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Home My WebLink AboutTimes Advocate, 1991-07-03, Page 19FARM IJPDATF Times -Advocate, July 3, 1991 Page 17 Farm Credit Corporation reports operating surplus OTTAWA - Farm Credit Corpo- ration (FCC) has turned the comer in its recovery from the mid -80s downturn, reporting its first operat- ing surplus in nine years. Agricul- ture Minister Bill McKnight tabled FCCs 1990-1991 annual report in the House of Commons. "This is a significant turnaround for a corporation which was in fi- nancial difficulty just a few years ago. A financially strong FCC en- sures that Canadian farmers have access to a stable alternative credit source even in times of economic difficulties", said McKnight. For the fiscal year ended May 31, 1991, FCC recorded an operat- ing surplus of $20.4 million, com- pared with a loss of $2.7 million in 1989-1982, when net income reached $1.9 million. According to FCC Chairman James Hewiu, several factors have contributed to FCC"s improved fi- nancial position. "The effectiveness Low prices cause cashflow nightmare for farmers TORONTO - Try growing a bumper crop of corn in 1990, put- ting it into storage for the winter then selling it in June 1991, repay- ing your operating loan and finding out you still owe the elevator com- pany for storage and have no mon- ey for anything else. This is the re- ality of farming today, according to Jack Wilkinson, first vice presi- dent of the Ontario Federation of Agriculture (OFA). The disastrous cash flow prob- lems faced by farmers came under discussion during the June OFA board of directors meeting held in Toronto. "Money that was committed in April by the Federal Government to partially address the lack of farm income is gathering dust in Ottawa while bureaucrats devise complicated application forms. The recent National Task Force on Farm Finance and Management barely acknowledged the short term credit needs of farmers and failed to offer any solutions," Wil- kinson told the board members. Recent farm debt review figures, showing a 64 percent increase in the number of Ontario farmers fac- ing insolvency and severe financial distress, dramatically illustrate the problem. "We have no assurance that the Provincial Government will ad- dress short term credit as it reviews its long term farm financial policy," he said. The OFA has struck an action committee to respond to this criti- cal situation, and is placing high priority on finding solutions. Wilkinson said, "for many, the dream of the family farm has be- come a nightmare. There has to be more cash in, than cash out. This just isn't happening - that's the real- ity. This year, 1991, is no'tnan's land, the bridge to the safety net or 1991 is short term credit." - Call me... you won't be sorry — Buying a used combine to harvest 200 or 2500 acres is serious business, you can't afford to be wrong Paul Van Oss, Sales Rep., Res: 227-4586 Come and see ourlarge e s.::: u r j'. I od :l�'v�C�' you WO take.yOUt.bu$ ni s ri trst� HURONsafes Drtment TRACTOR 1-`>�-repa2s 5-4220 • +jos` ` �+ a r If). I. J` 4441/4,1, II k ...) e r e. rr- *. .+ :‘1%%‘ a IN ,—z - - _ • i = A t - �,�`. VIP•iit, Is Plus a safe, easy way to remove plugs. • Time -proven sickle -type cutterbar cuts clean swaths with no strips. • Durable conditioning rolls crimp stems uniformly, yet firmly while gently handling nutrient -rich leaves. Tension adjusts easily. • Remove plug conveniently by . hydraulically lifting header which separates rolls forcing plug through...all while you stay in the tractor seat. it Overhead frame and three-point suspension system provide both lateral and vertical float so ends float independently. in Easy to operate with low maintenance. • Two cutting widths available: 7' or 9'. ■ Ask your dealer about special low rate financing programs. of our managers, the dedication of staff, and implementation of new management policies and systems ve us better information to effec- tively manage FCC's activities. Federal government supportwas also a critical factor enablinFCC to establish a more appropriate cap- ital structure." Lending to farmers totalled $180.1 million compared to $203.5 million in the previous year. "Un- certainty in agnculture and high in- terest rates during most of past fis- cal year were the two main reasons accounting for this difference," said Hewiu. "However, the decrease in rates in the last quarter of the fiscal year contributed to a significant in- crease in our lending activities of the last quarter and enabled FCC to close the fiscal year in a strength- ened position." Arrears decreased for the third consecutive year, totalling $132.6 million at fiscal year end, a de- crease of $60.7 million or 31.4 percent compared with last year. Since 1988, arrears have dropped from $377.6 million to $132.6 mil- lion. Mbre than 88 percent of FCC's accounts are currently up to date. "Another factor in FCC's suc- cess is the strong commitment of most clients to meet their obliga- tions, even while some of them were experiencing considerable fi- nancial hardship. That is whywe do our best to help clients in fnan- cial difficulty resolve their situa- tion as equitably as possible. Our Applications mailed out TORONTO - Application forms for the Ontario Ministry of Agri- culture and Food's Farm Interest Assistance Program (FIAP) were mailed to over 16,000 farmers last week. All producers who applied to the 1990 Farm Income Assistance Program should have received an application in the mail. The deadline for returning the ap- plications is October 31, 1991. FIAP is a one-year $50 -million program torovide farmers with immediate financial relief. This program will offers high interest rates paid by farmers, and provide bridging to reduce cash flow pres- sures in1991. The program is targeted to farms in need of financial assistance. Farm business which apply for the rebates must have a minimum gross farm income of $15,000. A maximum grant of $8,000 will be provided for farm businesses owned by one person; farms with more than one owner will receive a maximum of $12,000; the owner is considered the person who claims revenue from the farm business for income tax purposes. A doctor would be understanda- bly angry of a butcher told him he was operating the wrong way. A reporter gets blamed because his newspaper is full of bad news. But, he doesn't make the news; he just reports it. A psychiatrist may feel like club- bing a first year sociology student for spouting Fritz Perls when the psychiatrist has spent the better part of a decade to get trained. I could go on with dozens of il- lustrations of people telling other people how a country should be governed, a province should be ruled, a company run. Most times, those doing the spouting know sev- en -eighths of sweet be-all about the, topic under discussion., Most times, the recipients of all this stupid ad- vice smile sweetly and take Sometimes they fight back. And that is exactly what theagri- cultural community is doing to combat the bad press and the ad- verse publicity on how farmers should be farming. It is so easy to jumpon theenvironmental band- wagon, for instance, and suggest that all farming should be done or- ganically without the use of pesti- cides, weedicides or even fertilizer. It is, for those who do not enjoy eating red meat, a simple thing to criticize the raising of beef cattle because those caule eat grain that could be used to feed the world's hungry millions. Too many people, some who s)iould know beuer, have been chastized for going off half-cocked. The farm community has, for once, been right in there like sleeves in a vest to combat the foolishness. I am referring to the flak now be- ing taken by Canada Trust for en- dorsing and promoting the Home and Family Guide published by the Harmony Foundation in Ottawa. I am speaking of the stupidity of chain store officials who endorse the Canadian Green Consumer Guide which was full of misleading information. These publications suggested that it is better to cut back on eating meat and better to eat organically - u food. prpccd )Cdattle, say beef farmers, are not environmentally unfriendly. They do not subsist on grains. They eat forages, legumes and grasses that human beings cannot digest. They supply manure to the land. They do cat grain but it is usually sur- plus grain after bumper crops. They siphon the extra grain back into the envioionment. When a grain shortage exists, 'farmers automatically cull their herds. It happens all the time and nobody but farmers suffer. And this idea of organic farming should be set straight. There is nothing wrong with organic farm- ing. However, organic farmers, or those who shout about it who may not necessarily be farmers, fail to mention that any and all drugs and fertilizers and pesticides used in Canada have been tested and re- treated and tested again. • These benefits to agriculture are not used indiscriminately or hap- hazardly. Farmers have been in the forefront of demanding safety reg- ulations and proper use of pesti- cides. They have changed their methods of farming to use leas fa- tilizer, m prevent soil erosion, to raise healthy livestock. ,..M..11..11..0 [..m 4.q I01vb U-.. 0., 43111(1 Check into these facts, my friends. You will find that farmers are away ahead of urban dwellers in their concern for health and safety and soil erosion and preser- vation of the environment. Farm- ers have not hesitated to make the necessary changes, sometimes at great expense to themselves. The big factories, the big cities, the urban blight, the screaming environmentalists would do well to remember that agriculture has always had the consumer in mind. Food produced organically is no safer, no better and no more wholesome than the wonderful crops Canadian farmers have been producing for hundreds of years and don't let some half-baked pub- lications, compiled by people who have never walked a furrow tell you different. staff has worked closely with the Farm Debt Review Boards, and we have introduced an Equity - Building Lease program to help farmers in financial difficulty and to enable them to continue farm- ing," added the Chairman. Farm Credit Corporation is a Crown Corporation dedicated ex- clusively to long-term agricultural credit and has 100 offices across Canada. With over 60,000 ac- counts, FCCs lending portfolio to- tals approximately $3.6 million. Thank you, Buyers 1992 Hensall Calf Club Buyers of top calves - Dale Good of W.G. Thompson bought Lyle Hemmingway's Grand Champion calf for $1.75 per pound and Ke- vin Delbridge purchased Valerie Ryan's Reserve Champion Calf for $1. 75 per pound. The Hensall Calf Club wishes to express their appreciation to all the buyers who attended the Hensall South Huron Calf Club sale Saturday afternoon, and who, by their brisk bidding made the show a su. cess. 1t is support such as this which enables the committee to carry on with the program among the young people in our community and we know everyone shares a pride in their accomplishments. 1991 Hensel{ Buyers - Grand Champion - W.G. Thompson, Hensall Reserve Champion plus 1 - Hensall Co-op Darlings 7 calves Cooks Elevators, Hensall 3 calves Corsette Packers 3 calves Coleman Farm Supply 3 calves Veals Meats 2 calves Brussels Livestock 2 calves Piavie Meats 2 calves McTaggarts 1 calf Denfield Livestock 1 calf A&H EMA, Exeter 1 calf George Underwood Farms 1 calf Norwich Packers 1 calf Thank you to Hensall Livestock Sales Ltd. for the use of their fa- cilities and supplies. Auctioneer Larry Gardiner, M.C. John Ban- croft, Judge Murray McTaggart and Roeszler Trucking. Thank you to all the buyers, helpers, donors of trophies, money, articles and rosettes. Your tremendous support and generosity is greatly appreciated by the Hensall Calf Club. Calf Club Buyers Dalton Finkbeiner 1 calf Hay Mutual Insurance 1 calf Fishers Abattoir 1 calf Fleming, Clinton 1 calf Talbotville Livestock Sales 1 calf Memers Meats 1 calf Raeys Farm Equipment 1 calf Benders Abattoir 1 calf McCall Livestock 1 calf Gower Welding ---1 catf Hensall Cattle Co 1 calf Hensall Livestock 1 calf Ian Flemming 1 calf Dominion Meats 1 calf Gary Bown 1 calf HENSALL DISTRICT CO-OPERATIVE Get Those MILK WEED NOW bier 5, tic• • • Let Hensall Coop help you Eliminate your Milkweed $ 50 (one way) $6 00 per acre (both ways) Roundup Included! HENSALL DIS TRICT 0-OPENATIVE Hensall 262-3002 1-800-265-5190 Seaforth 522-1000 (Fart.) Zurich 236-4393 Londesboro 523-4470 Exeter 235-1150 Brucefield 233-3948 Mu Craig 293-3282