The Goderich Signal-Star, 1981-03-18, Page 32PAGE 12*-GODERl,CIISIGNAL $TAR, WEDNESDAY, MARCH 18,1981
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Few people in this country give much thought to whether
the harvest in Russia is successful. In fact, most red-baiters
chuckle with delight when they learn the Russian bear has to
prowl the world to feed its people.
But those Ruseian failures coupled with a below-average
Cir crop in:tthe U:.S. Midwest mean that Canadians will pay
more for food in the next year or more.
Why? Because grain, which includes wheat and, corn, are
.Shemajor costs in the production of beef, hogs and poultry. It
is the old law of supply and demand. Russia shops the world
to feed her people. My surplus grain is bought by them. This
leaves much less grain for livestock feed. When the demand
IS there, the price escalates.
The effects, then, of a grain shortage in Russia ® and China
too a- are felt all aroundthe world.
Only so much grain is available. If the Soviet Union or the
U.S.. farmers are forced to pay more for feed grains, so does
everybody else.
The whole picure Means that food prices will iT rease in
Canada by1.2,.to 14 percent, according to the Food Markets
n ws-DiviSlio,'o€' -` ie'ultfula"'e e.artralt . Tho-iuncc ease
beled by pork,: poultry and vegetable prices.
Why vegetables, too?
Because weather has devastated fruit and vegetable crops
in .Florida.Again, the old law of supply and demand takes
over. Theeffects at the retail level will Soon be felt.
We can only hope that the vegetable crop in Canada this
year will be a bumper one. Those boys in Bradford marsh
reed a good year, a bumper year, for a change. It may also
persuade more people to buy Canadian instead of paying
exorbitant prices .for .imports from across the line. Canadian
consumers spend about $2.5 billion a year on imported foods,
money that could benefit theCanadian farmer. Not all of that
food can be grown in this country but there is no doubt in the
minds of most farmers that a good deal of it could be grown
here given the right incentives for farmers.
Even so, Canadians are fortunate when it comes to spen-
ding money on food. It is extremely difficult to get accurate
figures but there is little doubt that Canada's consumers pay
less for food than any other nation in the world with the
possible exception of the United States.
In most developed nations, including the United Kingdom,
Europe, Australia and the Scandinavian countries, food costs
eat up about 25 to 30 cents of every disposable income dollar.
In Third World countries as much as 80 and 90 cents of every
disposable income dollar goes to food.
Not long ago, I was privileged to be the guest speaker at a
dinner and I gave these figures in my talk. After the meal, a
kindly gentleman came up to me with a smile on his face.
"I just got back from (West) Germany," he said. "I was
visiting my daughter and her husband: Do you know what
eggs cost over there?"
"No," I said
"Thirty-five cents," he answered.
"A dozen?" I said, incredulously. '
"Each;" he said. "And they are packed only 10 to a box.
That's $3.50 for 10 eggs. Gasoline is $1 a litre - not a gallon, a
litrec,t'
Those are just two items he mentioned. I'm sure there are
many others.
It is without fear of contradiction that I can say Canadians
are perhaps the most fortunate people in the world when it
comes to food costs, even if prices go up another 12 to 14
percent this year.
Tillage speeded
by Iarger equipment
Larger, more powerful
farm equipment speeds
tillage, seeding and har-
vesting, but it can also cause
increased soil compaction.
"Soil compaction in the
short term makes it more
difficult for farmers to -
prepare a seedbed and may
increase the power and fuel
requirements of tillage
operations, says Dr.
Charles Baldwin, Ridgetown
College of Agricultural
Technology soils scientist.
"But in the long term the
problems are More severe
because crop yields and
profits may suffer."
Heavier equipment is
often the cause of increasing
soil compaction problems in
Ontario. Three to four
decades ago, the average
tractor weighed about 2.7
tonnes (3 . tons): Now,
tractors weighing 18, 27 and
36 t (20, 30, 40 T) are not
uncommon. •
To reduce soil compaction,
examine the seedbed
preparation and determine
the least number of passes
across the field necessary to
do the job.
"Make the seedbed as
shallow as possible," says
Dr. Baldwin. "This will
preserve the moisture in the
soil and reduce the fuel
energy required. Don't lose
Finance key topic at Huron F of A meet.
By Rhea. Hamilton Price Waterhouse said. Peo-
Young farmers face the pie who farm enjoy the fact
none ople a seed un also - .
8 e. ---*,-.raw �.
busmess.people starting' out -: indoors.. at a� desk. They also
yproved. production in
Finan e�wasethe key topic the batn or the field as the
fora panel 'discussion at the way to solve.problems.
Huron Federation of Mr. Gunn has observed a
Agriculture Thursday even- weakness • - the farm
ing in Blyth. management business. The.
Young farmers ap- general approach istied to
proaching a banker for fun- the work ethic that a farmer
ding must be prepared to will borrow more, to buy
discuss past, present and more, to farm better.
future plans. Bill- Bearss--of _This-1ack-of- sound-finan--
the Royal Bank pointed cut tial; ,management is shared
That the younger the-faiiner, with all small businesses,. ,.
the greater the risk for the Mr. Gunn said. ° '
bank. Although many resent "Most farmers do not
the questions .asked, Mr. make accurate financial pro-
Bearss' questioning is pro- gress reports," Gunn said.
portionate to the, amount of Farmers have to change
cash requested and the risk the emphasis from produc-
involved. tion reports to financial star -
When requests: for loans ting with comparative
are evaluated, the character budgets for the ' beginning
of the one making .the re- andthe end of the year.
quest as well as their capaci- 'Mr. Gunn also pointed out
ty to repay and collateral that Well -Meaning bankers
provided all play a, major are providing money without
part. • enough financial . informa-
"Bankers like to see a tion. Accountants did not
good_ balance of all three escape comment as Mr.
points with character play- Gunn said cowardly accoun-
ing a strong part," said Mr. tants are afraid to give the
Bearss. service and charge them
Be prepared to produce (farmers) for it. Accoun-
budget plans, cash flow in- tants are overworked in the
formation and future predic- spring when the farmer ar-
tions such as price of com- -rives with a shoebox of
modity, he told the Federa- receipts and records and on -
tion of Agriculture.. The ly the minimum of work is
farmer has to be able to received. Bat Mr. Gunn add- "
regenerate enough to repay ed, accountants can do a lot
the loan and this information for the farmer if he is willing
should help the banker in to check out the benefits.
_..
__Making Irking a,._decksioll,... �_ ....,.__.� -.. - Iteaa-1- comes 49.M. ,Ui•o oa..._
Other records deemed im- The concept of simple ac-
portant are rate of gain or counting or a bookkeeping
yield records. system is not difficult but
Mr. Bearss noted that a there is a demand on time,
balance sheet is important Mr. Gunn said.
and that a postive net worth On the matter of controll-
has to be recorded. The cur- ing assets Mr. Gunn felt that
rent debt should be balanced a look at individual cases
by short term assets. He also would be required.
warned that the debt on Young farmers got a word
equipment should not exceed of encouragenient from Art
the value: Often farmers are Lawson of the Perth office of
still making payments when the Ministry of Agriculture.
the equipment is devalued To -succeed farmers now
below the amount left owing. need both experience and
"The one thing that makes education as well as money.
farming so attractive con- "Faced with the high rate
tributes W its failure," Bill of inflation it makes it more
Gunn, an accountant with expensive to get in (to farm-
See
9
INCOME TAX RETURNS
PERSONAL, FARMIN-,BUSINESS
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10A The Square Goderich
524-2:332
ing) but if you are really
serious you have to take the
lee , -some` stink," • Mr.
Lawson said.
When investing in your
future each case is unique.,
Mr. Lawson pointed out that
if your . money is tied up in
livestock, only 10 to 15 per-
cent could be making
money.
That is one of the major
things to consider, he said,
how .much money is tied . up
• in areasnotmakingl,noney..
• "You have to- be . _cold-
hearted and objective when
assessing' what to own," Mr.
Lawson said, Farmers may
want to have ' minimum
equipment like sprayers so
that they can control when
they want that work done.
Some solutions that ; work.
are syndication of equip-
ment where a group of .
farmers share ownership of
a piece of equipment.
Finally, Mr. Lawson noted
that there is an alternative to
the family-oriented farm
and that young farmers will
have • to start elsewhere.
Although land values are
high in Huron, there are
other opportunities in the
province.
The final word was from
Lorne Luther, a farmer from
the Lucknow area and
member' of the National
Farmers' Union.
Mr. Luther outlined thead-
vantages of the Saskat-
chewan land bank commis-
sion and suggested that a
:,sirilar_.progra.ma_would ..he
beneficial to farmers here in
Ontario.
Mr. Luther told the group
that getting into farming to-
day is no harder than when
he was younger.
"You can go broke in one
year, whereas we could go
broke in three or four
years," Mr. Luther said.
The panel -fielded ques-
tions from the audience
which included the matter of
inflated land prices in -Huron
County. The panel agreed
• tthatfol
. ly paying\the going price of
land and are not falsely in-
• Hating the price. The real m-
flation occurs . when two
farmers will compete for the
same piece of land and in-
flate the price.
All agreed.that land is .a
good investment, but cau-
tioned that young farmers
should start small and avoid
Abe -flashy equipment.
In other business; Ray
Hanna of Auburn ,approach-
ed the group looking for sup- .
port for a proposed con-
servation club. It would be in
co-operation with the .4-H
clubs and help • has been
solicited from environmen-
tal science teachers at the
Goderich high school as well
as .Len McGregor from the
Ministry of Agriculture and
Fetid.
The club would be involved
in studies . of topsoil and
water managerint as well
as :bushlot and wildlife,
management. Mr. Hanna
has noticed a decline in
native woods and would like
to see a bush lot cultivated.
It would be open to the age ,
st+3rs are on= 'roup of 11 -to 18.
John Nesbitt, Ohaiiman of
the county, 'insurance com-
mittee, ' informed members
that the Co-operators will be
taking over existing in-
surance program with .few
changes. The cost of $63 per
family or $26 for singles
would remain the same but
three limits had been set.
The total plan limit' is $5,000;
$500 limit on the drug plan
and a $1;000 limit on nursing
care per family per year.
. The company is also pick-
ing up unsatisfied claims
prior to . February . 9
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the moisture you have in the
soil in order to get the seed in
theground."
Wait until the soil is ready
before Simi begin tillage
operations. Experience will
tell you when the moisture
level is right.
"Unfortunately, today's
larger and more powerful
equipment allows us to get
on the soil when it is still too
wet," ° says Dr. Baldwin.
"Now, it is a matter of self-
discipline
elf-disciplinefor the farmer to
wait until the soil is ready.
The farm implement that
heads the list in soil com-
paction is the tandem disk.
Although it cuts well into the
soil, it contacts only a small
proportion of soil, thusit
exerts very high pressure 8
to 12 cm (3 to 5 in.) down into
the soil. The surface shows a
loose open structure, but
below the soil may become
very compacted.
To rinine_whetherel
your soils are becoming
compacted Dr. Baldwin
suggests watching for the
following symptoms: When
the soil begins to warm, the
rate of water disappearance
is slower; You may notice a
ponded area where there has
never been a problem
before; The soil has .a, ten-
dency to dry out more than
normal; It may appear
crusty or cloddy; You may
also notice that it is more
difficult to prepare a good
seedbed than it was in past
years_
Once . the crop is in the
ground, watch for sickly
plants. Plants that are
stunted or off color (reddish
or yellowish) may be a
symptom of soil compaction.
Check the roots of the plants
too. Misshapen roots are
another common symptom.
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