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Huron Expositor, 2007-11-28, Page 2Page 2 The Huron Expositor • November 28, 2007 News Livestock farmers need to do soul searching about whether they can stay in business From Page 1 one of those junctures where they have to start to consider whether the entire industry is going to continue in any size, r - way, shape or form," Thompson says, noting this is a result of prob- lems on both sides of the cash flow equation - higher input costs and lower prices on the sale side. "On one side they would appear to be looking at structurally higher input costs for feed grains driven by ethanol and the whole food versus fuel debate," he says. Thompson says this represents a fundamen- tal shift in the dynam- ics of the whole feed grain industry. "We're in a new dimension because the ethanol demand is something that simply and permanent plateau because of the demand for product by the fuel business." On the sale side, the recent strength of the Canadian dollar is taking its toll. "Because livestock and swine are both `Because livestock and: swine are both very export reliant and our chief export recipient is .the U.S., they're looking at what is, to use the vernacular, a double whammy ,'-- HFA president Stephen Thompson did not exist several years ago," he says. "We don't know whether the feed grains are going to be at a new very export reliant and our chief export recipient is the U.S., they're looking at what is, to use the ver- nacular, a double whammy," he says. Falconer has watched the prices drop. "In the spring, dress weight on a cattle beast was at $1.80 and ,right now We're look- ing at $1.18, he says. Thompson says there will be a lot of soul searching in the live- stock and -swine sec - j tors over the winter, with people wondering if they should plant feed crops for their animals or conclude that livestock and swine are history. He says people will be deciding if IN\IESrFMENrT O ider these rates' Term 10—Year 7—Year 5 — Year 4 — Year 3 — Year 2 — Year Subordinated Debentures Interest Paid Annually $.00% 7.25 % 6.50 6.25 5.75 % 5.50 % Demand Loan Certificates (Interest Paid Monthly) An rates are subject to change. Foe further Information about your investment opportunities with HDC, access our website at www.hde.ou.ca Interest Paid Monthly 7.50 % 6.75 % 6.00 % 5.75 % 5.25 % 5.00 % 4.00 % HENSALL DISTRICT Cts -OPERATIVE, INC. Ontario's largest agricultural co-operative. HDC has successfully offered investments to its members for 70 years. HDOdebentures arc issued at no commission charge to investors, provide fixed income to your portfolios and are not RRSP eligible. ENSALL !STRICT O -OPERATIVE Proud to be farmer -owned This advertisement is neither an offer to sell nor a solicitation of offers to buy any securities. The offering is made only by the prospectus. Investors should read the prospectus carefully. HDC debentures arc not covered by Canada Deposit Insurance. 1 Davidson Dr. P.O. Box 219 Hensall, Ontario NOM 1X0 (S)9) 262-3002 vyww.hdc.on.Ca they're going to take advantage of the higher prices in the feed grains market. "It's going to bea difficult decision for all concerned," he says. Falconer speaks of a more funda- mental question, saying the provin- cial government needs to under- stand how serious this is for him and others in the sector. "I grew up on a farm, so I want to farm. We grew up with it, we want to do it, so help us out and let us do it," he says. "But the way it's going now, farmers cannot make a living." He says that if farmers can't make a living on the farm, they'll be forced to compete for jobs. He says that's already happening to some extent. "You've got guys who want to farm but go to work for eight hours or have shift work, then come home and do the farm," Falconer says. Thompson says that beef and pork will receive indirect assistance through the Risk Management Program developed for the grains and oilseed producers who have been hurt by the U.S. farm bill that subsidizes the American grain and oilseed sector. "Grains and oilseeds producers are paid deficiency payments, but the extra corn that they produce and beans they produce are ableto be purchased by feed users like live- stock people at a lower price," he says. As far as direct government help, he says, "I can almost predict that there's going to be some sort of assistance for cattle and hog p o- ple." Even with help, Thompson ays there would still be permanent structural problems that people will have to face, among them the high- er feed prices driven by demand for ethanol. As it is, Falconer says, "It's coming to the point where I ask, 'How long do I do this?'" HuronEastto hold special meeting to decide on FHT building tender Susan Hnndertmark Tenders for a new building for the Huron family health team (FHT) in Seaforth were tabled by Huron East council at its Nov 20 meeting. The decision about which struction firm to use was expected to be made at a special council meet- ing scheduled for last night (Nov 27). "We thought we'd better look it over very carefully," said Mayor Joe Seili. M a r k l e v i t z Architects have recom- mended that a tender for $1,963,122 be accepted from Smith Construction for the project that is now being referred to by council as the "addition to the Community Care Access building." Three other tenders were received including one for $2,005,520 from Domm Construction, $2,107,280 from Feltz Design Build and $2,178,300 from Vanden Heuvel Construction. Seili invited councillors to view the building designs received at the municipal offices before Tuesday's con - special meeting. Tuckersmith Coun. Les Falconer asked that the ownership of the land be transferred from the Seaforth community development trust to the municipality before the building begins. "Did you not run into a problem before that you thought you owned land that you didn't?" he asked. Seili pointed out that the development trust is responsible to the municipality. "That's why you get their minutes. You didn't for the first few years but that was changed three years ago," he said. "Hopefully, they'll always be responsible to us," responded Falconer. McKillop Coun. Bill Siemon asked if Huron East has arranged for "solid tenants" for thebuilding yet. Seili replied that the family health team professionals will be the major tenants and "we have a couple other tenants we're wooing." He said he would "try his best" to have an answer from those potential tenants by last night's meeting.