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Times-Advocate, 1978-10-12, Page 12Times-Advocate, October 12, 1978 Quota transfers among new pressures Farmers in Ontario are running into problems that they would never have had to face 10 years ago. Frank Wall, executive member of the Ontario Federation of Agriculture told Huron Fof A members that the pressure to produce more or less is felt by all farmers. The comment came while a panel composed of representatives from the START TO WEAVE — A night class on weaving has at­ tracted a large number of ladies to South Huron District High School each Tuesday night. Shown above are Terri Pearson and Betty DeBlock, T-A photo THIS COULD SAVE 1 YOUR LIFE! Make Your House Safer and Warmer Chimneys, Flues, and Ducts Professionally Cleaned * Phone: 262-5242 8 a.m. - 9 a.m.4 p.m. - 6 p.m. Ilderton Ag. Society "Thank You" Thanks to the following buyers: Ralph Bos Meats 8 head, United Co-operatives 5 head, Darling Food Market 5 head, Hensall Livestock Sale 8 head, Lobo Abattoir 3 head, The Great Cana­ dian Bean Co,, Ford Hardy, Fred Lewis, Geo. DeBlock, Denfield Livestock Sale, Special thanks to auctioneer Hugh Filson and Tom Robson also Tom Robson for donating calves to calf scramble. 1978 CALF SCRAMBLE David McNaughton, Norm McNaughton, Jeff Giles, Allan DeBlock, Jeff Petersen, Jeff Thirlwall, Jeff Mawson, Rick Lee, Shawn McComb, Jeff White. SPONSORS Hodgins and Hayter Farm Drainage, Urbshott and Galloway Insurance, Denfield Livestock Sales, Ilderton Junior Farmers, Karl Stumpf, Denfield, Bob and Susan and Sarah Earley in memory of Donald Edwards, Kee Crest Farm, Agrico, Hyde Park, Ron Edwards Chev. arid Olds, Ailsa Craig,WalioyPeady Mix, London, Big "O" Drain Tile Co. Ltd. Les Drury, George Earley Champion Market Steer exhibited by Geo. Earley, purchased by Les's Country Meats, Ailsa Craig at $1.08 per lb. Reserve exhibited by McCallum Bros., purchased by Bos Meats Strathroy. Peter Coates, Jim Darling, Barry Miller, Todd Charlton Champion Scramble Steer exhibited by Todd Charlton, purchased by Hensall Livestock Ilderton ° ^eserve exh’bited ^y Frank Vander Ulbet, purchased by U.C.O., milk, turkey, broiler and egg industries discussed quota transfers at the Huron F of A meeting in Londesboro, Thursday night. The monthly F. of A. meeting was attended by over 50 people, and the panel members and audience discussed a number of questions concerning the issue of quota transfers. The OKA. is looking into formulating a policy on quota systems, and needs input from their members. “We tas a whole) are responsible for the quota system,” said Mr. Wall. “WTe have to see that noon is hurt and not jeopardize our position as an agricultural group. We can’t say leave the eggs to the egg producers or leave the milk producers to their problems. We are in this together.” Panel members were Bill Scott, Seaforth, representing the Egg Producers Marketing Board, Ken Crawford, -Middlesex, Chairman for the National Turkey Producers Marketing Board, Jim Drennan, Dungannon, member of the Ontario Milk Marketing Board and George Underwood, Wingham, member of the Broiler Marketing Board. The turkey board has the quota fixed to the property where the birds are grown. The limit is 2 million pounds. “We found that without a limit the incubators were gaining control of the in­ dustry” said Ken Crawford. Broiler quotas are another matter. The quota prices have been allowed to float at their own price set by each farmer. Transfer of quotas without buildings has been Olympics Continued from page 3 was to get people involved. Ellison suggested prior to another meeting being held, existing sports organizations should be contacted to see if they would be willing to help set up sporting events for the week in 1980. When this has been done, service clubs and companies in the area could be ap­ proached to see if there was interest for a sports week. frozen since April 1976. The maximum purchase of quota only, has been set at 35,000 birds and for building and quota the maximum is 75,000. Both were raised this year by an additional <5,000 birds. “We have contributed as a group towards the study of quotas transfers plus studying the situation our­ selves” said George Underwood, of the broiler marketing board. “We have agreed not to form a transfer policy yet until we know more,” he said. Egg quotas The quota system was first introduced in 1973 to the egg producing industry. “It is fairly restrictive” said Ken Scott, of the Egg Marketing Board. Egg quotas may be transferred only on sale of the farm. Quotas rhay not be moved to another piece of property for three years after the sale of the farm. Egg quotas may not be amalgamated together unless both were owned before September 1976. The maximurp quota is 35,000 hens. “There is a leasing program for those wanting to get into the egg producing business” said Ken Scott. “The program is for one year and you can only lease one quota.” After January 1, 1979 the temporary quota will be for only 15 months and after June, 1981 there will be no more temporary leasing. Jim Drennan, chairman of the Huron County Milk producers outlined the dairy quota transfers which he said offer a benefit to the family farm. Fluid milk transfers are exchanged between producers if the farm is a family concern. The quota is transferred 100 percent. In all other cases the producer sells the quota back to the board which takes 25 percent off the quota. If a farmer becomes eligible to buy back a quota he buys only the 25 percent which the board has collected from transfers. Fluid milk quota costs $16 per pound . and industrial milk costs 4c per pound. As with fluid milk quotas, industrial transfers are 100 percent retained by a family operation. The board will buy back 50 percent of a quota at 4c per pound and the rest at an agreed upon price.' The limit set for milk producers is 9,999 pounds of milk. The value of quotas depends on the type of commodity, Turkey quotas are determined by supply and demand; and broilers and egg quotas are built into the cost of the farm. “Egg quotas generally run $10 to $12 per hen and leasing quotas on a person to person basis is usually $2.50 per bird per year,” said Mr. Scott. “Industrial milk has gone as high as $30 to $32 per pound and as low as $3, said Drennan. “The board has set the price at $16 per pound.” Adrian Vos critized the panel for allowing bigger farms to get bigger and “keeping the little farmer out.” There are broiler operations for sale to anyone. The board will even help in the transfer,” replied George Underwood. Former OFA president Gordon Hill told the group that new producers are being left out in the cold. “When quotas are available it was said that a large percentage would be We've Moved Our Office we are now located at our Exeter shop Whatever the project, call on us for made available for new producers” he said. “But it didn’t work out that way. Most of it went to the established farmers.” “There are farms available for those who want to get into egg producing business. At present we are working on 61 percent of our quota. We are no where near filling our barns, said Bill Scott. “Existing producers can afford to pay more than a new producer.” “When you buy a dairy farm you buy into the system gradually”’ said Jim Drennan. “The board now offers an opportunity for new producers to buy in to the quota system.” The one problem some of the board members saw was with consumer group. There is a certain amount of misunderstanding which marketing boards are trying to clear up. “Our biggest problem is not the consumer” said Ken Crawford, “We have more problems in our own ranks. There are eight provinces under the National Canadian Turkey Marketing Board, and on every one of our sittings there is a consumer rep. there. We have a good relationship with the con­ sumers,” he said. Bill Scott pointed out that “The minute you limit the producer to make money the consumer yells and calls it inefficient.” “The fact today in chicken producing is that we can produce a 4J4 pound bird on .75 of a square foot. It used to be on one square foot” said George Underwood. “We are now able to put out more per square foot.” “I think the consumer problem stems from fluc­ tuating prices” said Mr. Scott. “Quotas have produced stable prices. In the US producers have free enterprise and are now more sympathetic to us”. “When we went over our economic formula the consumer representative noted our low increase which was below the AIB,” said Jim Drennan. “We are ef­ ficient. We have 15,800 far­ mers producing 5.2 billion pounds of milk.” Take a look at turkey prices” said Ken Crawford,” in the early 60’s the price was between 89c to 1.12. It’s the same today.” “I am a supporter of management, quotas, and marketing boards and think they are essential. Said Mr Hill. “I suspect that supply management will be used in future years. But I am concerned at the value of quotas. It could confirm suspicions that a large profit is made. I mean who would pay $? per year just'to keep a hen?” “Marketing boards have been negligent” Gordon Hill said. “Don’t you guys go and bugger up the system so when the hog producers want to try quotas the public won’t let them.” It was agreed by the panel that by combining their efforts they will get a more reasonable system. “Despite the fact that we are trying to get more stability on the farm the quota system takes out the highs and lows in the market” summoned OFA • executive member, Frank Wall. + BE A BLOOD DONOR IN EXETER ONLY CASE OF 24-1 Ooz. TINS COCA- ’Q7Q COLA U. I □ CAMPFIRE SLICED SIDE M IQ BACON I. IO FIRST GRADE ZEHRS $4 IQ BUTTER I. IO Ready-Mix Concrete • RESIDENTIAL • COMMERCIAL • FARM (Including Manure Tanks) FREE ESTIMATES c. a. McDowell ltd. EXETER, ONTARIO Plant: 235-0833 Office: 235-1969 ONTARIO'S FINEST MUSHROOMS