HomeMy WebLinkAboutThe Wingham Advance-Times, 1985-03-20, Page 65The Farm -Mime Week of March 20. ,1 85 - 5a
Bank official says causes of farm pressures here to stay
By Sharon Dietz of modem situation. operation, banks want to do business with
"In the pressures of the modern situation, farmers, Beams. The dollars are there for
Fanners have traditionally relied on the work ethic, work a little harder and a little qualified borrowers and the eonxiiassion is
historical cycles in their industry, a trust that more, while it was valuable historically and it there for those in trouble.
time will correct the problem and if you worst is traditionally a part of farming, it is not look around you, Beams told the farmers,
a little harder and longer hours and incase working today," observed Bill Beams, there are people with high debt load who are
production, things will improve. This reliance manager of the Royal Bank agricultural making a profit. Even in these tough times,
on historical cycles has prompted some farm services. there have been fanners who have percolated
ers today to believe the tough times fanners In the 70s there was .rnargin for error but up through the industry and they have made
are facing now will dissipate when the cycle they were unique tithes, said Beams. In the profits, remarked Bearss.
40s and 50s you couldn't make mistakes and He asked those at the workshop to think
survive. about why one farmer carrying a'heavy debt
"These art normal times," Bearss told load is able to make it, while another farmer
about 50 farmers attending the Lucknow with a much smaller debt load is forced
District Co-op financial workshop February under.
28. "All of the causes and pressures to create. One farmer at the workshop commented he
a situation of imbalance in a fanning opera- had once been told "if you have more money
tion are with us to stay." tied up outside the ban. than inside the barn,
Despite what you read and the pressures on you'll never make a go of it. "
some fanners after an assessment of their Beams said financial management makes
starts an upswing.
But ' a Royal Bank official speaking at a
financial wodshop in.Judmow recently told
area fanners these are normal times and if
farmers are relying on a change in the cycle to
bring back the good old days, they should
think again.
"While it was valuable historically and the
work ethic is traditionally a part of farming,
farming, this -is not working in the pressures
the difference. Fors who do not make it
are slow to react to negative situations, slow
to identify a problem and react too little and
too late to be effective.. There is no replace-
ment for good financial and production
records, he stated.
Good financial and production records
require organization, regular maintenance
which takes discipline and consistent figures
which are understandable to the farmer.
Good records can be used to take action to
make grange, said Bearss. Sound financial
management'permits better planning for the
short and long tern and prepares a farmer for
a down cycle. It also allows monitoring of the
situation, when compared to your plan.
Banks were remiss until the mid 70s, said
Bearss, because they did not follow up to
show people how to use the money they were
turn to page 6a
Reagan's policy to dismantle farm support programs threatens farm' e
rs
President Ronald Reagan's much maligned
plan to dismantle U.S. farm 9 support
programs is causing nervous twitches north of
the border as Canadian farmers realize their
incomes stand to suffer from the fallout.
Canadian goverment officials and experts
in the field readily admit that Reagon's plan
to "wean" U.S. farmers from costly
programs that support prices for suds
products as. wheat, soybeans and am could
cut deeply into the incomes of farmers in
Canada and elsewhere.
The main reason: U.S. prices tend to
become the world price because the United
States is the largest world trader in most
agricultural products, including wheat and
other grains.
If those prices are inflated because of the
complex web of support programs dating to
the Depression, they ark destined to fall as
crop loans and cash subsidies to U.S. farmers
are reduced or stripped away.
American fanners will be spurred to
produce more to make up for lost income,
thereby flooding the world market and further
depressing prices.
It is a worrisome prospect for farmers in
Canada, as well as their counterparts in
Argentina, Australia and Europe, who know
the prices they command are "influenced, if
not determined" by U.S. prices, said John
Schnittker, a Washington -based agricultural
consultant.
Against this backdrop is the nagging fear
that should the strong U.S. dollar begin to
drop beside its Canadian counterpart, the
competitive advantage enjoyed by Canadian
exports will shrink
The subject could be toughed on at the
March 17-18 meeting between Reagan and
Prime Minister Brian Mulroney in Quebec
City, but the more likely forum is a meeting
between Agriculture Minister John Wise and
his U.S. counterpart, John Block, in. April.
A major sticking point in the debate so far
is that even if existing U.S. policy has led to
AND
EVERYTHING_
IN BETWEEN
Today, many people know.about Kubota mid-size tractors. But few are
aware that. Kubota's roots date back to 1890. Since then, Kubota has
grown to be one of the largest' manufacturers of agricultural equipment
in the- world. With' dealers coast to coast, Kubota has become a well
established .name, synonymous with economy, dependability, and
durability. ,
For over 38 years, Doupe's, Equipment • Ltd. have been a tractor
dealership and are proud to be.specializing'in the complete line of Kubota
tractors. So if you're, looking for a tractor that can get the job done,stop
in and see the Kubota line for yourself. There's "nothing like it'on earth".
D....0.1 _
EQUIPMENT LTD.
RR 4, Kincardine STOOFK CARD NE ES
395-2685
artificially high primo, Many farmers still
cannot cover their costs in the face of high
interest rates and plunging land values.
The cumart spurt of activity by Congress' to
provide beefed up emergency loans to
fanners in time for spring planting is reugni-
tion of the problem Reagan has already been
forced to ease credit terms for his $650 -mil-
lion relief program, but he is expected to veto
congressional efforts to add money to the
package.
Regardless, the battle over short-term
relief has pushed the debate over long-term
faun policy into the national spotlight.
The Reagan plan is part of a Ineve to zeduce
the 000 -billion U.S. federal deficit.
W
KUBOTA®
TRACTOR CANADA LTD.
Nothing like it on earth.TM
Specializing in
KOIOTA
SALES-SERVICErRENTALS