The Rural Voice, 1981-05, Page 17A concerned crowd of Grey -Bruce farmers attended the emergency meeting in Chesley.
Fight equity loss
550 pack Bruce OFA's Chesley meeting
by Gisele Ireland
March 31, the farmers in the Grey -
Bruce area literally packed the Chesley
Community Centre. They were there, all
550 of them, to listen to proposals from
the Ontario Federation of Agriculture
regarding the severe financial straits
many farmers are facing.
This meeting was called by the Bruce
County Federation of Agriculture due to
the many financial problems over the past
months. OFA sent the three Presidents,
Ralph garrie, Ron White and Ron Jones
to the county for a day of farm tours.
Mary Wicks of the executive also
accompanied them. All of them managed
to make five to six calls throughout the
county during the day. prior to the
meeting that night.
The situations that unfolded were not
new; the same ones were faced last year,
but the numbers were a surprise. Not
only are younger farmers who have
started recently in trouble, but also
farmers who have been in the business
for 20-25 years. They are now facing a
situation where they are losing equity
year after year.
Agribusinesses were also visited,
where accounts receivable have tripled or
quadrupled over the past year. Farmers
are facing the new cropping season with
major portions of last year's bills hanging
over them. The agribusiness trade is
getting to the position where they can't
afford to carry farmers without financial
ruin themselves.
A number of the farmers visited had
sold portions of equipment and livestock
in a desperate attempt to hold onto the
land. Some had given up all, and were in
the process of selling their life's work.
Not all these of course are bankruptcies;
An attempt to help
Suspension of Farm Foreclosures. This
would require a committee to be set up to
deal with the lending institutions on the
farmers behalf and determining whether
such a step was necessary.
Re Financing Program. A board that
would operate on a provincial level and
help farmers to negotiate terms to keep
operating.
Interest Relief.
Graduated Interest Subside. These two
a number are farmers selling when they
see there is still some equity to get out
with left. A lot of the cases are those
where the equity is all they have for a
lifetime career in agriculture.
Many farmers have taken off -farm
employment. Several had wives working
as nurses on the night shift to make ends
meet. Ralph Barrie, president of the
Ontario Federation of Agriculture (OFA)
said that problem is not as acute all over
Ontario, just in certain areas. The
Grey -Bruce area, heavy in hogs and beef,
seems to be one of these.
The proposals the OFA outlined that
night were of a general nature, and none
offered immediate relief for the many
who needed it. Various responses were
fielded, and everyone there felt the
weight of responsibility of getting these
propositions implemented.
The Chesley meeting's proposals
proposals could be grouped as one as
they would give the individual farmer a
limit of 5150,000 and a company or
corporation a limit of $500,000.
The graduated subsidy would give
100% refund of interest over 12% to any
farmer with less than 50% equity.
The subsidy would be negotiated to
those farmers over 50% equity on a
graduated basis.
Long Term Financing. This included
the Farm Credit Corporation. More
money should be made available to them
and a review for their lending criteria
examined. The Junior Farmer Loan
should be reinstated and the Small
Business Development Loans should be
broadened for farmer's use.
Stabifzatlon. If stabilization were im-
plemented, it should be current and meet
the financial needs of the farmer when
the loss is the greatest. This assumes that
payments should be made every four
months instead of once a year.
THE RURAL VOICE/MAY 1981 PG. 15