HomeMy WebLinkAboutThe Goderich Signal-Star, 1976-11-04, Page 32PAGE 14A—GODERICH SIGNAL -STAR, THUI AY, NOVEMBEF 4, 1976
Even potential for people
3.... --1,h -.
ewman reim.r
reduces
farm income stabilization bill
On October 26 William G.
Newman, Minister , -of�
Agriculture' for Ontario,
reintroduced the govern
ment's Farm Income
Stabilization Plan to the
provincial legislature•.
Following are portions of the
statement he.. made at that
time .
+ +
"For the purposes of this
legislation,' farm income
stabilization .means putting a
floor on farm income —
saying the. prices that far-
mers get for their' products
can: go only so low.,, arid no
lower. I would like to em-
phasize, however, that it does
not mean putting a ceiling on
' farm income = saying that.
farm prices can go only so
high, and no higher. There
have been some misun-
derstandings on this point."
"Our stabilization program
will not interfere with the free
operations of the market
place. When thelaw of supply
and demand': provides a good
price for a commodity, its
producers will get, the full
benefit of that price. But
whenprices slump badly,
there will be a safety net. The
floor price will tide them over
hard times and keep them in
business growing our food
until prices Improve, again:
And when the floor price is set
Fat the proper level, there will
be, no interference in
production decisionsthat
'should be, up to the .farmers
alone." .
"It should also be noted
that, since this will be done°
within the free. market
system, we'll retain its built-
in incentives.. for efficient
production, for, orderly
marketing: and for fitting the
• supply of farm products to' the
demand for them. This means •
consumers :should continue
' getting better buy's in food
compared .with their earning
power than canbe found
anywhere outside North
America."
"The Federal Plan enacted
as Bill C-50 last year
distinguishes between
commodities that are
"named" _in . the act, and
thereby guaranteed a support
price, and commodities that
may be "designated" for
temporary inclusion from
time to time. The "named"
products are cattle, sheep,
hogs,industrial milk and
cream, corn, soybeans, and
i.
NSU colts farm
policy illusionary
The Ontario
promise at the
session of the
boost, income
its farmers
illusionary than real," the
National Farmers Union said.
last week.
NFU Vice President Walter
Miller stleid that, "although 70
million dollars sounds like a
lot of money., it still vuill not
provide any real security for
Ontario 'farmers." An ob-
jective examination- of what
has been proposed. shows
'there is no provision . to
guarantee that farmers' who,
opt 'for the _plan will get
enough out of it to cover their
costs of production. -
The proposed bill would use
government's
start of the fall
legislature, to
protection for.
is more
as its base .95 percent of - the
average price of farm
commodities over the last
five years. With the bottom
having been .repeatedly
kicked out -.of the market for
beef and other; products in
recent years, that isn't much
of a promise. For that reason
this bill is unacceptable to the
National Farmers Union;
Miller " said. "It simply
doesn't provide the income
security farm organizations
have been struggling for.
''`Ontario Agriculture
Minister Bill Newman ''is
showing contempt for farm.
organizations by ignoring the.
farmers' • real problems;
Miller concluded. •
oats and barley not included'
in the provisions of the
Canadian Wheat Board. As
market . prices worked out, -
federal payments were made
only. for fed cattle lastye,ar,
and then only from January
to August. There, were also
industrial millyrpagments, but
they're administered dif-
ferently under another act."
"The Federal Plane covers
all Canadian producers of'the
commodities to which it
applies. The farmers don't
contribute tothe plan: The
support price is 90 per cent of
the average market price for •
the commo.dity over t'he'„
previous five .years, plus an
adjustment for increases in
production costs. This ad-
justment is calculated on the
current "cash cost" — which
is defined as normal out-of-
pocket expenses incurred in
production minus the average
cash cost over the previous
five' years. Cash costs, in-
cidentally, do not include
depreciation on buildings and
equipment."
"I might digress for just a
minute to clear up possible
confusion about two related
phrases commonly used in
federal -provincial talks. One.
is "operating costs." These
costs do includedepreciation
allowances as well as cash
costs. The other phrase is'
"full . costs of production."
This is, taken to mean cash
costs, plus depreciation, plus
all •other. ' overhead • costs
:associated with the
production process."
"The government of
Ontario has _ consistently
argued that farm income,
stabilization is primarily a
federal responsibility
because, to be truly effective,
it must be national in scope.
We • have pressed , our
arguments from that basis in
almost four years of federal -
provincial negotiations, and
we'll continue doing so. As it
stands, however, the federal
plan obviously doesn't offer
nearly 'enough Ontario fpr-
mers the type of protection
against price risks that.I have.
been discussing."
"That is the only reason we
brought in Bill 96 earlier this
year. It was an effort to
provide •coverage for our
producers of this yea'r's farm
commodities while we con-
tinued „.pressing Ottawa to
play a far greater role in
implementing a realistic,
comprehensive program:"
"Only the,; federal gover-
nment has responsibility for
international • trade
regulations. Support prices
for any commodityy'. cannot be.
divorced from international
trade,- and no provincial
government has powers to set ..°a prime -example, and a very
quotas. or tariffson foreign .' painful onefor our beef
food imports. Ontario . can r .producers." • -
trols one-third of Canada's' "Our government has been
farm production, but we inust "ut':Sin. a federal meat import: '
rely on Ottawa . to keep our law .since early August. On.
__progrants froth being eroded October 17 ft. Ottawa finally
or, erased = by a flood of
cheap irnports.„ The current
international controversy
over offshore beef imports is
ristian
farmers
support levels," he noted.
"Any move in that direction
Initial reaction from
Christian Farmers
Federation. of Ontario to the
revised Income Stabilisation ..
bill is not favorable.
In an interview from his,
home in Watford in Lambton
County, John Janssens the •
C.F.F.'s President, criticized
the proposal to top -load
existing federal stabilization
programs and the change
that calls for voluntary
producer contributions to the
program.
"Top -loading will 'make it
difficult • to deal with the
Federal' government and to
get , improvements ip the
federal stabilization
program;" according to Mr.
Janssens. . •
"Being in the egg industry
myself, I\ know only too well
the difficulties that this will
create : in the federal -
provincial relations-;" he said.
Mr. Janssens was even
more concerned about .the
Minister of Agriculture and
Food's, proposal that par-
ticipation in the newprogram
be voluntary. '
"This is misleading," he
said. "If :a program under
this Act is really going to'. he
worth anything — worth
paying a premium to.. be a
part of it it will not be •
voluntary.' It will be
economically compulsory on
producers. We will have ,bio
economic choice but '..to
participate if we want to stray
in business." -
However, Mr. Janssens felt
that the proposals were not as,.. ~
bad as some farmers wanted•
to make them.
"Mr. Newman. has not
switched to a cost of
production basis to determine
placed beef and veal imports
under. individual permit
Control because the United
• (continued on page 16A)
would haye required supply :
management."
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1
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