The Lucknow Sentinel, 1987-03-18, Page 34Page 14
Numerous financial programs available in area
by Don Pullen, P.Ag.,
Agricultural Representative,
OMAF, Clinton, Jan.'87
Various provincial and federal govern-
ment programs are available for Huron
and Bruce County farmers. For more
detailed information, as well as Changes as
they may occur, contact the local office of
the Ontario Ministry of Agriculture and
Food in Clinton (482-3428 or 1-800-265-5170)
or in Walkerton (881-3301 or 1-800-265-3023) .
Financial Assistance
Programs
A. Operating Credit
There has been an evolution of operating
guarantee programs. While clients may be
enrolled in any one of the three, CUR-
RENT. APPLICANTS CAN ONLY ENROL
IN THE THIRD.
1. Ontario Farm Adjustment Assistance
Programs (OFAAP) - The Ontario Farm
Adjustment Assistance Program was in-
troduced in 1982 and was reintroduced in
1983 and 1984. It is now in a three-year wind
down operation for those already on the
program in previous years with a renewal
of existing operating loan guarantees on
an annual basis for up to three years en-
ding in 1987.
2. Ontario Operating Credit Assistance
Program (FOCAP) - The Farm Operating
Credit Assistance Program followed
OFAAP in 1985. A two-part program it pro-
vided interest assistance on floating rate
loans and operating loan guarantees. With
the reintroduction and enhancement of
OFFIRR, FOCAP is also being wound
down with no new applications accepted
after August 31, 1986.
3. Ontario Operating Loan Guarantee
Program (OLGP) - The Operating Loan
Guarantee Program succeeds the
guarantee portion of FOCAP. It is effec-
tive September 1, 1986 to August 31, 1987.
Interest rate is prime plus 1 percent.
Eligibility criteria include: equity of 10
percent to 60 percent; minimum $12,000
agricultural production. A broad range of
agricultural production including flowers
and fur farmers are eligible. Application
forms and procedures are similar to
FOCAP.
B. Interest Rebate
1. Ontario Family Farm Interest Rate
Reduction Program (OFFIRR Plus) - The
Ontario Family Farm Interest Rate
Reduction Program has been reintroduced
and enhanced.
- application must be filed before May
18, 1987
- the program provides interest rebates
of up to 7 percentage points to $360,000 of
existing debt as of September 1, 1986, down
to 8 percent interest. In 1987, 70 percent of
the benefit will be available; and in 1988, 40
percent will be provided.
- the eligibility criteria include: equity
between 10 percent and 75 percent; family
net worth under $1,110,000.
- the eligible debt is reduced by $1 for
every $1 by which net worth exceeds
$750,000 (up from $500,000) .
- maximum eligible debt is no longer
reduced by $1 by ever $1 which is covered
under the Beginning Farmer Assistance
Program (BFAP) . The OFFIRR
assistance is calculated on the basis of the
"net of BFAP rebate" rate of interest on
debt. The reduction for Junior Farmer
Loan is $2 for $1 of loan. The rebate is
reduced at the rate of 30 cents for each $1
of off -farm income earned over. $30,000.
- "operating" debt may be verified at
either the first of the month, the end of the
month, or the 15th of the month.
- documentation includes personal
and/or corporate tax returns, net worth,
accrual income statement, cash flow plan,
production plan and verification from
lenders.
LUCKNOW
DISTRICT CO-OP
YOUR
1957 CROP HEADQUARTERS
See us for all your crop needs:
• FERTILIZER
* SEED
• CHEMICALS
ALSO CUSTOM APPLICATION OF FERTILIZER AND CHEMICALS
Everyone Welcome To Shop Co-op
1
Adverse Weather Assistance Compo-
nent to OFFIRR
- designed for 1986 crop only. Provides
special assistance to farmers who suffered
crop losses in excess of 30 percent because
of adverse weather in 1986 and who are
eligible for assistance under OFFIRR.
- eligible OFFIRR loans m an amount
equal to the value of the crop loss in excess
of 30 percent (on a crop -by -crop basis) of
the county average yield can be brought
down to 0 percent interest instead of the
usual 8 percent.
2. Ontario Beginning Farmer
Assistance Program (BFAP) - The . pro-
gram has been in place for three years. It
provides up to 5 percentage points reduc-
tion on interest, down to 8 percent, on mor-
tgages of up to $350,000 loaned by approved
lenders. The mortgage interest rate must
be fixed for at least five years. To be eligi-
ble, the beginning farmer cannot previous-
ly have operated a viable farm business.
The 1986 Ontario spring budget proposed to
enhance the program. Ideas under discus-
sion include increasing eligibility criteria
and providing a phase-out period.
C. Transitional Programs
1. Ontario's Farmers in Transition Pro-
gram (FIT) - . the re-establishment
assistance component has been phased out
as. the federal Canadian Rural Transition
Program was phased in early in the fall of
1986. The other parts of FIT will remain to
complement the federal program:
(a) Helpline 1-800-265-1511 - a toll-free
line for a listening ear. Staff try to match
up callers experiencing financial and/or
emotional stress with agricultural ad-
visors and/or social agencies.
(b) Independent Farm Family Advisors
- Peer counsellors are provided to help
farmers plan for change, Farm families
can access advisors through OMAF of-
fices, the Helpline, and farm lenders.
2. Canadian Rural Transition Program
(CRPT) - this retraining and adjustment
program . is designed to help people who,
for financial reasons, must cease farming
and find new employment.
- A transitional grant of $1600.00 is
available to farmers and their families
between the time they stop farming and
the time they start a new job or training.
Turn to page 21 •
BASF lowers
•
prices
• from page 3
Loose said. "Just as he is having to lower
his costs to stay in farming, we at BASF.
have been searching for ways to lower
ours. The price cut is a direct result of
more efficient manufacturing for
Basagran.'
Loose expects the lower price to in-
crease Basagran usage as a primary her-
bicide, as well as a follow-up treatment to
control weeds that escape preemergence
herbicide applications. In addition, he
feels Basagran will be more widely used
on white beans and certain vegetable
crops like snap beans.
"Our action will strengthen our fran-
chise among satisfied customers while ad-
ding new users," Loose said. He predicts
the new Basagran price willaccelerate the
trend toward more widespread adoption of
conservation tillage systems that lower
machinery, fuel and labor costs, control
erosion and save topsoil.
,BASF Canada Inc. is headquartered in
Rexdale, Ontario. In addition to Basgran,
it markets a wide variety of crop protec-
tion products, including Poast, a
postemergence grass herbicide for soy-
beans, potatoes, canola, flax, dry beans,
dry peas and certain vegetables