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The Wingham Advance-Times, 1973-02-01, Page 18ry 1, 1973 - OVER THE FARM GATE by Bill Remake MIX Farm Director • Farming, like most other things, experiences s "tomtits and valleys. It seems that we have to mase the beat Of our good times to tide us through the poor times,, When a person looks at the farm markets and sees record #1 h ,prices fbr pork; seemingly high prices- for beef; ade- quate prices for poultry and eggs; and an adequate return for milk, he no doubt would come to the conclusion that farming is ata peak. He probably would not receive too much rebuttal from the producer himself. But the grass is not all that green on the other side of the fence. In a way, I must have stnypathy for the farmer and the miller. My father and mother, brother and myself purchased a feed mill several years ago. Since I have a vested interest • in the livelihood of this mill, I watch with no small degree of • interest the going rates for feeds. • In,January of 1972, prices for hog growers ranged about • ' $75.00.per ton. Today it's close to $100. Last year 20 per cent ,4 laying mash was $92 per ton; today it's closer to $140. A 40 per cent hog concentrate has jumped over 40 dollars in the same interval. Soybean meal -a major source of protein for ani- mal rations --has jumped at least $100 per ton. Quite illainly, then, the farmer is being asked to bear an unusual load of costs. for feeding this year as compared to last. Couple these added expenses with increased taxes, cost of living, operating and capital expenditures, it is easy to see that things may not be all, that rosy on the farm. Examining the reason for the increased costs, the old problem of supply and demand comes to the forefront. Peru has been a 'traditional source of protein because their industry of fishing provided a goodly portion of fish- meal. This last year's harvest df fish has been poor. Conse- A.• quently, European countries are scouring the world for pro- tein. . Since soybean meal is an excellent source of protein they, have stepped into North America with no small force to drive the Price upward: Another obvious reason for soybeans being driven up in price is the short supply, Canada andthe United States have come through a harvest period which could be termed near -disastrous. We plainly did not get the amount of soy- beans off the fields we anticipated. , �. ' And the third influence on prices -in this case for all feed grains ---lis the speculative market. Speculators, with goodly sums of money from individual farmers, entrepreneurs and corporationswill buy and sell commothtlessell commodiinhopes :of buying cheap-. and selling at a• ` profit. This . is simply: a basic foundation of our trading :structure,. Without these specula- tors, 1 dare say the entire system of trading would collapse .and a iiew.one.would have to be devised. " one day on the commodity exchanges, soybean meal fluctuated se wildly that the spread between high and low $55, It Banc be assumed thatsom. a people made a bundle `t money it they bought at the day's lowest price and sold -at e day's highest priee. But you- can also . safely bet that Leone lost just as .big a bundle if the opposite were true. buying and selling of commodities on;. the exchange - '40f someoite.is tying up a good` portion of . supply, causes,fluctuations of feed grain. prices. The situation of fluctuating prices' has led most feed-eut letsjto:simply`buy and :sell .on. the day the product is needed,.: What'sgood•ftr the people is probably ,just as 'good for the tis er: imply., buy wlfatryou=need-wheoWou need it and don't et caught �� • �Witha lot on your hands should the°bottom ..: fall out of the market. • While 'annex's may bemoan, the situation, I would van- tureto say that most:people don't want to see a big changejn the.: system of trading. There's ` probably enough people around who want to gamble en, future situations and try their luck} d What does this mean to. the consumer? in the position from which f study the. situation, prices of foods are still going to•fluctuate, depending upon the multitude of forces that act andreact on the supply and demand of a product. Until -tile; product has an external force acting upon, the whole ° situation of supply and demand -such as the milk industry, Where everything. is very tightly supervised price fluctua- t,s uii'ih continue: • 1. suppose we all have enough spirit of gambling in us to t.this°•to pontine. INTH1$ CORNER FARMERS CONTRIEU' TO 000R • LIFE That early New,R"ngland statesman sod author, Daniel Webster, once. wrote . "When tiles ,etherate fob . The farmers, the ef toWtoeesyter are,* fol i ti+otterrof bwnanfarmatep mchaecur, In age when mat �� live In said **Urban de- velopments whichhave replaced farmland, Many people have forgot- ten where their" food shy nrlginatee. Little, if :any, thought Is Oen :to the farmers r and the effort* • 't go into producing the vaunt supply of top quality foods that are Foods, today come pre-cooked, '.. led, canned and dna multitude of other forma that require after they leave the farm and. beftre they reach the table. spite this effort by the MiddleMaitt largely made necessary by consumer dem.. Mend, the farmer *till bears the brunt of "high' food price �c tt raa, While many people fly reflect on. the 'good old days' of lower if food costs, they fail: to, recognise that incomes have risen at It far M accelerated rate than food costa. In 1940, an hours, factory work would prods enough money to buy 1,8 Ibe, of steak, "While today the came amount of timeproduce* enough money for about, 2,61b114 Thirty years ago, five quarts of milk ° ° could be purchasedfor the wages an average factory worker •earnedin an hour -today he can buy aim* 103* quarte But despite' examples such es t.e se, many Canadians continue to level an accusing finger at the farmer for our higher food prices. While tehaVerleeltbe,ets remaiar , that farmers themselves have it t fitted that xn . ° Federal Department of Agriculture figuresclearly°show .that,, thefars, recti vveerd in1947-49 for ffas received sthan a seven ri rown food. However, the gent increase over prices he , � , saitacmo,,peiciod, the retail cost of farm grown food has risen approximately 37 per cent. and marketing costs have soared by more than 70 per cent,,; Food is still the consumer's biggest bargain. It is estimated that a family of, four in Canada spends approximately 16 per cent of, its incerne On food, We speak here of food -not deodorant, wax, paper, light bulbs anda dozen other items included in the weekly.shopping list and purchased'at a "fold"' store. In Western Europe people spend close to 36 per cent and in the '+ 1 Soviet Union, food bills • surpass the 55 per cent mark.•' - Over the past 25 years, food costs have risen slower than most other necessities Medical costs, for example, have jumped by more than 125 per cent since 1947; housing costs climbed by almost 80 per cent -but the cost oflood rose only 61 per cent in the sane period. Every farm worker in Canada -from the man who plants the seed to the man who harvests the crop; from the dairy farmer to the milk processor= -each one produces roughly enough food to feed 46 people. To a large degree it is the farmers who have given our country the abundance of symbols of good living such as meat, milk, butter, bread, ip eggs and vegetables. - -TIP 0' THE HAT -William H. We Paris, Ont., who recently re- usedto accept 7 to give e �, 5Qg u� e pleasure of. contemplating the.,, 250 -year-old black walnut tree in his backyard. Mr. Wells turned down the offer during Ontario's first hardwood tree auction,.claiming, "We Betagreat deal'of pleasure out of looking out`on that�tree and the birds and squirrels in it". ' FIRST LESSON THE TOUGHEST -Especially when the novicecross-country cr s os co n# - u ry skier . is only 18' months. old. Young Chad. Hope, assisted by his grandfather, Warren Harvey of Barrie, began cross-country' skiing recently at the . Crossy-Country Ski Centre at Formosa Sprir'ig Park near Barrie.. Open to the public at no charge, the centre is: super- vised on weekends and holidays by members of the south tier Ar Yrs• rf _ TJF• �• � JfJ r?{: r; r}i},:•r{rfi'} tieyr�r •r{��:j.:; y f{J:�{r :•.rrti f,• �r,{: �!•. 'y���{: ti'-'J�fJ'r f?{fJ: • f I':l h{}�'(y�f r ?.}; j {J•1 r f f: r:S?J:ti J h?'fJYJJfr l�EfI2 �:•!j 'f •}�•.r:{'a•Y.iS:fiix S?�'f.•:•:�:•fr�riiij{'?�r:�:°L•�'••^i��:iCirr:�fr�.�i+Y�ti�'riGvSGr.�i}�Fly� nt. Liberals unsure pwly leadership TOROjlTO (TIPS) When On- tariofiberal leader Robert Nixon announced that he planned to re - Sign from party leadership last spring speculation as • to who would fireplace him began. -Names mentioned since then include Jim Breithaupt of Kit- chener, Jim Bullbrook of Sarnia, Don Deacon of York Centre, Phil Givens of York -Forest Hill, Pat- rick Reid of Rainy River, Albert Roy of Ottawa East and Vern Singer of Downsview. None of these men has as yet. announced his intention to run for party leadership. Some have denied it, including' Jim Bullbrook and Phil Givens. Mr„ Givens, who has a political service record in all three levels of government, having been mayor of Toronto and a federal MP, seems, to be somewhat disil- 'taloned with the game of politics when he says, "Experience (as a politician) is a disadvantage now. People are looking for new stars." Givens' adds that he has been denying for more than a year now that he aspires to party leadership. "Whatever reluctance or re- servations I have are not based on who else is running," he says. "There's a lot of rough cam- paigning involved, both physi- catty and financially. I'm not in- terested." He refers to the cam- paigning which will be required in the net provincial election, not expected before 1975, in which the Liberals will have to show a lot better than they did last time if they wish to regain any mea- sure of power. Givens hints dark- ly at a day when the Ontario Op- position will be in the hands of so- cialists if the Liberals don't -pull up their bootstraps now. The first concern of the Liberal party now is to find a leader with the appeal and capability of lead- ing the party to victory in the next provincial election. 1Crossroads Published every Wednesday as the big, action cross-country section in The Listowel Banner, The Wingham Advance -Times and The Mount Forest Confederate. Wenger Bros. Limited, publishers, Box 390, Winghain. Barry Wenger, Pres. Robert 0. Wenger, Sec.-Treas. Dick Eskerod, Editor, - Display and Classified ad deadline- Tuesday, eadline- Tta day, week prior to publication date. REPRESENTATIVES C.C.N,A.,Room 24, y Ontario' Veekly Newspapers 2 Blo rr St.,'Fast, A. so .,127 George St., '1~ot°tln ti.01-5324Oakville -84440184 14 11C, oral Fe Feb. 2, Central Ontario Pork Producers Conference at Univer- sity_ of Guelph. Feb. 1 and 2, Canadian Cha- rolais Association Annual Meet- ing, FourSeasons Hotel, Toronto. Feb. 3, Canadian Charolais An- nual Sale, • Four Seasons Hotel, Toronto. Feb.; 6 and 7, Farm Business Arrangements and Estate Plan- ning, Centralia College of Agri- cultural Technology. Feb. 7, .Huron County, Pork Producers Annual Meeting, Clin- ton Legion Hall. Feb: 7, Home Gardening, Uni- versity of Guelph. Feb. 8, Ministry of Agricultural and Food Tax Management Day, Women's Institute Hall, Bel - grave. Feb. 7, Cucumber School, Ridgetown College of Agricul- tural Technology. Feb. 8-9, Drainage Contractors Conference, Holiday Inn, London. Feb. 9, Ontario Aberdeen An- gus Association -Annual. Meeting, Holiday Inn, Oakville. Feb. 12, Current Issues in Marketing -Short Course, Cen- tralia College of Agricultural Technology. Feb. 12, -Canadian Hunter. Im- provement Society -Annual Meeting, RoyalYork Hotel, To- ronto. • Feb. 12, Understanding the Futures Market -Short Course, Ridgetown College of Agricul- tural Technology. Feb. 13 and 14, Soil Manage- ment -,Short Course, Ridgetown College of Agricultural Tech- nology. Feb. 13-15, Cheddar Cheese Course, University of Guelph. Feb. 13, 16, Understandingthe Futures . Market -Short Course, Centralia College ,of Agricultural Technology. Feb. 13•-14, Soil Management - Short Course, Ridgetown College of Agricultural Technology. Feb. 13, Ontario' Swipe Breed- ers As oration -Annual Meet- ing, Constellation Hotel, Toronto. Feb. 14-15, Farm Money Management -Short Course, Ridgetown College of ,Agricul- tural Technology. s H FARM TA XES OntJMinistry of Agriculture and Food Keep it simple. "Good advice" you say, "but, oh so -difficult to achieve." One look at the 600 pages of the new Income Tax Act would lead you to believe that the age of simplicity is gone forever. Why did they make the new act so complicated? Obviously the old act was full of loopholes. It oaa to be complex to insure that those who can afford a staff of ac- countants and lawyers also pay their fair share of tax. No doubt there are still loopholes. But it may be cheaper to pay the tax than to hire all of the specialists. Will -these new tax laws mean the end of the family farm? i don't think so - unless farm fami- lies allow it to happen. Father and son have to be very honest with one another and see each other's viewpoint. They can orga- nize some form of business struc- ture acceptable to all concerned. Basically there are three dif- ferent methods of organizing a father -son farm business: (1) Partnership; (2) Corporation; (3) Farm Family Business Agreement. None of these have to be com- plicated. Any one of them can be Very complicated. Each one has itt place, depending on the indivi- dual family situation. By now you 1 may have heard those who favor only one method. Usually you will +cote they take examples ana ap- ply them to a given situation. Sometimes they forget that there are other situations. Just remem- ber it is very easy to catch "tun- nel vision." Some people call it "not seeing the forest for the trees. " - The Corporation The creation of a corporation establishes a separate and legal entity quite distinct from that of the persons who become mem- bers of it. This separate corpor- ate existence provides for: (1) limited liability; (2) ease of ownership transfers; (3) continu- ous existence; (4) the possible separation of ownership and management. b The introduction of the new In- come Tax Act has prompted many farmers to re -consider this organizational structure. Normally father holds Pre- ferred Shares (fixed value) and may or may not hold some of the common Shares (growth value). The son (s) normally hold the majority of the Common Shares. A corporation once established,' can be kept fairly simple. Shares can be sold and transferred at any time. ern; Ontario division of the Canadian Ski Association who f ry ovi free r ee inst� p . uction. More than i 7fI sets of cross-country equipment are on hand, free, for Visitors. Cross-country skiing is enjoying a major revival in Ontario and Midwest- g ern -Ontario residents would do well to consider the For- mosa park facility for a free try. s tit It Rin yi14••� ("�1'z;l �"�►' * � ..sqq �'�',d""QJr�yk ^. Feb. 14-18, Ontario Homme and names 0 Garden Show, Bingeman Park, Marshall Hall, Kitchener -Water- loo. Feb. 14, Holstein . Friesian Association of - Canada -Annual Meeting, Royal York Hotel, To- ronto. ' Feb. 15-16, Agricultural Chemi- cals in Crop Production --Short Course, Ridgetwn 'College of _Agricultural Technology. .Feb. 16, Understanding the Fu- tttres Market: -Short Course, Ridgetown College ' of Agricul- tural Techno ogy., Feb. 16; Canadian Agri-Mar- ketin g Association e g c atoron. Seminar, "Working. Tools of Agri -Market- ing", Royal York Hotel, Toronto. Feb. 1647, Cow -Calf Opera- tors -Short Course, Ridgetown College of Agricultural Tech- nology. Feb. 19-20, Ontario Plowmen's Association --Annual Meeting and Convention, King Edward - Sheraton Hotel, Toronto. Feb. 20-23," Tailoring -Short Course, Ridgetown College of Agricultural Technology. Feb. 21, Carrot Day, University of Guelph. Feb, 21-22, Fertilizer Trade Show, 100 Dixie Plaza, PortCred- it. Feb. 21-22, Ontario Association of Agricultural Societies -Annual Meeting and Convention, King Edward -Sheraton Hotel, Toronto. Feb. 21, Canadian Guernsey Breeders Association -Annual Meeting, Holiday Inn Hespeler (Cambridge). Lobb is pres. Huron Central Agr. Society Harold Lobb, reeve of Clinton, was elected president of the Huron Central Agricultural Soci- . ety at its recent annual meeting. He succeeds Ross Lovett of RR 1, Londesboro. Elected vice presidents were Elgin 'Thompson of Kippen and Bill Flynn of RR 4, Clinton. Bob Gibhings of Rft 1 Clinton was re- appointed secretary - treasurer. In the women"s section. Mrs. James Snell, KH 1, Clinton was elected president, succeeding Mrs. Jack Van Egmond, also of RB 1, Clinton. Mrs. Donald McLean of Clinton is the new vice president and Mrs. Greg Brandon of RR 4, Clin- ton is secretary -treasurer. The society announced the sec- ond annual throe -day spring fair Will be held the first weekend in June. cers The Biyth Board of Trade, at their annual meeting and ban- quet, elected a new slate of of- • ficers. Helen Gowing, who served' as president of the group in the last two years hen it grew substanti- ally in size nd activities, was named 'past pre 'dent. Keith Roulston was named the new president. Oscar DeBoer was named vice president. The new secretary is Marion C and Harvey Snell will continue t act, as treasurer. 60 tour Ziegler, Gray beef. farms in Harr. iston Sixty 'Wellington County beef producers toured the farms of -Milt and. Hap Ziegler and Barry Gray, all from Harriston, Jan. 18th.as part of a Wellington Coun- ty Beef Improvement Association sponsored program. . Martin Wreubleski, county engineer, spoke to the farmers on future trends in housing and Ralph Macartney, Ontario Minis- try of Agriculture and Food beef specialist from Arthur, talked about substitutes for D.E.S. Dairy Tour A large number of Wellington County dairy producers toured the farm of ,Art, Frank and Jim Dickinson at Elora the previous day. The program centered around herd health with nr. Cote and Dr. Banbury as the guest speakers. Sponsors of the tour were the Wellington County Milk Committee, the Wellington Coun- ty Holstein Breeders Club and the Ontario Ministry of Agriculture and Food. Milk Marketing Milk producers in Wellington County experiencing problems with fluid quota, market sharing quota and subsidy eligibility are, reminded by the Ontario Ministry of Agriculture and Food, Arthur office that Ken Carey, fieldman for the Ontario Milk Marketing Board, is available for assistance through their office. As a service, Mr. Carey is at the Arthur office the first and third Thursday of each month from 1 p.m. to 4 p.m. MORE PEOPLE W t ' RY Worry kills more , y+ple than work, because more people worry than work. A Lovely edding ..4 radiant Bride 11 F-1 so dear to a d rices heart .. . The Bouquet Invitation Line Good taste needn't be expensive. Our beautiful Bouquet Invitation Line proves this with the most exquisite papers, type faces and workmanship yoo could wish fort It features Thermo -Engraving.• -rich raised lettering -elegant as the finest craftsmanship -- yet costing so •little! Come see our unusual selection. Osie to Iwo weehe le/livery / WE'RE HERE TO HELP YOU AT Wingham Advance -Times Mount Forest Confederate Listowel Banner •