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The Rural Voice, 1991-03, Page 15FARM RULES CHANGING AS BRAINS BEAT OUT BRAWN Robert Mercer is editor of the Broadwater Market Letter, a weekly commodity and policy advisory letter from Goodwood, Ontario LOC IAO. Farming has always been seen as a system where the harder you worked, the more productive were your rewards. As many have experienced, that is not so true today as it was in the previous generation. Our fathers taught us to work hard. The farm was where muscle work paid off better than mind work. As we speed towards the 21st century and the technology of the information age, that basic rule which served our parents well will not do in today's global village. We must sub- stitute knowledge for muscle. Knowl- edge can become an added value to a basic commodity. Take corn, for example. Any farmer anywhere on the globe can grow corn where climate and soil conditions are right. Eastern Europe has the potential to lift its agriculture out of the mire of misuse into massive export potential. Labour costs, energy costs, input costs, and transportation costs would all likely be lower to get that basic commodity grown and marketed. That would be basic commodity at basic prices, and be in direct competition to any exported Ontario corn. In the evolving marketplace mo- ving with accelerating speed towards the 21st century, your marketplace will have to be one that returns you more than the world prices, and don't look for increased government supports because they just are not in the long term cards. (GRIP and NISA are minimum standards, not those that should be tolerated by progressive leaders who shoot for the best returns on capital, labour, and management.) Your corn could be specially bred by your hybrid supplier to suit the feeding needs of hogs. The amino acid levels, the carbohydrate levels, and the kernel thickness, might all be selectively bred for end market specifications. You, as the grower, would guarantee your corn to the hog producer as meeting certain product performance goals. It would be tested, cleaned, and delivered similar to the way manufacturing trade uses the "just -in -time" schedules. For all this, there would be a premium on your corn. Premiums, added value, niche marketing — they're all very much the same thing and they are all based on adding information value to a product. Thus mind over muscle. One of the side benefits of being able to obtain a higher price is that knowledge or information becomes a more intricate part of the marketing process and because it generates income, it reduces the need for capital per unit of output. Human capital replaces dollar capital. It is very difficult to change concepts and then even more difficult to change practices, but agriculture is changing to the extent that the sur- vivors will be practicing production and marketing techniques very different to those of our forefathers. Each farm will have its own set of circumstances which will dictate how it can move forward or be better than average. If you are in the business of farming, and not running a hobby farm, then the business environment is changing. Now is the time to start thinking about those long term goals and how to achieve them. By the year 2000, it may be too late.0 THE WRITE STUFF? Wanted: People with an agricultural orientation who can write features or cover news stories, or send in reports of local meetings or community activities. Write: The Rural Voice 10A The Square. Box 37 Goderich. Ontario N7A 3Y5 AGRICULTURAL EMPLOYMENT SERVICES Provide employment planning assistance to the agricultural industry Recruit workers for agricultural employment Assist worker orientation and transportation Promote good employment standards Provide information about government employment programs OWEN SOUND WALKERTON 371-9522 881-3671 Canaa PatzGard liner For mangers, teed bunks, conveyors, slides, gutters and more. • Nonporous and super slick for easy cleaning. • Will not rust, rot or corrode. • Avoids rebuilding worn mangers and gutters. • Avoids sour odors and feed waste. • Feed savings could total $30 per cow each year. • Cows eat better off PatzGard for higher production. • Reduces fly fending and breeding in mangers. • Slick surface reduces power requirements for gutter cleaners and conveyors. SOUTH HURON AGRI-SYSTEMS R.R. 3, Zurich, Ontario 519-236-7424 2 miles south of Zurich on Goshen Patz MARCH 1991 9