HomeMy WebLinkAboutTimes Advocate, 1991-02-06, Page 274
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TUnott-Adyocaa. FeaAssry 8.1981 Papa 27
Governmentfunded programs discussed at corn growers' meeting
VARNA - Two new jointly Granton farmer
funded government safety -net pro- To apply for the program, a
grams were the topics of discus- farmer must agree to a minimum
sion at an afternoon corn growers' six-year commitment right off the
seminar, sponsored by Hill and bat, said Wallis. To opt out of the
Hill Farms Ltd. of Varna, last program, a farmer must give three
Wednesday, at the Stanley Town- Years' notice.
ship Community Centre. The GRIP program prevents
The Gross Revenue Insurance fanners from going into one type
Plan (GRIP), and the Net Income of crop insurance and ignoring
Stabilization Account (NISA), others.
have been set up by the federal Start-up penalties will apply to
and provincial governments, to those who delay enrollment. The
help corn, soybean and oilseed penalties will be similar to those
farmers stay afloat during difficult applied for other tripartite pro -
financial times. grams.
GRIP program With GRIP, producersp-
The GRIP programs objective is proximately three percentpay the
to ensure fanners' level of gross average market value. Farmers
revenue per acre does not fall be- who sign up for the program must
low a specified level, namely a join in the spring, but the remain -
percentage of the product of his- lag premiums owing can be paid
toric average yield on an individu- as late as November 1.
al farm basis multiplied by the his- Payouts made under the GRIP
toric provincial price for the crop program will equal out to the sup -
commodity. port price subtracted by the market
The program is a transitional price, multiplied by 80 percent of
revenue insurance plan for 1991- than individual's historic time
92, and will replace the current yield per acre. The payouts will be
Western Grain Stabilization Pro- dictated ,by the average farm yield
gram. It is also an add-on revenue plus the provincial average prices.
prom. Payouts will be made after the
The basic price support level
will be 85 percent of the 15 -year end of the 1991-92 marketing year,
average price, adjusted for chang- but provisions do exist for an inter -
es in the Farm Input Price Index im payment during the year.
for Eastern Canada. One benefit of the GRIP program
"It is as good as we could get is that it gives the farmers the re -
out of the government at this point sibility to produce and market
in time," said Gerry Wallis, a sir own products, said Wallis.
The programwill cover up to 100
percent of a farmer's historic farm
yield, but will be offset if the 1992
yield is above the 100 percent aver -
"W s the only game in town," said
stating in his opinion it was
a
estern
Grain Stabs izagpr' pro
"Everybody's in this equally and
catunitted adding there is a maximum roof olly," said f
percent 5 Wallis said t�premium can fluc-
tuate to keep it actuariiy sound in
the market -place. The current GRIP
program has a five-year commodity
and government commitment and
then will be adjusted.
There is little danger of the sup-
portprices declining, said Wallis.
"The two ents are put-
ting in their $2 for your Si," he
said.
The United States/Canada Free
Trade deal will not be violated un-
der this program, assured Wallis,
noting U.S. actually doles out more
aid to its farmers.
"It has nothing to do with Free
Trade, it's got to do with whether
you have a bottom line or you
don't," he said.
Exceptionally successful farmers
can reap excessive benefits from
the program, said Wallis, noting an
individual can be underwritten for
up to 110 percent of the township
average.
"There are some fantastic average
t>
•
foot in the
I hate to say I told you so but....
Back, oh many months ago,
when the Canada -U.S. Free Trade
agreement was signed, I suggested
that things would work well until
the farmers in the Excited States
got excited about Canadian farmers
who might be benefiting from the
agreement.
Here we have the Yanks still
slapping a countervailing duty on
Canadian pork, eight cents a kilo-
gram, even after a bi-national panel
requested its removal. The panel,
set up under the agreement, asked
the International Trade Commission
to reconsider die duty.
The comrt*ion refused, even af-
ter the bi-national committee
proved the countervailing duty was
unfair.
I hate to say I told you so...
This countervailing duty amounts
to an extra tax on Canadian pork
exports and has the effect of lower-
ing prices for all of Canada's hogs
and pork, not just the 25 percent
that is exported to the U.S.
I know. I know. It is open season
on the United States these days.
Everybody within ear shot is taking
a crack at the Americans since they
fired the first shots in the Gulf cri-
sis. But we are their closest neigh-
bors. We are supposed to be
friends.
WE have a prime minister who
jumps when George yells. Not only
that but our glorious leader shouts:
How high, George?
You would think, given the great
undefended border and the support.
Canada constantly gives to our big
elephantine neighbor, that we
would have a special place in the
hearts of the yanks.
Not so.
This countervailing duty was
alapped on Canadian years
go We protested and dcc�,ompl
ended a change„ but the fann
y across the 49di mood
. The duty sdll pseuds.
The same thing is
with meat inspecdOns at do nen*
.•+.•... •,,.«,«.. e, byaia
M.N.., I*.w „y1_.-• On .4)070
American meat inspectors have
been harrassing -- I can think of no
word which describes the situation
better -- Canadian shipments at bor-
der crossings. Our hide -in -the -
woods agminster, Don Mazankow-
ski, made a deal with the Americans
to stop inspecting each other's meat
shipments at the border for a one-
year trial period. The trial was sup-
posed to begin last April but was
postponed and is now on indefinite
hold because the Americans are
stalling.
Both nations are stopping meat
at border crossings like children in
a backyard property fight. Canadi-
ans have doubled their inspections
and are checking every fifth ship-
ment. The yanks are also making
nuisance inspections. If they find
any fault, the whole load gets re-
inspected and that costs money.
It also delays shipments and de-
liveries.
I love the Americans. I can readi-
ly understand why they love their
country. It is a glorious country
and they are justifiably proud of it.
But, when it comes to money, all
friendship seems to cease. They
can be as nasty as a wounded
wolverine. If you think our farm
lobby is strong, try dealin* with
theirs.
As this is written, the border in-
spections are still causing havoc.
What deliveries are missect Ameri-
can customers buying our great
Canadiaep Asn quit and buy at
C
packers lose businessmen � any
businefarmas stell you s
meat
far easier tend letscoral it
an
old customer than it is to get a
new one.
dtOea not nce the hers isotne, int
hog producers. in�s ince sell
one quarter of their production
across the border.. _
they ,
when natrassments allow them.
Som
rich for hes trade. I hate to
sty..,.
4
New band - We got our first
glimpse of what will eventually
be Exeter's concert band. The
first band meeting was held
' Monday evening at the high
school. Organizers say they
were surprised that about 30
people arrived for the meeting
and practice, nearly double what
they expected.
Yields in this alma," said Wallis.
"Everybody's treated more or less
equal to sir ability in this pro-
gram," he stated. •
The NISA not NISA program et legis-
lated,
as
Huron mounty re concern for
The
involves individual accoprogram
unts into
which producers and governments
will make contributions based on
annual farm sales, and from which
producers make deductions in times
low and/et below-average net
farm income.
The accounts have a maximum
size based on the farm's annual net
sales. It is subject to an upper abso-
lute limit, and cannot be drawn into
a negative balance.
To register for it, a farmer must
fill out the proper form at income -
tax time, and the program itself is
more administrative than anything
else, admitted Wallis. •
A farmer must list eligible net
sales and expenses, as well as sub-
mit a cheque for annual contribu-
tion of up to 20 percent of eligible
net sales. The contributions will be
matched equally in a separate gov-
ernment account up to a maximum
two percent level of eligible sales.
The producer's contribution will
be placed in an individual account
where it will earn interest at a com-
petitive rate. Governments will also
pay an additional three percent in-
terest bonus on the producer's ac-
count.
Payouts are made whenever the
gross margin falls below 100 per
cent of the previous 5 -year farm av
erase or the net income falls below
510,000.
"MSA is not insurance," said
Wallis. "Premium costs are depen-
deent on your yield."
Partial benefits of the NISA pro-
gram may be retroactive to the
1990-91 crop year, he noted.
Marketing challenges
Marketing challenges are where
many farmers fail, said speaker
Beverly Hill, president of Hill and
Hill Farms Ltd.
He stated there are four calendar
periods wherein the majority of
grain is sold: early January, May,
July, and November.
Hill said selling the bulk of grain
in November is a common financial
error made by farmers. He showed
statistics which demonstrated grain
prices declined after July, nine
times out of ten.
Hill said 50 percent of corn is
sold at the end of November, and
four times out of ten, the highest
prices paid for corn are in July.
"If we aro going to continue in
the business, we are going to have
to make more money doing it," he
said.
"Production's not the problem,"
he said. "Marketing is."
Hill said another common mis-
take made by farmers involves
waiting too long to sell their grain.
flue is a risk,'' said Hill. "July --
doesn't always bring the highest
prices,
Graina is often a money-
losing Pas well, he said.
There are few exceptions such as
waiting until the following, July, but
usually the farmer's best bet is to
sell at harvest time.
Hill suggests setting up a "sim-
plestrategy by identifying the
risks and potential, and to be sure a
cchen.gdme marketing strategy is
Hill stated $3.03 as the average
cost per bushel for corn, over the
last decade.
"S3.03 per bushel plus govern-
ment payments are not going to
make us
"We makhave not farmers," he said.
adapted to technolo-
gy."
Hill believes a good strategy
coupled with the GRIP is
effective, and his coma sort pany
fpapny will-
ivnecefa ffaset rmers who want aid a
on when to sell.
"We can sell at an above-
average price and get the same
money out of GRIP," he said.
Hill reputed that there is enough
corn left over from last year now
to supply North America for most
of 1991.
Milk board releases -
mark
_elm s
milk for the fiscal year ending Oc- meeting in Toronto on January 9
tober 31, 1990, The figure, released and 10, represents a slight increase
with the presentation of the Board's of 6 million litres, or 0.3 percent,
Annual Report at its 25th annual from the previous year.
MISSISSAUGA - The Ontario
Milk Marketing Board reported mar-
ketings of 2.362 billion litres of
Pevelop your Ieadership
skills
meeting or contact AALP Execu-
tive Director, Patricia Mighton,
Box 1030, Guelph, Ontario NIH
6N1. Telephone: (519)-767-3503.
'CLINTON - Would you like to
develop your leadership skills to
serve agriculture and the agri-food
industry? The Advanced Agricultu-
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do just that.
A fourth class of the Advanced
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spread over a two-year period.
Through the program AALP partic-
ipants broaden their horizons; in-
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issues which affect agriculture and
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analyze and creatively manage
change.
To find out more about this dy-
namic program and the selection
procedure attend an information
The closest
meeting will be heldat eClClin�tonn
Town Hall on Monday, March 4
from 8-10 p.m.
COME FRY WITH US AND EARN YOUR WINGS
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Every Thursday
5p.m.-9p.m.
20' Wings
Main St. Bayfield
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CHILI COOK OFF
FRIDAY Grand Bend Legion Banquet Hall
FEB 1 5th MONTE CARLO NIGHT
2 categories
RESTAURANT
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PRIZES
1991 Best Chili Trophy plus
"Bean Man"
(I OOIbs of kidney beans
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HOMEMADE
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1991 Best Chili Trophy plus
a RIVAL Crock Pot
from PINEDALE PRO
HARDWARE,
GRAND BEND
Entries must arrive at Grand Bend Legion
Banquet Hall by 5 p.m. FRIDAY, FEB. 15th
preferably in self -warming containers.
JUDGING by BALLOT throughout the evening.
'Licensed by L.L.B.O. epedal occasion permit