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HomeMy WebLinkAboutTimes-Advocate, 1986-03-19, Page 20foga 8A • T1nait•Adv9cate, March 19, 198& • Red wheat producers to get interim payment on 1985 crop Producers who delivered hard red Pool A will not see a payment as soon. wheat to the Class B pod will be This is due to the record 1985 crop, receiving an interim payment for the present carrying of inventory and 1985 crop. • world wheat prices. Growers of white • wheat could see a payment in late spring, providing further sales are made. Holmes reported that the producer sales of 6 428 tonne of red wheat will all be sold for domestic purposes in blends for bread and cracker pro- • ducts. This is compared to the over 8g7,000 tonne of white wheat, where 25% of the crop is used domestically, and 75% is exported. Under Canada's domestic wheat policy, any wheat sold for domestic human consumption is priced bet- ween a maximum of $257.00 per tonne, or $7.00 per bushel, and a minimum of $184.00 per tonne, or $5.00 per bushel. Production of hard red wheat for the 1986 crop, could increase four to five fold, and the market acceptabili- ty of .hard red winters and hard red spring wheats will determine the The Ontario Wheat Board has an- nounced plans to make an interim payment to red wheat growers of the Class B pool, -in the amount of $44.00 per tonne, or $1.20 per bushel, fpr pro- ducers delivering to the pool between July 1, 1985 through to February 28, 1906. Final payouton the pool will not be known until September 1966. Board chairman Robert Holmes, RR 2 St. Pauls, said plans to make the payment will be made the first week of March. He stated that the payment is in ad- dition to the $120.00 per tonne, or $3.25 per bushel, already received by pro- ducers when they delivered to the local board. Holmes emphasized that the pay- ment to the 78 growers of the pool is for red wheat only, and the over 15,000 growers of white wheat delivering to sales and final prices for the 1986 red wheat pool. 1n 1984, the local board carried a red wheat pool, where approximate- ly 2,944 tonne were delivered wand growers received $197.08 per tonne, or $5.36 per. biubel. the handling of hard red winter and Chairman 'Holmes also reported hard red spring wheats. that the local board will be holding The chairman encourages all pro - three red wheat marketing informs- ducers to attend onepf the meetings. tion meetings to advise producers of closest to them. Ttfe meetings are the local board's policy concerning scheduled for Tuesday, March 25, 1988 Winter, no matter how many dirty snowbanks are still around, has had its back broken and perhaps that's why the mailbag is full again. A letter from Walton, near Clinton stands out. The writer, B.N. Whit- more, chides me for suggesting that there are still too many farmers in Ontario. I checked the last half-dozen col- umns and nowhere could I find that exact statement. I did write that there may be too many hog farmers in On- tario but I was quoting another writer when I wrote it. Mr. Whitmore, though, says I show a lack of understanding of basic natural law. "You can dispossess or even shoot every farmer except one and the pro- blem will not have improved one iota. Food, ;NOT the farmer, has a very basic function to" serve in the • economy. Food from the agricultural sector has to be properly paid for so that credits are established to buy production of the industrial sector. Natural law indicates that there must be reciprocal flow between the two sectors as though basic barter were in effect. "Moving a few farmers into town merely moves their personal needs to town with them. Their farms will still be growing as part of a bigger unit. That food still has a cost and it must be paid for.. o.tbat the food can_buy, Farmers Book Now to have your spring seed grain custom cleaned on your own farm. Oats, Barley, Rye, Wheat,Mix- ed grains, Soya and Whitee Beans. Call Jim McLachlan 519-232-4454 Your area contractor for NADIAN MOBILE ED CLEANING LTD. the production of the industrial and service sectors which division of labor has created. Since all raw materials come from the ground (from God) and 70 percent of these come from agriculture, it should be apparent that "cheap food" has simply reduced or eliminated incomes in the industrial sector. "We see political attempts to disguise this fact by the provision of welfare, unemployment insurance, subsidies, grants (for both corpora- tions and farmers), rent controls and tax incentives, etc. These handouts are designed to keep the natives from _ getting too restless! pesides, it is not a nice political fact to see the homeless and starving lined up at food banks in Toronto. "Hence, we have a political pro- blem, not an agricultural one." Thanks for the letter and thanks to a few dozen other people who have written in the past few weeks. I figure now that the land will soon be dry, enough to work, the letters will stop coming. Readers will be too busy to write. However, if you feel like it, the address is 5 Eldale Dr., Elmira, Ont. N3B 2C7. Getting back to Mr. Whitmore, he may be correct that the present distress in agricultur is political. And he paints a delightful picture of Utopia: Give the farmer enough money for his product and everything will come up roses. But it is not that simple. If everything else worked on the barter system, farmers would be in the driver's seat but the modern economic and political system is much more complicated. Natural law has been displaced. We have these welfare systems and subsidies because the people of this land demanded them. To suddenly cut them all away would cause so much unrest that civil war would be the result. Therefore, although I did not make the statement it is still true: There are too many farmers in Ontario -- in Canada -- under the present political and economic system. But again, thanks for the letter and keep them coming. I enjoyed letters from Prince Ed- ward Island, from Kincardine, Bolton, Shakespeare, Tweed, Col- borne, Arthur, Hensall, Sebringville, Grand Valley, Dresden and Moffat. 1 4 Plan to Attend Becker's Annual AI& � PREIE NARDI INC. CHEMICAL APPLICATION EXPERTS WILL BE ON HAND TO SHOW YOU WHAT A MODERN SPRAYER CAN DO FOR YOU! LOCATION: Hwy. 4 South Exeter, Ontario (Former N.T. Monteith) Limited Registration - Phone Nowl Exeter 235-2121 or Dashwood 237-3673 )g3 RCM -8m FARM EQUIPMENT LTD. Sales & Service Since 1932 Exeter, Ontario Sales & Service 235-2121 Dashwood, Ontario Sales 237-3673 Service 237-3242 ELANCO BONSPIEL WINNERS — Jim DeBlock presents prizes to Murray Bell, Herman Bordoell, Mar- tin Van Baekal, Bob Hudson and Murray Porteous as winners of the second draw of Wednesday's Elan - co curling bonspiel. T -A photo. Huron Farm and Home To operate successsfully, today's producer must have a good knowledge of production practices that will net him higher returns. Farmers must also draw on another important skill, the ability to manage large amounts of money which flow through the farm and family ac- counts. Likely you've been asked by your lender for a cash flow statement. Your banker has recognized that failure to plan is planning for failure. At one time, we could borrow on what we had invested in the farm. This is called your equity, But I've seen farms with nearly 100 per cent equity that were losing money. I've also seen farms with a low equity, that were making a profit. Why is Cash Flow Management Important? Managing your money is a lot like. • using the road map. When Dad packs up the family and pulls out of the driveway on a vacation trip, up to date information on distances, routes, facilities should be on hand if not, Mom and the kids may be headed for some unexpected surprises during the trip. Poor cash flow planning in farming can yield similar results. Whatever the goal, things will go a lot smoother when the course for the farm is plann- ed ahead of time and progress mark- ed along the way. Who Needs Cash Flow Planning? •, Any business which handles the amount of money that a farm does, must plan their moves carefully. Whether you are a dairy producer receiving regular income or a cash crop producer, the time you spend preparing a cash flow is time well spent. For the producer who has reached a high level of equity, cash flow management is the key to timing buy- ing and selling decisions to squeeze the most profits from his investment. For a younger farmer, sound cash flow ' management is even more critical. Wise allocation of a limited amount of credit in the face of soar- ' ing capital requirements will speed your growth into a more stable pro- ductive operation. What Can a Cash Flow Tell You? Lenders use the cash flow to time debt payments, determine the feasibility of your farm plan for the coming year and calculate the level of operating credit required. For the producer, they will be able to time when seed, fertilizer and sprays, land rent can be paid, along with payables, and when cattle or hog purchases should be made. The cash flow also allows you to better plan you sales of grain. One of the biggest advantages of the cash flow, is for the farmer to foresee problems or opportunities developing early. To check progress, farmers should compare the actual income and expenses at thrend of each month with their projections. Ask yourself, "if income or expenses are lower or higher than expected, how can I make adjustments?" Perhaps inventories can be adjusted to eliminate potential financial stress. Another alternative for the distress- ed operator, is in rearranging existing debt and schedule debt repayment to coincide with later sales. This gives the lender the peace of mind of know- ing the farmer is operating in a business like way and avoids sur- prises for the farmer at year end. With cash flow, producers can look back and gain some insight into the causes of changes in production. The same with dairy farmers- on the first of the month, they can look at their net profits and see what happens when the price of protein goes up. Farm Management Analysis Project Farming is a changing scene. New crop varieties advanced production practices, new technologies, changing markets are a challenge to your farm operation. 1n the 1980's farmers are feeling the strain of a faltering economy that has resulted in higher input costs, volatile prices for your product, higher in- terest rates, stabilized or declining farm values. Farmers are adjusting to this challenge by keeping accurate farm records and using these in planning ahead and in making important deci- sions on the farm Brian Hall Farm Management Specialist for Huron County at 1 p.m. at the Holiday Inn, Cam- bridge; and Tuesday, March 25, 1986 at 7:30 p.m. at the Howard Johnston Motor Hotel, London. --BRANDY POINT-- FARMS CENTRED AROUND ARTIFICIAL INSEMINATION • Our breeding stock provides our buyers with proven genetics from the top 3% animals tested across Canada. • Our program enables us to offer quality and health at a price that is hard to beat • We have an ongoing supply of A.I. sired Hamp/Duroc, York/Landrace boars & FI York/Landrace gilts • Our closed herd is ranked "Good" by the OMAF standards of Herd Health Classification. Come and take a look at our stock anytime! Delivery available KURT KELLER R.R. 1, Mitchell, Ont. 519-348-8043 White Bean MEETINGS Staufljr CHEMICALS PLACES HensallArena, Tuesday, March 25 Mitchell Arena, Wednesday, March 26 • 10 a.m. to 3 p.m. both days TOPICS Marketing, Budgeting, Production, Equipment and Much More SPEAKERS Charlie Broadwell, 0 ntario Bean Marketing Board Jim Byrum, Michigan Bean Commission OMAF Stauffer/Chipman BASF. Hot Meal Provided For further information contact your local Dealer or Marty Becker, 236-7205 The Tru -Spread Dry Fertilizer Applicator is the most accurate dry spreading machine on the market today regardless of the formulation of fertilizier used! AT THOMPSOM':.. . "We're improving our services to increase your profits" Mitchell • 348-8433 Hensel! - 282.2527 Granton - 225-2380 Port Albert • 529-7901 Ailsa Craig - 293-3223 i