The Rural Voice, 1980-03, Page 23Farm
exports triple
George Arnold, the Royal Bank's
manager of agricultural services for
Ontario, recently predicted that value of
this country's agricultural exports will
triple by 1990.
Mr. Arnold told members of the Oxford
Soil and Crop Improvement Association
that feed grains -particularly corn, oil
seeds, soybeans, and wheat -will head the
list of increased exports needed to meet the
world's growing population.
The manager said large exports of
agricultural commodities will probably
send retail food prices soaring which could
prompt consumers to lobby to keep food
products at home.
Mr. Arnold predicted the current
squeeze on farm incomes will ease by the
mid -1980's as the world demand for farm
commodities expands faster than the
supply.
"In the last half of the next decade, farm
commodity prices will unquestionably out-
distance inflation. New farm incomes will
push to new record highs. . ." he said.
Mr. Arnold did sound a note of warning
and said farmer may have a tough time
increasing production to meet demand. He
said since most of our farmland is already
under production, the technological break
throughs will be the only way to increase
yields. Since Canadians haven't been
spending as much on agricultural research,
Mr. Arnold predicted the chances of this
happening are limited.
He said rising fuel costs and problems
with water supply may also force some
farmers to change their techniques.
N.F.U.
End of boards?
Allowing farm marketing quotas to be
traded on an open market concept, for the
highest dollar, will soon spell the end for
farm marketing boards in Ontario as we
now know them, says Fred Kabbes.
(Ka-bess) a director of the National
Farmers Union, and chairman of the dairy
committee.
He said he agrees with Gilles Choquette,
Chairman of the Canadian Dairy Comm.,
who is reported as saying the high cost of
quota will become incompatible with
ensuring fair prices to consumers if it is
included in the cost of production. "The
Dost of quota is a cost of production, and
where you mark it in the ledger does not
'matter." Mr. Kabbes said.
The Arthur, Ontario, area dairy farmer
said a growing number of farmers are very
Rural News in Brief
concerned about general public reaction to
farmers making wind -fall profits from the
sale of marketing quotas which cost
nothing originally, contribute no value to
the commodity nor service to consumers.
He said he also shares Mr. Choquette's
concern for many family farms who will be
forced out because they cannot afford to
buy quota at prices the larger operations
are able to finance.
Mr. Kabbes said the NFU policy on
marketing quotas. for all commodities, is
that there should be no value on them and
that all quota should remain the property of
the respective marketing board. When a
producer wishes to retire or quit producing
the quota would revert to the board for
reallocation to new producers and smaller
producers wishing to expand. He said the
present objective of the Ontario Milk
Marketing Board to begin a 'quota
exchange' scheme will result in "consider-
able increase in the value of quota and
fewer producers."
The NFU favours the principle of
marketing quotas, "they are very neces-
sary for orderly marketing but were never
conceived as a method of executing
producers but rather as a means of sharing
a specific market among farmers."
Mr. Kabbes said the Ontario Govern-
ment should step in and halt the new
OMMB quota exchange, scheduled to
begin March 1st, and the negotiable quota
system of the Ontario Egg Marketing
Board.
"Quotas values should be deflated, not
inflated, and realistic maximum limits be
set for any individual producer," he said.
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THE RURAL VOICE/MARCH 1980 PG. 21