The Huron Expositor, 1998-03-18, Page 21There could be a decline
in agricultural workforce
by Tracey Doerr
An
aging farming
population and
tougher loan
requirements could mean
the province of Ontario
will see a decline in the
agricultural workforce.
There are many issues
deterring young farmers
from taking on the agricul-
ture business, said Pat
Kuntz, agriculture and
rural representative for
OMAFRA. Some of those
include the high cost of
living, the commitment
and the high cost of get-
ting started.
"You can invest $1 mil-
lion into building costs
and find the farm doesn't
generate enough of a prof-
it in the first couple of
years," said Kuntz. "How
someone young gets start-
ed... It's very difficult."
According to Kuntz,
farmers just starting out in
the business may face
some difficulty in obtain-
ing financing.
Lending institutions
will give farmers up to 65
per cent of the value of the
quota they wish to pur-
chase but the other 35 per
cern must be obtained by
the farmer himself, he
said. The loan period can
also be a problem as the
amortization period is usu-
New farmers
may face
difficulty
in obtaining
financing.
ally only five years for
quota.
Often established farm-
ers have a much easier
time obtaining loans
because they can get the
35 per cent equity from
assets they already have.
"It affects the small
guy," said Kuntz.
Other farming options
include commodities such
as sheep, pork and cash
crops in which there is no
guaranteed market so
farmers must compete
constantly with the supply
and demand. Non-tradi-
tional markets such as
white tailed deer, emu and
ostrich are other options
that people consider but
Kuntz stresses they should
do their homework first.
"People have to look at
the marketing of these
exotic commodities before
production. If they do it
the opposite way, they'll
likely lose money. Some
people do have expertise
in these non-traditional
Peace of mind
• from page 4
are directing your own
assets upon your death."
Gaunt outlined things
to consider when trans-
ferring the family farm:
cORmitnication at all
times, 1( goals, analyze,
strucit"ies, timing, mar-
riage contracts (which
can be a delicate area)
and power of attorney in
case of incapacitation.
Methods of transfer-
ring the family farm
vary: outright sale, sale
with mortgage back,
agreement for sale,
promissory note, option
to purchase, buy/sell
agreement, transfer by
gift, transfer by bequest.
Basic structures can
include sole proprietor-
ship, partnership includ-
ing how to resolve dis-
putes, and corporations
which :is most complex
iniad common on large
fiiltams where family
mtntbers own shares.
Keeping your family
name on the mail box is a
complicated process.
Gaunt suggests getting
help from an accountant,
a bank manager or some-
one in financial planning.
You'll need help in sort-
ing things out.
fields or they learn
through self-interest
groups," said Kuntz.
Getting involved in the
agricultural business can
be made easier if the
farmer has income from
another source.
"What has been on-
going for the last 20 years
is farmers who keep their
off -farm income until the
farm is established. It can
take two to 20 years to
establish a farm and that
depends on the commodi-
ty you choose and the
markets at the time you
enter."
Kuntz said he's known
farmers who have built
and paid for swine facili-
ties in the last two years.
Those farmers got into the
market when it paid $2 a
kilogram. He said a break-
even point would be $1.60
a kilogram but currently
pork is worth only $1.38 a
kilogram.
"If you started now
you'd be in a negative sit-
uation where you'd just be
adding to the debt."
Anyone wanting more
information about getting
started in the business
should call the OMAFRA
office in Walkerton at 1-
800-265-3023.
Greener Pastures
In the battle for conser-
vation, farmers are fiht-
ing for the environment.
For the past four years
Ontario producers have
participated in more than
200 on-farm demonstra-
tion projects aimed at
enhancing fish and
wildlife habitat in ways
compatible with sustain-
able farming.
The projects, ranging
from protecting streams
and improving habitat for
fish and wildlife, were
sponsored by the Wetlands
Woodlands Wildlife
(WWW) program which
provided funding and
resources to producers
who volunteered land for
the project.
Farm Progress '98 - Pape 5
N & L FORMING
LIQUID STORAGE TANKS & BASEMENTS
Free Estimates
R.R. 2 Grand Bend
238-1225
;iu Inventory Clearance;
Of
newaouanD New Equipment ntwNatnw
NH7740 SLE 2WD
86 H.P. 16x16 power
shift trans. End X44,900
of
.
of model clearance.
NH7740 SLE 4WD
86 H.P. 16x16 trans.,
demo. End of model.
"Clearance Priced"
NH644 A/W WIDE PICKUP '
NH 166 WINDROW
Inverter.
Cash & carry.
LEASE FOR LESS
3 yr. lease at $261.25 per mth.
O.A.C. plus applicable taxes
requires down payment
$562.52 plus taxes