HomeMy WebLinkAboutTimes Advocate, 1992-10-14, Page 12Page 12
'Times -Advocate. October 14, 1992
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Working to dispel myths
Farm Credit Corporation
looking to shed 1980s image
EXETER - The Farm Credit Cor-
poration, trying hard to shake the
image earned during the height of
the 1980s repossessions and fore-
closures, is taking its sales pitch on
the road. Thursday, officials of the
federal lending institution brought
their message to the Exeter Legion
Hall for an audience of business-
people involved in the agricultural
sector, including realtors, lawyers,
farm equipment dealers, and build-
ers.
Ted Young, master of ceremo-
nies, explained that the agri-
business information meeting was
aimed at explaining more about the
FCC and the changes to the institu-
tion over the years.
"There are quite a few miscon-
ceptions about FCC," said Young,
noting many of the old restrictions
used for farm loans in the 1960s
have not applied for decades, but
are still believed to be in use.
The FCC states its goal as provid-
ing Canadian farmers with a source
of long-term credit and to also pro-
vide financial counselling services.
Bob Aumell, vice-president of the
Atlantic Region gave a provincial
overview and noted much has
changed in the past decade. In the
1983=84 year, the FCC issued
1,399 loans to Ontario farmers.
That number dropped to only 260
loans in 1988-89, a result of high
interest rates and poor commodity
prices.
"We went from spending 70 per-
cent of our time lending money to
spending 70 percent of out time
collecting money," stated Aumell.
With today's lower rates. lending
is on the rise again with 830 loans
issued in 1991-92 and Aumcll ex-
pects the FCC will issue as much as
$90 million in loans by this year
end.
As for arrears, Aumell said the
provincial situation reflects the na-
tional trend with Ontario arrears
dropping from $100 million in
1988 to $17.1 million in 1992. He
predicted that total to drop to $12.1
million by next year, a small
amount out of an overall Ontario
loan portfolio of over $l billion.
Aumell also touched on the Farm
Debt Review Board, the Ontario
government's Farm Finance Re-
view. and farm management train-
ing programs. He said FCC staff
arc receiving better training and
computer equipment to improve
counselling and loan consultations,
often right on the farmers' kitchen
table.
Aumell noted the public teacuon
to the FCC's foreclosures in the
mid-1980s generated bad press and
a negative reaction to the corpora-
tion. Consequently. he said a mar-
keting program is aiming to im-
prove that image, while
improvements to the way in which
:the operation works are aimed to
help its customers.
Phil Kreuter. the assistant district
manager of the Walkerton office
provided some statistics on Huron
County's FCC activity. He noted
the county represents some 9.34
percent of the total Ontario portfo-
ho with 1,091 clients, 1,444 loans
for a total of S91,372,492 in loans.
"Huron County represents about
ten percent of what the corporation
is doing in Ontario - a very signifi-
cant amount," said Kreuter.
Loan ai,.,vity in Huron was S7
million last year, and Kreuter said
the 1992-93 year is expected to be
very active.
"1 know in the past month there's
been at least a million dollars in
new loans in our district alone," he
said.
Kreuter noted the bulk of the
FCC's business in Huron is in pro-
viding long-term mortgages. Thir-
ty Percent of the loans were [or
land purchases, 23 percent for land
debt consolidation, 21 percent other
debt. 12 percent for buildings, and
7.8 percent for quota purchase.
There were 113 loans in arrears
in Huron as cf August, down sig-
nificantly, Krauter from the 150
last year.
Corlette Elder, a credit advisor
with the Goderich FCC office, ex-
plained some of the myths still sur-
rounding the Farm Credit Corpora-
tion.
She noted the FCC is no longer
short of money as it was in the ear-
ly 1980s because in addition to fed-
eral government funds. it can now
borrow on international money
markets and raise funds through
FCC long term notes.
She said contrary to populkr be-
lief, any Canadian citizen or landed
immigrant of legal age can apply to
the FCC. Age limits of the 1970s
no longer apply.
Now that funds are freely availa-
ble, established operations are wel-
come to borrow, and amalgama-
tions of older, lower -interest rate,
FCC loans are not required to apply
for new loans.
Loan limits of 5350,000 for a sin-
gle person, and 5600,000 for multi-
ple operators are in effect, although
Elder noted security margins usual-
ly come into effect before the limits
are reached.
The FCC can change its rates any
day to compete with other lending
institutions, not only twice a year
as some believe, said Elder, and the
FCC does allow off -farm employ-
ment, so long as the farm is a nor-
mal commercial operation, not a
hobby farm.
A question from the audience
asked the panel why FCC rates arc
now higher than national bank
loans when they used to be lower
in the early 1980s. Aumell replied
that the corporation's current goal
is to break even. Young farmers
needing financial assistance to
break into the business should seek
out other assistance programs.
"It's a change in our mandate
that we've had over the years,"
said Aumell.
MP Murray Cardiff, who attend
ed the meeting was asked about
new proposed federal legislation
and what it would allow the FCC
to do that it cannot do already.
Cardiff, who said he could not dis-
cuss the legislation until it is tai`
bled in the House of Commons
this fall, did say the prograrn
should be an "expansion" of what
the FCC docs now.
Cor/ette, Elder, from the Goderich office of the Farm Credit
Corporation, dispels some of the myths that have surrounded
the federal lending institution over the years.
One Foot in the Furrow
By Bob Trotter
The bureaucrats are at it again.
School board officials in our area
are developing a Christmas policy.
They were prompted by parents
who fear that Christmas could be
cancelled in the schools and by
complaints from some other parents
who were offended by the fact that
their children would be involved in
a Christian activity.
Give me a break, people!
Cancel Christmas? Sounds like
one of the silliest, stupidest ideas 1
have ever heard.
A "draft document" is being de-
veloped by a "board advisory com-
mittee" made up of representatives
from vart6til religions and cultures.
This has been prompted by two On-
tario Court of Appeals decisions
nlling that public schools must not
Walk on the
Wild Side
4-H club
CREDITON - The first
/t, meeting for the Walk On the
Wild Side 4-H club, was held
on Thursday, October 8 in
NACrediton. The club president
is Amanda Glavin, Kim Palsa
is our vice-president, the sec-
retary is Annette 'Zwambag
and the press reporter is Kim
Govers.
Meeting one was about maps,
what's on them and how to use a
map. After this meeting, I'm sure
that everyone could follow a map
anywhere!
We also came prepared to go on
an overnight hiking trip (but we
didn't go anywhere). It is important
to wear loose, comfortable111thing
and to bring only the necesss.
After the meeting we had donuts
and juice, provided for us by our
leaders Glenda Wuerth and Caro-
lyn Pritchard. Our next meeting
will be on Tuesday, October 13 at
the Crediton Conservation Park.
Kim Govers, press reporter
give any particular religion promi-
nence.
Good grief! Next thing you know
they'll be cancelling the tooth fairy.
Why must we "cancel" Christ-
mas? Let's keep it and honour other
religions at the same time? Gift-
giving; the real loving, wonder of
Christmas is a part of all religions
and cultures. Why throw out the
baby with the hathwater?
To ban the singing of Christmas
carob and the re -creations of the
Christmas story will deprive all
children - whatever their race, col-
our or creed - of an opportunity to
understand the traditions on which
so much of our western culture is
hased.
Those school Christmas concerts
arc indelibly impressed on my
mind. We looked forward to them
for weeks before Christmas and
were proud of our efforts even if
we did forget our lines. As a parent
and a grandparent, the Christmas
school concerts have become an in-
tegral part of our lives. Seeing our
kids and grandkids on stage
brought more lumps to my throat
than any other single event in the
school year.
b can still get a chuckle remem-
bering the last year in our old rural
school. Allan Davies was the back
end of a camel and he tripped over
Marg Wakelin's kimono and was
dragged, kicking and screaming
into the stable. Roy Peters spent the
entire half hour on the stage pick-
ing his nose instead of being one of
the wise men and Bill Powell stood
with his back to the audience be-
cause he wanted to see the baby Je-
sus in the manger and to heck with
Tues., October 20, 1992
10 a.m.-4p.m.
We would like to thank each of you that have
supported us over the past 30 years.
the crowd in the schoolroom.
They were marvelous times,
filled with awe and wonder and the
warmth of home and hearth, when
differences were forgotten and peo-
ple travelled many miles just to be
with the family at Christmas time.
I am well aware that our society
has developed in the last 50 years
from white, Anglo-Saxons to a so-
ciety that is multi -cultural. No long-
er is 99 and 44 -one hundredths per-
cent of the school population
Christian in character and these dif-
ferences should be recognized.
I love those differences. But to
ban the singing of the age-old car-
ols or the wonderful Christmas pa-
geants will deprive all children of
an opportunity to understand the
traditions that make up the founda-
tion of this society.
We can keep Christmas in the tra-
ditional way in the schools and also
pay homage to the other great holi-
days from other faiths. We can
learn about Hanukkah and Rama-
dan and the many other significant
celebrations of others.
But to cancel Christmas at the
schools would be a dreadful move.
Leave the Grinch out of this.
Rural conference
GODERICH - The Huron County
Planning and Development Depart-
ment will be presenting an Interna-
tional Rural Development Confer-
ence, Oct. 21 to Oct. 23 in
Goderich.
Called, "Stimulating Rural Eco-
nomics," full registrations and day
passes arc still available:
For more information contact
Paul Nichol at 524-2188.
•
•
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