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HomeMy WebLinkAboutThe Huron Expositor, 1984-08-15, Page 20Over 60 young Beginning farmers can get assistance to enter the agricultural industry through the Beginning Farmer Assistance Program. There is au attraction for potential new farmers because 0.M. A. F. will rebate interest charges for five years on fixed rate loans from approved lenders. The maximum rebate is five per cent. To date over 60 young farmers from Perth have been approved for this program. The successful applicants have negotiated with a lender for a five year fixed rate loan. They will make payments at the agreed interest rate to the lender. The interest rebate will be paid directly to the borrower by the Province of Ontario. Lenders charge an administration fee for processing the applica- tion and uses their own guidelines in deciding whether or not to make a loan. How do you apply? Viability is decided by the lender: You will have to complete the usual financial forms. As well, there are two forms pertaining to the Beginning Farmer Assistance Program (BFAP). These forms are delivered to the lender as part of the overall package. The lender sends them on to Toronto along with any back-up information that might be needed to determine eligibility. Two O.M.A.F. co-ordinators make sure that the applicant meets the BFAP guide- lines. The applicant can seek an advanced ruling. if there, is doubt about eligibility. The application can be submitted to a review board if there is a dispute as to eligibility. Applicants who have been renting are often referred to the review board, because it is deemed that they have already made a start in farming via the rental situation. Details on these procedures and other pertinent infor- mation is available in the pamphlet. farmers HELPING APPLICANTS MONITO PROGRESS Successful applicants make contact with the County O.M.A.F. Office. In order to qualify for the interest rebate the applicant must prepare annually: 1. A balance sheet to coincide with the end of•the business year. 2. An accrual income expense statement to show the results of the past year. 3. A cash flow projection for the coming year. 4. A production plan for the coming year. The applicant works with the local Ag. Office to submit this information. The interest rebate is processed when the information arrives in Toronto. The idea of tying the interest assistance to an outline of business progress is important. The applicant has to show that he/she is monitoring progress in order to qualify for the THE HURON EXPOSITOR, AUGUST 16, 1884 1116 get assistance assistance. 'i'oo often, in the past, young managers borrowed a great deal of money and got badly behind because they didn't realize soon enough that the operation was going behind. This problem 'should be reduced under BFAP, because the records are needed in order to collect assistance. PROGRESS INDICATORS The requested information is the heart of what a manager needs in order to determine whether the business is going ahead or back. An accrual income expense statement adjusts cash income and expenses for inventory changes as well as changes in receivables and payables. The beginning farmer might have very little livestock at the start of his first year. It is vital that he/she include as an addition to income the increase in valuer of crops and livestock. The increase was produced by the expenses for the year, so DISPOSABLE DIAPERS REGULAR & WITH IRON HUGGIE'S l� SIMILAC � v Daytime 48sI , Toddler. 33s 24-425ML. TINS REG. 3499 .t 49 Smart Buying Habits Start Early! SHOP & SAVE WITH THE RED PENCIL MEAT DEPARTMENT RED PENCIL FEATURE THICK RAGU SPAGHETTI SAUCE 49 1 litre Reg. 2" Ploin or meat RED PENCIL FEATURE FOR AUTOMATIC DISHWASHERS ELECTRASOL DETERGENT 99 1 8 Kg. RED PENCIL FEATURE TETRA PAK TANG FRUIT DRINKS 89 Case of 27 - 250 ml. Grape • Mixed Fruit Orange • Apple PEN IL FEA CUT FROM CANADA GRADE 'A' FINEST BEEF OUTSIDE CUT - EYE REMOVED 'BONELESS' ROUND STEAK ROAST MACGREGOR'S FROZEN SPECIALS CUTLETS VEAL 2r100Gm. 9 PORTIONS JUMBO BEEF STEAKETTES 1P2OXR O Sm CTN. CUT FROM CANADA GRADE 'A' FINEST BEEF INSIDE CUT - BONELESS ROUND STEAK 2s9 CUT FROM CANADA GRADE 'A' FINEST BEEF 'BONELESS' RUMP oR SIRLOIN TIP BEEF ROASTS 279 SWIFTS PREMIUM SLICED 175 Gm. LUNCHEON MEATS SWIFTS OLD MILL SLICED 175 Gm COOKED HAM SKINL S WIENERS G. CUT FROM CANADA GRADE A FINEST BEEF HIPS 2 9 TENDERIZED CUBE OR FRYT SANDWICH STEAKS 139 59 SWIFT SLICED PREMIUM. SUGAR PLUM LAZY MAPLE SIDE BACON 500Gm. r€ EM:. ,... CANADA GRADE A' BEEF HIPS OF BEEF 175 CUT • WRAPPED • FROZEN LB. CANADA GRADE 'A' BEEF CHUCKS OF BEEF CUT • WRAPPED • 1 2 9 FROZEN LB. 1 EL -0 PILLERS SLICED BLACK FOREST HAM 399 LB. PILLERS SLICED HAM SALAMI 359 LB PILLERS SLICED CHICKEN LOAF 1-89 LB SANDWICH STYLE SLICED CORNED BEEF 259 LB. MEAT DEPARTMENT it is only fair to make the adjustment on the income side. Payables owing at the beginning of the current year should be deducted from the cash expenses, because they were incurred in the previous year, Similarly, payables owing at the end of the current year should be added to cash expenses because they were incurred in the current year. The result is an accurate total of the income and expenses for the, ear. THE INCOME INFLUENCES EQUITY The net income from an accrual statement can be related to changes in equity that occur between the start and end of the year. Net income minus personal withdrawals equals chanBe in .-equity. An increase in equity occurs if there is remaining net income after providing for family Iiying. Equity will decrease if there is a negative income in the first place, or if family living is more than the accrual net income. A net worth is most important when taken at the first of each accounting period. This practice makes it possible to measure whether the business is moving ahead or slipping back, and by how much, Of course, it is important to keep land values constant or else you have to filter the paper gain or loss out of the bottom line. Similarly, you should keep the decrease in value of existing machinery in line with the depreciation taken on the accrual income statement. The accrual income -expense statement and net worth are . devices for determining progress in the previous year. it is also important to outline the goals for the new year in terms of what you think can be produced, -and what it will bring on the market. In a year's time you can gain valuable experience by comparing your projections with the actual figures. I have been told by experienced "pencil pushers" that this comparison helps more than anything else to improve the accuracy of future projections. Sure - market prices will be unpredictable. However, this approach lends itself to a host of techniques, such as break-even costs and knowing the debt repayment capacity of the business. It has been rewarding and challenging to work with the beginning farmer applicants McKILLOP MUTUAL INSURANCE COMPANY 91 Main St. South, Seaforth FULL COVERAGE Farm & Urban Properties Ken Carnochan Lavern Godkin John McEwing Stanley Mcllwain Donald McKercher Kenneth Moore J.N. Trewartha Stuart Wilson AGENTS E.F. Bill" Durst Bob McNaughton Wm. Lelper 482-3354 527.1877 523-9390 524.7051 527-1837 527-0508 482-7593 527-0687 527-1455 527.1571 523-4257 CALL AN AGENT OR THE OFFICE who have been to the office to date. We are looking forward to additional' contact this fall and winter. PERTH PLOWING MATCH Flan to attend the 1984 Perth Plowing Match and Soil Conservation Derponstratien. This year's match will be held on the farm of Warden Glynn , Coghlin on Friday and Saturday, Aug. 24 and 25. The actual site is one-half mile north of Atwood on Highway 23. Friday will feature a Conservation Tillage Competition, coaching session and a special class for boys and, girls of 4.11 and Junior Farmer age. Saturday's schedule includes regular classes, Queen of the Furrow competition, Log Sawing and Nail Driving Competition. Prize lists are available from our office or from secretary John McKay, 179 Wood St., 'Stratford, 271-2148. Starting time is '10 a.m. each day. - CONSERVATION TILLAGE COMPETITION The Soil and Crop Improvement Associa- tion is holding Perth's first Conservation Tillage Competition on Friday, Aug. 24 in conjunction with the Perth Plowing Match. The class will be judged according to the percent residue left after tilling, depth of tillage, and roughness of the soil. Prospective participants should contact 8111 Arthur, R.R. NI, St. Marys, 229-6138 or the O.M.A.F. Office in Stratford. Y / PaRTIC/PatTIO/71T. Discover the unique designs of WEDDING INVITATIONS at TREMEER • COMMERCIAL PRINTERS 12 Main St. 527-1840 Seaforth PECK APPLIANCES "IN THE HEART OF' DOWNTOWN VARNA" •FILTER QUEEN SALES & SERVICE •VACUUM CLEANERS - 19•.lc• & Service to Meet Meheel • FM COMMUNICATION SYSTEMS (For Farm L nuances) .• WHIRLPOOL APPLIANCES • WOODS FREEZERS •CENTRAL VACUUM SYSTEMS •INSECT & FLY KILLING UNITS fr or Indoor a Outdoor Use) •GIFTS & MANY MORE ITEMS VARNA, ONT. 482-7103 Don's Shoe Place Presents One Greet Deal! With Any Total Purchase of 2500 or more on any Children's Leather Shoes RECEIVE FOR ONLY lc SCOTTI E A Beautiful Cuddly STUFFED TOY DOG Offer Ends Saturday, August 25184 Exceptional Footwear Savings! ion DOFI S* SNOEPLACE 60 N.I. Sloe- SMehwth Seareauf l - 6+aiakb 1hbArei''s begat ChF/ba&''s Se '