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The Wingham Advance-Times, 1983-03-16, Page 5522 •• The Fame Edition, Week of March 169 1983 a ®from page 5 And a recent provincially funded study by the Con- cerned Farm Women group and the University off Guelph indicated financial strife is ,ndeed hurting the farm family. Group president Beth Slumskie of Dobbinton, gave -,speech on the Grey -Bruce -turfy area on initial findings saying two years of low commodity prices and high interest, rates have resulted in a crisi with record levels of bankruptcies, foreclosures and "an atmosphere of fear." "Of course we all recog- nize that the problems we face are not limited to agriculture. Almost every area of the economy has been hurt," Slumskie said. "But we owe it to ourselves and future farmers, and the consumers of Canada, to a _ %r � 1 nesse- �n , h ustry influence ensure that the current diffi- cult times do not result in permanent, irreversible damage to food producers... We must not tolerate the destruction of our farming ommunity." The farmers that are hurt - rag most are those with the kigh debt loads and low quity, observers say. Those veil established farmers with ,ighequity could make mon- y, and some, good money, Is the recession continues. But the financial squeeze •ontinues on the heavily ndebted farmers despite re- :ent reductions in interest rates. Accumulation of debt from high interest rates over about two years still must be paid and many commodity prices are too low to inspire confidence much of that debt will be paid off. Governments have respon- ded with some emergency assistance and in Ontario this year the OFAAP (Ontaric Farm Adjustment Assistance Program) begun last year has been continued. Among oth- er things, it offers interest rate subsidies and loan guar- antees to banks that make loans to financially distres- sed farmers. However, some activist farm spokesmen fear a new restrictive rider put on this. year's loan guarantee clause could put the assistance program out of the reach of farmers who need help the most because it will make banks more liable for bank losses than under last year's program. However, bank in- dustry and government spokesmen contend the new rider will only make banks scrutinize high risk loans more carefully, not scare them off farm loans alto- gether. And because of soft export demand and world surpluses - for grains in particular - price prospects aren't good in many commodities. Some farm leaders fear that banks will be reluctant to loan money to farmers in trouble for spring planting thus causing more farm failures. )n the affluent 1970s farm- ers -became more dependent on credit than ever before as banks and governments en- couraged expansion at a time when interest rates were low. In 1980 when interest rates escalated to the 20 per cent range, many farmers were caught short, especially on floating rates for operating loans. The credit squeeze and eco soft market conditions for many crops has resulted in government, farm and acad- emic spokesmen calling for more emphasis in the 1980s on farm financial manage- ment, a change from the 1970s when increased pro- duction was being emphasiz- ed. The provincial agriculture ministry and private farm analysis farms have initiated short courses in farm man- agement for farmers that see the necessity of honing their management skills in a time of belt tightening. Many government, bank and farm analysis feel that in the long term agriculture will be a healthy industry, but it's the short term that farmers must weather if they are to reap the long term benefits. Critics of financially over 112 2Lid CIA 0 extended farmers say they borrowed too heavily in the cheap money days of the 1970s, which many finan- cially squeezed farmers will admit. But the lending insti- tutions themselves aren't being let off the hook. Bob Delano of Virginia, president of the conservative American Farm Bureau Fed- eration of the United States, this month told the annual meeting of the Canadian Federation of Agriculture in Ottawa a story, familiar to Ontaria farmers, about "too liberal" 1970s farm lending practices by banks. • "1 had a neighbour who went to borrow $100,000 to build a pig barn and the bank said, °You don't need $100,000, you need $200,000.' My neighbour went bankrupt." —The London Free Press Commodities designated under plan.. •from page 5 ed area. Other commodities can be designated for sup- port at the government's discretion. During the past year, said Whelan, there were pro- grams for two named com- modities, sheep and soy- beans. During the past few years we have had stabiliz- ation programs for apples and sour cherries in 1980; greenhouse cucumbers in '79-80 and potatoes in 1978 and 1979. Earlier this week Whelan announced a $2A million stabilization program for sour cherries and a $1,3 million program for green- house cucumber and tomato producers. '.:iU.�- Y'�b,Siw.�.. ? •_ :....} :•• }.7T:•...'f;l�ii4.L:'l.� t�w..L:IM�i�.\i'a'J':.•.._ • YOU CAN COUNT ON THESE PIONEER PERFORMANCE LEADERS YOUR HEADQUARTERS FOR SALES & SERVICE rSPEf�VJLi�EW HOLLAND 1 EARL McCONNELL ,r FINANCIALSE!VICES O E E BES LTD. Tiverton 368-7140 3925 3925 is an excellent yielding hybrid offering fast drydown and excellent standability. 3906 3906 is an outstanding hybrid having excellent stalks and roots and is excellent for grain or silage. 3950 3950 is a consistent dependable hybrid planted on more acres in Canada than any other variety. Your Pioneer Sales Representative is RAY BROWN RR No. 6 GODERICH 529-7260 PIONEER. S fANO SEED CONN Pin,as, is 1 brand Mum, nunIblra Identify •••••1••• •• A st1,1d tradameh Iloe.sd to Poole 1.41-EN4 limped Chatham, Ontario