The URL can be used to link to this page

Home My WebLink AboutThe Citizen-Agriculture 2001, 2001-03-14, Page 33WELDING & INDUSTRIAL SUPPLIES LTD. Goderich/Owen Sound 524-5363 1-800-363-5363 OXYGEN ACETYLENE HELIUM BEVERAGES AND IND. CO2 z Join The Blue Zone Miller Blue in Stocki Lincoln SP170 $950 Customer-owned Argon cylinder $225 1275 Gas & Regulator $100 PACKAGE DEAL! M & WS GAS Contract & Victor M.D. Fire Power $425 Customer-Owned CyI, $132= + gas STOP RENTING - BUY AN ASSET 3 - 4 Year Payback • Home, Farm & Commercial Wiring • Pole Line Construction • Winpower Generators • Sommers Diesel Gen Sets PAUL COOK ELECTRIC Paul BELGRAVE 357-1537 HURON FEEDING SYSTEMS THE CITIZEN, WEDNESDAY, MARCH 14, 2001. PAGE A-13. Land prices disadvantaging small-scale operators By Janice Becker Citizen staff As for all businesses, continued viability and the need for growth is one often considered by farmers. However, market conditions and external forces are impacting land prices, putting some smaller-scale operators at a disadvantage. "Competitive areas are seeing stronger prices since last year," said Brian Potter, a local real estate agent who deals largely in agricultural properties. However, those higher prices are putting many people in a position where the purchase of more land is beyond their economic capabilities, he added. "If you are in a strong equity position then you can expand." Potter points out that regions with flatter cash crop land has seen prices rise. However, that land may not be purchased by those strictly in the cash crop business. Current market conditions are put- ting a premium on land where there is a demand by Lange livestock oper- ation that needs more acreage for manure dispersal.- For the properties with which he deals, Potter said good land in the Seaforth to Clinton area can average $4,000 per acre, with it dropping to $3,000 around Blyth and slightly less as one moves north. However, prices to the south have reached much higher ranges by some reports. "The quality of the land and the location are the biggest factors," said Continued from A-12 were given a boost by a partnership with the Ausable Bayfield Conservation Authority, which received a grant from the Canadian Millennium Fund. Bowers approached the ABCA about a part- nership in the project, to which they readily agreed. Applicants could receive up to $300 or 30 cents per seedling this year. However, should less apply, that subsidy figure may have increased. The money is a big boost to the Potter. Though Brain Hall, a soil and crop advisor with OMAFRA, feels land is overpriced, he realizes it is all in one's perspective. "It depends on the enterprise. If you can make use of it because, as a livestock operation, more land is needed for the nutrient management plan, there may be more value than for a cash crop. Otherwise, it may be hard to justify the price." When commodity prices crashed for hog producers a few years ago and crop prices were better, farmers bought more land, said Hall. "Today the scenario is reversed. Livestock is driving the price (of land)." Halls said, "Price does not always determine a purchase. Farmers must determine if it fits into the operation. The land next door may not be avail- able." "Farmers must consider the long- term payback of the acquisition. In any business, owners look at a three to Live-year payback period. In farm- ing that is normally seven to 10 years. Right now, that is even longer.. They need to factor in depreciation." Even for nutrient management plans, owners need to consider the cost of water quality issues, how to properly make use of nutrients with respect for odour and bacterial con- cerns and other environmental issues which might arise, he added. Another factor in land _price increases may be foreign investment, said Hall. "Europeans may be more willing to pay the price if they find a block of land they want. They have substantial capital when they come project. In its first year 25,695 seedlings were planted by 34 landowners. Last year with less money only 15,310 seedlings were planted by 15 participants. "This year we're, hoping for more," says Bowers. In selecting applicants, the council looks for achievement of other goals, and the use of native species. "The application has to show that they have put some thought into what they are going to plant. We have a responsibility to see that the money is spent in a thoughtful manner." and are willing to pay top dollars to set up their livestock production. This makes it difficult for Ontarians to compete." Conversely, Potter believes the flow of those coming from overseas to purchase land in Ontario (and Alberta) is slowing. "The world prices for their land and quotas have dropped." He sees this sector of new farmers looking to property on the east, where costs are currently lower. Hall also sees a shift in agriculture in Huron County. "There has been an increase in 'dairy and poultry barns A Canadian group hopes to devel- op a method for needle-free vaccina- tion of livestock. The Veterinary Infectious Diseases Organization (VIDO), of Saskatchewan, has received funding for the project from Agriculture and Agri-Food Canada's Canadian Adaptation and Rural Development (CARD) fund through the CARD councils in five provinces. Ontario's Agricultural Adaptation Council has committed $300,000 to the $1,800,000 three- year project. Vaccinating livestock is of critical importance to livestock producers. It's a cost-effective way to improve livestock production and reduce ani- mal suffering and death. Most vac- cines are delivered with a needle, but this method is not without its prob- lems. No matter where the needle is inserted, there is a reaction and the result is reduced meat quality at the Information on the project can be obtained by contacting Bowers at 482-3428 or checking the web site at www.bmts.comf-huronstew and they are moving out of areas where land availability is tight." Consideration for provincial com- petition may be variable in continued high land prices, said Hall. Manitoba and other western provinces, which are getting heavily into hog produc- tion, are low cost producers. "Ontarians are tying up so much in capitalization, they are raising their cost of production." He cautions farmers to be aware of the tight margins in agriculture as it is the low cost producer that can weather low price periods. Though site. There is also the potential for broken needles. Lorne Babiuk, director of VIDO, says the goal of this project is to cre- ate a vaccine-delivery system that eliminates needles completely. "If Canadians have needle-free vaccines and the rest of the world is still using needles, we will have a significant advantage in regards to quality and- safety in our markets." While the VIDO project is focused on food-producing animals, Babiuk believes there are implications for the recent hog industry crisis may have weeded out some of the less efficient producers, Hall said eventu- ally the top notch producers will be hurt. "Even they can only last so long (under high capitalizations costs)." Though Potter foresees a softening of the market, because of world con- ditions with regard to the availability of land and the cost of such property, he believes those who have the money will continue to control pric- ing. human vaccination. The contribution from Agriculture and Agri-Food Canada's CARD fund is being shared by five CARD coun- cils, based the size of the livestock sector in each province. The Agricultural Adaptation Council's CanAdapt program and the Agriculture and Food Council of Alberta are each contributing $300,000; the Manitoba Rural Adaptation Council is contributing $115,000 the Saskatchewan Council Continued on A-14 grant dollars boost program Needle free vaccine in development "20+ Years as grain specialists" Bus. (519) 887-6289 JOSEPH SEILI Fax (519) 887-9500