The Rural Voice, 1983-02, Page 14FARM NEWS
HURON FEDERATION: SURVIVAL STRATEGIES
Cutting back money used for perso-
nal expenses was one of the strategies
for survival outlined by Dave Gowing,
Farm Credit Corporation, one of the
speakers at the recent Huron Federation
of Agriculture meeting held in Exeter.
Gowing outlined several points an
economic professor from the University
of Manitoba said could be used for
borrowers of money, -- restructure debt,
bring equity capital into the business,
liquidate some assets, reduce business
risk with crop and fire insurance, use
the futures market and pay higher loans
off first.
Speaking for himself, Gowing said
farmers should be open and honest
with all money lenders, plan credit
requirements in advance and have a
plan of attack. Avoid capital expendi-
tures and be more flexible in production
techniques.
"Farmers should take a more busi-
ness like approach," he said, "Better
farmers will find credit more easily
attained if they have records and sub-
stantiation of their production levels."
Bob Morris, Toronto Dominion Bank
agrologist said farmers must remember
every step taken will either cost or
make money. Remember, maximum
profit at minimum costs, he said.
"When you blame your problems on
getting bad advice,"Morris said, "you
have publicly stated you haven't done
your homework."
His survival strategy? Get rid of any
"top" you don't need -- boats, snow-
mobiles, non-farm investments and
peddle surplus farm machinery or farm
land but keep your home base. Reduce
inventory of crops that are for sale;
identify all costs and see where you can
cut back, and lastly, restructure debts.
"You can earn credit with a bank if
you can show a profit with what you
have on a day to day basis," he said.
Paul McCusker, Federal Business De-
velopment Bank said farmers must
adapt to their circumstances.
"A farm is a business," he said, "The
most important tool is in the kitchen."
One federation member quipped "your
wife?" but apparently he meant the
office. He went on to say the next
important tool is the financial state-
ment.
"You shouldn't be doing anything if
you're not making a profit," McClusker
said. "The key to success is cash flow
and you must maximize your farm's
generation of capital."
Bob Morris, Agrologist with the Toronto Dominion Bank was one of the guest
speakers at the Huron Federation monthly meeting.
McClusker said farmers must be able
to deal with change, practise good
management and have up to date
financial information on their farms for
proper forecasting.
"Be ready to act in a situation rather
than react," he said. "If someone else
is pulling the strings, how can you
act."
Failure to prepare a proper cash flow
leads to trouble, he said and you would
have no means to identify future plans
and you would have little foresight.
"You need a tool so you can compare
and to point you in the right direction.
In order to cope with failure you have to
see it coming, "he said," Take advan-
tage of seminars,prepare a cash flow
and take control."
Sheila Gunby
Rural Learning re-established
New energies flowing into the Rural
Learning Association (RLA) have empha-
sized the importance of maintaining an
adult education organization in rural
Ontario.
Originally disbanded in 1981, the
Association resurfaced at a recent annual
meeting where it was felt a new direction
should be established.
The new Board of Directors are
following up two projects -- community
health clinics and a series of workshops
on community development, to begin in
the spring. They are immobilizing re-
sources and gathering funds for the
projects.
Other members of the association
agreed to work on a number of projects --
women and rural health, health and
PG. 14 THE RURAL VOICE, FEBRUARY 1983
safety in farm work, leadership develop-
ment, organic farming, native/non-native
dialogue, alternative family recreation,
youth and international development,
and land use.
Membership fees for the Rural Lear-
ning Association are $10.. For more
information, contact: David Smith, Rural
Learning Association, Box 136, Barrie,
Ont. L4M 4S9
"Money is always there, but the
pockets change."
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