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HomeMy WebLinkAboutHuron Expositor, 2002-03-20, Page 5Government • assistance will help farmers get planting By Scott Hilgendorff Expositor Editor About $195 million in a • one-time payment from the federal and provincial governments will help :Ontario grain and oil seed farmers but it's still not enough to compete against the American market and its higher subsidies, says the Huron County Federation of Agriculture. "Most farmers will be happy with the contribution," said Wayne Hamilton, Huron South director with the Huron federation. The Ontario Federation of Agriculture ' was among ' f a r m organizations originally seeking $900 million from the federal government • but are being given $500 ' million while • the provincial government announced farmers have a fairly considerable amount of off - farm income," said Hamilton, whose wife works part time at Clinton Public Hospital as a laboratory technician. "I have 500 acres and nowhere near the income to support a family," he said. He farms in the Varna area. But Hamilton said the provincial and federal relief now provided will help reduce that impact when those funds are eventually spread into the local economy. And the federation is still pushing for the missing $400 million they were hoping to get from the federal government. The OFA said $900 million in addition to existing subsidies and relief programs that already help offset the low Quoted 'I have 500 acres and nowhere near the income to support a family,' -- Wayne Hamilton, Varna area farmer last week it would be giving farmers in Ontarion $90 million more. Ontario farmers' will see $105 million of the $500 million although it is not known how that portion will be " distributed. The provincial portion will come through the Market Revenue Insurance program. Hamilton said the money has come at a time when the ' farmers. struggling to make ' a living, have cut back to the point where it is impacting ' local economies. • Farmers are not spending money on equipment and some, said Tuckersmith Township farmer, Bob Fotheringham, are looking at using seed still in their bins, rather than buying new seed ' from producers. Hamilton and Fotheringham both said this is going to impact local economies when those who earn thEir living by farming and supplying farmers also end up with less to spend in area stores and on area services. Fotheringham said this year, farmers are facing record costs to get crops in the ground because fuel costs have risen significantly since last summer and the cost of fertilizer has doubled since last year. "It's certainly going to • help a lot," he said of the additional funding the two I. governments have provided. f; He also said grain prices arc dropping because of r' fears of hoof and mouth disease and the destruction of European cattle resulting in lower needs of grains for ').food. "If it ever gets to Canada nor the U.S., we're really doomed. It's pretty scary," he n! But despite tough times, Fcirtheringham said he I, doesn't now of any farms that have shut down and said ,any farm auctions lately have been of those retiring Acbut not from farmers who ,,,can no longer afford to keep 'their farms. One of the ways they are "still able to survive is t tbecause of the high number ?Who have second jobs or ''have spouses and children that work. "Eighty per cent of the prices paid for food is needed to help compete against United States markets where farmers receive greater subsidy levels. Hamilton said another $400 million would cost tax payers about $12 per person which he said is not very much to add to a person's grocery bill when food prices are as low as they are. He said the public is gradually becoming more aware and supportive of the pricing issues facing farmers and realize the food they buy is inexpensive. However, he said he still runs into' people who complain that they have just spent more than $100 on groceries but when he looks in their carts, more of the items are actually products like laundry detergent or dog food, which is higher priced than produce or breads and cereals. He thinks most people would be in favour of additional support for farmers in exchange for the low cost of their food. Farmers are also able to apply for a $50,000 interest free loan to help them plant this year but Hamilton said having crop insurance is a requirement for the loan and those farmers that don't have any would be spending the money they would save on interest payments to get the insurance so it doesn't amount to much help for some. Others would be saving only between about $1,000 and $2,000 by not having to pay interest because the loan is paid back in stages, as crops are planted and •harvested, giving farmers access to the full amount for Tess than six months before it has to be paid back. , Despite the need for more help and the negative impact it is, having on local econmies, Fotheringham said farmers are still surviving. "It hasn't gotten down to the point it's forcing farmers off the land," he said, although this is a year where farmers are wondering if it wouldn'i be cheaper to take a loss now by not even planting crops and leave the land bare. 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