The Lucknow Sentinel, 1980-04-30, Page 2orals
brie
4UPER MAMA Floq
14 I '44-14 4:.4 .r4:1 15..
ank
interest 'rates cartently place down to 12
per cent; The government would, pay lending
institutions_tht diffeitns_e betWeen. per
cent and thd going bank rate. This support
• %Mid be available to thosefarmers needing
.• I 4. ^ • •
In a; resentation to the Provincial. Cabinet
April 23, the Ontario Federation of Agri-
culture (OFA):ealled for a major assistance
•program fot the' prOvince's troubled farin
indlistry. ...; : •
OFA President, Ralph Barrie; said the
progi%m is necessary beeauSe farmers arein
' an economic strait jacket. Input costs have
risen at a rate which would have been
unbelievable a few years ago.
The, real problem, however, is falling
prices for farm commoditiesT--Barrie said,
SincelaSt year beef has dropped 11 per cent,
pork 30 per cent; and soya beans 5 per . cent:
Late in, 1979, the federal .governMent
estimated- Ontario's net farm, income would
-drop by AO per cent, a prediction which,
Bettie said, unfortunately is coming true.
The OFA recommended'. that 25 million
dollars be Made; available:: immediately to."
previde.subsidized loans• for needy farmers:
Barrie said that without.this assistance many
--crops- would hot be- planted2'--'-and . an
increasing. nUmbet7 of 'farmers would be
fOreed out basineas.
"Farmets are not in the mood for buck
passing," Barrie Said. "The aid program
must be biought in immediately."
Also inchided in the OFA's presentation is
a call for the restructuring of the province's
municipal taxation policy. OFA said that the
lifting of the. freeze on equalization factors
Area fanners were among Over 850'
members of the e Ontario Federation of
_AFIcolture who_m_etwith federal minister of
a$riCulture, Eugene Whelan, at the Chateau
Laurier on, April 24, to protest high interest
rates affecting farmers. •
The meeting with the federal agriculture
minister was, attended by a large number of
MPs, most of them connected with the
agricultural ministry. •
The OFA delegation presented proposals
for Canadian government action on the high
interest rates.-
:The meeting was 'to demonstrate to the
members of parliament and the agriculture
Minister that current excessively high inter-
eat rates are "crippling" the:farMing indust-
, ry. The OFA delegation hoped to convince
the MPs' that the situation is Critical-.
-They requested parliament take poSitive
emergency action to resolve the problem and
tried to show there are reasons to doubt the
present government economic policy is wise
or adequate. ,Their recommendations ' sug
gested more apprOpriate measures to fight
inflation. and lower the balance-of- inter
national payment deficits, '
The,courses of action recommended by the
OFA included 'a deferral fat' one year of Facto
Credit. COrporatioptincipal ands'interest
payments and an extension of the loan
period for one year. The .1980 interest is. to
be. added to the principal of the mortgage for
paythent at interest over. the life of. the
Mortgage. "
, The delegation requested the government
increase the funds available to Farm. Credit
so that-short and- medium term debt can:be
refinanced into rong term debt. These funds
are also,necessary so that the deferralS
recommended above will not restrict Farm
Credit's ability to carry out its normal
lending program in 1980.
A third recomrhendatiOn:.was that the
federal government inttodnce an eMergeney.
program for subsidizing interest rates for
short and medium :loans with floating,
Operating 'capital`. Who, in the opinion of
lending institutions, will remain viable if
assisted and who, in fact, have need for
assistance. ,This program should -cover. the
period from April 1, 1980 to. April 1, 1981.
has combined with rising rural, land values.to
place an:unfair burden On rural tax payers.
•The OFA ago.' insisted the province
recognize the farmers' right to farm, The
large number of Urban pe ple , who have
moved to -rural areas has ed to increasing
harassment and the cur ilment of many.
normal farm practices.
, Also contained in the 35- age Brief were
recommendations for increased energy.
conservation programs,. an increase in the
budget ,to the Ontario Ministry of .Agri-
culture , and Food; and improved Crop
Insurance and farm product promotion prd-
grams::.
This support would not be available for new
capital expenditures..
. The OFA's final recommendation was, that
as time ologressesreondition-maY-deterior-----
ate to such an extent that a complete deferral
of all farm loan interest payments may be
requited in 1980.. These suspended pay-
ments could be capitalized into the debt and
the repayment period extended to relieve
pressure from this period"of combined 'high,
interest rates and falling commodity prices.
.Speakers at the meeting included Ralph
Barrie, OFA president; Glenn Platen, first
vice-president of the Canadian Federation of
Agriculture; Peter Epp, a southwestern
.Ontario farmer,, John Gillespie, a Waterloo
area farmer and Luken Robinson, a consul-
ting economist.
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