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
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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
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WE'RE HERE TO HELP YOU AT
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