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The Rural Voice, 1988-05, Page 80BRUCE 446 10th St., Hanover, Ontario N4N 1P9 519-364-3050 • The Rural Voice is provided to Bruce County federation members by the BCFA. County Federation of Agriculture NEWSLETTER FEDERATION EVENTS AND ISSUES In spite of the good weather, both Grey and Bruce directors were able to meet prospective members and promote OFMA products at the Chesley Agri - Fair held April 12 and 13. A fire extinguisher was given away as a door prize by the BCFA. Thanks are ex- tended to Byron Monk, who organized the booth. The Bruce Federation of Agriculture set up a meeting for concerned farmers with the Niagara Escarpment Commis- sion (NEC) in Ferndale on March 23. Present were representatives from Parks Canada, the Ministry of Natural Re- sources, and the NEC. It was suggested at this meeting that the BCFA act as a watchdog in future. It was reported by Gary Fischer that the Ontario Milk Marketing Board in our region has voted in favour of full membership of the OMMB in the OFA. The BCFA thanks local dairy producers for their support. Grant Collins, Ron Garland, C. Lynn Fielder, and Roy Pennington made a lobby trip to Ottawa. They met with Murray Cardiff, Agriculture Can- ada, and the new manager of the Farm Credit Corporation, Jim Hewitt. Both Jim and Brian Strong were open- minded and receptive to suggestions for revamping the FCC. During a produc- tive session with Agriculture Canada, the Debt Review Board, Special Grains Program, Crop Insurance, and Stabili- zation were discussed. A resolution was passed unani- mously by the BCFA board to encour- age the OFA to pressure the federal government not to allow the proposed change to the Bank Act which would allow chartered banks into the insurance underwriting business. A mailing list was completed for The Rural Voice. A copy of the maga- zine should soon be received in every farm household in Bruce County.0 Gerald Poechman OPINION: AGRICULTURE AND THE BANKS The recent move by Canada's char- tered banks to gain access to the insur- ance market has brought to the surface concerns over the enormous power wielded by these mega -institutions. Although the omnipotence of the banks affects every single Canadian, it is surely of special interest to those in- volved in agriculture. Perhaps nowhere is the greed, short-sightedness, and unscrupulousness of financial institu- tions more evident than in their dealings with fanners. Talk to anyone who farmed more than 30 years ago and you will hear about a time when the average farmer just could not get money from a bank. Repayment ability or management ex- pertise were scarcely considered. Ac- ceptable security was a first mortgage on the farm and nothing else. That was usually held by the preceding genera - 78 THE RURAL VOICE tion so, in effect, farmers were just considered a bad risk. All that changed for a brief period in the late sixties and seventies. Real estate values were exploding, farmers were "... how co-operative we were, buy- ing bigger equipment, modernizing barns, building silos and granaries like mad, boosting output to lead to a world-wide food surplus that would nicely coincide with the doubling of interest rates and the crash of farm real estate values." making money and retiring rich, and the banks decided to get a piece of the ac- tion. Some who got started during this time remember being courted by two or three rival bankers, each hoping to se- cure a new farm account. Many recall visiting the manager to borrow for some modest expansion and coming out with plans to expand much further. With inflation running three or four points above interest, it seemed the banks just couldn't get their money into agricul- ture fast enough. And how co-operative we were, buying bigger equipment, modernizing barns, building silos and granaries like mad, boosting output to lead to a world- wide food surplus that would nicely coincide with the doubling of interest rates and the crash of farm real estate values. Exit the banks from agriculture, and along with them many, many farm families. Have we learned anything from this sorry ordeal? We should have. The banks have certainly learned to be much more cautious, for the time being. But as farmers we have to look at a much longer time frame and, when we do, we see that a partnership between financial institutions and agriculture is danger- ous. Schemes to make this partnership more palatable abound: equity financ- ing, franchising, interest -rate subsidies, etc. — all have some strong points and many flaws. Perhaps a solution for the future lies somewhere in the past. There was a time when outside money was not required, when the farm was passed on from one generation to the next It may seem impossible right now, but as the farm crisis deepens and the inadequacy of other solutions becomes clear, we may begin to see this old practice in a new light0 Bruce County Federation of Agriculture Public Relations Committee Note: Each month this page will contain an item of opinion on some current farm issue. We would like to know what you think. If your opinion differs from the one you have read here, or if you support our view, call the office at 364-3050.