The Rural Voice, 1986-04, Page 73McDermid Farms Ltd.
Purebred & Crossbred
Landrace, Duroc,
Yorkshire & Chester White
Boars & Gilts
Ontario Swine Herd
Health Program
Class Excellent * * *
Gor't ROP Tested
R.R. 4, Stayner
705-428-2353
We sell herd builders
dp
DON POULTON
REAL ESTATE
KINCARDINE
Due to renewed interest
from Europe we need cash
crop and livestock farms —
small and large acreages
Kincardine Twp:
249 ac, just north of town, 3
parcels, house. 2 barns
250 ac, large feedlot — slat-
ted floor
Ashfield Twp:
183 ac excellent drained
cash crop farm, 1 storey
home, drive shed and grain
storage — Vender says,
"sell"
80 ac, no buildings, good
drainage
Colborne Twp:
147 ac, newer home on pav-
ed road close to town, good
cropland
WERNER RITGEN
Sales Representative
Residence 519-529-7783
Business 519-396-8444
72 THE RURAL VOICE
COUNTRY CAMERA
This mailbox is situated in Normanby Township, Grey County. Photo by
Mary -Lou Weiser — Hamilton, Grey County. Country Camera will feature
good photographs taken of the `farm scene." Submissions must be clear,
pertain to farming and must be submitted with a stamped self-addressed
envelope to return material. Photos accepted will receive $5 and a credi'
line. Mail to Country Camera, The Rural Voice, Box 37, I0A The Square,
Goderich, Ontario, N7A 3Y5.
FARM ADVICE
How much is milk quota really worth?
Milk quota prices being as high
as they are these days, there are
some dairymen who are seriously
considering the idea of "cashing
in."
Consider the dairyman who sold
his 500 litres of Group 1 quota and
150,000 litres of MSQ on the
January exchange. We'll say his
MSQ was 50 per cent used at time
of sale.
On the surface it looks like he
got a quarter of a million dollars...
500 L Group quota
@ $276. = $138,000
75,000 L used MSQ
@ 58.8° = 44,100
75,000 L unused MSQ
@ 90.5` = 67,900
total quota sale $250,000
But it doesn't work quite that
way —
When quota is sold on the
monthly exchange, or sold to a
stranger as part of a complete farm
sale, the board deducts 1507o. In his
example, the $250,000 drops to
$212,500 ($117,300 for Group 1,
$95,200 for MSQ).
Then we have to look at how
long he's had the quota, how much
he's purchased over the years, and
how much undepreciated quota
value is still on his books at sale
day. Because these things have a
bearing on what amounts will be
included in taxable income.
This farmer was shipping milk
before Valuation Day, December
31, 1971. He had $17,300 Group 1
quota and $5,200 MSQ on valua-
tion day. At that time, Group 1
quota was $19.81/1b. MSQ was
41`/lb.
He bought both Group 1 and
MSQ from time to time since
valuation day. He depreciated 'h
the cost of each purchase at the
rate of 10 per cern each year on the
declining balance ... ending up
with $10,000 undepreciated Group
1 and $5,000 undepreciated MSQ
when he sold out.
Formula for figuring income in-
clusion: (quota value to add to
year's income) = '/ (sale price —