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Clinton News-Record, 1981-12-02, Page 13• Ralph Barrie warns OFA may use militant action Militant farm action is possible if governments don't soon open their purses to aid financially squeezed Ontario growers and pro- ducers, Ontario Federation of Agriculture president Ralph Barrie warned last week. Barrie, a Balderson farmer, said mere lobbying hasn't worked. He didn't tell delegates at the opening of iothe three-day OFA annual meeting what new action might be taken, but said in an interview he wouldn't rule out massive demonstrations. The financial crisis facing farmers can no longer be ig- nored without the 25,600 - member OFA responding with more militant pressure, said Barrie, who was ac- claimed president for 1982. He said militancy hasn't been his style in the ' past because he feels it only an- tagonizes politicians, but if governments don't respond to lobbying, militant action must be considered. Barrie wants the Ontario government to provide financial aid in response to findings of the OFA's emergency task force on the financial crisis facing farmers. Those recommen- dations, based on two mon- ths of meetings across On- tario, will be presented to the convention today. He asked for the delegates' full backing if the OFA pur- sues amore militant course. "It may mean I'll be calling on you for support and par- ticipation in activities you normally wouldn't get in- volved in...If it reaches the 41 point where I ask you to .-ck me up, and you don't, I'll pack my bags and head back for the farm." Barrie charged that "federal government policies have wreaked havoc in the farm community," especially high interest rates and energy programs. He said the recent federal budget will help only a hand- ful of farmers. Estimates on the invest- ment required for Cana- dianization of the country's energy resources range from $200 billion to $1 trillion in the next 20 years, leaving little in the money markets for small borrowers such as farmers, he said. "Farmers are being cram- med out of the credit market by these two policies...And what about the middlemen, the banks?" Barrie asked. "While we're being bled dry, they're raking in record pro- fits." Barrie didn't let the pro- vincial government off the hook, charging it has failed to give financially distressed farmers any interest subsidy support while other major agricultural provinces have provided their farmers with significant aid. He said the one percent of the Ontario government budget and the two to 21/2 percent of the federal budget spent on agriculture isn't much of a subsidy. "It's not all the fells' fault," he said, adding that Premier William Davis and Agriculture Minister Lorne Henderson boast how On- tario farmers are number one among provinces in gross production. "While we're number one in gross receipts, we're number four where it really counts - net income - and those net incomes have been declining for the last five years...Ontario farmers have been producing more and more for less and less." But. Barrie said farmers are also partly to • blame by sometimes borrowing too much money, relying too much on credit and blindly expanding. He said farmers have often been too loyal to political parties, too obsessed with independence and too allied to narrow com- modity biases to speak with a strong, united voice on common problems. Barrie also took a swipe at consumers, the media and industry for what he said was a "double standard" they apply in judging farm organizations. "They embrace the philosophy of collective bargaining, monopoly pric- ing and market sharing and they benefit from them. But they damn our marketing boards and farm organiza- tions for trying to do exactly the same thing. It was apparent Tuesday that it isn't just individual farmers who are financially pinched. The OFA itself, despite an 'increase in membership this year of 1,511 ran a $204,125 deficit due to inflationary costs and increased activity. Delegates approved a $20 membership dues increase to $70 in an attempt to wipe out this year's deficit. Farmers may need changes by Art Lawson, associate agricultural representative The Economic Summit meeting may have been giv- ing us some signals off chang- ing times. The message was – continued high and uncer- tain interest rates and con- centration on reducing infla- tion. New government pro- grams . requiring large amounts of spending will probably be limited. Most governments are looking at ways to reduce spending. Farmers and other businesses may have to ad- just their management strategies to ensure economic survival. The climate for production, marketing and financing is changing. Ten years ago, if someone told you that Massey - Ferguson or Ford or Chrysler Corp. might go broke– you'd have laughed. Today you'd admit it is possible. What has happen- ed? Interest rates have always been variable. To- day's rates, however, wouldn't have been thought possible ten years ago. Historically, inflation rates have been about two- thirds of the prevailing prime lending rates. There were times in the past five to ten years when interest and inflation were about equal. Borrowing money wasn't all that risky. Assets were often inflating in value at a rate equal to or greater than the cost of money borrowed to bio them There m S gets cf incentive to borrow money. The outlook was generally good. While inflation is still fair- ly high, the cost of borrowing money now is about double the rate of inflation. Govern- ment policies in the United States and Canada are set out to reduce government spending and the rate of in- flation in the economy. In- terest rates are probably go- ing to remain high for the next few years. Many economists have even raised the possibility of deflation in the economy. It's a very real possibility. We are, after all, the only generation in modern history to haa'e experienced nothing but steady inflation. There are doubts as to how long this situation can con- tinue. With all these changes in our economic environment, how can a farmer or businessman safely budget for the future? It seems to me that a more cautious ap- proach may be needed. Equity is going to be more important to your banker. If the cash flow you generate ( 'on't support the debt lead you undertake – refinancing may be a problem. The assets you purchase and the products you produce may not be gaining value (inflating) as quickly as you'd like. Many of us have purchas- ed land or buildings in the past few years, knowing that the first 'few years would produce negative cash flows. Inflation has pushed up asset values and produced equity to refinance against. Pro- duct prices have usually climbed to more profitable levels. -'Aggressive borrow- ing has paid off with the help of inflation. What happens if inflation slows down? What if prices go down? Your banker won't be receptive to additional financing unless you've got equity. In addition, he'll pro- bably want to see some way that you can generate more income. This could be a tough order. Buying land or buildings will require patience and planning. Aim for a level of equity that will make your project easier to carry. At current interest rates, sav- ings can grow fairly quickly. The more expensive credit you can replace with your own money, the better. Don't count on the assets you buy to hold their value the way they used to. Many of you have tractors that you bought 5, 10 or even 15 years ago: You would sell them to- day for what you paid – or more. You've had all those years of use with very .little depreciation. As inflation slows down, depreciation will become more of a fac- tor. Used machinery will tend to lose more of its original value. If you borrow a lot of money, you should also have some contingency plans – some things you can do to keep the operation going if business goes badly. Your main objective is to stay in business – survival. For some people this may mean selling off a machine or a piece of land during hard times. You may not want all your land in one parcel. Separate chunks of 50 to 100 acres that could be sold in an emergen- cy might be good insurance for your business. You may not want all your buildings on the same parcel of land. It's not hard to end up with a lot more money invested on one parcel of land than could reasonably be recovered in the event of a sale. If it's practical to use more than one land parcel in your building program, your business investment will be more secure. Many people are looking at new buildings with the poten- tial, for more than one ap- plication. For example – machine sheds that can dou- ble for grain and fertilizer storage or buildings that could be modified for several types of livestock. Marketing will be challenging in the coming years. Many market analysts predict violent fluc- tuations in commodity prices. High interest rates deter suppliers from holding inventory. Prices will be very sensitive to interest rates as well as normal supp- ly and demand factors. Government policies will in- fluence markets with possibly greater frequency than in the past. The coming years will not be all gloom and doom. The economic environment for management and decision making -is just changing a bit. The successful manager will recognize the changes and adapt. Lyle Kiinsman, R.R. 2 Klppen (left) won the }Tailrace Farms Trophy for the champion 4-H gate sign in limon County. The award was made on the basis of a judging by the 4 -if club leaders. Jim Hallman k making the presentation for ilallrace Farms. (Larry Dillon photo) Huron County delegates from the West Central Region to the 1981 OFA Convention were (left to right) Jim McIntosh, second vice-president, Jack Tebbutt, Stan McIlwain, and Larry Sturdy (missing) . Prevent cow injuries • from page 12 by all the owners in the watershed but the municipality administers the paperwork and a consulting engineering firm draws up the report. The following lists the procedure for municipal drains: The owners desiring drainage, circulates a petition and obtains a majority of names of other owners in the area requiring drainage or the names of owners holding 60 percent of the acreage in the ,area Smile Did you ever realize what a queer thing a match is? That heavy end is the light end. +++ Whenevery you see a person with a swelled head, you wonder how so thick a skull could expand so much. r +++ requiring drainage. A road superintendent can also initiate a drain. The owner then presents the signed petition to council. A municipal drain is eligible for a 33 and one-third percent grant on the total costs of the drain. There are two other alternatives and I will discuss these in a future article. For further in- formation, contact Sam Bradshaw, O.M.A.F., Clinton. - Sam Bradshaw, Engineering Assist. Task Force... • from page 12 18. The colleges of agriculture could offer courses on the futures market which is used as a hedging mechanism. These activities are sophisticated and must be treated with .care. 19. There are many in- stances of farmers becoming over mechanized. Farmers must not acquire high cost. machinery when these purchases may not be necessary. 20. The survey com- missioned by the Canadian Ship your livestock with ART HEFFRON Blyth Shipper for United. Co-operatives of Ontario Livestock Marketing Division Ontario) Stockyards, Toronto CALL BLYTH 523-4221 by 8:00 a.m- Monday Stockers and Feeders Also Available Best Interest * 1 7 O/0 ONE YEAR ANNUAL We represent many Trust Companies. We are often able to arrange for the highest Interest being offered on Guaranteed Investment Certlfk osne, "Subject to thane EXETER 235-2420 Gaiser-Kneale Insurance Brokers Inc. CLINTON 482-9747 Come in dna wed yourIpa113a1 Seasonl fofthe during our CHRISTMAS SPECIAL! November 17 toOecember 1241.1 'S. OFF OUR REGULAR PERM PRICE! Perms by appointment only. Coll and make an appointment sown with Betty -Jean, Licenced Hairdresser. eaut.`� .-Shoop HIGHWAY 21 BAYFIELD 565-2721 HOURS Tues t'o Wed and Fri 9a m 5o m Thurs. 9 o. m. -7 p.m Sot. 9 a m i p No a• rorntrnent necessary. Thursdo night is ^rens night v ••• Bankers Association in- dicated farmers were receiving management and financial advice primarily from bank managers. Since it appears that many bank managers, irrespective of their sincerity, are not qualified to give advice to farmers, it is suggested that they either become more qualified or have the farmer obtain the guidance needed from' a person who is qualified. There is a need for banks to strengthen and enlarge their agriculture department. • CLINTON NEWS -RECORD, WEDNESDAY, DECEMBER 2 , 1981—PAGE 13 Farmers go computer Ontario farmers are joining forces to beat the, computer. More than 70 farmers are listed in the first on-farm computer directory, and they are prepared to exchange- computer programs and information to save each other work. "There is a great deal of enthusiasm about computers in the farm community, but there Is a real shortage of information about on-farm use of this technology," says Randy Ross, acting head of the Ridgetown College of Agricultural Technology farm economics section. Following a meeting of farmers, government, and agribusiness represen- tatives, Mr. Ross, Bill Allen, also of the farm economics section, and John Cardiff of the Ontario Milk Producers Marketing Board, began work on a three -pronged computer information program. The first step in the plan is Binoculars - The ideal Gift SPORTVIEW' 7x35 �� 95 Wide Angle • 1} ill Leah i bdc Insta•1 crus®. Uu,iln U super %t)It. yuahty. Brilliant. sharp Lime In htautl- lu'Ut balaikvd slat. ('uL- unn littud Last. and strap'. Bushnell - BOB & BETTY'S VARIETY MAIN ST. SEAFORTH • • the Agricultural MlcrcComputlpg Directory. The first edition of the quarterly publication, issued in September, lists 70 fars mers, 30 educational and agribusiness computers, the type of computer used and the work it performs. The December edition is ex- pected to include more than 100 farmers. "Through the directory, farmers can find someone nearby with the same type of computer and a program that suits their needs," says Mr. Ross. "Most on-farm computers are used for livestock record keeping and more than 60 per cent of these programs are homemade. Developing these programs takes time, so farmers can save each other a lot of work by sharing, trading -or selling programs." Another part of the computer information pli'n is the development of a software directory. This publication willlist names of contacts offering computer programs for sale or trade. To help keep farmers abreast of the fast -paced computer industry, Ridgetown College of Agricultural Technology is introducing a monthly newsletter in January. Fanners can obtain more information about these programs, and add their names to the directory by writing to Mr. Randy Ross, Farm Economics Section, Ridgetown College of Agricultural Technology, Ridgetown, Ontario NOP 2C0. There is no charge to add your name to the list, but the cost of subscription to the quarterly directory is $12 per year. Smile Two kinds . of , families are. likely to have antique fur- niture - the kind with money and the kind with kids. WANTED ONE COUNCIL MEMBER One vacancy currently exists on the Clinton Town Council. If you aro interested in serving the Town of Clinton asp member of the Town Council, you hove un- til 5 p.m. on Friday, Dec. 4/11, to submit your name to the undersigned. To be considered by the Council, you must be: 1) a resident of the Town of Clinton, 2) a Canadian citizen or other British subject, 3)15 years or older. The present Council term will expire with the elections in November 1912. Further information may be ob- tained from the undersigned. C.C. Proctor Clerk -Treasurer Box 400 Clinton, Ontario m• fl Home Hardware WRAP UP SOMETHING NICE FOR r Ea AND SAVE DURING THIS SPECIAL PURCHASE SALE! TWO POPULAR ELECTRONIC GAMES - NOW AT BIG SAVINGS! TALBOT ELECTRONICS 2 PLAYER BASEBALL COMPUTERIZED FOR 1 OR 2 PLAYERS '•Player one has control buttons to indicate swing, pitch, score, steal, and reset. •Control switch for 2 - player, practice, 1 -player •A hit will show the player's light moving around the bases - a steal is also possible. •Scoreboard and playing field Tight separately OUR REGULAR '42.95 WHILE QUANTITIES LAST -GET IT FOR ONLY- shows innings, at bots, balls, strikes, outs and the home and visitor's team. •Player two is the pitcher - controls for fast, slow, right and left curve, plus a pick - off. •A flip -up shield conceals player two's moves from player one. •9 -volt transistor battery not included. 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