HomeMy WebLinkAboutThe Wingham Advance-Times, 1985-03-20, Page 66la - The Farm Edition, Wek of Mardi 20, 1085
Think Ahead
to
Harvest Time!!
We have the
facilities for:
receiving &
drying wheat
*we also buy &
dry barley.
*come in & see
our new
facilities &
plan ahead
Amberley
Grain Elevators
1Division of Parrish & Heimbecke0
395-3300
Jct. Hwy. 86 & 21
01111110110vittis)
Otil YARD WORK
LIMflEQ
ni
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Big Savings!
• 17 HP Twin Kohler • Shaft Driven
Cylinder Engine Attachments
• Patented Foot Pedal • Hydraulic LItt
Hydrostatic • Tough Attachments
MARK'S GARAGE
Chepstow 366-2634
Helens
Quality to Eliminate the Hard Work From Yard Work
Farm pressures here to stay
says Royal bank official....
from page 5a
bomoving. The farm financial crisis in the
past several years is testimony to this.
It eases the effort of obtaining aedit if you
are employing a level of farm financial
management, suggested Bearss.
Many fanners especially those over 40
years of age feel beleagured. They have dealt
faithfully with the Indumw Co-op, for
example, for years and now the Co-op
/manager Dave Dawson wants te know every-
thing about your operation right down to "the
colour of your underwear".
The kinds of questions asked by trade
creditors are seriousjhe more money you
Want to borrow, said Bearss. Questions asked
to make a credit decision include the three Cs
of credit: Credibility and Collateral.
Lenders have moved away from using the
balance sheet, where equity was important,
to gash flow as the basis for credit dedsions,
said Bearss referring to the biggest reflection
of change in farm financing in this country.
Ftdm a lender's point of view, you have
priorities but your willingness to deal with the
guy is the comer stone of the relationship.
"No matter what his assets, if you cannot
trust the guy, you will no want to deal with
him," Bearss stated.
Farmers at the seminar criticized the
bank's role in the 1982 interest rate crisis
which has created such hardship for farmers.
They pointed out the banks made unpreced-
ented profits during that period, yet they
were not willing to take one cent less in
interest from financially hard pressed farm-
ers.
Bearss commented fanners think the banks
made their profits On the backs of fanners,
yet if all the money earned in profits during
the time period of 20 per cent plus interest
rates had been eliminated, it would have
reduced the overall prime rate by only one per
cent.
Beams also observed that if the difference
between the average interest paid during that
period and the lowest interest rate if it had
been in effect •for that period, makes the
difference between making or breaking your
operation, you were probably running the
operation on too tight a basis.
The farmers at the seminar objected saying
they were expected to take responsibility for
making bad credit decision while the banks,
which also made poor credit ,decisions by
lending too much money to farmers incapable
of servicing the debt, were not expected to
share the burden. Bearss pointed, out that if
fanners wanted to drange the rules in the
middle of the game, When they had good
years and madepnofits, the banks could then
come back and expect additional interest
payments from the farmers, if banks were
expected to lower interest charges or realign
the debt when tartness were in a crisis due to
high interest
•Close -coupled to 3 or 5 h.p. Briggs & Stratton or 7 h.p. Tecumseh engines
• 11/2", 2" or 3" sizes for flows up to 250 GPM -
•Working pressures up to 45 psi.
•30% glass -filled polyester construction
•Vlton and stainless steel shaft seal with EPDMO - rings and check valve
*Stainless steel interior and exterior fasteners
*Light weight and portable.
Pacer Pump can be used for Pumping
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528-3913