Guest speaker John Core, chair­ man of the Ontario Milk Marketing Board, warned the 150 producers that a deal is about to be struck at the General Agreement on Tariffs and Trade (GATT) talks in Brus­ sels, Belgium, and Article 11, a special clause to protect supply management may be traded away by Canadian negotiators. That spe­ cial clause protects Canadian dairy and poultry farmers from unfair outside competition, while match­ ing domestic supply to demand under marketing boards. He also said that the current cri­ sis in the grains and oil seeds sector is the same chaos that faced the dairy and poultry sector before they became organized under marketing board 25 years ago. “Maybe it's time we worked together to make those sectors that are hurting return a fair return to producers as well,” Core said. CHECK US OUT or special cash rebate, financing available Our ATC's start $3,669 Dairy, poultry farmers worry about GATT BY JIM FITZGERALD As if things weren't tough enough for some sectors of the agricultural production, now other sectors are worried about their future as well. While producers of grains and oilseeds are being hit by low prices for their crops because of an inter­ national grain trading war, dairy and poultry farmers are now becoming worried about their future as well. More than 500 of those dairy and poultry farmers decided to go on a province-wide lobbying effort to protect their industry, following a meeting recently in Mississauga. It's all because of the negotiations taking place in Brussels, Belgium on the General Agreement on Tar­ iffs and Trade (GATT). Canadian farmers are worried that they may lose their ability to control the domestic supply and price of dairy and poultry products when a new trade deal is negotiated this fall between the 101 countries in the GATT. Dairy and poultry farmers cur­ rently are able to set prices for their products and control the supply to match the demand within Canada, based on a cost of production. That has given those farmers 25 years of stability, and they’re fearful that if that protection is removed under a section of the GATT rules called "Article XI," then those farmers say the country would be flooded with cheaper, subsidized American products. The subsequent potential loss of the $3 billion in farm gate revenue would wreak havoc in rural areas and force many farmers out of business, farm groups say. During October, producer repre­ sentatives will meet with all federal Members of Parliament from Ontario, and are asking all produc­ ers to write to selected federal min­ isters. The joint lobby effort by the Ontario supply management boards includes the Ontario Cream Pro­ ducers Marketing Board, the Ontario Milk Marketing Board, the Ontario Chicken Producers Market­ ing Board, the Broiler Hatching Egg and Chick Commission, the Ontario Turkey Producers Market- Continued on page 23 Kawasak