HomeMy WebLinkAboutThe Huron Expositor, 1979-03-15, Page 15letters: ere ♦o0Yevated by Roo Trane! 11000 ad Elmlre. OnI N312C7
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• Statistics can be ritisleading but a,'I°ew have been coming
ter light that should be Searing a few governments into
...':tit . of long ago, it was, revealed that Ontario
,Pori, stance', n.
4anow importing amore than 40 per cent of the food eaten in'
the province. We .are• not self-sufficient in food,
particularly 'fruits and :some vegetables,
The Ontario Institute of Agrologists, a groupof
professional workers in agriculture, have accused the
province of Mit having enough guts -to legislate restrictive
land -use planning favoring food production over investors;
speculators and developers. -
The. agrologists predict that in about 20 Years, Ontario
• will be forced, to import 60 per cent of its food. And if you,
think food prices are high now, you ain't seen nothing yet.
The complexities facing farmers today are enough to
Make the' bravest young man brink .twice before getting
into such a, complicated venture. Attending. any of the
dozens of farm- meetings across this province brings the
whole thing into focus. Farriers are facing so many
problems that it takes supreme intelligeirce to .figure then,
out.
For. instance, 1 defy any laymen -to- understandmilk
marketing in Ontario.. 1 have been -a farm writer for 20
years and wouldn't even attempt to write about it, I doubt
if there are more than a dozen men in the province who
understand it in its entirety.- And • that is:. just one
commodity.
Marketing boards today are- wrestling with the thorny
problem of quotas,quota transfers and quota sales, It
won't go away, either, because consumers associations are
watching like hawks to sec that quota; prices are not
included in production costs.
Almost every aspect of 'farming continues to mean
increased costs. 1 remember helping with the haying 30.
years ago.. When the mower hit a holt", my uncle took a $10
bill from a Well-worn wallet; went to town and was back in
half an hour with the part which he installed. Today, the
same kind of breakdown would cost more than $100 and he
would have to wait a couple,of days to get the parts while
the hay went bad.'
But the. biggest single worry for farmers is in land costs
Fartners_are•competing for land with big, `.multi -national
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prices
Grins, conglomerates; with bottorelessbank accounts.
These firms figure land in Ontario is a good investment,.
Even at the high prices today,, they, fintt land here
bargain compared to some countries.
When the big cities in this province were settled, they
were settled as centres for fariner$. And farmers: came
where the best land was available. NOW, those same Cities
are gobbling up the. be land in the nation. Urbanization
" 'and, all theopecessary trappings that go with it such. a$'
utility lines, environmental, problems, roads, and
sprawling subdivisions are causing higher food prices
here.
As land costs rise, food' costs go up, As farmers are
forced to move t¢ less productive land, it'costs 'more ,to
make that hind viable. When farmers go out of business, it
means ritore dependence on I imports wh?ch means, still
higher prices for imported foods. When non -fanning -rural:
dwellers complain about odor or noise problems, they are
simply forcing farmers to move to lessproductive land,
All this demand on farmers has been ,going on for at
least 20 y ears and most city dwellers have no idea what's
happening. in fact, most of them will not eventake the
tune to find .out. They ,just continue to complain and
suggest that farmers are living off the fat of the land,
taking subsidies .and laughing all the way to the bank.
ltis.to'the8 reat credit of the consumers association that
their members.arenow learning ab.yut the complexities of
agriculture. They have hadlepreserttatives for a decade at.
the annual seminar on marketing sponsored by the, Rural;
Learning Association. . • .
1t's unfortunate more consutners wouldn't take the time
to do the same thing. If they don't, they'll be reeling.with
food prices so high in 20 years they won't know what hit
them.
`o. to NEW$
Where
IIVALAINAcItOrr
does one start in
transferring: a- farm; to the
next generation? What in-
forrAation is needed in order
to calculate the tax, bite that
occurs when: one sells real;
estate','
Certain :information. i$
needed before the family
.accountant Can offer quid-
angg, The owner must estab*
lisp' an overall value as. ,of
Dee, 31st, 1971 and also a
current value for 1979. ln,
both cases these values are
established by comparing the
parcel in question: to other
farms which have sold in the
locality or township. Once
this ,overall: value is, estab-
lished, it is necessary to
break the total down into.
values for house, buildings in
place on .Dec. 31st,- 1971,
buildings built since that
OW and' land. It's also
necessary to record the
depreciated value of build-
ings built since 1971.
This breakdown is needed
because assets are taxed
differently when they are
sold. There is no capital gain,
on the principalr,;residence
but capital gain can occur on,
buildings and land.:However.
the capital: gain on land can
be reduced or eliminated if
the parent wishes to transfer
at a value less than market.
A recapture of depreciation
will occur if buildings built
since 1971 are sold for more
met peeves
by Dr.Bob Friendship
Swine el)in this area
Several .feeder pi farmers in the
Seaforth area have een experiencing'
heavy losses"to a ;pneumonia like
disease that has just re ently been- discov-
ered: in North America. eaforth; unfor-
tunately, iv in the, centre of an epidemic
pocket ofthis swine disease caused by 'a.
' bacteria known as . Hemophiius. pleuro --
pneumonia,. : Theorganism was identified,.
in local pigs during this past year and :has.
led to mortality, rates of 1,0 to'20% on some".4
"farms, despite early detection and antP'
biotic treatment.
The disease has been reported in Europe
'' for ,a few years but this has been the first
year of any cases • in North America. In :
turope the pneumonia has become chronic
in nature and • fewer deaths are reported,
however the economic losses are devas
tating because of poor doers and a. slowing:
down' of slaughter house procedures be-
cause extensive trimming is required on
affected hog. carcasses. •
Clinical signs of the disease in Seaforth
area .pigs are characterized by sudden
onset and death. Pigs are often dead before
the farmer notices any coughing, lack. -of
appetite or heavy laboured breathing.; One
common sign is bleeding from the nose just
before or after death. • A :,post mortem'
malt COMES
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rho a ne w,.
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examination is essentialto differentiate
Hemophilus pleuropneumonia front other
forrsis of pneumonia or sudden death.
FRUSTRATING •
The Areatment of this disease has been
very frustrating. Chloramphenicol 'is, rec-
ommended asthe drug of choi*$iowever,
because the organism causes 'extensive
tissue damage in the:lungvery rapidly, the
antibiotic may •tot be able to get to the
infective organism and kill it. Thus animals
'may carry, the organism -for weeks and..
reoccurances "very often happen.
There are attempts being made to
control this devastating epidemic by devel-
oping vaccines. So far autogenous bacter-
ins that have been experimentally used
leave something tb_be desired. Certainly,
where these products have been used in
the face of an outbreak tleeresults have
been.. catastrophic. ," •
ANTIBIOTIC•
At present; the best way to restrict the
death loss,in an affected herd is with high.
level antibiotic water medication. Possibly
vaccinations may'have arole in preventing
the disease when a farmer is restocking his,
feeder barn, and therefore your veterin�
arianshould' be consulted, regarding this
possibility:
--
It is essential that a farmer be careful
selecting replacementpigs and limit the
number 'of sources to as few as possible.
Isolating incoming pigs may be of great
benefit if possible. ; '
Obviously Hemophilus pleuropneumonia
is going to cause serious repercussions to
the swine industry; as.it is likely to spread
throughout Canada and the United States
in the months to come.
Hopefully . researchers will ' soon be
developing better means of dealing with
this problem, but until then, pork pro-
ducers are going to, be taking . financial
setbacks as they battle this frustrating
:disease:
than, their depreciated vst100
This recaptuje is .taken 4jr-
eetly into income at 19Q%A. of
Val4e-
AN EXAKPLA
A father plans to transfer
his: farm to a daughter, Be
reviews sales in his area in
1971 and decides that the
farm was worth slum. 0. hie
puts: $10,000. on the house,
1x12,000, on hisbarns and
sh•'d .and $23,000, en land..
Sales, for his area in 1979.
suggest. a Gelling price of
$145,Q00 This time he
values the house at $35,000..
the buildings irl place in, 1971;
(Part 17.1 at $15,000, new
buildings hbuilt since 1971
(part 11.1 at 520,000. and land
at. 3.75,000: His tax records,
show that the part 11 build-
ings: have been depreciated
to: S1R,000
The father is willing to sell
to his daughter for'$11S,000.
He proceeds te his aecaunt
ant for; advice.
The accountant tells him.
;that he can sell (the house) at
535,00 without incurring any
capital gain. The part 17
building ,must be sold at the
market value of 515,000, and.
will incur a capital gain of
S3,000. of which $1,500,
must be taken into income in
the year of sale. The part 11
building should be sold at the
depreciated value of 510,000.
but he must crake a gift of
$10,000, (the difference be-
tween S10,.000. and $20,00011
in order' to satisfy the Pro-
vincial gift tax people.. The.
selling value of the afore-
going assets totals 560,000:
and so he should sell the land
at 555,000. in order ,to make
the,total value equal.his
intnded : sales _price cif
$115,000. 'However,: he must.,
also make a gift of S20,000. `
so that the 'total sof the selling,
price (555,000.) and gift
($2Q000,) Market
equal the,
575;000. Market price of the
land. •
The father has a capital
gain Gallic land of 532,000.
• ($S5,000, •523,000:) and
S16,000: would be taken
directly into income in ' the
year of sale if he received the
full agreed price in cash. If a
mortga8e : were held, the
capital ,.gain would the in
proportion „ to the amount -
received .in cash.
Thus the daughter has..,
bought a farm for 5115,000•
and a $30,000. gift, which is
tax free to• the: parent.
It's. impottant to note that
the selling• price "ofthe land.
can range all the way from
the 1971 value to the 1979
value :depending on the
wishes ' of the family. Each .
situation willl be different and
it will he up to each person to.
work out the selling, price
thatis best for -their situ-
ation. •
This example is Used
mainly to illustrate principles...
Hopefully,it shows a way to
tackle this chore, The numer-
aus figures tend to be
confusing. If nothing else,
the example points out the
complexity of the exercise
' and the need for competent
accounting. ' help. Work
sheets are available• at the.
Stratford office toassist in
listing, these values prior to -a:
visit'' to the , accountant and
lawyer; .
FINANCING AND'DEBT
REPAYMENT
A Financing ^and'. Debt
Repayment Workshop is
scheduled for Wednesday,$
\larch 21st from 10:30 to
3:30 p.m, at the Kin ,station
n
Listowel. Program guesta_.
ra
t4!
HUM
include John Mayes, Send
Agricultural Advisor for the'
Dank of Commerce. igen
-Chase, .Area Supervisor of
the Farm Credit Corporation,
Guelph, Ed. Van Hoekelen,
Farm Credit Advisor, List,
owel and Alan Scott, Ag,
Rep., Stratford, These re-
source people will help part.
icipants work through- a
financing case study and
make presentationsonfin-
ancing topics,. Participants
can expect to learn about the
philosophies of the different
lending agencies :as welt as
budgeting thilmbr (les and
sources of information,
whichcan fie useful; Gtr
making an application for
credit.
A $5.00 registration fee
cove;s the noon lunch. part-
icipants, who bring their own.
lunch, cap register for 52.00,
FCEDLDT SEMOAR'
' The Perth Cattlemen are
sponsoring . a Feedlot Sem-
inar at the. Brodhagen Hall
from 10:00- to 3,30 p.m.. on
Wednesday, March 28th,
The agenda includes speak-.
ers on the causes of feedlot
illness, starter rations, im-
plants and reimplanting,
treating: on arrival 'versus
delayed treatment, . by pro-
duct feeds and selenium and
Vitamin E In the afternoon,
Iron Henry. of Huron county,
will`. discuss his open. lot'
(western type) feedlot, and
MARCH 15:, '11
'ohn Gillespie of Waterloo
epunty 'will tell why he.
,erected a ;slotted floor barn to
$long: with 1* On -
volitional:. feedlot Ar~ final
resentatiori rill involve a
cook at determining cest of
production an4 the' eco -
farm
Peratcs of eapenstve at '�
Tickets are available hist
brit; dit'ectars ac the Catfie,
metra. Assoeiatian ted';
the County AR +»al-
(tee;. The x8, flee includes
beef dinner 4t f . Tkkets
sales .must be otapleted bye
Wednesday. Mlarch 21st, •
ARNOLD J. STINN$SSEN
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