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Home My WebLink AboutThe Wingham Advance-Times, 1975-04-17, Page 2• Pogo 2—`he W%gham Ad may, April 17, 1975 Farm income protection The Ontario Farts Income Protection act sponsored by the Ontario Federation of Agriculture received support in principle tram a majority of about 80 members of the Huron County Federation Agriculture at a general meeting last Thursday. On hand to present the plan at the Seafo m etas OFA viae -president, Frank Wall, a confident and persuasive advo- cate of the act and one of the persons instrumental in pre- paring the act for presentation to the Ontario government on Feb. 96. Mr. Wall said the prognosis for government acceptance of the pian was good and added that he expected some official govern- ment action within two months. He said one indication of govern- ment approval was the inclusion of $2 •4nillion dollars as first-year funding for a "cost -of -production guarantee" in the budget presentation of provincial treasurer, Darcy McKeough. Mr. Wall praised the government on the decision but said the amount "falls far short of OFA expecta- tions." He said he believes the government failed to recognize "the contribution of the agri- cultural community to the economy." "Farmers create jobs," Mr. Wall stated, "therefore farmers should be supported ... be given an opportunity to be creative and to produce." He quoted a sum of $1.6 billion as the amount spent by the farming community in 1974 operating expenses. He called the present situation a "critical position": "I'm very concerned about the situation in farming today." Mr, Wall said about $100 million would the closer to the sum "necessary for the kind of industry we are." However, the government would not be the only contributor to the plan, Mr. Wall explained: "The provincial plans will sup- plement the federal Plans. The act would allow the province and the farmers to contribute on a premium basis to the fund." According to the proposed act, the government would pay premiums on a two -to -one ratio to the producer payments. Payments from the -fund would be calculated as the shortfall between the average market price for a given period and the negotiated product price, based on the cost of production, includ- ing all inputs, plus cost of labor, management, return on invest- ment and premium for plan, Mr. Wall said. He explained that a "base of control" would be necessary to prevent "overpro-. duction: "You've got toproduce for a market, otherwise the government won't go for it." The base of "efficient produc- tion" would be agreed upon through negotiations between the OFA and the government, Mr. Wall said. The "cost of produc- tion" would also be negotiated and would be based ' on 'the "agreed -to production unit." This might have to be recalculated every few months or more often as the factors included in the • costs of production fluctuate or change, he explained. Mr. Wall said the act was predicated on the fact that every commondity is somehow related to another commodity and that "you can, influence supply and. demand." He explained that each plan would work on its own fund — the fruit producer would not be paying for the pork producer and vice versa." Each commodity' would require a marketing organization recognized by the OFA that would then apply to the OFA to join the plan. Mr. Wall said the minimum length of time render the plan would be five years, although an individual member could withdraw from the plan at any e. The requirement that each in- ' vidual farmer wring to bene - Fat from the plan be "an in- dividual service member in good )70 GYPSY MOTHS A single gypsy moth caterpillar — a serious forest and shade tree pest can consume up to a square foot of leaves every 24 hours. Today could have been the day you sold that extra living room furniture 0 0 IF YOU HAD PLACED A WANT AD MONDAY CALI, 35i-2320 We will be glad to help you to sell it next week -• 11 standing of OFA" raised some questions at the meeting. A small majority said they feel this requirement is discriminatory. Mr. Wall said the reason for the membership clause is that ate, feel very strongly that farmer' need to be unified." He said the OFA would need tar' ore merabeilic. anyway "to help us carry this case to ... government." The prerequisite of(WA member- ship, however, is a negotiable point, he added, and could be modified to allow a non member t9 participate in the Phan u►lth the payment of an administrative fee. The meeting in Seaford' was only one of a series of sucltmeet- Ings throughout the province to introduce the plan to OFA mem- bers. mor to the meeting, Mr. Wall said tlil t oupport to date wao about 90 to 96 per cent strong. 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