The Rural Voice, 1992-02, Page 33ADVICE
WHEN THE GOING
GETS TOUGH ..
If I am hearing it right, all is not well
on the farm. Pork prices are low, poul-
try and milk quotas are down, grain
prices are pitiful regardless of yield and
off -farm work is almost impossible to
find.
It doesn't look like a positive situ-
ation. So what can we do to make the
best of it? Here are eight rules to help
farmers stay financially solvent
through bad times.
1) Build equity at all cost. The greatest
return you can receive on surplus
money will be from paying down your
mortgage.
2) Reduce cost of production as far as
possible. Try not to lose level of pro-
duction unless it is costing more than it
returns.
3) Consider expansion only after care-
ful budgeting. Remember that your
long-term goal is to increase your net
worth (equity).
4) Be prepared to sell off fixed assets.
This is especially true for farmers with
low equity. Use the money to pay down
principal on your mortgage so your an-
nual interest charges will be reduced.
Each dollar paid down will return about
three dollars in the life of a normal
mortgage.
5) Postpone entry or expansion until
prices are lower. Avoid the temptation
to jump in when profits are high or asset
prices are abnormally high. Remem-
ber, prices are cyclical.
6) Make operating decisions based on
profit. Emotion, pride and income tax
considerations are all secondary to
profits. If an enterprise is unprofitable,
get rid of it.
7) Consider off -farm employment to
assist cash flow or to reduce payments.
There may be times when it is more
profitable to work off the farm and rent
the farm to someone else.
8) If equity is still eroding, be prepared
to scale down or even leave the farm
before all equity is lost.0
W. J. Baxter
Agricultural Representative
Wellington OMAF
CONTINUING EDUCATION COURSES
CO-ORDINATED BY CENTRALIA COLLEGE
AND YOUR COUNTY OMAF OFFICE
BRUCE COUNTY
Commodity Marketing
Cow/Calf Health
Introduction to Farm Computing
Swine Feeding Management
GREY COUNTY
Intermediate Farm Computing
Advanced Lotus
Landscape & Greenhouse Workers
Upgrading
Harvesting Machinery Maintenance
HURON COUNTY
Introduction to Farm Computing
Introduction to dBase
Advanced Farm Welding
Introductory Commodity Marketing
Introductory Commodity Marketing
Intermediate Commodity Marketing
Farm Business Using Computers
Dairy Ration Formulation
PERTH COUNTY
Introduction/Intermediate Lotus 1-2-3
Advanced Lotus
1
Walkerton OMAF Jan. 28, 30, Feb. 4,6/92
10:00 a.m. - 4:00 p.m. $20
Walkerton OMAF Feb. 3 - Mar 9/92
7:30 p.m. - 10:30 p.m.
(6 Mondays) $20
Walkerton OMAF Mar. 2 - 23/92
9:00 a.m. - 4:00 p.m.
(4 Mondays) $25
Walkerton OMAF Feb 6/92
7:30 p.m. - 10:30 p.m. $20
Markdale OMAF Feb. 6 - 27/92
9:00 a.m. - 4:00 p.m.
(4Thursdays) $25
Markdale OMAF Feb. 5 - 26/92-
9:00 a.m. - 4:00 p.m.
(4 Wednesdays)
Meaford
9:00 a.m. - 4:00 p.m.
Meaford
$25
Feb. 26 - Mar. 2/92
$20
Feb. 22, 29, Mar. 7,14/92
Geo. C. South Equipment
9:00 a.m. - 4:00 p.m. $20
Clinton OMAF Feb. 3 - 24/92
9:00 a.m. - 4:00 p.m.
(4 Mondays) $43
Clinton OMAF Feb. 7 - 28/92
9:00 a.m. - 4:00 p.m.
(4 Fridays) $43
Centralia College Feb. 24, Mar. 2 & 9/92
10:00 a.m. - 2:00 p.m. $45
Wingham Feb 10 -Mar. 2/92
9:30 a.m. - 4:00 p.m.
(4 Mondays) $45
Hensall Feb. 5 - 27/92
7:00 p.m. - 10:00 p.m.
(Wednesday & Thursday) $45
Clinton OMAF Mar 11-26/92
7:00 p.m. - 10:00 p.m.
(Wednesday & Thursday) $45
Clinton OMAF Mar. 4 - 25/92
9:00 a.m. - 4:00 p.m.
(4 Wednesdays) $43
Clinton OMAF Mar. 6 - 27/92
(4 Fridays) $43
Stratford OMAF Feb. 4 - 25/92
9:00 a.m. - 4:00 p.m.
(4 Tues.) $43
Stratford OMAF Mar. 5 - 26/92
9:00 a.m.- 4:00 p.m.
(4 Thurs.) $107
Above course fees include GST. Courses are sponsored by Huron County Industrial
Training Advisory Committee, Grey -Bruce Community Industrial Training Advisory
Committee, Perth County Training Committee, and the Ontario Agricultural
Training Institute. Courses are co-ordinated by the local Ontario Ministry of Agriculture
and Food office and Centralia College.
To register or for more Information contact your county Ontario Ministry of
Agriculture and Food office.
HINtll)F.At
COMM., T.
®Ministry of
Agriculture
and Food
ONTARIO
is
Perth Industrial
Training Advisory
Committee
CENTRALIA
COLLEGE
Huron Park, Ontario NOM 1 YO
(519) 228-6691
FEBRUARY 1992 29