The Rural Voice, 1983-02, Page 20OFAAP PROGRAM
EXTENDED
The Ontario Farm Adjustment Assis-
tance Program will be extended for
1983.
The eligibility criteria remain the
same as in 1982. A producer must: have
equity in the farm business of between
10 and 60 per cent, be paying interest
and principal on money borrowed for
farming purposes in excess of 20 per
cent of farm operating costs and have
produced $12,000 worth of food or
tobacco products on the farm in the 12
months preceding the application.
The type of assistance being offered
can be one of three options, either
singly or in combination. The first
option, Option A, is a deferral of
interest by the lender for a period of six
months, by a provincial guarantee.
During this period the lender would not
compound the interest.
This option is designed to cover
short-term problems where sufficient
income is expected at the end of the six
month period, when, for example, live-
stock would be ready for market or a
crop would be sold.
The second option, Option 8, takes
the form of interest reduction grants of
floating-rate and short-term fixed-rate
loans for operating purposes only for
up to 12 months. The maximum interest
reduction would be five percentage
points, bringing down the interest rate
to as low as 12 per cent.
The maximum amount of loans on
which grants can be paid is the
applicant's maximum authorized line of
FARM NEWS
credit during 1982. Option B is suitable
for situations where a reduction of
interest rates would improve cash flow
and enhance the viability of the farm
operation.
Option C involves a guarantee by the
province of a new line of credit for
operating purposes only for up to 12
months. This new credit would be
provided by the lender at the prime rate.
This option would fit those cases where
producers need additional credit to put
in a crop or buy calves or feed.
Producers who meet the eligibility
criteria should see their lender or their
agricultural representative for more de-
tails.
More than 3,000 farmers received
assistance under the Ontario Farm
Adjustment Assistance Program in
1982.
NEW SEED
CLEANING PLANT
A. Mac Armstrong, a well known
Bruce County farmer, has opened a new
seed cleaning and treatment plant at his
farm on the 2nd of Culross.
"We mainly decided to do this as a
service to the community," Armstrong
says, "because there is no similar
service in our immediate area. Farmers
were having to take their grain a fair
distance to get it cleaned and treated."
Armstrong has hired one full time
employee and uses part time help when
required. He is offering a complete
service to local farmers --- cleaning,
treating and bagging.
Armstrong is also a pedigreed seed
grower and has available top quality
grain seed for the local market.
4-H MEMBER
WINS CONTEST
4-H members from across Ontario
were invited to design the 1982
Christmas card for the Ontario
Ministry of Agriculture and Food.
Joanne Weber. R.R. 4 Mount For-
est shown here with agriculture
minister. Dennis Timbrell, placed
first in the contest. [photo, cour-
tesy OMAFJ
Bu'I°tom■NEON
°°'"!I•PAiir•
Farmers Are Facing Hard Times!!
Land Prices - Down! Building Costs • Through The Roof!
Equipment Costs - Up! Conservative Bank Policies
Expansion or Growth - Out of the Question,
Right?
ons
■■■■■OSA■
EGWpm.
c°•t•nt
P l."..
MON
Yes, Yes, for many farmers expansion right now is totally out of the question. But - if the same
PIM.
■.■
senses that helped through these troubled times are also telling there are
■■■■■■■■■
good you you
real bargains around -
Read On
ill
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Could you make GOOD use of FIXED RATE financing at an interest rate as low as 13/14%?
'`���2
��
- Buy that New Tractor! New Barn Equipment! New Silo! or even build a New Barn!
I
RI
If so - give us a call
Con..rv.tiv.
Bonk Penelope■��������
111111111.111.11....
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- NOW -
271-5650 Collect- Ask for John McGlone
FEDERAL BUSINESS DEVELOPMENT BANK
WE'LL BE GLAD TO HELP - ANY WAY WE CAN
■�������■
Interest rates subject to change without notice
PG. 20 THE RURAL VOICE, FEBRUARY 1983