The Rural Voice, 1987-10, Page 80BRUCE COUNTY Federation of Agriculture NEWSLETTER
446 10th St., Hanover, Ontario N4N 1P9
THE FCC: IS THERE A FUTURE?
The Bruce federation board passed
the following resolution at the July
board meeting: "Whereas many farm-
ers in Ontario are finding themselves
forced to deal with the Farm Credit
Corporation, now that the moratorium is
over, and whereas many of the people
negotiating on behalf of farmers are
finding the FCC totally inflexible to deal
with, and whereas many people refi-
nancing are finding it impossible to
meet their lending criteria, therefore be
it resolved that the OFA sponsor a mass
meeting of all farmers involved with the
FCC to discuss possible ways of dealing
with the FCC's lending criteria."
The county directors took the reso-
lution to the August OFA board meeting
where it passed in principle unani-
mously. As a result, the BCFA, along
with the OFA, sponsored a meeting on
September 16 in Hanover to deal with
concerns regarding FCC policy. Ap-
proximately 140 farmers were on hand
to discuss what they felt were some of
the major deficiencies in the operation
of the FCC.
Several farmers detailed the frustra-
tions they have experienced while try-
ing to negotiate with the FCC. None of
their stories was pleasant and they
would cause one to wonder what ration-
ale is used in some of the decisions that
come out of the various offices. It would
appear that some people are designated
to be evicted regardless of the cost to the
FCC or the kind of offer they can make
in order to salvage the operation.
It is within the mandate of the FCC,
although not present policy, to write
down both principal and interest, which
is what they ultimately do if they fore-
close on someone in arrears and sell to
another buyer. Unfortunately, they ref-
use write-downs even if it would be
more financially responsible.
It has recently been stated that the
FCC has about 11,500 loans in trouble
and 44 per cent of its business is in
Ontario. It has also been a lender of last
78 THE RURAL VOICE
resort for a number of years now instead
of a primary source of financing for
agriculture, and it will likely remain last
on the list with its most recent hike in
interest rates to 12 per cent. It is ac-
knowledged that a high percentage of
the loans made in the late '70s and early
'80s went to pay off bank loans and now
the FCC is caught. It is speculated that
it could require one billion dollars to put
the FCC back on its feet. There isn't
much sign of enthusiasm or co-oper-
ation coming from our federal govern-
ment.
Ontario farmers have another di-
lemma. Most of the other provinces
have a long-term low interest policy
which takes the pressure off the FCC's
high rate. Here in Ontario, we go from
year to year wondering what, if any,
assistance will be available.
After hearing some of the horror
stories experienced in dealing with the
FCC, the meeting did pick out some key
points for Brigid, Jack, and other execu-
tive members there to present to the next
OFA board meeting and then take to
Ottawa to lobby for the action. They
were as follows:
519-364-3050
1. The FCC should revalue the land
on its books to present true resale value
and allow the current farmer to carry on
if feasible.
2. Lower interest rates to a maxi-
mum of eight per cent or one-half of
prime if less.
3. There should be intermediate-
term loans available for buildings and
machinery and long-term loans for land
only.
4. Make short-term credit available
for those refinancing because usually
the farmer is cut off by his banking
institution.
5. The length of term for a fixed-rate
mortgage at present is not satisfactory.
We look forward to some action
being taken on the points shortly and
even more to some positive results.
A summary comment was made that
there has to be a profit put back in
agriculture before anyone can pay any-
thing. This may require a cost of pro-
duction formula.0
Grant Collins
Bruce County Federation of Agriculture
AWARD OF MERIT
for contributions to agriculture
I
nominate*
Reasons:
Send to the Bruce County Federation of Agriculture, 446 10th St.,
Hanover, Ont. N4N 1 P9