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HomeMy WebLinkAboutThe Wingham Advance-Times, 1983-03-16, Page 4512 - The Farm F.d111on9 Week of March 16'4 1983 row initiatives *front page 11 directly to farmers will give western farmers a competi- tive advantage, is unjusti- fied. First, says Whelan, western farmers will be paying all or part of that money back in higher trans- portation costs and secondly, there isn't that much money involved, on a per farm basis. By 1985-86 the pay- ment will probably amount to about'$4,5Q per acre. There will be new chal- lenges and opportunities created as a result of the Crow Initiatives, and to help farmers take advantage of those opportunities, the fed- eral government has commit- ted $175 million for a five year period, to launch some new agri-food programs. In general terms, we will be spending $130 million in direct assistance to prod- ucers - this will cover things like land improvement, in- creased feed grain handling, storage and drying equip- ment, on farm demonstra- tions and technology trans- fer, energy conservation and funding for food product research," said Whelan. Twentymillion dollars will go for soil and water research AND TREATING (Bulk or Bag) TAKING ORDERS FOR Clover & Grass Seeds Seed Grain Elliott's Seed Mill and Trucking Lucknow 528-3500 not in western Canada, but that will have benefits for all of Canada. There will also be $25 million for market assist- ance, including electronic market information and sate- llite crop reporting. The fed- eral, goverter.:ent recently provided assisthe Ontario Cattlemen's Asso-- tion for their, pilot project on electronic marketing ,of cat- tle. Canagrex In a brief update on Cana- grex, Whelan said he was pleased the way the Bill has been supported by farmers in southwestern Ontario, the federation of agriculture, the ffeet eastern far tobacco board and the white bean board. Whelan acknowledged the opposition to the Bill from some exporters, and from some people "who simply believe that no good can possibly come from the fed- eral government." Whelan said those two camps are a small minority within the agri-food industry and he is= cksifident the Bill will be pas. -ed into. law. Cal. tgrex will help our agri-food industry to export on an qual 4 footing with competing countries by prov- iding credit promotion, mar- ket development, state to state contracts and joint ven- tures, stated Whelan. Cana- grex will also be a forum to bring together, on a purely voluntary basis, the farmers and processors and traders who want t' expand into new export markets. At present our export ef- forts are fragmented from the point of view that many of our trading .partners have touble identifying who they should be dealing with, he said. Our efforts 'are also restrictive in that many po- tential exporters don't, have the means to get involved in world trading. "Our farms, our democra- tic institutions, our entire ers nation was built on co-oper- ation. I don't see why we can't co-operate in building strong export markets, as well," Whelan observed. He pointed out that with recent developments in the world economy, the drop in oil prices and interest rates, our competitors in world trade have become stronger, and many of the markets we were going after have become poorer. "Competitionis tougher than ever, and we have got to go out into the world market, as one nation,. united, if we are going to survive and , prosper. That's the challenge facing all Canadians today." Program identifies farmers' problems •from page 4 problems can be traced to the willingness or no planning at all. The decision committee found that there was too much non-essential invest- ment, most of it done on the spur of the moment and most of it financed by 100 per cent borrowing. Financing should be done by earned cash flow and not by expected cash flow. Condemning impluse buy- ing, Taylor said that just because the neighgour's farm came up for sale was often the reason for buying it, instead of returns from _ that farm to service the new debt. He said that it was no fairy tale, but some had piled debt on debt by borrowing to service old debts, piling cost on cost three times. Too often the value of assets was much lower than assumed. This can make a farm with a high debt tech- nically bankrupt. He advised everyone in that position to sell assets, change crops or bail out while there is still some equity left. Another member of the decision committee, Bob Sanderson, saw two prime reasons for farm problems. High interest rates and low income. Much of this is due to over expansion which causes ex- tremes in income and often an unproductive invest- ment, he declared. Of the total applications to date under OFAAP, 20 per cent are for swine farms, 15 per cent each for cash crop- ping, dairy and beef, four per cent for horticulture and three per cent for tobacco. Fifty per cent of all appli- cants are under 35 years of age. They are the victims of poor economic times, Sand- erson asserted. Prices were lower than expected and money cost was devastating. He cautioned relatives, and in particular parents, not to over extend themselves on behalf of their children. Too many have not been able to help their child and have gone down with them in their efforts. Thus two went down, one of them uselessly. Another reason for prob- lems was too aggressive ex- pansion. The reasoning often went that if one is good, two Turn to page 14• SAVE NOW ON A NEW FARM BUILDING IT'S A LIFETIME INVESTMENT YOU'LL BE GLADYOUMADE. Professionally Erected. Materials and Labour Guaranteed 40' x 80' x 14' high Implement Shed FEATURES • 6x6 pressure treated posts, at corners • 2 rows 2x6 T&G pressure treated at grade level • 2x4 wall and gable nailers at 24" on centre • 2x10 pole plates • laminated 2x10 beams over doors • 2x6 corner bracing • 2x6 angle bracing • 2x6 truss anchors • 2x4 wind bracing • 2x4 truss ties • 40' prefabricated farm trusses at 48" on centre • 2x4 roof nailers 18" on centre • 2-16'x14' sliding doors complete with hardware • 1-3'x7' walk in door complete with hardware • economical galvanized steel throughout • all miscellaneous hardware included PROFESSIONALLY SUPPL/ED & ERECTED FOR includes all taxes