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The Times Advocate, 2005-02-23, Page 21Blue Water Rest Home ANNUAL MEETING to be held Wed., March 2, 2005 at 7:30 p.m. at Zurich Mennonite Church Chairman: Brian McHugh Secretary: Laurene Corriveau Wednesday, February 23, 2005 Itall startsonthe a culture 21 TIMES -ADVOCATE Mitchell hears from agricultural sector By Scott Nixon TIMES -ADVOCATE STAFF EXETER — With a provincial budget in the works, Huron -Bruce MPP Carol Mitchell wants to make sure her con- stituents get their say. As she did last year, Mitchell, a member of the provincial finance commit- tee, recently held two pre- budget consultation meet- ings, including one in the South Huron council chambers Feb. 18. An ear- lier meeting was held in Port Elgin. To no surprise, agricul- ture was the concern on most people's minds. Keith Strang of ACC Farmers' Financial kicked off last Friday's meeting in Exeter, expressing his concern that farmers need consistent finances. Incorporated in 1992, ACC is a producer -driven organization including 13 active farmer business- men who set policy, plus a representative from the Ministry of Agriculture and Food (OMAF). As Strang explained, close to $1 billion has been loaned to farmers through OMAF's Commodity Loan Guarantee Program (CLP), with another $200 million loaned in the Federal Spring Credit Advance Program. ACC has provided over $130 million in annual credit to cash crop farm- ers at interest rates lower than prime because of savings generated by bulk borrowing. "Untold farm businesses have benefited from the CLP either as direct bor- rowers or by leveraging the threat of moving busi- ness to ACC away from the banks in order to reduce costs," Strang said. He described ACC as "farmers helping farm- ers." Strang said financial institutions are not as readily available to farm- ers, referring to the clo- sure of Zurich's Bank of Montreal branch as an example. "We must ensure farm- ers in all sectors of the farm business community have dependable and ready access to capital." Concerning the cash crop sector, Strang said there are challenges in the upcoming year, because of the fact many input sup- pliers will only take cash in exchange for the neces- sary inputs due to projec- tions that harvest values will be lower than farm- ers' input costs. "Agriculture is second only to the automotive industry in this province but does not garner the respect it warrants," Strang said. He noted farmers do not want handouts, but want fair treatment. He added the agriculture sector in Ontario needs a long-term solution to ensure farmers have a reliable source of operating capital. "By working together we believe government and farmers can design and develop a program which offers a sustainable, con- sistent and low-cost financing alternative for the future of Ontario farm businesses." Strang recommended ACC's program be expanded from the cur- rent $50 million guaran- teed from the province, to $100 million. At a lever- age rate of 5:1, the banks could provide at least $500 million in operating capital at rates well below prime, with the savings passed onto the farmers. Because of ACC's strong performance in the past and its near zero default rate, the annual cost to the government would be about $2.5 million "We see this as a win- win for government and farmers," Strang said. Mitchell said she has spoken to several other farmers about ACC and has heard many positive comments about the pro- gram. Also speaking on behalf of farmers were Larry Lynn of the Ontario Corn Producers' Association and Bob Hallam, president of the corn, wheat and soy commodities of Huron Denfield Livestock Sales The market at Denfield Livestock Sales traded on a strong demand at prices $2 to $3 higher on all classes of fed cattle with the fancy cattle trading at premium prices. A good offering of cows sold active at $3 to $4 higher, stockers were very active at strong prices. Holstein bull calves were fully steady, sows and boars were also steady. Todd Charlton, Denfield sold 9 steers avg. wt. 1556 avg. price 99.13 to a high of 103 purchased by Norwich Packers. Jim and Brad Scott, Lucan sold 10 heifers avg. wt. 1390 avg. price 96.08 to a high of 101 purchased by Denview Meats. Norman Hodgins, Parkhill sold 33 steers avg. wt. 1487 avg. price 91.82 to a high of 94.25. Dan Oniel Jr., London sold 16 heavy weight steers avg. wt. 1741 avg. price 85.05 to a high of 93.75. Choice steers: 95-105 sales to 108; Good steers: 85-93; Plain steers: 70-75; Choice exotic cross heifers: 95-100 sales to 101; Good heifers: 85-90; Plain heifers: 60-75; Good feedlot cows: 35-45; D1 & D2 cows: 22-28; D3 & D4 cows: 15-20; Shells: 10- 15; Good beef bulls: 28-45; Holstein bulls: 23-30; Good Stocker steer calves 600-650 lbs: 110-118; Good Stocker heifer calves 600-650 lbs.: 110-116; Good Holstein bull calves: 175-290; Good Sows: 45-48; Boars: 20. County. Lynn said Ontario grain and oilseed groups need immediate help. Current prices for corn and soy- beans are below 25 -year lows in Ontario. With input costs on the rise and a decrease in farm products, Ontario agriculture is "on the brink of economic disas- ter." The groups representing Ontario's 25,000 grains and oilseeds producers outlined three methods of assistance they need from the government: • an immediate infusion of $300 million through a grain market disaster pay- ment; • an adequately -funded replacement for Market Revenue Insurance for this year and future years; • refinements to the Canadian Agriculture Income Stabilization (CAIS) program. On a positive note con- cerning ethanol, Lynn says farmers appreciate Premier Dalton McGuinty's ethanol pro- gram, which will see ethanol in five per cent of gasoline sold in Ontario by 2007. But Lynn added farmers want to see Ontario only use ethanol from Ontario, not from places such as Brazil or the United States. "The rural economy is in trouble," Lynn said. "Families are having crises." The government has put agriculture on "the bottom rung," according to Lynn, and he hopes the McGuinty government will treat farmers with the respect they deserve. Mitchell sympathizes with farmers concerning their frustration. "You must feel like you're beating your head against a brick wall," she said. Hallam said one of the problems with the CAIS program is that it costs the government and farmers too much in administra- tion. He said the govern- ment needs to be better educated about the pro- gram and Ontario needs to stand up to the federal government to get a better deal for Ontario farmers. "We need a fair infusion of money and we need it now," Hallam said, calling for a federal review into the CAIS program. Mitchell agreed CAIS needs to be "re -worked" and said federal Agriculture Minister Andy Mitchell recognizes there is a problem with the pro- gram. She said short- and long-term solutions are needed for the agriculture sector and farmers need a sustainable income. Marilyn Broadfoot, an executive member of the Huron County Federation of Agriculture and a direc- tor for Huron South for the Ontario Farmer's Association, told Mitchell "agriculture in Ontario is utterly in crisis." Echoing Lynn's com- ments that corns and soy- bean prices are at 25 -year lows, Broadfoot described a typical farmer as "a bit of a gambler — he can do everything right, but one bad day from mother nature can ruin a whole year's worth of work." She said the average farmer's income in Ontario has plummeted through no fault of the farmer. "It's grim," she said, adding protectionist legis- lation from the United States and Quebec has unbalanced the system against Ontario farmers. Using 2003 data, 6.2 per cent of Ontario farmers' gross income on farm cash receipts comes from government programs. In Alberta, that figure jumps to 17.3 per cent, while Quebec's government pro- grams make up 12.5 per cent of the gross income. Broadfoot also provided data showing farmers' costs going way up, while commodities are plum- meting. According to Statistics Canada, the total net income of Ontario farmers in 2005 is expect- ed to drop a devastating 253 per cent from 2004. Broadfoot asked the provincial government for an immediate cash pay- ment of $300 million to grains and oilseed farmers to offset the 2004 crop price disaster. "Rural Ontario is depen- dent on agriculture," she added. "Farmers literally plow a good portion of their income back into the earth through seed and fertilizer producers, machinery dealerships, livestock and other associ- ated industries ... If the farmers are forced off the land, the local stores empty, and you have ghost towns. Tumbleweeds are not the way to go." Turning specifically to Huron County, Broadfoot said Huron County ranks ahead of Nova Scotia, PEI, New Brunswick and Newfoundland in farm gate sales. Sixteen per cent of Huron County's jobs come from direct employment on farms. Mitchell said the Liberals are working "very hard to turn around 10 years of shambles" left by the Tory government. She said the government is trying to meet the needs of Ontarians after years of "slash and burn" govern- ing started by former Premier Mike Harris. The only delegation that didn't deal with agricul- ture at last week's meet- ing with Mitchell was Dr. Carolyn Wood of the Clinton Chiropractic and Wellness Centre. Wood, also president of the Huron -Perth Chiropractor's Society, expressed concern about the government's announcement last year to de -list chiropractic care from basic health cover- age. Rather than freeing up more cash for things such as cardiac, cancer and long-term care, Wood said the de -listing of chiro- practic care has simply led to more crowding in hos- pitals and emergency rooms. Wood said chiropractors offer quicker service and patients miss less work when they can see a chiro- practor instead of going to the hospital. She spoke of studies that show de -listing chiroprac- tic care will actually increase costs for the gov- ernment as visits to family physicians and emergency rooms increase. She added not all patients have chiropractic care covered on their employee benefits plan. "We don't want you to forget us," Wood said to Mitchell, explaining that some patients who used to visit a chiropractor once a month may now do so only once every six or eight weeks. Once Mitchell compiles her report from her meet- ings in Exeter and Port Elgin, she will pass them on to the Ministry of Finance. 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