HomeMy WebLinkAboutThe Huron Expositor, 1989-04-12, Page 36'112B —`T iIE'+HUJRON BXPDSITOR,-APRIL 9'9, 9'985+'
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Hibbert Mutua 11
fire Insurance
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DIRECTORS & ADJUSTERS
Jack Harrigan, R.R. 3 Lucan 227-4305
Larry Gardner, R.R. 2 Static 345.2678
Lloyd Morrison, R.R, 1 St• Marys 229-8277
Lorne Feeney, R.R. 2 Dublin 345-2543
Jack Hodgert, R.R. 1 Kirkton 229-6152
Joseph Chaffe, R.R. 5 Mitchem 348-9705
AGENTS ..
Ross Hodgert. Woodham 229.6643
John Moore, Dublin 345-2512
Joseph Unica, Mitchell 348.9012
'Head Office, Exeter 235-0350
A rahmd•from surplus was docIared.for
'all:pollcy holders who qualify, are on
.,record and in good standing .as or
:December 3Y, 1988.
Egg bawd Auota study released
Nearly three'years-after the Ontario Egg
Produeers''Marketing'Board commissioned
a study -on egg;quota, The results 'have been
released. Entitled "A Financial Analysis of
Me EggQuota -Market in Ontario", the 30
page report summarizes The results of this
study conducted 'by graduate student Mike
Scally andProfessor Larry Martin of the
Department of Agricultural Economics at
the University of Guelph.
The objectives of the study were to iden-
tify thefactors that have an impact on quota
price; to measure the relative importance
of these factors; and to point out areas of
focus by the Board for selecting policy in-
struments to control quota price.
Based on interviews with producers and
members of the egg industry, the study
identified profitability as the most impor-
tant factor affecting the price of egg quota.
The study found that the most efficient pro-
ducers and those who were able to integrate
into related parts of the egg industry were
able to generate higher levels of cash flow
and therefore out -bid the rest of the market
for available quota. High equity, and large,
producers were also able to out -bid smaller
and highly leveraged producers due to their
ability to gain access to larger amounts of
wants farm
The Ontario Federation of Agriculture
(OFA) is becoming increasingly concerned
the Farm Credit Corporation's (FCC) Debt
Review Fund may be little more than
political window dressing.
Brigid Pyke, President of the OFA, has
demanded to know if the FCC will actually
use more of the fund to grant concessions to
its farm clients who are in financial
difficulty.
"The fund allows FCC to do so without
adversely affecting its existing and ex
T{i
borrowed capital The study alsofoundthat
Board imposed transaction costs, producer
expectations, and interest rates had a
significant affect on the price •of quota.
Based on these results, the 'authors con-
clude the Ontario egg industry will move
toward greater concentration and
integration
The report contains a number of recom-
mendations to reverse this trend including:
Board policies to lower production margins;
increase the cost of funds; reduce the ex-
pected salvage valve; and shorten the time
horizon over which producers evaluate
quota benefits. The report also identifies
areas of future study, including a two+price
or multi -price system which would take ad-
vantage of the growing industrial egg
market, thereby reducing the current
market pressures on table egg quota.
To this end, the Ontario Egg Board an-
nounced at their Annual Meeting that such a
study has been commissioned through
OMAF. Results are expected later this
summer.
Copies of "A Financial Analysis of the
Egg Quota Market" can be obtained from
the Ontario Egg Board or from the Depart-
ment of Agricultural Economics, University
of Guelph.
credit answers
ELECTRIC LTD. Kirkton 229-8222
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For Service Call 229-8222
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TOM RAPSON 527-1643
pected farm clients."
"Money for the fund was committed with
a great deal of fanfare by the Prime
Minister back in 1987," Ms. Pyke said. "We
want toknow why the funds are
ed and if this is a political or a bureaucratic
decision."
By February the FCC had committed only
$83 million across Canada out of a possible
$160 million available to April 1989. As of
February $12 million worth of concessions
from the fund had allowed only 253 Ontario
farmers to keep farming out of 1,148 Ontario
FCC clients who applied to the Federal Debt
Review Board (FDRB I .
"We get the sense that we can look at it,
but we must not touch it," Ms. Pyke said.
"This is restructuring through the eye of a
needle. The money is there but the FCC does
not seem tte have accepted the fact .this
money is meant to help farmers." •
The OFA has long maintained that the
FCC, a federal crown corporation, .Should
take• a lead role in restructuring farmers'
debt without driving deserving people from
the land.
The OFA is requesting a series of
meetings with senior FCC personnel as well
as the FDRB and political leaders over the
next few weeks.
"There is no doubt that the 1988 drought,
low hog prices, rising interest rates and the
withdrawal of provincial farm credit pro-
grams have again put many Ontario
farmers in a deteriorating financial situa-
tion that will require a major effort to over-
come," said Ms. Pyke. o
RECOGNITION OF COMPLETION —Bryan Vincent (above left) of Seafortr, any Rif
Wallace (bottom left) of RR 4 Seaforth, both received an Award bf Achievement to, RUC
cessful completion of the Advanced Agricultural Leadership Program (AALP. D.
Freeman McEwen presented the awards during a seminar libAgltiston In March Mt Vin •
cent and Me Wallace are two of 28 AALP 1989 graduates. Over the past two years the,:
have examined economic, political and social Issues in Canada. the United States anci
Brazil. AALP is designed to help tomorrow's leaders galn knowledge skills am coo ' •
fidence to shape the future of Ontario agriculture. Submitted photos
CRIME STOP
tat
Crime Stoppers and the Clinton Town
Police are asking for your help to solve a
break, enter and theft at Huron Power
Equipment, at 86 King Street, Clinton.
Sometime between business closing on
February 19, 1989 and opening on February
15, thieves entered through a side door off
Joseph Street, and once inside gathered
numerous hand tools from three large
mechanics' tool boxes. They also stole a
Cannox arc welder from this area.
Other stolen items include: one Jonsered
saw with 16 -inch bar and windsor chain; one
ER- ..
Dolman 122 super 70 cc saw ; and $600 worts
of wood cutting tools:
It is believed that two persons corruruttec
this theft and that they drove a small eruct
or car.
If you.have information about this'or an
other serious crime, call Crime, Stoppers a:
1400.265-1777. You will never have to testify
in court and you will not have to reveal your
identity. If an arrest is made you will get e
cash reward of up to $1,000 I-temernuee
crime doesn't pay, but Crime Stoppers twee
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