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HomeMy WebLinkAboutThe Huron Expositor, 1983-03-16, Page 8AG - THE HURON EXPOSITOR, MARCH 18, 1983 , Fnpfit B of, M advises farmers Farms are businesses and in order to thrive and flourish, they {oust carry on like other professional businesses. That was the advice given by Bank of Montreal (BOM) officials and a financial consultant to nearly 100 people,attending the Huron Farm Survival Association meeting in Blyth on March 1. 'Farmers from throughout the county, along with Farm Survival activists in other areas came to Blyth to discuss problems of farm financing with bank officials from Toronto. Thediscussion was heated at times, farmers voiced their financial opinions and oppositions, bank officials answered. n Ernie Morel, senior vice president of the western Ontario division at the BOM stressed that banks are not retreating from agriculture. "We intend to stay in the agricultural sector in a big way," he said. Mr. Morel noted that a nationwide survey has shown that 90 per cent of far- mers are still managing successful operations and small commercial businesses are actually facing more financial difficulties and bankruptcies. However Allen Wilford, director of the Canadian Farmers Survival Association asked Mr. Morell, "Are small businesses 'going under because the farmers are in trouble?" Cletus Dalton, a Kingsbridge area farmer said that it seems that banks are retreating. He said,, "It seems the banks are beginning to realize that there is no money in farming not due to poor business practices on the farmer's behalf but to the low rate of return and losses in the agriculture business." Reading from a letter he had written to The Lucknow Sentinel Mr. Dalton con- tinued, "The banks have seen farmers use all of their equity in holding up a sinking ship, waiting for things to turn around and ' get back to a profit situation. Well this takes time. Hopefully we're through the worst. We've seen 25 per cent interest and the harm that has been done. But now we need time, not government subsidies to use some of these better economic times to get ourselves back in the black." One farmer commented that three years ago people borrowed money at 8 per cent then paid as high as 25 per cent. He said that most would not have initially borrowed the money had they known in- terest rates would take such a drastic jump. Mr. Morel said that the banks don't set the interest rates. He noted that the BOM is now offering a fixed operating line of credit. Farmers now have the option of accepting a fixed or floating rate. "The floating interest rate is a gamble no matter how you look at it," he said, noting that other farmers have criticized the bank for putting them on a fixed rate. A comment from the audience was, "We'll accept this fixed rate and by some fluke the rates will go down and we'll be suckered into high rates again borrowers beware. They'll only give you something to get something back." Mr. Morel said the BOM has lent Canadian farmers in excess of $1 billion.He noted that the bank has written off a substantial amount of farmers and he said, "We're not proud of the fact. The bank lases money too. "The reality of it that some farmers will go out of business," that Mr. Morel said, is part of the free enterprise system. Many attending the meeting were concerned about the millions of dollars that banks have been lending financial troubled countries. "How much are you prepared to write off for the farmers in Ontario," Mr. Morel was asked. He replied, saying that loans to foreign countries have minimual losses.. The countries must continue to exist, they rely heavily on imports and need support from western banks. He said that these coun- tries have the right to defer interest payments, "but in 1983 and 1984 western banks won't be so willing to lend." Mr. Wilford added, "No matter how good their (financially distressed coun- tries) intentions are, if they don't have the money they can't pay." Mr. Morel said the BOM had backed farmers by supporting the Ontario Farm Adjustment Assistance Program (OFAAP). OFAAP is available to farmers who have a farm income of at least $12,000, an equity between 10 and 60 per cent and interest and principal payment last year amounting to at least 20 per cent of their total expenses. The government budgeted $60 million for the program $10 million was used. Mr. Morel said that of 3,648 applications, the BOM handled 787. Of the total amount, 3,509 were approved and the BOM share was 741. One farmer commented that the government never intended on handing out the entire $60 million for OFAAP in one year. Mr. Wilford asked for a show of hands, which discovered that less than a half dozen had applied for OFAAP assistance. Many more felt they could -have used it and several said they were discouraged at the local bank level. Tom Shoebottom, auctioneer at the Feb. 9 Gowanstown penny auction, questioned the BOM public image, asking, "How are bank managers evaluated? Are they checked to be sure that they are reliable? Do you back harrassment and managers calling four times a day to say they'll be taking away equipment." Calling it "immoral behavior," he said that Mr. Morel should "be held personally responsible for managers' actions." "If you think this group is made up of radicals and militants," he added, "we'll show you just how militant and radical we can be my good man." THURSDAY MARCH 17TH ONLY Open 8 a.m. till 8 p.m. F of A to give financial advice The Perth County Fed- eration of Agriculture will be setting up a financial advisory committee to act as a "multi - United Nations" for Perth County farmers. The local committee. ap- proved at the Federation's Mar. ' meeting, is an offshoot of the Ontario Federation of Agriculture's IC/FA) financial advisory committee set up to assist farmers facing finan- cial problems. The volunteer committee will be comprised of Federa- tion members including a chairman and representa- tives of the dairy, beef. pork and cash crop industries. This committee will have access to a panel of professionals in- cluding a lawyer, accountant and representatives of finan- cial institutions. Perth Federation president Ron Christie of RR2. Staffs secs the ttnancial advisbry -committee acting in a media- tion role. Federation member Brenda Ward of RR2 ,West Monkton anticipates the com- mittee will be a public rela- tions vehicle between farm- ers and financial institutions. "Nine times out of 10 the committee is just going to be a shoulder." commented Mrs, Ward. She noted that it is said three to five per cent of Ontario farmers arc on the verge of bankruptcy. but 15 per cent arc worried about their financial position. Mr. Christie added that difficulty arises when there is a corn- munications break down be- tween farmers and their cred- itors and said the financial advisory committee will he the mechanism to reopen those communication lines. "It (financial advisory com- mittee) is open to any Ontario MAPLE LANE 2% Partly Skimmed MILK $ PAPER TOWELS 894 2 ROLL PKG. SEAFORTH SUPERIOR FOOD MARKET OPEN; MON. to SAT. 9 A.M. to 6 P.M. OPEN EVERY THURS. & FRI. NITS TILL 9 P.M. 68 • 3 QT. BAG CANADA PACKERS YORK COOKED Sled HAM $ 1 II • SEAFORTH STORE ONLY E.D. SMITH GARDEN COCKTAIL 79a 89 260Z. JAR r SATURDAY MARCH 19TH ONLY OPEN AT 7 A.M. FREE! 1 DOZ. CANADA GRADE 'A' LARG'F EGGS r CLOVERLEAF SOLID WHITE ALBACORE TUNA BLACK DIAMOND "SINGLE THIN" with the purchase of 500 GM. Schneider's Regular SLICED SIDE BACON 3. CHEESE SLICES. $i'73 85 • 7 0Z. TIN BEATRICE FRUIT BOTTOM YOGURT BLUE BONNET 3 MLB. PKGARGARINE 175 GM. 4F$ 00•all , flavours Both these specials in effect Sat., March 19th only while supplies last. SEAFORTH STORE ONLY 15 ROBIN HOOD ALL PURPOSE FLOUR 10 KG. BAG VAN CAMPS BEANS WITH PORK 28 Oz: TIN 7 FARM FRESH PRODUCE laruecr ..newer tncy are a federation member or not," commented Mr. Christie. The prdcedure for farmers wanting to take advantage of the service is to telephone the OFA office in Toronto at 1.416-485.3333. The OFA will then have either the Heldman (in Perth County it is Blaine Stephenson) or the chairman of the financial advisory com- mittee get in touch with the farmer. Confidentiality will he maintained by the local advisory committee. Unrelated to the financial advisory committee, the Fed- eration will also be sponsor- ing a farm bookkeeping work- shop for farm couples at the end of March. Material to be covered includes cash flow and projected income and expense. Babysitting will be available and further details will he announced later. Farm computer available The age of the farm computer has come to Ontario. That is the feeling expressed by computer professionals involved in a province -wide trial period of the farm computer information system known as "Grassroots". In a joint project between Universitet. a University of Guelph informa- tion service and Informart. a Winnipeg - based computer information company. a six month -trial for the system in Ontario is being launched. According to Ian Easterbrook, one of the co-ordinators from Guelph. the trial period is essential in determining the need among farmers for the program. Optimism for its success here is based on the success of a similar program initiated in Manitoba in April of last year. Since its beginning in Manitoba. the program has attracted approximately 1,000 computer information subscribers. The service offers subscribers more than 13,000 pages of farm information with an additional 300 pages to be provided by the University of Guelph. It also includes regional weather forecasts. updated three times daily: commodities prices from the Ontario. Winnipeg and Chicago exchanges and farm management programs which include machinery and equipment utiliza- tion, land purchases and rentals, fixed cost • and mortgage calculators. livestock and grain analyzers, as well as regional machinery and land sale prospects. Universitet will offer Ontario agriculture - related events. University research. and educational programs and courses. According to Mr. Easterbrook, the system would cost farmers $750 for the home computer unit. .a $50 subscriber fee for a monthly use of six hours and an additional $8 for every hour over the mnnthlc use. He feels that the system is well worth the initial cost because of the wealth of information a farmer would have at his fingertips. He explains that much of the cost will cove. the use of the telephone systems to access the information from a central computer in Winnipeg. That com- puter will also he fed the additional information from Gue=lph. he says. The system will be tested on approxi• mately 100 trial subscribers in the province to see how the response is in agricultural circles. Those farmers chosen for the pilot project will he provided with the hardware at no cost. According to Don Pullen of the Ontario Ministry of Agriculture and Food (OMAF). in Clinton. the preliminary response has been skoss He has had some inquiries from area farmers about the system. Teens in conservation Would you like to spend your summer working in the great outdoors? The Junior ( onscrvationist Award Pro- gram is co ordinated by the Conservation Authorities and Water Management Branch of the Ministry of Natural Resources Participants are disided into groups of seven and are assigned to one of the watershed areas in Ontario The program is open to young people ages 16 to 18 k A years .1117 neve uemnnstrateu an interest in conservation by active membership in a club. organization or group with cgntinuing nature or conser vation activities. Applicants must he sponsored by a conservation agency such as: 4-H club. Nature Club. Boy Scouts. Girl Guides. High School Club or Conservation Authority Participants re ceive room and board and a nominal living allowance of 1,10 per day. Cort'ipleted application forms must he received by the Conservation Authorities ane Water Management Brancl not later than April 1st Forms are available at the Ontario Ministry of Agricul ture and Food office. Clinton Ontario, Ministry of Nature Resources. Wingham; an. the Conservation Authorities -Don Pulte Agr. Ref HIGHLINER COD IN is 8 9 BATTER • McCAIN SUPERFRIES 39 FRENCH FRIES I • 350G 1 KG. MCCAIN VEGETABLES •PEAS •MIXED VEG $1.69 11(0. BAKERY TREATS DEMPSTER'S GRANARY BREAD tOASTMASTER WHITE SANDWICH LOAVES WESTON'S RASPBERRY CREAM ROLL 786 76° 99° 5% OFF SENIOR CITIZENS WEDNESDAYS ONLY!! •BUNSMASTER PRODUCTS FRESH DAILY!! •COUNTLESS "INSTORE" SPECIALS 450G Prices effective until Saturday, March 19, 1953 In .Host Superior Stores We Reserve the RIyht to Limit pvmnBles tofiansollosWitelrastint 675G. 2830. SEAFORTH SUPERIOR MARKET SUPPL D. I E BY 1 MARR ACrl LID