The Rural Voice, 1990-11, Page 66BRUCE
446 10th St., Hanover, Ontario N4N 1P9
519-364-3050
• The Rural Voice is provided to Bruce
County farmers by the BCFA.
County Federation of Agriculture NEWSLETTER
OPINION:
ANOTHER RING
THROUGH THE NOSE?
The "machinery ring" concept has
been recently introduced to Ontario by
Canadian Agra. The idea is imported
from parts of Europe and has been espe-
cially "successful" in Japan, where ap-
proximately 400,000 farm families are
members. The machinery ring is pro-
posed as "an agricultural non-profit or-
ganization providing farm machinery
match -making services for its mem-
bers."
Sound like a good idea? Could you
sometimes use such a service? Many
farmers could. But beware! There's
more to it than meets the eye. Let's
consider the darker side of perhaps a
feasible project.
Many family farmers in Ontario
have created innumerable machinery -
sharing and work -trading arrangements
among their neighbours. Thesearrange-
ments depend on the willingness and
ability of both parties to co-operate.
There is great strength in a locally -based
share -agreement built on non -economic
factors such as mutual trust, friendship,
and local identity. These kinds of ar-
rangements speak well of rural On-
tario's ability to work together, with the
resources and needs at hand, for mutual
benefit, in other words, a common good.
The machinery ring, as proposed,
attempts to replace this successful, long-
standing system with a pure business
model designed and regulated by only
economic criteria. This proposal con-
flicts directly with the goal to preserve
the family farm and the cultural heritage
dependent on it.
If one could project a little into the
future, it seems apparent that the great-
est economic benefit would come to the
growers of larger individual crop acre-
ages (demanders). Their continued use
of the machinery ring would promote
the growth of larger, professional cus-
tom operators (suppliers), willing to
travel further to capture a large acreage
contract. These "contractors" will tend
to overlook the smaller acreages more
apt to be grown by diversified family
farmers. The lower rate charged by
these custom contractors will cause the
smaller machinery owner to lower his
prices to compete and soon will be un-
able to replace his worn-out machine
because of the lower margins. In the
short term, better custom rates, but in the
long-term matching of these larger busi-
nesses will again add pressure to the
already struggling small family farms.
Some of the more visible costs of this
proposal would include: membership
fees ($200), annual fees ($100), transac-
tion levies (4 per cent) and liability in-
surance for all members. Suppliers
would also be responsible for greater
travel costs as well as an advanced
communications system with head of-
fice. Can farmers really afford all these
"extra" charges to get the job done? Add
to this list the collection and reclamation
of GST.
Bruce County Federation Of Agriculture
AWARD of MERIT
for contributions to agriculture
I nominate:
Reason:
Send to the Bruce County Federation of Agriculture, 446 1 oth St.,
Hanover, Ontario N4N 1P9 1
62 THE RURAL VOICE
Another large and unnecessary cost
borne by members will be the set-up and
maintenance of a computerized data-
base. There is no doubt how much
power and influence can eventually be
wielded by those who have access to
such an extensive data -base.
Machinery ring members must have
a current account at a bank together with
authorization for the machinery ring
manager to debit and credit this account
as he finds necessary. Flow many farm-
ers are willing to give control of their
bank account to another agency? At
present, flexibility best describes the
payment schedule between farmers.
Payments tend to be made when cash
flow permits, not necessarily when the
job is complete. Each family has their
own set of circumstances and should
find a friend or neighbour much more
flexible than a machinery ring.
Do we really need another large
business to control more of our farm
economy? It would seem logical that
less dependence on large agribusinesses
would improve farm stability and eco-
nomic viability. A short-term opportu-
nity may prove to be a long-term liabil-
ity.
Perhaps it is time for the farm com-
munity to recognize the necessity for co-
operation between farmers and encour-
age each other to work towards the full-
est use of farm machinery on an infor-
mal basis. Remember, farm unity,
strength and co-operation begin at
home!O
NOTE: Each month this page will con-
tain an opinion on a current farm is-
sue. We would like to know what YOU
think. If your opinion differs from the
one you have read here, or if you sup-
port our view, call the office at 364-
3050.
Bruce County Federation
49th Annual Meeting & Banquet
Friday, October 9,1990
Chesley Community Centre, Chesley
Social Hour: 6 p.m. Dinner: 7 p.m.
Guest Speaker:
Elmer Buchanan, MPP
Ontario Minister of Agriculture
Tickets: $25/couple, available from
township directors or the federation office.