HomeMy WebLinkAboutThe Wingham Advance-Times, 1983-03-16, Page 591
GOT. A SICK MOTOR?
FARM FACTORY TOME
There's a lot of that going around lately!
if your electric motor is down with the "Bug -
give us a call immediately while the ailment
can still be treated without major surgery.
NEW MOTORS
AT COMPETITIVE PRICES
24 Hr. Emergency Service
Gu Iiitons
Quality And Service At A Good Price For Over S0 Years
1 473 Douro St. Stratford 271-1981
26 - The Fare Edition, Weektt$ March 16, 1983
farm assistance pro :-ram has side benefits
By Stan Paquette, Associate
Agricultural Representative,
WW2 County
The Ontario Farm Adjust-
ment Assistance Program in
effect in 1982 has had side
benefits. It has made farmers
realize more than ever that
necessity of keeping good
records.
farming has been consid-
ered a wayof life, which it is.
It is also a business and must
be run as such. With the
necessity of having to pre-
pare an income and expense
statement on an accrual
ODDS
ENDS
OF
SUMMER TIRES
Cash & Carry
basis, an asset and liability
statement, a farm plan for
crop and livestock production
and a cash flow projection for
an OFAAP application in
1982, the farmer has realized
his own situation a lot better
than he did previously, He
should also appreciate the
time either he, his account-
ant and/or his banker had to
contribute to the preparation
of the required information.
The preparation of the
accrual statement will indi-
cate the true picture of the
farm operation for the year.
This shows growth or loss in
amount and value of invent-
ory. It also indicates what
happened with accounts pay-
able and receivable in the
accounting period. The ac-
crual statement should be
used for management pur-
poses and, of » course, for
income tax purposes if filing
on the accrual basis. Lending
institutions want accrual
statements in order to know
year end inventories and
their values.
Asset and liability state-
ments are updated. Unfor-
tunately, land and buildings
and equipment vahi'es declin-
ed substantially in 1982.
Decreases of 25% are not
uncommon. As a result, a
farmer's equity, i.e. the
percent of his assets he
actually owns, has deterior-
ated. Equity is a measure of
financial strength in a busi-
ness. It is also an indication
of risk level. A 25% equity
for beginning and 50% for
well established producers is
considered satisfactory.
A beginning farmer might
ask, how do I get 25% equity
to start? I guess the message
is, creep before you walk.
Build up some inventory of
1 LR70-15 Wards W.S. Stool t $ 70.00
1 LR78-15 Goodyear Steel W.S 70.00
1 LR78-15 Uniroyal Steel W.S 70.00
1 HR78.15 Goodyear Steel W.S 85.00
2 P225R75-15 Goodyear Viva W.S. Takeoff 80.00
2 JR70-15 Bridgestone W.L 80.00
1 P215R75-15 BFO Steel W.S 80.00
1 OR70.15 Wards Steel W.S. 80,00
1 OR78.15 Goodyear -.Steel W.S. 80.00
1 0R73-15 721 81w1 W.8 80.00
1 FR711-15 Uniroyal B.W. Stool 55.00
1 FR78.15 Uniroyal Steel W.S. T.P.0 55.00
5 P196R75-15 Goodyear Viva B.W. takeoff 40.00
1 FR711-14 Uniroyal Stool W.8 65.00
1 FR78-14 Goodyear Steel W.S 55.00
2 FR78-14 721B.W 45.00
4 185R-14 Mich W.S. Takeoff 75.00
1 DR78-14 721 B.W 40.00
4 CR78-14 721 B.W 50.00
1 P155R80-13 Mich W.S.XZX y 80.00
1 J78-15 Firestone Belted W.S, Blom 75.00
1 H78-15 MDO Poly B.W 40.00
1 H78-15 MDO Poly W.8 45.00
9 L78.15 MDO Poly W.8 50.00
F78-15 Firestone W.8 35.00
1 E78-14 Uniroyal Belted W.8 30.00
1 E78-14 General Belted W.8 30.00
1 078.14 Goodyear Belted W.8 15.00
1 078-14 Firestone Poly W.8 15.00
9 800-12 Different Names 15.00
1 L80-15 Road Hugger W.L. Slightly Used 50.00
2 080.15 Super Charger Used 40.00
2 070-15 Firestone W.L. Used 40.00
1 F8O.4 MDO W.L. Used 40.00
4 080.13 Road Kinn W.L. New J 30.00
210-15 4 ply Road King W.L. Takeoff 00.00
1 10-15 8 ply Uniroyal W.L. Takeoff 80.00
2 10-15 4 ply Firestone All Terrain T.C. Used 80.00
211-15 Goodyear Tracker W.L. Used 85.00
2 12-15 Firestone All Terrain W.L. Takeoff 100.00
2 10-15 Firestone All Terrain Takeoff 70.00
1100.2012 Ply M00 Lug 200.00
1 11.-24.5 Goodyear Now Super HI Miler 250.00
1 11.-24.5 Goodyear Used Super HI Miler 50.00
ALL TYPES OF FARM TIRES
& DUALS IN STOCK
We are pleased to announce we have taken over Teeswater Farm
Equipment tire department and service truck
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
•
WILLITS
TIRE SERVICE
Lucknow
528-2103
cash and/or livestock and
equipment before purchas-
ing a farm. An asset liability
statement also indicates cur-
rent, intermediate and long
term assets versus liabilities
against them.
Lower commodity prices,
e.g. crops, has caused many
to be short on current assets
to cover the liikbilities against
them. These producers are
not in a liquid position.
Lending institutions were
loaning on equity when land
values were escalating. Int-
erest rates started to rise.
There was reluctance to tie
borrowings in at 14% or so.
Expansion of buildings and
purchases of equipment were
financed on operating money
instead of being termed out
over one to ten or more
years.
This situation increased
the problems during 1981-82,
when interest rates on oper-
ating money floated with
prince on ,these borrowings.
Lessons were learned in
1979.80-81 and restructuring
of finances has taken place.
Banks want to see adequate
assets, current, intermediate
Turn to page 270
Ontario creameries
receive BILD
assistance grants
Thirteen Ontario cream-
eries have received grants
from the Board of industrial
Leadership and Development
(BILD) under the Ontario
Cream Assistance Program
for upgrading creamery
equipment.
Agriculture and Food Min-
ister Dennis Timbrell said
the $83,723 in grants are
"really incentives to help the
creameries upgrade and im-
prove their operations". The
recipients have already in-
vested a total of $263,978 in
the various projects.
"My ministry's %goal is to
help Ontario become more
agriculturally self-sufficient.
This is just one of the many
programs which will help us
reach that goal."
The grants cover up to
one-third of ' the costs of
upgrading of butter wrap-
ping equipment, installation
of mechanical refrigeration
on trucks, the upgrading off
in -plant can washing equip-
ment, and the purchase of
containers for shipping bulk
cream to farm separated
cream plants.
In addition, the ministry
replaced all obsolete and
defective cream containers in
July, 19N by purchasing and
distributing 24,500 new plas-
tic cream pails to all cream-
eries in Ontario. The total
cost of $87,800 was absorbed
by the BILD program.
The BILD initiative is aim-
ed at improving the quality of
butter made from farm sep-
arated cream. BILD, a cabin-
et committee chaired by
Treasurer Frank Miller, co-
ordinates Ontario's five-year
$1.5 billion economic devel-
opment plan. It has set aside
$1.5 million for this initiative
and has already awarded
$171,507.