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The Rural Voice, 1986-04, Page 13with seven others including present well-knowns, Gordon Hill of Huron County and John Phillips, editor of Farm and Country. It brought together Union and Federation leaders. It drew on the expertise of many industry leaders and engaged the professional services of Hedlin, Menzies and Associates, management consultants, and of Dr. Roger Schwass, project director. The committee's report was detailed and extensive and dealt with almost every aspect of agriculture. It recom- mended one general farm organization to replace the various voices speaking for farmers at that time. It came down firmly on the side of marketplace solu- tions as far as farm income was con- cerned. I quote directly from the report, under its heading General Marketing: "The Committee is convinced that an organized method of production planning in agriculture on a con- tinuous basis is absolutely essential and unavoidable. It is a logical develop- ment in the steady commercialization of agriculture. It is also basic to a realistic market orientation by farmers. We wish to make abundantly clear what the real issues and choices of sup- ply management are. In most sectors of the economy, managed production is the normal practice. Production is geared to market requirements at pre- determined prices, to ensure a desired return to resources. Wages in most in- dustries are established through negotiations with labour unions. Management makes the decision to in- crease or decrease employment and production to suit its objectives. Socie- ty has been prepared to accept whatever costs are associated with this practice of supply management. Agriculture has been the only large sector of the economy without real production management. The real question with respect to supply management in agriculture is not whether it is needed or feasible. Supply management will be a fact of life. The question to be decided is: Who will do the management?" This last sentence should be pondered carefully. Then came the prosperous seventies. It is said that adversity is good for the soul. In any case I believe that there is little doubt that the prosperity of the seventies played a large part in slowing the development of strong, effective Cameron MacAuley, Ripley, Ontario, is a former president of the Bruce County Federation of Agriculture. marketing organizations, which seem- ed imminent in the late sixties. Established farmers saw their equity increase each year and prices returned a healthy cash flow. Under these cir- cumstances, the prosperity toward rug- ged individualism overcame that toward co-operation in far too many cases. True, egg producers and turkey growers got their act together, but the red meat giants went into hibernation. They truly believed that we had arrived in the promised land and all that we had to do was produce and produce. Farmers were not the only ones who misread the future. When 1 hear wiseacres decrying farmers for expand- ing their operation in the seventies with unfortunate results, I am remind- ed that OMAF, banks, OAC, and FCC were all likewise amiss in their judge- ment. The difference is that farmers were more likely to pay the economic price for these judgements than were the spokesmen for the institutions. As the seventies drew to a close, so also ended prosperity for those sectors without good marketing systems. The beef industry was already in depression and the pork industry was about to follow, with only one year of pro- fitability (1982) in the eighties. The average market price of pork in 1985 will be not much above the average price of ten years ago. In the same time -frame, milk prices to producers have almost doubled. The tragedy is that when the economic crunch came, our leaders disregarded the lessons painfully learn- ed by past experience. Instead of forth- rightly latching on to a marketing strategy and thereby stemming the tide of depression, they did an intellectual somersault. They went from being rug- ged free enterprises, with nothing but disdain for government involvement, to the other extreme of putting their highest priority on government sub- sidies. Government subsidies are justified, especially to bridge temporary situa- tions until permanent marketplace solutions are put in place. However, subsidies pose problems. The record clearly shows that governments at any level have no intention of allocating the many hundred of millions of dollars that would be needed to solve farm problems through subsidies. Also, past experience has shown that government -subsidized floor prices have a propensity, after a few years, to become ceiling prices because they lead to continued overproduction. On the other hand, either the free market or supply management, each in its own way, would restrict overproduction. The most hopeful trend of the past year is that more farmers are saying APRIL 1986 11