The Lucknow Sentinel, 1979-04-04, Page 33•Y;
BY RHEA HAMILTON
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Lucknow Sentinel, Wednesdsyt April '14 1971—Page S
don't take stabilization prograrn seriously
Local producer reaction to
the proposed changes in the
federal governments stabili-
zation program indicates that
few have seriously consider-
ed the changes.
Huron Federation of Agri-
culture member's heard OFA
director AlbinKormos speak
on the changes at their
Monthly meeting at Grey
Central School, Ethel, Thurs-
day night. Mr.. Kormos is a
member of the OFA commit-
tee studying new proposals
for the stabilization act.
"Farmers tend to treat the
stabilization act the same as
marketing- • boards," Mr.
Kormos said.
Mr. Kormos said income
instability and increased
costs of production which
take away from efficiency,
are reason enough to accept
the new farm stabilization
proposals.
The present program has
come under firefrom various
producer groups claiming
support levels were too low,
no advance notice of support
prices was offered and the
annual program did not
provide adequate protection.
"The Ontario plan is more
complicated compared to the
present plans in both British
Columbia and Quebec and
farmers still have strong dis-
agreements about .the whole
plan being welfare,". Mr.
Kormos said. He challenged
members . to support the
development: of programs for
general approval of stabiliza-
tion plan.
The federal policyis simi-
lar to the 'B.C. plan > and
involves farmer participa-
tion. •
"I' feel it is the ideal we
should beshooting for," said
Mr.. Kormos. The main func-
tion of the plan is to take out.
the lows in the market or put
the brakes on a down period,.
Mr. Kormostold members.
The federal government
has proposed four mayor
changes. ..
The first, change the basis,.
for the calculation of support
prices to a guaranteed marg-
in approach with support at
the 100 per cent level. The,
difference between the price
a farmer receives for a
commodity and his cash
production represents his
margin over cash costs and is
the return for his labour,
\ management, and capital.
Under the guaranteed marg-
in approach the support price I
would equal cash costs in the
support year plus. some per.-
,centageon the average mar-
gin . over cash costs in the
immediately' preceding five
years.
The advantages include a
clearer connection between
current cash costs and the
support price and a guaran-
tee at the beginning of the
support period that the farm-
er would receive a return for
labour, management and
capital that would be no less
than their average return in
the proceding five years.
Joiningould be voluntary
and farmers could enter
plans for the commodities
they produce. Costs would be
shared, 1/3 by producers and
2/3 by the federal govern-
ment. To alleviate inade-
quate protection for slaught-
er cattle and hog producers a
quarterly program Inas been
proposed rather than a yearly
one.
Mr. Kormos compared the
program to insurance against
. poor prices.
Tony McQuail, director for
Huron North West was con-
cerned that such a .plan
would protect larger instead
of smaller or especially
younger farmers.
"Younger farmers have a
greater monetary investment
and are most hurt by market
fluctuation. ," Mr. McQuail
said. Mr. (ormos assured
members t at both minimum
and maximum standards
would be set to avoid nuis-
ance claims.
INVOLVED
"It is important that farm
representatives are involved
to establish where the maj-
ority of farm sizes are and
what levels fanners want
set," said Mr. Kormos.
There was some discussion
concerning the merits of a
federal as opposed to provin-
cial programs.
John Van Beers, director
from Huron east central cited
the example of the •Western
provinces keeping calves and
Ontario wanting to establish
their own source.
"A federal level • would
have solved the problem,"
said Mr. Van Beers. "But it
was provincially run and had
problems."
Mr. Kormos pointed out
that provincial programs
would only compete with the
federal level
"I don't think the federal
plan would work and that is
why we must have a co-oper-
ative between the two," said
Mr. Kormos.
Mr. Kormos said the OFA
does not support the federal
proposal because it does not
allow, active ;farmer input,
just advice. Although the
farmers are paying one third
of the program they are
allowed no "input".
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Mr. Kormos did not, feel
the program would interfere
with market indicators.
"It is a tool designed to
stop declining markets • and
yet leave room -for a free
market place," said Mr.
Kormos.
With the new proposals
the beef cow calf producers
would be included.
"If the federal proposal is
enacted Quebec and. B.C.
will not receive any com-
pensation for their own cow
calf operations," Mr. Korm-
os said. "That does not mean
there will not be any support
for other provinces."
Members agreed the fed-
eral method of determining
support levels by historical
market prices was outdated
and believed costs of produc-
tion would be a fairer meth-
od.
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Available for Immediate Delivery
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528-2214
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Barley
Peguis :, . a six -
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Oats
Garry ... the old reliable. Gives a
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PHONE 529-7953