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HomeMy WebLinkAboutTimes-Advocate, 1986-10-22, Page 32Page 16A Times -Advocate, October 22, 1986 Governments undertake crop insurance review The federal and Ontario govern- ments have agreed to review the operation of Ottawa's beleaguered crop insurance program in the pro- vince, Ontario Agriculture Minister Jack Riddell said Thursday. Riddell told the legislature both governments have agreed to set up a committee to review the federally financed, provincially administered program, which farmers have long complained is too expensive and ineffective. He said details of the committee's terms of reference, its size and where public meetings will take place will be announced jointly by the federal government and the province once they have been worked out Riddell noted that the crop in- surance program has served Ontario farmers and both levels of govern- ment well since it was started two decades ago, "but it has become clear that current economic conditions and shifting farmer demands have plac- ed strains upon it. He said the committee review will help "ensure the maximum benefit to the largest number of farmers possi- ble through an equitable and ac- tuarially sound insurance program. Faced with several episodes of weather-related crop damage this year, Riddell has been deluged by On-, tario farmers seeking government aid after their crops were damaged by storms. But he has refused to provide I emergency aid to tide the farmers � over, saying it would undermine the crop insurance program, which i available to all growers. The program, administered by On- tario and financed 50-50 by the federal government and the farmer, gives a grower a Maximum of 18 cents for every penny he pays out in premiums. But although it covers damage from storms, drought and frost, critics say it is too expensive and doesn't cover anywhere near the investment farmers are risking. Compared to automobile insurance, they say, crop insurance is like pay- ing $1,500 a year in premiums to get $10,000 coverage on a car that is worth $20,000. Through a complicated formula, the grower can insure a maximum of 80 per cent of his crop value, as deter- mined by a five-year average of crop yields. If yields were low and prices poor in recent years, a farmer buying insurance for what he expects to be a bumper harvest this year may wind up insuring only 60 per cent of the cur- rent value of the crop. Ontario government statistics show eight per cent of the slightly more than 1,000 Ontario peach growers bought crop insurance last year. Figures for other cash crops are also poor, with 29 per cent of corn farmers, 35 per cent of tobacco growers, 12 per cent of strawberry farmers and 43 per cent of grape farmers buying in- surance. Hay and sunflower crops aren't covered at all in the program. Last year, $36 million in crop in- surance premiums were paid by On- tario farmers and the federal govern- ment, which bought $450 million of coverage for provincial growers. The province spent $4 million administer- ing the program. INSTALL EASTERN STAR OFFICIALS — Officials of the Exeter Chapter 222 of the Order of the Eastern Star were installed, Saturday night. Back, left, Shirley Prance, Sharon Miller, Rita Playfoot, Joan Keys, Jean Easton, Norma Carey, Murray Keys, Jack Lavender, Don Easton and Jack Hamilton. Front, Ann Schade, Kathleen Hodgert, Associate Patron Don Webster, Worthy Matron Pauline Finkbeiner, Worthy Patron Reg Finkbeiner, Associate Matron Donna Webster, Cec Moody and Christine Traquair. GRADUATION — Mr. and Mrs. John Segeren along with Larry Dawson ore proud to announce the graduation of Melissa Segeren from St. Clair College, Chatham Nursing Programme on August 1, 1986. Melissa has received her registered nursing diploma. She has accepted a full- time position in the Neo Natal In- tensive Care Unit at St. Joseph's Hospital in London. Soybean group get encouraged 3 pieces Dark Pine Wall System price 700 October Special Representatives of the Ontario Soya -Bean Growers' Marketing Board were very encouraged by meetings with Agriculture Minister John Wise and Wheat Board Minister Charles Mayer on October 15 and 16. The meetings were held to discuss the $1 billion in Federal Government assistance which has been promised to Canadian farmers and how a por- tion of it may be allocated to soybean growers. Wise clarified a number of concerns regarding the promised assistance stating that it will be in the form of cash assistance to all oilseed and grain producers in Canada. it will not be in the form of repayable loans. The purpose of the payment will be to assist farmers who have seen the prices of their commodities drop sharply to unprofitable levels, due to the effects of the agricultural trade war between the United States and the European Economic Community. Maurice Waddick, Chairman of the Ontario Soya -Bean Growers' Marketing Board stated that the pro- mised aid was "a sign that the federal goverment is aware of the financial problems facing farmers." "One billion dollars can't cure the problem, but it does give farmers slime hope," stated Waddick. "To cure the pro- blem, the subsidy war between the U.S. and the E.E.C. has to stop, so farmers can get a fair return for their commodities from the marketplace." The greatest obstacle to be over- come in dylivering the assistance to farmers, twill be to determine an equitable method of dividing the pay- ment among all oilseed and grain pro- ducers. Wise indicated that the pro- ducer groups will be called to Ottawa again within three weeks, to develop a consensus on how the funds should be distributed. Soybean growers would like to see the payment made through the Agricultural Stabilization hoard, by the end of 1986. Beautiful Lamp for that special place in your home Beauty and Comfort in this Chair $2 Value price x249 October Special