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. While this year
concern was overwhelm-
ing with agriculture,
Mitchell said her meetings
last year dealt mostly with
health care, education and
social programs.
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