The URL can be used to link to this page

Home My WebLink AboutThe Citizen, 1995-03-01, Page 19MAKING CAPITAL INVESTMENT DECISIONS Proposed Expansion (10 more cows) A) Assumptions • New Loan - $93,700 • Amortized - 10 years @ 11.5% New Loan Includes: ($29/kg) Before After -) 2,800 kg of used quota -) 10 cows @ $1,250/head # of Cows 36 46 Quota (kg) 10,127 12,927 Litres of Milk Sold 266,370 340,160 Revenue $184,507 $228,781 Expenses - $136.619 - $162.445 = $ 47,888 = $ 66,336 New loan (P+I) 0 - 15.638 Net Income after new loan = $ 47,888 $ 50,698 Proposed Expansion (20 more cows) B) Assumptions • New Loan - $262,632 • Amortized - 15 years @ 11.75% New Loan Includes: -) 5,608 kg of used quota ($29/kg) -) 20 cows @ $1,250/head -> barn renovations @ $75,000 Before After # of Cows 36 56 Quota (kg) 10,127 15,735 Litres of Milk Sold 266,370 413,950 Revenue $184,507 $273,055 Expenses - $136.619 - $188.272 = $ 47,888 $ 84,783 New loan (P+I) 0 - 36.761 Net Income after new loan $ 47,888 = $ 48,022 Extra Value That Really Measures Up REE* P PLUS C VAL,V1fii35,4., 'ORDER 16010 LUBE OIL BEFORE MAY 1ST AND GET THIS 7.5m/25' ARROW HEAVY DUTY RULE SIPPUES LAST. (RETAll. VALUE 619.951 vvv\i' These are just a few of the many quality products available from your Petro-Canada fuel and lubes associate. He understands farming and knows how much you depend on your equipment. For reliable service and quality products. look to Petro-Canada. Contact your associate now for special prices on all your lubricant needs. including Super Plus 15W40 Motor Oil. Duratran Transmission-Hydraulic Fluid, Gearlube TOS, Automatic Transmission Fluid, Harmony HVI36 and Precision EP2 Grease. BOB FOXTON FUELS LIMITED Wholesale Marketer 50 North Street West, Wingham, Ontario NOG 2W0 Tel: Wingham 519-357-2664 Tel: Walkerton 519-881-1481 Toll Free: 1-800-265-3069 rt 160.3 SUPIEF4 PLUS 7*. —catxGvVat' 51.°°.55soc,01*- ggs Sy 7.0`9 O O'i4S41k .toy ILLIS Pr" Atii _— Lubricants as NO,V• •,••••••,.. • •• P•Iff, CAM1.(13 •')(16••••• THE CITIZEN, WEDNESDAY, MARCH 1, 1995. PAGE 19. Dairy producers look to smaller herds in future By Bonnie Gropp The future of the small farm was one of the main issues discussed when the Huron County Milk Com- mittee held its annual meeting, Feb. 22 at the Brussels Legion. In his report, Dennis Martin, the dairy advisor with OMAFRA, dis- cussed herd expansion. "In the future the focus is going to be on smaller herds and as to whether or not these producers are going to be able to compete in the next five to 10 years." He said there are some very "real" questions that producers are going to ask themselves. "Should I increase the herd, stay where I am or get out of the industry?" Before deciding to increase the herd, producers need to consider many factors, such as whether or not this will increase the labour expense. "If (you) increase the number of cows can you do it with- out increasing staff or will you have to hire someone for part-time or full-time?" Mr. Martin said it is imperative that producers consider their finan- cial commitments. "Just raising a family can be quite a commitment on the net farm income," he said. "I don't have the answers, but those are the questions," he said. "Though I must add that we have many operations with 30-40 cows that are proud of it and making good money." Eric McLeod The issue of quota Eric McLeod, a field man with the Ontario Milk Marketing Board said the year has been highlighted by the move in August to single quota, something, he said, that could not have been accomplished as smoothly 10 years ago. Mr. McLeod talked about the increases in quota, the first in Continued from page 18 everybody," he says. About 75 per cent of people will try it enthusias- tically, a few more will take it if they're urged while some just won't touch it. Ms McQuarry suggested in future there may be agri-tourism programs in most of the agricultur- al counties of southwestern Ontario Continued from page 18 present 4-H participants and their families at the Ontario Agricultural Museum in Milton. "We're very excited about the Anniversary weekend," said Ms Harris. "The whole thing is possible through the generous sponsorship of many organizations and individuals. 4-H has touched many, many lives during those 80 years." Some of the events scheduled for the Anniversary weekend include: a reunion day, photo contest, baseball tournament, rural Olympics, family barbecue and September of 1993 of 2.5 per cent, then a temporary increase of 2.5 per cent in December, which became permanent this past August. "After low production lev- els in August, September and Octo- ber, producers reacted to theses increases in quota quickly, filling 101.2 per cent of the provincial quota." Mr. McLeod noted there were refunds in November up to 108.5 of a producer's MSQ. Subsidy was paid to 98 per cent. Ontario's production increased by 3.76 per cent. Sixty-one and a half per cent of the producers were overquota, Mr. McLeod said, com- pared to 66 per cent two years ago and 83.5 per cent the year before that. He said that Huron producers shipped 103.5 million litres of milk in 1994, which is an increase of 8.3 per cent. "I would imagine that is the most milk shipped out of here ever. " With 345 producers in the county that averages to about 300,000 litres per licensed produc- er. "Production can not continue at this level or there will be a huge balance of overquota," he said adding that that will mean a reduc- tion of credit for overquotas. "It looks like there will be 80-85 per cent over and if that's the case there won't be much for refunds." The policy for refunds has changed from the previous year, Mr. McLeod explained and may change again. To be eligible a pro- ducer must have had continuous production for a year and meet all maintenance requirements. Producers shipping over 50 per cent of their quota in the first six months of the dairy year get first chance of refunds on the milk they shipped over 50 per cent. If there is still money available, then refunds will go to eligible producers who overshipped in the last six months of the dairy year. "At this point (of the dairy year) I would be surprised if we get through the first group of produc- ers," Mr. McLeod said. Due to single quota, subsidy pay- ments have changed this year. Mr. McLeod said the MSQ portion of Ontario single quota is 52.9 per cent. As there is a four per cent sleeve, subsidy entitlement is 96 per cent of 52.9 per cent or 50.8 per cent. Producers will have 90 per cent of their subsidy entitlement avail- (a similar workshop was held in Oxford). Huron, with its promi- nence in agriculture and its tourist attractions such as the lakeshore and the Blyth Festival, is a natural to join the movement, she said. "Entertainment farming is one of the fastest growing areas in the U.S.," she said. numerous displays by organizations from across Ontario. Copies of the new book, Head, Heart, Health, Ilands: A History of 4-11 in Ontario, will also be available for $25. The Ontario 4-H Council was incorporated in 1990 to provide leadership to the Ontario 4-H program and is a member of the Canadian 4-H Council. • 28 per cent of Canadian teenage girls and 40 per cent of women in their 20's use tobacco every day. Smoking is used by some females to control weight. able from August to June 30. The maximum subsidy entitle- ment for a sole owner is 18,000 kg of MSQ. Any producers with a sin- gle pool quota of roughly 36,000 kgs should apply for subsidy beyond a single owner, he added. In conclusion, Mr. McLeod warned producers that they are going to have to give consideration to their plans for the future. "With the way milk's flowing quota prices are going to be high," he said. He said they will need to look at culling and feeding and decide whether to ship over quota or buy more. "I expect we will see some dis- persal," he said, adding that some producers have already decided on this. Farmers need to speak out MPP Paul Klopp told the dairy producers that they need to make their point of view heard. "I believe farmers have the right to make the same money as the head of Ault Foods." He suggested they push their politicians to ensure they get fair profit. "We (the NDP) have made a commitment to the importance of the agricultural industry." Commenting on free trade, Mr. Klopp said that it would be best now that it's here to try and make it work. "We have made it clear that a line must be held. It's hard when it seems that every time we win, we lose, but don't hold back your view- points. If we don't speak out on what we want, we'll end up losing by default. I am committed to mak- ing sure your voice is heard." Mr. Klopp urged farmers to not be afraid to question the necessity of some new technology and issues such as BST. "We have an industry with the ability to make a profit. My col- leagues don't all understand agri- culture, but they do understand small business. Don't sit back, work to make your points of view heard." *** Nominated to serve on the Huron Milk Committee were Jim Ginn and Stu Steckle. Delegates for the Ontario Dairy Herd Improvement Corporation are Heinz Claus and Bob McNeil. Alternates are Abe Versteeg and Steve Hallahan. Agri-tourism is key 4-H council plans anniversary events