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HomeMy WebLinkAboutThe Huron Expositor, 1983-01-26, Page 12• ..Al2 THE HURON EXPOSITOR, JANUARY 28. 1983 EF© !tom Huron farmers wantto know about going bankrupt 8y8LeIIey McPhee Farmers want to know about the business of going bankrupt, Bert Saunders explained as the basis foi+.Huron Comity's Farm SurvivalAssociation (HFSA). brfgittating in the Blyth airs, and available tri all fanners and small business owners in the county, the SSA held its second meeting in Blyth, on January 11. More than 50 area farfders attended the meeting to learn about assistance available to those in financial difficulties, and information:7for those who want to keep their operation running successfully. Mr. Saintders of RR 1, Blyth is one of the executive members who brought the group together and he explained that the HFSA is first trying to determine whether there is a need for such a local organization. He said, "Farmers must determine their cash flows. We need some people to break the ice and show they need our assistance." The aim of the HFSA is to help farmers and small business people before they are forced to, declare bankruptcy. The Association, he stressed, has not been organized as a vigilante group, to keep the receivers and sheriffs away. However recently in Wroexter a group of 25 local farmers went to resolve a financial dispute between the bank and a farmer in financial difficulty. Incidents like these, called Farm Gate Defences, are what the local FSA want to avoid. As Mr. Saunders pointed out, ' "Publicity like that doesn't -do us any good. Sometimes we have to go in and ask questions later, but we want to stay away from .Farm Gate Defences. They're trouble, and should only be used as a lest resort." Bob Henry of Blyth, another executive member said that problems should be solved privately, without publicity. - "Everyone is here to help each other," he said. "If we get to the root of these problems in time, we don't need Farm Gate Defences." It was' expressed at the local meeting that a main area where farmers are having difficulties is with the fluctuating interest rates at the bank. Mr. Saunders explained that farmers find It hard to establish an accurate cash flow rate when interest rates on their farm operating loans are floating, not on a fixed line of credit. As well, Mr. Saunders added, that farmers come up against difficulties in determining a yearly financial record when the cash flow varies from,season to season. "Farmers should be able to go in (to the ba k) and take that bank loan on a fixed rate, he stressed. Young farmers, he said, are facing the most financial hardships these days. Several years ago in order to increase their/cash flow, most farmers decided to run inore acreage and larger livestock operations. That meant they needed bigger and better equipment. Sharing farm machinery with the neighbors no longer seemed feasible as Mr. Saunders pointed out, "When there are heavy rain SAVE ( In February ) during our Pre -Season Service Savings Program SEAFORTH 527.0120 0 on parts` and labor 1 FARM EQUIPMENT LIMITED SEAFORTH • AYR • CAMBRIDGE • WOODSTOCK 111 clouds coning in over yppuurr white bean crop, you don't want to wait your turn." With a turn about in the economic situation, with high interest rates, lower commodity prices higher quota prices and declining farmland values, many farmers are now facing extremely tough times. Farming today is unlike the old days of mixed operations, when you could pur- chase a farm for $5,000 and live com- fortably, Mr. Saunders said. Today It's big business, filled with financing, paperwork and accounting, and Mr. Saunders noted that many problems occur because, "A lot of farmers don't know the laws." Mr. Henry added, "Everyone signs things that shouldn't be signed without study or a talk with your lawyer." Banks and bank managers took the brunt of critisicros at the meeting, but Noel Bird of RR 5, Brussels suggested, "There's a lot going on in the local banks, that even the bank managers don't know anything about." Mr. Saunders agreed, saying, "We need local bankkmanagers who can do more on their own, not rely on head office orders." He stated that there are good local bank' managers, but he and many farmers feel that head office officials in the larger centres know little 'about agriculture, about seasonal cash flows, about bumper crops and failures. John Nesbitt suggested that the Ontario Farm Adjustment Assistance Program (OFAAP) is one project where additional financial support can be obtained. It is available to farmers who have a farm income of at least $12,000, an equity between 10 per cent and 60 per cent and whose interest and principal payments during the last year amounted to at least 20 per cent of their total expenses. Mr. Nesbitt supported OFAAP but said that many farmers have been, "scared off by the amount of paperwork involved." Mr. Bird added that the government budgeted $60 million for OFAAP and only used $10 million. "Everyone should ap- ply," he stressed. It was noted that some banks have been opposed to OFAAP, but Barry Ireland of RR 1, Wingham said, "Phone your local MP as soon as that happens." Mr. Nesbitt said that more short term programs need to be developed by the Ontario Federation of Agriculture (OFA). to help the financially distressed farmer. "Farm Survival supporters are willing to go out on a limb," he said. Mr. Saunders said that the local FSA, "had received mixed emotions from the OFA. We don't know if they're for us or against us." "We're both really going for the same thing," he said, but explained that OFA programs and assistance take time 'and have too many steps involved, through the township, county and even provincial levels. "Some farmers like me think that the OFA is a pussycat and about time they became a tiger," Mr. Bird suggested. Mr. Nesbitt noted that a large mem- bership of the OFA is made up of long standing, established farmers. On* o i it OUTe©w Continued from page 2 What Mr. Upper did not like. was a column written a month ago on pollution. 1 suggested that farmers get blamed for a lot of pollution and seem to have little recourse against pollution legislation. Mr. Upper apparently felt 1 was too hard on industry and that farmers are as much•to blame as anyone else for pollution through the use of herbicides, pesticides, fertilizers and over -tillage. Can't argue that point. Certainly, farmers/are respon- sible for some pollution. The point of the column, though, was that farmers have little in.the way of political clout; that big business seems to get away with blatant pollution. ' 1 stand by that assumption. 1 still think business gets away with pollution with platitudes and knuckle-rappings. And if I am in a rut about the plight of farmers, here are a few figures --not mine, you understand but from some of the best brains in the country --to prove that agriculture is in serious trouble and itis time urban dwellers were made aware of it: Net farm income will decrease --get that: decrease --by 28 per cent this year, sinking to a level matching 1971. No other -group in Canada faces such economic distortions. Unions all across Canada are steaming about a six -per -cent increase --increase, that is' and farmers will be facing a decrease. Total cash receipts will fall from $18.7 billion to $18.5 billion. Profits will fall from $3.8 billion to $3.7 billion. Farm debt will increase as much as`10 per cent. Energy will cost farmers 15 per cent more. Farmers, the same as most every other secctt4�n of the economy, will have to tighten their belts. But w,hat"'concerns me and it should concern everybody in Canada is that some farmers will not have a belt to tighten. They are being forced into•bankreptcy at a greater rate than at any time since the. Great Depression. Corn prices are down as much as 20 per cent. Wheat is down five per cent. Feed grains are down 15 per cent, Hog and beef prices will be in trouble all through 1984 and 1985. There is a world surplusof dairy products and farmers are being asked to cut back production. Cut back production and you sell less. Ergo: less income. And where do these projections come from? From the best brains in Canada attending the Agriculture Outlook Conference in Ottawa early this month, You wanted factual material? You got it. ` Plowmen • move date of match The 'Huron County Plow- men's Association is plan- ning a change in the usual date of the county plowing match. Usually held in mid-Sep- tember, the association is planning the event for late August. The decision was made at the group's annual meeting held recently. Secretary -treasurer of the organization, Graeme Craig of RR1 Walton, said the organization has to consider the dates of the plowing matches of neighbouring counties to avoid conflicting times. The match itself, if pos. sible, may be held in the south end, added Mr. Craig. It has been in the north end of Huron County for the past three years. The executive of the asso- ciation was named at the 'annual meeting. Allan Camp- bell of RR1 Seaforth con- tinues as president, with other executive members in- cluding. first vice-president Ken Duncan of Kirkton, Second vice-president Ross Eedy of Dungannon, secre- tary -treasurer Mr. Craig, On- tario Plowmen's Association director Neil McGavin of RR4 Walton and OPA assistant director Bill Leeming of Sea - forth. Dairy Farmers REGIONAL DAIRY DAY Cold Storage APPLES Macintosh & Northern Spy All Grades Located 5 miles west of Walton off County Road 25 (sign) Orchill Farms & Orchards Walton Phone 523-9279 -, - WHERE: Huron Hall, Centralia College of Agricultural Technology, Huron Park, Ontario WHEN: Wednesday, February 2, 1983 COST: $5.00 - includes lunch and refreshments - TO REGISTER: Phone Centralia College (519)228-6691 Ministry of Agriculture and Food Ontario Similar program also being held at: Legion Hall, Clinton February 16 Memorial Hall, Tavistock February 1 - Hanover Colliseum, February 17 Steve Murray Insurance. BROKERS LTD. BURN WOO D -COAL -OI L DUAL-PAK SERIES : Hot Water (30PSIG) Packaged Boilers ale- • Burns Wood, Coal of Oil • Built to the ASMf. Boiler Code • Compact • Large Grate Area For Rated Oufpul • Proven Design • Automatic Switch Over Between Solid Fuel and Oil • Hand Fired 3.5 BHP 1125,000 BTU/hr output) • Larger Sires Availahle • Also Available A. Solid F OnIt Units Combination Forced Warm Air Furnace • Burns Wood, (nal, Oil • Aulomatic Switch Over Between Solid Fuel and Oil • Compact • Unique, f nergv F fficient Tubular Heat f %changer • Rugged Construction • 21 Year Proven Performance • Size 150.000 BTU/hr output • larger Sires Available • AISn Available As Solid Fuel Only Units I� d@ a DOW Continued from page 9 the social amenities but shirk the responsibilities of our branch. We must put our branch at the top rung of the ladder instead of the bottom in setting our priorities and if we do this the Legion and what it stands for will be the winner. The sports report given by chairman Jim Watson stated that tickets for Flamboro are nearly all gone. The bus 'leaves the Legion at 5 p.m. sharp, so everybody please be on time. The mixed euchre last week was an outstanding success with 16 tables in play. The next mixed euchre is scheduled for Wednesday. Feb. 2 at 8 p.m. Please sign on the sports board. Attention Farmers WE PAY 920. TO SSW, PER, HUNDRED WEIGHT FOR OLD, RECENTLY INJURED OR CRIP- PLED COWS AND STEERS. MUST BE ALIVE AND DRUG FREE. CALL COLLECT 24 HRS, A DAY BOATS A WEEK MARK LEIS & SONS LIVESTOCK Milverton 595-4845 Serving the area since 1974 ' 1 would like to convey our sympathies to Charles Smith, one of our more recent affiliate members, on the death of his father "Brad" Smith and to the Smith family. At the going down of the sun and in the morning we will remember them. -Gordon Scott. P.R.O. See Us For. Your MALTING BARLEY CONTRACTS and Soybean Seed KEN R. CAMPBELL FARMS LTD. Low Premium Auto Insurance For Safe" Drivers • $500,000 Liability • Mandatory Accident Benefits • $256.00 Deductible Collision • $25.00 Deductible Comprehensive • Under Insured Motorist Coverage '78, '79, '80 medium-size Ford -Chevrolet -Plymouth -Buick PREMIUM $162 "00 SEMI-ANNUALLY 10% discount for 2 or,more cars. Vehicles used for private pleasure only. Premium applicable to: Married, age 25 and over, licenced and accident free for 5 or more years. OFFICE: ST• COLUM BAN 345-2172 NOTICE OF ANNUAL MEETING PLANT TRUMPETOR LFALFA .. • P.O. Box 70 156 Main St. S Seaf6rth Ont. NM( IWO Tel 519 5270600 Telex 069 55305 QUALIFIES FOR $800.00 GOVERNMENT REBATE INVENTORY REDUCTION REBATE! Make your best deal with your installer, pay for your furnace or boiler by March 31, 1983 and we will send you a cheque. $100.00 DA150, S200.00 DA 250, $200.00 DUK 3.5 Water Well DRILLING W. D. Hopper and Sons 4 MODERN ROTARY RIGS Nell 527-1737 Durr 527-0828 Jim 527-0775 • =1,�`! 1 \� you won't have to fight 0,�., Ilti ��� ��l Verticillium with a plow. �,1 j4 .t�i:�•� 7 �v V.a When Verticillium wilt gets *44&F....„.'1‘ :�' `�: t\,i � I�;,h `� ou have tlwour c-hoices Onlfalfa fieyi. e is . ... ,b •t i.'-� �/._ �, �� .. Z, �� costly reseeding atx>ut �.� '�1��.%' --',.- The third or fourth year. . ? 1, �` ���1 The other is switching to • '%1/! %)." i'27. � Rt{ �� Trumpetor_ Leafy Trumpetor �- (;rl�' �a ` �.� r1) Alfalfa. with its moderate tri \ :��'.� f reslstancc to Verticillium r i� %r �11'/.� `I' wilt, helps you keep the kind ,�+�' ,�; �' I` of yields and stands you're used to g� •• HOE Y FARM ;i� SUP LY LTD. Brodhdgen See us for Trumpetor AlJal fa Re ready for Verticillium 011. 343-2941 The 107th Annual Meeting of the Policyholders will be held at the McKILLOP MUTUAL INSURANCE COMPANY Office Building 91 Main Street, S., Seaforth, Ontario on Friday, February 1 1 P 1983 at 1:30p.m. - to receive and dispose of the Financial and Auditors' Reports, - to elect Directors, - to appoint Auditors, - to consider and enact proposed amend- ments to By-law #21 (d) re qualifica- tions of Directors; By-law #30 re day of the monthly meeting; and By-law #33 re remuneration of Directors, The retiring Directors are John H. McEwing, Stanley McLiwbin and J. Norman Trewartha, all of whom are eligible for re-election. Any person wishing to seek election or re-election as a Director must file his intention to stand for election in writing with the Secretary of the Company at least fifteen (151 days in advance of the Annual Meeting. (By-law No. 21 (ail Margaret Sharp Secretary -Treasurer If ig a