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The Lucknow Sentinel, 1985-03-20, Page 546a - The Farrar Edition, Week of March 20, 1985 I4, -,Arad i' LIMITED 1111111811INTV •r - Big Savings! • 17 HP Twin Kohler Cylinder Engine • Patented Foot Pedal Hydrostatic ' ' • Tough Attachments • Shaft Driven Attachments • Hydraulic Lift MARK'S GARAGE Chepstow 366-2634 Halms Quality to Eliminate the Hard Work From Yard Work Farm pressures hereto stay says Royal bank official ... from page 5a , borrowing. The farm financial crisis in the past several years is testimony to this. It eases the effort of obtaining credit if you are employing a . level, of farm financial management, suggested Bearss. Many farmers expecially those over 40 years of age feel beleagured. They have dealt faithfully with the Lrde}ow Co-op, for example, for years and now the • Coop manager Dave Dawson wants to know every- thing about your operation right down to "the colour of your underwear". The kinds of questions asked by; trade creditors aree serious the .more money you • want to borrow, said Bearss. Questions asked to make a credit decision. include the three .Cs of credit: Credibility and `Collateral." Lenders have moved away from using the balance sheet, where equity was important, . to cash flow as the basis for credit decisions, said Bearss r fen ing to the biggest reflection - of change in farm financing in this country. Flom a lender's point of view, you have priorities but your willingness to deal with the guy is the corner stone of the relationship: "No matter what his assets, if you cannot // trust- the guy, you will no want to deal with him," Bearss stated. Farmers at the seminar criticized the bank's role in the 1982 interest rate crisis whidr has created such hardship for farmers. They pointed out the banks made unpreced- ented profits during that period, yet they were not willing to take one cent less in interest from'fmancially hard pressed farm- . ers. Bearss commented farmers think the banks made their profits on the backs of farmers, yet if all the money. earned in profits during the time period of 20 per cent plus interest rates had been eliminated,it would have • reduced the overall prime rate by only one per . cent. Bearss also observed that if the difference • between the average interest paid during that period and the lowest interest rate if it had • been in effect for that period, makes the difference between making or breaking your operation, you were. probably running the operation on too tight a basis. The farmers at the seminar objected saying they were expected -to take responsibility for making bad credit decision while the banks, which also made podr credit decisions by " lending too much money to far rners incapable of servicing the debt, were not expected to share the burden. Bearss pointed out that if fanners wanted to change the rules in the middle of the game, when they had good years and made pnofitst the banks could then . . come back and expect' additional interest payments from the fanners, if banks were ...4 expected to lower interest charges or realign the debt when fanners were in a crisis due to high interest. PACER PUMPS Self -priming centrifugal pumps for Agriculture Pacer's Long Life Features: *Close -coupled to 3 or 5 h.p. Briggs & Stratton or 7 h.p. Tecumseh engines • 11/2", 2" or 3" sizes for flows up to 250 GPM *Working pressures up to 45 psi •30% glass -filled polyester construction •Viton and stainless steel shaft seal with EPDMO - rings and check valve *Stainless steel interior, and exterior fasteners *Light weight and portable., Pacer Pump can be used for Purnping *Lasso •Treflan •Atrazine •Liquid Nitrogen Solutions *Phosphoric Acid Solution •Malathion *Bleep •Eradicane •Surflan • Banvel *Dual •Sutan *Sevin 4 011 • Amiben •Basagran •Tolban •Modown •Mocap •N -Serve 24 •Avedex BV •Avedex •Eptame •Vernam - Cliffs Plumbing & Heating �Lucknow 528-3913 .lel ea it® •harvestTime!! l , We have the i``facilities for: � ,�,,, *I ,1 •receiving & y�li / 1yv/sJ. � � t� /drying wheat . •we also buy & rx* :ii, , x �1. dry barley. i, *come in & see our new �s s> facilities & plan ahead Amberle , ��1�hh/� / _ �Grain Elevators (Division of Parrish & Heimbecker) 395-3300 Jct. Hwy. 86 & 21 I4, -,Arad i' LIMITED 1111111811INTV •r - Big Savings! • 17 HP Twin Kohler Cylinder Engine • Patented Foot Pedal Hydrostatic ' ' • Tough Attachments • Shaft Driven Attachments • Hydraulic Lift MARK'S GARAGE Chepstow 366-2634 Halms Quality to Eliminate the Hard Work From Yard Work Farm pressures hereto stay says Royal bank official ... from page 5a , borrowing. The farm financial crisis in the past several years is testimony to this. It eases the effort of obtaining credit if you are employing a . level, of farm financial management, suggested Bearss. Many farmers expecially those over 40 years of age feel beleagured. They have dealt faithfully with the Lrde}ow Co-op, for example, for years and now the • Coop manager Dave Dawson wants to know every- thing about your operation right down to "the colour of your underwear". The kinds of questions asked by; trade creditors aree serious the .more money you • want to borrow, said Bearss. Questions asked to make a credit decision. include the three .Cs of credit: Credibility and `Collateral." Lenders have moved away from using the balance sheet, where equity was important, . to cash flow as the basis for credit decisions, said Bearss r fen ing to the biggest reflection - of change in farm financing in this country. Flom a lender's point of view, you have priorities but your willingness to deal with the guy is the corner stone of the relationship: "No matter what his assets, if you cannot // trust- the guy, you will no want to deal with him," Bearss stated. Farmers at the seminar criticized the bank's role in the 1982 interest rate crisis whidr has created such hardship for farmers. They pointed out the banks made unpreced- ented profits during that period, yet they were not willing to take one cent less in interest from'fmancially hard pressed farm- . ers. Bearss commented farmers think the banks made their profits on the backs of farmers, yet if all the money. earned in profits during the time period of 20 per cent plus interest rates had been eliminated,it would have • reduced the overall prime rate by only one per . cent. Bearss also observed that if the difference • between the average interest paid during that period and the lowest interest rate if it had • been in effect for that period, makes the difference between making or breaking your operation, you were. probably running the operation on too tight a basis. The farmers at the seminar objected saying they were expected -to take responsibility for making bad credit decision while the banks, which also made podr credit decisions by " lending too much money to far rners incapable of servicing the debt, were not expected to share the burden. Bearss pointed out that if fanners wanted to change the rules in the middle of the game, when they had good years and made pnofitst the banks could then . . come back and expect' additional interest payments from the fanners, if banks were ...4 expected to lower interest charges or realign the debt when fanners were in a crisis due to high interest. PACER PUMPS Self -priming centrifugal pumps for Agriculture Pacer's Long Life Features: *Close -coupled to 3 or 5 h.p. Briggs & Stratton or 7 h.p. Tecumseh engines • 11/2", 2" or 3" sizes for flows up to 250 GPM *Working pressures up to 45 psi •30% glass -filled polyester construction •Viton and stainless steel shaft seal with EPDMO - rings and check valve *Stainless steel interior, and exterior fasteners *Light weight and portable., Pacer Pump can be used for Purnping *Lasso •Treflan •Atrazine •Liquid Nitrogen Solutions *Phosphoric Acid Solution •Malathion *Bleep •Eradicane •Surflan • Banvel *Dual •Sutan *Sevin 4 011 • Amiben •Basagran •Tolban •Modown •Mocap •N -Serve 24 •Avedex BV •Avedex •Eptame •Vernam - Cliffs Plumbing & Heating �Lucknow 528-3913