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The Huron Expositor, 1983-03-02, Page 11Tapping . resources .is a. ;BYJACKHAGARTY _ Representative. They attend 'straw.A husband -wife man. FamiedarsigemoatSpeeiauat educational meetings, field agement team! We'd best The concept of tapping days and tours. They join fold our tent and move on, We resources is basic to farming. farm organizations, get on can't supply that kind of Farmers tap the sun's energy mailing lists and $ubscribe to balanced expertise." through plants that grow on farm .magazines. They buy I've noticed that young the land. My earliest recol- crop insurance, in income farm wives are very interest - lection of tapping" was stabilization prog ams, apply! ed in the business of asset when my dad drilled a small for and receive ants, They transfer and business agree - hole in, a maple tree. And to consult the griculturpl ments. On three occasions , my complete surprise sap engineer when r novating a lately, they've been involved started to flow. It was sweet! 1 barn, They phon the Soils in the counselling sessions. was to learn another lesson. and Crops Special t and have They had off -farm business You had to combine another him out to look at, a .problem experience in banking or resource -labour. We carried weed situation. They make accounting that helped them buckets of sap until our arms use of veterinary diatnostic grasp the details of moll - ached. Dad came up with laboratories, soil testing, gage, buy -sell agreements another resource --capital to feed testing and ra ion forma- and capital cost allowance. b1,ty a tractor and trailer to lation services. Th irchildren They asked very good quest - cart the sap. And not long -join 4-H and t e Junior ions. And they sent me to the after --he used another re- Farmer Associat on They filing cabinet searching nB for source -management. He got take an active part in organs- the answers -that's good -- out of the maple syrup zations. Their young people embarrassing -but in the long business. If took too much of take diploma and degree, run. we all benefit. his time. He turned his courses at agricultural col- Should we offer- some talents to growing cops, feed- leges. They motivate and courses for farm women? It's ing cattle, raising a young teach their young people to being done on occasion. The family and learning how to make itse of God given women soy it lets them ask all tap other resources. talents. kinds of questions --that men Recently, 1 came across a . The best resource in agri- might think stupid. Following letter that my dad received culture is the farm people the courses. the comment nearly fifty years ago from the themselves. Corporate farms from the instructor usually is Agricultural Representative have not taken over agricul- "Wow, what good questions in Perth County. My father ture. The family farm offers •• some of those things never was starting to tap the talents competition that's just too occurred to me.' It just could and time of extension and tough. be that many things in farm research people. He encour- I'm wondering if we might „management are not thought aged me to tap this resource make that competition even of because we've ignored the ' tof view. women's point , ' c talk's about om w'me to attend the tougher. I n 1 P by allowing g B Ontario Agricultural College. ' farm women being more Farm women are invited to I've been working in exten- involved in farm manage- participate in''dll O.M.A.F. sion for twenty years. I've ment. That's a force with programs. Wouldn't it be noted that some farmers are which to be reckoned. Can't great to see many farm very good at tapping the you see these corporate ex- women attending the educa- talent and time resources of ccutives throwing u, their tional sessions? Those cor- one sheaf to his six. The next extension and research. They hands in disgust and saying porate executives would see year 1 did two to. his five. The get to know the Agricultural "that does it --that's the last the writing on the wall-- next year i could stook on my Ontario Farm Adjustment [Fagot basic frmL•eme•nt "farm families are here t stay." The farm wife is an Impor- tant person. She run the household -a job in itself. Sh may work off the farm t.t provide money for the family to live on, or for luxuriesaaa���rrr capital for the farm itself. Many a farm has survive tough times this way. Wives do a lot of wort around the farm with regul r chores and filling in wh things are busy. They wo especially hard in the ear years When children are toxo young to work. Many wives do the house- keeping for the farm and this is an increasing n trend. Doing the books can mean anything from keeping the bills or- ganized right up to keepinjg detailed accounts and being able to pull out financial data to help in making decisions. Studies have shown that whether the farm wife does the books or not she is almost always consulted when a major financial decision has to be made. And she should be. It's her future at stake too. The Federal Government now allows farmers and small business people to pay their spouse a wage. Children growing up on a farm learn what work is all about. 1 remember helping my dad stook. The -first year it was fun --I managed se get up BY STAN PAQUETTE Assoc. Agr. Rep. ` Huron County OFAAP HAS SIDE BENEFITS snouts oc use° for manage- ment purposes and, pf course. for income tax pur- ' poses if filing on the accru�I basis. Lending institutio s want accrual statements ,in The Ontario Farm Adjust• order to know year end inventories and their valugs. ment Assistance Program in effect in 1982 has had side Asset and liability slae- benefits. It has made farmers ments are updated. Unfor- uildin' s la land and b realize more than ever the sur tcly, buildings necessity of keeping good and equipment values de - records. clined substa ly in 1982. Farming has been ' consi- Decreases of 2 per cent are dcred a way of life, which 0 is. not uncommon 4.s a result a It is also a business and must farmer's equit, . i.c. the per - be run as such. With the cent of his assets he actually necessity of having to prepare owns, has deteriorated. an income and expense state- Equity is a measure of finan- ment on an accrual basis, an cial strength in a business[ It asset and liability statement, is also an indication of risk a farm plan for crop' and level. A 25 per cent equity for livestock production and a beginning and 50 per cent for cash flow projection for an well established producers is OFAAP application in 1982, considered satisfactory. A .the farmer has' realized -bis �bogime,ing farmer might ask, own situation atot better than how. do 1 get 25 per cent he did previously. He should equity to start? I guess the also appreciate the time ci• message is. creep before you thcr he, his accountant and/ walk. Build up some inven- or his banker had to contri- tory of cash anchor livestock bute to the preparation of the and equipment before pur- required information. chasing a farm. An asset The preparation of the liability statement also indi- accrual statement will indi- rates current, intermediate cafe the true picture of the and long tern[ assets versus farm operation for the vear. liabilities against them. Low - This shows growth or loss in cr commodity prices, eg. amount and value of inven- crops. has caused many to he' tory. It also indicates what short on current assets to happened with accounts pay- cover the liabilities against able and receivable in the them. These producers arc accounting period. The not in a liquid position. accrual statement is much Lending institutions were more than 5n income expense loaning on equity when land statement, often prepared for values \acre escalating. 111 - income tax purposes oniv. !crest rates started to rise. Most farmers file on a cash 1 here was reluctance to tic basis and can continue to do borrowings in at 14 per cent so. The accrual statement or so. Expansion of buildings own. It was'go loner titch- ft number, designing commun- was hard tgprk, Its good to ications systems, e.g. handy teach childr$n. some of the chalk board, note pads, etc., farm business management are things that young creative aspects. Record keeping, list• minds might find interesting ing of most used. telephone and challenging. Vacationers welcome Increasing numbers of On- tario farmers are playing host to urban vacationers. by 1983. there will be more than 60 vacation farnis lo- cated throughout the pro- vince—up from the 18 in- volved when the Ontario Vacation Farm Association began five years ago. The secondary, on-farm income family lY Ba► ns by 'opening their home to vaca- tioners is one advantage of the vacation farm concept, says Sharon van Son of the Ontario Ministry of Agricul- ture and Food's rural organi- zation and services branch. "This extra on-farm , in- come is a very positive result. especially in these difficult economic times." She says the surrounding community benefits too be- cause the Vacationers buy souvenirs at its shops and take part in community events. Education is also a ke an dura complete E vacationers first Y scat[ P element of the vacation farm application form. An area concept. she says. "It's very director visits the farm to important to the association. discuss the association's ex - which sets standards and pectations and those of the guidelines, that education is a farm family. part of the farm vacation. Van Son cautions -that host-, Many urban- families don't ing a farm vacation requires realize the amount of work hard work. that goes into producing a lass of milk, so this is an ideal opportunity to teach them more about agriculture today." The vacation farm also offers an outlet for urban - rural dialogu ; better under- standing is gained on both sides. Hosting a farm vacation is a wonderful wayto meet new people, exchange ideas and form new friendships. Van Son says vacationers visit from Europe, the United States and other parts of Canada. "The full-time farm family has little chance to take a vacation, so in a sense, the holiday comes to them." She says the association seeks working, owner -oper- ated farms where urban fam• ilies can participate in rural life and learn more about .modern farming. Farm fami- lies interested in hosting THE HURON EXPOSITOR, MARCH 2,, 1983 -- All POP SPECIALS %oz 'EPSI,) tET'EPSI, COKE , 7 (AP, CANADADRY r~ SEHWEPPES GINGER ALE 91fax4e osit � p 2(Goz IC 15T GINGER ALE, FANTA -GRAPE, ORANGE, CREAM SODA)ROOT BEER CANADA DRY CREAM SODA CANADADRY LEMON LIME 39 eack, Plus too( a deposit CANNED POP) ALL BRANDS ONLY 6 99 ARC H I E S SUNOCO - ou,s fax ,?9 GODERICH- 51". E . SEAFORTH ONT. P14. 527 -.08 81 oper, 7 days a geek +o serve you be}}er Assistant Program has side benefits and purchases of equipment were financed on operating stoney instead of being term- ed out over one to ten or more years. This situation in- creased the problems during 1981-82, when interest rates on operating money floated with prime on these borrow- ings. Lessons were learned in 1979-80-81 and restructuring of finances has taken place. Banks want to see adequate assets, current intermediate and long term, fo cover the liabilities in each category. If out of balance. restructuring may be requested. A ratio of I:1 for current assets to current liabilities for regular income farming to 2:1 for irregular income farms is considered good. For long tern. a 1.25:1 ratio is mini- mum. A farm plan of operation.for. crops and livestock sets a goal as to your intentions for the ensuing year. If you don't have a goal or don't know where youare going. how do g you know when you get there? It would be like going 00 a trip with no destination' in mind. Set crop goals high but realistic. Try to do better than you have previously. With' beef, dairy, swine or poultry production, more pounds of nkat, eggs or milk per acre might be your aim. The cash flow projection is essentially putting the in- come and expenses into the crop and livestock plan of operation. Fancily living and debt servicing of principal and interest must be in- cluded. The best cash flow is done on a monthly basis. As the year progresses, plifg in actual figures beside! the projected figures in thecash flow. Monitor as you go. Many things can disrupt a cash flow. Higher input costs, lower commodity priceS. di- sease, flood and hail can all be disastrous and upset a cash flow projection. No in- terim ' wheat white hate bean payment is a good exiimple currently. These negittives turn around in times of excellent yield and higk com- modity prices. A cash flow is another management tool. More and more lending insti- tutions are requesting them In summary, the benefits of the Ontario Farm Adjustment Assistance Program are many and varied: 1. Financial -Participants received up to 5 per cent interest rebate on floating trete money.- 2. Un- derstanding - Farmer -1 hope- fully understand their farm business better. 3.g now - r Icd a Farmers ca now prepare farm plans. cash flows and income and ex- pense statements. 4. Appre- ciation - Farmers appreciate the work done by the account- ants. bank and OMAF per- sonnel. 5.. Willingness - Farnters are more willing to prepare or at least assist in the preparation of good sound records. In Huron County. OMAF staff completed about 350 applications. This represents about 10 per cent of our producers. We are now much closer to the farm financial situation than we were pre- viously. It has been an WORKHORSES r CO4I.OR. •qtl,, 4 a yy til .. t ✓ err*n1¢.11.1_ ro opportunity tor OMAF staff pleased to see farmers Pre- to work with bank personnel paring statements, farm and accountants. I feel we are plans and cash flows with a all the wiser for 0. better understanding than As 1983 moves on, I'm ever before. - Farming as BY RIF. HEARD Area Coordinator and Farm Management Specialist Running a farm without records is like trying to tell the time from a clock on the wall that has ' no hands. Depending entirely on cash basis, income tax statements can be even worse, because the farmer may think he knows what is happening but really doesn't. The twin objectives of many farmers are: -to have a profitable farm and to pay no income tax. Unforunately some tend to emphasize the second object- ive and find they can achieve it without really trying. The farm management program of the Ontario Ministry of Agriculture and Food tries to emphasize the first objective, and to that end a multitude of services are provided. These range from soil analysis, feed analysis, crop production technical advice. animal health services, etc., and a group in O.M.A.F. is espe- cially concerned with aiding farmers in business manage- ment. We view the keeping of adequate records as essen- tial. Our view is that both financial records and produc- tion records are required. One type of record without the other puts the farm a business manager in a similar position to a printer with only one leg. His is really handicapped, but may make it Lathe finish line. Through the years O.M.A.F. people have work- ed with farmers in various farm management projects. One of these is the Ontario Farm Management Analysis project which has now com- pleted 36 years. Copies of these are available at county offices. The objective is to provide a business analysis that aids the farmer to know where his business is at, relative to similar businesses, and to aid in improving it. The use of the Ontario Farm Record Book has been for the program. the basis p B However, many other records systems, including Canfarm, can provide the data needed for participation in the pro- ject. We in O.M.A.F. are hope- ful that more persons who, as private entrepreneurs are servicing farmers income tax filing needs, would persuade the farmer to "pay a little more" for an extra service that would be valuable to him. File a tax return he must do. We are encouraging accountants and tax filers to proyide some extra informa- tion to enable a farm business summary to be prepared. This advertisement was prepared by: Ian Dolg LL BRANDS OSPECIAL No N Yes, / ��%� ►asrarryn„ Mufflow $ 2495 SEAFORTH 527-0880 Z„JO Mufflers SPECIAL you can do ' Mufflow Both the muffler T ' tailpipe are for quick and installation No special no special Complete NISV 10 fallow II1St111(-tI(1r15 For Domestic and Light AUTOMOTIVE & Industrial 58 Main Seaforth TOOLS SKILLS it yourself Muffler and designed easy skills. tools with � j , Mufflow Cars Trucks Supply St. S., with \, ' .. - ��. Tail Pipe 95 ITN :, This advertisement was prepared by: Mike Braver NO MATTER HOW YOU PLANT YOUR CROP A��ention Farmers: SPRII-ERONTAND \N�OFEATURING Weed Sprayer Clinic 10:00 a.m. to 12 Noon Hot D\r\rk.er Pcowded Pat Lynch, O.M.A.F. Soil & Crop Specialist for Huron & Perth Counties Our orange 1<uh111a \1 line• un ta•11hnc (lr lune 1(h. tractor, arc built 111 carr\ a hca\ \ - Sn l 1It a hubris M Icnc. workload But not a 4,13 \ prier Iravtor t„ \\rtrk Inr 1+,1, 1t. a 111c3 oiler 17 1 to 72 2 1' 1 0 111'. \\ 11rkhor.c of a clrl Icrcni iolor And 8lor\vardand 1 rc\cr.c'1\ccd•, 1,,,0,1101 (111r (..01111/M1 indchrndrni 13 1 0. ho31cr .iconic• hlu. h11.i1nM .ind draft control And ear h one 333111. 31 1111 an dic.cl en(ani \l' hick 11111(11• \1111 dont `bend a• 1111(1 h .r \on \c11u111 Bruce Lobb, Ministry of Environment Order Fer+ i lize r Juesd&N ) c.V? Seaforth Community Centre KUROTO' We're looking for work. SEAFORTH 521.0120 Representatives will be on hand to provide information and answer questions on new and existing chemicals and application equipment. Jim's Flying Service will be on hand to answer any questions concerning aerial application of pesticides and fertilizers. In order to arrange the dinner, please reply by phoning Milton Dietz by Monday. March 25th at 527-0608. ee Yo ur Se d Grain, -' Grass Seed Now Don+ e Lade Prepared 1\1 I LT% J. '01 E_T Seaforth, Ontario L t D. Phone 519-527-0608 Cal Toda OPNOTC\ FARM EQUIPMENT LIMITED SEAFORTH • AYR • CAMBRIDGE • WOODS -10( K The ahnv a adseriisemenl was prepared by: Brion Riley '11 Topno3-ch Feeds Lim i ieci Sea1orfh Or+ario' 5,) 7-/ /O This advertisement was prepared byt Suzanne Jerome