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HomeMy WebLinkAboutThe Wingham Advance-Times, 1983-03-16, Page 38Farm Mike, W °:k of March 16,190.5 The spying of 1983 prom- ises to be a period of con- tinuing financial discontent for Ontario agriculture, but Ontario farmers and agricul- ture related industries aren't alone - world agriculture is in trouble. Front page newspaper cov- erage and television film re- porting farmer confronta- tions, with authorities and creditors in Canada and the United States, are becoming commonplace. Cooler heads in established farm organiza- tions stress these confronta- tions aren't typical of the farm community and some times chide the media for its "sensational" coverage of individual farm failures. f diseTint The momentum of support in the farm movement is toward activist groups like the Canadian Farm Survival Association which has for over a year employed a 'farm -gate defence" tactic, blockading laneways from equipment and livestock seizure attemps by creditors. More recently, the survival association took over a scheduled receiver auction and conducted its own "pen- ny pen- ny auction" where friendly farmers bid "pennies" for equipment, intending to lease it back to the distressed farmer for next to nothing. No matter where they stand on the farm activist movement, most farm lead- nt agrie ers admit the financial squeeze is hurting many in a world plagued with reces- sion. "°I know that Canada's farmers have been facing some very tough times over, the past couple of years and 1 imagine it will provide little solace to you to learn that in all the industrialized count- ries, farmers are ° facing similar difficulties," Michael Cracknell, head of the Inter- national Federation of Agri- cultural Producers in Paris, France, told the recent an- nual meeting of the Canadian Federation of Agriculture In Ottawa. And, because farmers are hurting, there's a domino effect on the eonomies of local rural communities, and on larger agriculture depend ent industries, especially the farm machinery industry. Numerous workers over the last year have been laid off at farm machinery plants in Ontario and the United Stat- es. North • American farm machinery sales may fall this year to the lowest level in 20 years causing several major manufacturers to consolidate operating losses by what industry analysts call extra- ordinary means - joint pro- duction of tractors and com- bines and sale of assets toother companies interested in gaining inexpensive entry d into businesses. Farm machinery dealers, like many farmers who aren't buying their equipment, are suffering cash flow prob- lems. Canada's Massey Fer- guson has already held ex- ploratory talks with Interna- tional Harvester about the possibility of setting up a joint venture. Besides the financial price farmers and farm supply industries continue to pay through 1983, is the human priceaid in morale and growink stress. The layoffs in farm machinery plants will undoubtedly continue to take its emotional toll on workers, and their families and the continuing depressed farm try economy likewise will hit their country cousins. The traditional,stable farm family is often the first caualty of the farm financial squeeze according to Bruce County family counsellor Wayne Lovely, but he says he's also been a victim of the stress. I'm classed as a person that's supposed to deal well with stress.... supposedly...1 was giving a seminar on how to cope with depreassion (a year ago) and at the time I was very depressed myself," he said, because of an increasing work load ' and pinched budget to deal with the load. Turn to page 22• Differences still exist between provinces and producers... "There are still funda- mental differences of opinion among the provinces and the producers," said the federal minister. Some provinces want to be able to top load above and beyond the national support levels, said Whelan. Other provinces don't want top loading. The cattlemen are opposed to top loading, although they are prepared to live with it for a while, and they want the new plan to be based on historic Market prices. A few years ago they didn't want a stablization plan at all, said Whelan. The pork producers want top loading, and they want the plan to be based on cost of production. There are big differences on the funda- tmental questions, stated Whelan. "But, as I said, if com- promises can be made, I would be glad to participate in the creation of an equit- able, national plan that really brings stability. I have al- ways been willing to listen to any positive ideas to improve Canadian agriculture," says Whelan. And he hopes his provincial counterparts will be willing to listen to his ideas for a durable new stabi- lization plan. i ��� sflrn zz - zzZZ _zzz ati Supply Management Whelan explained that his concern for the economical use of public funds and the need for producers to get an adequate return on the mar- ketplace, have led him to advocate supply manage- ment for agricultural produc- ers. By gearing production to demand, we can avoid sur- pluses, which inevitably lead to subsidy payments," he said. According to Whelan, the federal government spent $167 m illion in stabilization payments to hog producers, $132 million to beef producers and S60 million for potato producers in the past decade. "And today each of those industries is no closer to stability than it was a decade ago," he observes. Whelan says he spent eight years trying to develop an improved stabilization plan. In 1978 he even got Cabinet approval for a plan that would have guaranteed farmers 100 per cent of their current year's cash cost of production, plus a margin equal to the difference be- tween cash costs and market prices over the previous five years. "However, for their own reasons, the provinces and national producer groups re- jected the idea. That subse- quently led to a hodge-podge of provincial programs which, if applied nationally, would have cost between S200 million and 5650 million a year. "It also pitted province against province, and producer against produc- er," commented Whelan. "Anyway it is up to farmers, through their demo- cratic organizations, to de- cide amongst themselves if they want to take advantages of the provincial and federal legislation that allows them to run their own industries," Whelan concluded. Defends Record The minister defended his record on stablization pro- grams by citing the effect of the Agricultural Stabilization Act. The Act provides a mini- mum support price of 90 per cent of the five-year average market price, indexed for changes in the cash cost of production. The commodities named for mandatory sup- port at that level are: cattle, hogs, sheep, industrial milk and cream, corn and soy- beans, and oats and barley produced outside the Canad- ian Wheat Board's designat- Turn to page 22• ss - -t _m zzflfl - =_zz- --zzsz-izzzi.zz For Quality Service and Fair Prices Call Ritchie Electric Lucknow We Specialize in: 'Electric Heating & Electric Heat Conversions •Danor Farm Ventilation Systems 'Electric Motors Sales and Service Generator Sales & Service 'Pole Line Construction •24 Hour Emergency Service •Free Estimates Aerial Bucket Truck Service 528-3141 528-3141 Ritchie Electric Lucknow 11. 1