Loading...
The Citizen, 1991-09-11, Page 21There should be rejoicing instead there's frustration It's that time of year when we should be rejoicing at the bountiful harvest. In this area, we were lucky this year that all the right ingredients of everything came together and, with a few exceptions, we'll have near record-breaking crops. There was just the right amount of rain when we needed it, and the weather, which was sunnier and warmer than usual, after that cold backward spring, made it almost feel like the garden of Eden. Anyone driving around central Huron in the middle of July would surely rejoice that this was the best place in the world in which to live. At our home, we had one of the best gardens in decades, from platter-sized cabbages to grapefruit-sized peppers. Even the late tomatoes, which weren't seeded until the first week of May on the gamble that we'd get a couple before the first frost, have already yielded bushels of juicy, ripe fruit that have found themselves in the freezer as sauce or whole bagged tomatoes. That's why it seems almost sacrilegious for this writer to join farmers in complaining that things are not very well on the concession roads. Cash crop farmers in particular — that is those who grow winter wheat, spring grain, com and soy beans and then sell them the same year (or hold them to be sold when prices improve the following spring) are facing returns for those crops that are the lowest in about 15 years, in real dollars. But costs to put those crops in the ground have continued to escalate at about five per cent a year and so many farmers are facing a cash crunch, they may not survive the winter. Now anyone in business knows that to stay in business, you have to have slightly more coming in the door every year than is going out. In the past decade, because of an international grain war, that hasn't been happening in Canadian agriculture, and as a result, we've lost a third of our farmers in the last 10 years, while the debt level has remained the same — some $20 billion worth here in Ontario. So why are our farmers going out of business in record numbers? And what does that say about the future food supply of Canada if those food producers are not around and we have to depend on foreign countries for our food supply? Already Ontario imports more food than it exports, mainly because of fresh fruits and vegetables, but can you have an independent nation if you're not self-subsistent in food? The United States doesn't think so. In fact the gap between U.S. and Canadian agricultural policy is rapidly widening. American food policy is carefully defined and implemented under the U.S. Farm Bill which tells their farmers (and the whole world) what farm policy will be five years ahead of time. Americans tell their consumers how important agriculture is to the well being of America. As the world's largest exporter of farm products, the U.S. know that each dollar earned from agricultural exports stimulates another $1.52 of output in the U.S. economy — about $100 billion in 1989. In fact, most people are surprised when told that agriculture gives the U.S.'s greatest competitive advantage in trade, ahead of high tech, finished capital (cars and manufactured goods) intermediate manufacturing, mining, and fish and forestry. It's no wonder then, that American agricultural policies are structured to encourage, promote, protect, and gain access to markets for its farm products. However in Canada, the media, academics, and politicians talk of how much farm subsidies "cost" the treasury and that protection of markets "costs" consumers and leads to inefficiency, as well as telling Canadian farmers they must learn to be more competitive in the trading world. Even the Federal Progressive Conservative party, — traditionally looked upon in rural Canada as strong supporters of farmers — voted at their recent policy convention on resolutions to undermine the Canadian Wheat Board, as well as get the Farm Credit Corporation out of direct farm lending. Both were Tory creations. Delegates even refused to confirm support for supply management, and instead called for a study of the impact of the farm products marketing system on consumer prices. Now if George Bush's Republican Party even suggested those resolutions in the U.S., he'd be a footnote in the history books as the only president to put both feet in his mouth and swallow his shoes whole! It's time that Canada and our politicians got behind their farmers as strongly as the Americans do because our farmers contribute just as much to this country's prosperity as the U.S. farmers do to their country's. This latest farm crisis dramatically points out that Canadians need to have an attitude change if our farmers are to survive on a world market. And we need to implement solid government assistance programs to back them up. Farmers plan emergency meeting at Lucknow tonight Canadian farmers need help to get them through 1991 or they will eventually be forced to give up their farms, the Canadian Federa­ tion of Agriculture says. Appearing before the House of Commons Standing Committee on Agriculture Aug 29, the Federation stated that without help this year, many farmers will enter 1992 in such a weak financial state that they will be unable to prevent the failures of their operations in the future. “In April, then Agriculture Min­ ister Don Mazankowski and Prime Minister Brian Mulroney promised to support the agriculture industry. This has not yet been done,” First Vice-President Jacques Proulx told the committee. “Farmers want to obtain their incomes from the agriculture indus­ try but they haven't been able to do this in recent years. Farmers are, therefore, forced to turn to govern­ ment for assistance,” he said. Mr. Proulx, appearing with repre­ sentatives from CFA's member Continued from page 1 blank, as U.S. president George Bush did with Iraq last January, "the line had been drawn in the dirt". Organizers are hoping that 500 farmers will turn out to tell their politicians their concerns. Expected to attend are Huron MPP Paul Klopp, who is parliamentary assis­ tant to Ontario's minister of agricul­ ture; Huron-Bruce MP Murray Cardiff, who is parliamentary assis­ tant to the federal minister of agri­ culture, and Bruce MPP Murray Elston, who is interim leader of of the official opposition Liberal party. Farmers are looking for assis­ tance to cover depressed prices on winter wheat, spring grain, corn and soybeans grown in 1990. A new stabilization plan kicks in next year, but many fanners are fearful they won't be around next spring to benefit from the new program. Yju can lose a lot more than your licence drinking and driving. THE CITIZEN, WEDNESDAY, SEPTEMBER 11,1991. PAGE 21. Farmers need help now Federation tells MP’s organizations, noted the single most important reason for dimin­ ishing returns in agriculture is the internal subsidy war being played out by the European Community and the United States, especially in the grains and oilseeds sector. Declining incomes have forced members of farm families to seek off-farm jobs. Even with off-farm income, Canadian farm families make less than other Canadians. Recent data show that the average farm family makes only 91.88 per cent of what is made be the average Canadian family. While income figures forecast for this year are particularly low, farm­ ers have also come through a diffi­ cult decade. “Total net farm income forecasted for 1991 will decline by 22.35 per cent compared to the 1990 level after a drop of 12.35 per cent from the 1989 level,” Proulx said. “Most important of all is that in real terms the total net farm income has never been as low for at least the past two decades," the Quebec dairy and sheep farmer added. The Federation noted that the increased food prices paid by con­ sumers have not been passed onto farmers. For example, the retail price of cereal flakes made from 100 per cent com increased 94.5 per cent from 1980 to 1989 with the price of corn to the farmer decreasing 8.8 per cent. The price of a box of soda biscuits increased 235 per cent and the price of sweet cookies containing 25 per cent flour increased 135 per cent. At the same time, the final realized price for wheat increased only 0.4 per cent. Beef prices increased 8.8 per cent from 1983 to 1990. to the farmer and 24.6 per cent to the con­ sumer. Mr. Proulx also told the commit­ tee that the price of hogs dropped 25.3 per cent from 1982 to 1989. While small increases were experi­ enced in the price to farmers of fruits and vegetables excluding potatoes, these increases were far below the increase in the General Consumer Price Index. LONDESBORO CO-OP LONDESBORO Elevator 523-4470 Office 523-9606 • Fast Efficient Service! • Wagon Dumpers!! • Trucking Available!!! • Fair Grades & Prices!!!! / co-op 'r Londesboro Co-op is pleased to provide farmer- /^^^^owned grain & bean elevator facilities in /W|_ondesboro. By working together, farmers can build their own successful agri-business! WHITE BEANS