HomeMy WebLinkAboutClinton News Record, 1981-04-30, Page 12PAGE 12—CLINTON NEWS -RECORD, THURSDAY, APRIL 30, 1981
Farming future looks dim
by Alice Gibb
Ron White, vice-president
of the Ontario Federation of
Agriculture (OFA)
predicted last week that the
farming industry will face
an economic crisis for some
tune yet.
Mr. White, a Middlesex
County dairy farmer, speak-
ing
peaking at the Joint annual
meeting of the Tuckersmith,
Stanley and Goderich
Township federations in
Holmesville recently, told
farmers, "I • don't think it's
going to get any better for
some time."
The dairy fanner said
while young farmers are
struggling to survive in the
industry, the stories that
really tug at the heart are
those about farmers who are
.ioairg thein farms after M
_
lisoft in business. Mr.
White said for many of these
fanners, "the only thing
they can do is get out", ad-
ding after they sell their
farm, some "won't even
have a decent retirement
fund" although "the best
part of their lives was spent
in productive agriculture."
Mr. White said the last few
months have been "troubled
times in agriculture," since
many traditional products
are in trouble in the
marketplace. He said one of
his neighbours is losing
$25,000 a month in his large
hog operation, and another
friend last week posted a
"for sale" Sign on his farm.
Mr. White said right now,
there's little opportunity for
expansion in farming. He
said he met with Ontario's
agriculture minister Lorne
Henderson last week, and
other members of the
federation will also be
visiting the minister to bring
the problems facing farmers
to his and to the public's at-
tentioNt.
Mrte said he's :also
corned about
rep toi:be releasedd by�the
Economic: Council of Canada
*Olt are erlt ical of the
marketing Board approach
to selling farm products.
Mr. White said, "We -need
an agricultural:policy in On-
tario annd.t<we..ripartic
wriit fir Canada and
getting it. He
farmers aboutseveral farms
he visited recently in Bruce
and Wellington Counties,.
where farmers are faced
with liquidation. Mr. White
said the great percentage of
farm operations today are
overburdened by interest
rates. Farmers can't meet
interest obligations let alone
the capital expenses of their
operations, he said.
"Agriculture in general,"
he said, "is very hard press-
ed." Admitting there are
some real problems with
marketing systems and that
farmers must know how to
sell their products, Mr.
White was critical of both
provincial and federal
government economic
policies in the farm sector.
Mr. White said the OFA ex-
ecutive, meeting this week,
will be proposing both some
band aid and long-term solu-
tions to the problems facing
the agriculture industry in
Ontari
Stan Young; the banquet's
speaker and chairman of ex-
tension services, the Univer-
sity of Guelph, presented a
more optimistic outlook for
farmers, if they take advan-
tage of opportunities
available in agriculture.
Dr. Young, cautioning
farmers to keep up the
pressure on the minister of
agriculture regarding in-
terest rates, said what con-
cerns him is how interest
rates for farmers vary from
province to province and'
how they are subsidized in
Many -provinces, like Saskat-
chewan, but not in Ontario.
Study Marketing
In discussing opportunities
which farmers should in-
vestigate, Dr. Young advis-
ed farmers to study
marketing situations and
how they might replace at
least some of Ontario's im-
ported foodwith products
grown here. He said farmers
_she L ..aware._of the
.changing domestic market,
an increased , population
which requires an increase
in food production and the
special needs of ethnic
groups. Dr. Young pointed to
growing demands for
'specialty meats like goat,
lamb and rabbit in the ethnic
market.
The educator said farmers
must also be conscious of the
export market and its needs.
He said about four countries
including. Canada -are now in
competition for much of the ,.
world's export markets. Dr.
OFA wants
federal aid
The Ontario Federation of
Agriculture (OFA) called
recently for a federal and
provincial interest rate
assistance program for
Ontario's financially pressed
farmers.
Beef and hog producers
are hardest hit. They face
low commodity prices on top
of increased costs and high
interest rates. Farm
bankruptcies in Ontario for
the first quarter of 1981 show
a 77. percent increase over
the same period last year.
The 100 farmers at the
CF'A's Board of Directors'
meeting in Toronto set a
short-term rescue program
as their highest priority. It
would include an in-
dependent agency to review
foreclosures and forced
liquidations, as well as
government assistance to
provide low cost refinancing
and forgiveness of some debt
for those most in need.
The OFA also wants a
long-term program in-
cluding re -introducing the
provincial Junior Farmer
Establishment Loan, and
more money for the federal
Farm Credit Corporation, as
well as a review of its len-
ding criteria. The'OFA also
wants to reduce interest
rates by making interest on
money loaned to farmers tax
exempt, and wants the Small
Business Development Bond
program broadened so more
farmers can use it.
The directors also called
for an improved provincial
interest . subsidy program.
This would provide a refund
on the difference between 12
percent and the prime bank
rate plus one percent, and
would apply to bank and
farm supply loans. The
program would cover loans
up to $250,000 for individual
farmers` and $500,000 for
partnerships. Payments
would be made quarterly.
Young said Canadian
genetic research has gone all
around the world, _pointing
to poultry and dairy genetic
base exports.
Pointing out what a boon
the white bean industry has
been to Huron County, Dr.
Young advised farmers to
consider exporting other
crops, like alfalfa for exam-
ple, which has a market in
both Japan and Europe.
He told farmers there's
also the possibility of in-
creasing rapeseed or canola
exports, and advised this
crop be considered for Huron
County.
Get the story across
Another opportunity
farmers must not ignore, ac-
cording to Dr. Young, is
communicating their
message. Pie warned that the
population of Canada is no
longer farm -oriented and
that kind of population will
be making demands on the
government to look after
their own needs. He said
farmers must communicate
with these people and "every
one of you has to become
part
,,n and parcel of that com-
munication."
He said urban people must
understand farm practices,
and policies that affect land
prices. He told farmers "you
have to get that story across
to them." He said this won't
be done through the mass
media, it might be done
through schools, but must
mainly be done by farmers,
the people "that are directly
involved."
He said farmers must fight
against political activists
who want to outlaw
technology the farm in-
dustry already has, pointing
to recent campaigns against
chemicals like DDT and 2,4
„Be __.also.... warned -..-tile -
welfare of animals will be
considered more seriously in
the next decade and "all
kinds a of people are not
prepared to accept that the
way we handle animals to-
day is the most humane
(way)."
He asked the farmers how
many of. them "have com-
municated with the 50 people
you feed" and recomniended
inviting groups from city
service clubs and churches
to tour their farms. "Invite
those people to understand
(farming) on a personal
basis," he advised.
Dr. Young also suggested
a number of merchandising
opportunities open to
farmers. Dr. Young said
since fresh meat consump-
tion is declining, farmers
should look at the processed
meat market. He said if the
chicken operation has
changed tQ meet the needs of
fast food outlets, why
couldn't other commodities
do the same. The speaker ad-
vised farmers to sell the ur-
ban people what they want.
"Why not colour milk blue,
call it "sky" and .sell it like
pop?" he asked jokingly. Dr.
Young said farmers must
create the demand for pro-
ducts and capitalize on the
demand that already exists.
For example, if natural food
addicts want alfalfa, Dr.
Young said why not, market
it to them as "hay burgers?"
He also advised farmers to
look for opportunities in the
area of production. He said
in 1960, people laughed at the'
predictions of 100 bushels°
per acre of corn, while in
1980, many farmers know
they can do better than that.
Dr. Young said farmers can
improve the intensity of
their enterprise by changing
crops. Consider growing
more horticultural crops,.
like peanuts, asparagus or
vegetables, he suggested.
Dr. Young also pointed out
atrazine is used in the West
for canola weed control, and
asked why farmers couldn't
take advantage of Universi-
ty of Guelph research on the
crop and grow, more
rapeseed here.
In concluding, Dr. Young
said the availability of water
in Ontario is one of the ad-
vantages Ontario farmers
have in competing with pro-
ducts from California,
Western Canada and Israel.
He said that availability
should give this province's
farmers excellent com-
petitive ability in breaking
into the export market.
Following Dr. Young's
speech, OFA fieldman Bill
Crawford reported that
Huron County now has 2.180
federation members, the
highest number in the
organization's . history.
Huron County also has the
most members of any county
. in the Ontario organization.. -
Huron County federation
president Gerry Fortune told
members the OFA will be
meeting with represen-
tatives of the National
Farmers' Union and Chris-
tian Farmers to discuss
ways to combat high interest
rates facing farmers.
The annual meeting and
banquet, held in Goderich
Township Hal); wasattended
by 250 federation members
from three townships. This is
the first time the townships
have held a joint annual
meeting.
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SPRING
GARDEN FARM
CALL i P.M. -10 P.M.
229-6795
FARMERS
IN HURON COUNTY
"THINKING OF REAL ESTATE. THINK STEVE BUCHAP AN'°
SPECIALIZING
IN THE SALE OF
FARMS FOR
• 25 THE SQUARE
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524-9017 ofFlcE
What are these people watching? They're watching the beginning of one of the classes at
the annual Clinton Kinsmen Canoe Race last Sunday at Auburn. Rhea Hamilton of The
Blyth Standard takes a picture, while two members of the Floss family of Brucefield eye
the paddlers. (James Fitzgerald photo)
1
all says
ories
The refusal of Lorne
Henderson, minister of
. agriculture and food, to par-
ticipate in an emergency
debate on the financial crisis
facing Ontario's farming
community, clearly shows
that the Ontario Government
has a total lack of concern
regarding this most serious
problem, says Liberal
Agriculture critic Jack Rid-
dell.-
• "To simply state that high
interest rates are a federal
responsibility ignores the
factthat Ontario is one of the
few Provinces in the country
not to have instituted an ex-
tensive and well used set of
low interest programs for its
farmers," he said.
The facts of fanning life
are extremely chilling. In
1980, farm bankruptcies in-
creased 91 per cent over the
previous year and, for the
first three months of this
year, bankruptcies increas-
ed 77 per cent over the same
period last year, Mr. Riddell
said.
Furthermore, the Ontario
Federation of Agriculture
estithates that for every
farm bankruptcy recorded
in Ontario, there are at least
10 other farmers Who decide
to get off the land while they
Riddell re -appointed to caucus post
The re -appointment of
Jack Riddell as Agriculture
Critic for the Ontario Liberal
Caucus was announced at
Queen's Park April 21 by Op-
position Leader Stuart
Smith. Riddell was recently
elected to a fourth con-
secutive term as MPP for
the riding of Huron -
Middlesex.
In
making the appoint-
ment, Smith called Riddell,
"one of the most effective
members in our Caucus, and
a stinging debater in the
Legislature. He's also one of
the most knowledgeable peo-
ple in Ontario in the field of
agriculture and food."
A farmer by trade, Riddell
has served es the Liberal's
Agriculture spokesman
since 1977. Partly through
his hard work and pressure,
the government agreed to
set up a Royal Commission
Inquiry into Food Prices in
"That Commission
became a whitewash, unfor-
tunately," says Riddell.
"There are still some very
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bad practices of discounting
going on in the food industry
and our farmers are the real
victims.
"We'll just have . to put
more pressure on the
government to realize that
when you hurt the farmers,
you hurt consumers too."
Riddell's appointment
became effective on the first
day of the new Legislature
and will continue until fur-
ther notice.
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on't care
still have some equity left in
the business.
"As farmers are leaving
the Llland in frustration or are
forced off by bankruptcy, all
too often that land is being
sold to foreign investors who
have no intention within the
foreseeable future of corning
to this country to fartn the
land or to developers wle;
will seek other ways than `
farming of making a profit
off the land. This can only
have a negative effect on the
provincial economy, con-
sidering that the farm conn -
moody not only provides us
with food for domestic con-
sumptlon but also provides
employment for thousands
of people," Mr. Riddell said.
"I firmly believe that this
Government must introduce
an immediate emergency in-
terest program to prevent
further farm bankruptcies.
The farming industry in On-
tario needs assistance now
and if the minister of
agriculture is not prepared
to accept the responsibility
for initiating such a pro-
gram, I will have no othefik
choice than to call for ha.
resignation," said Mr. Rid-
dell.
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