The Citizen, 1995-03-22, Page 40Factors Used for
Trend Adjustment
Corn Soybeans
1994 1.00000 1.00000
1993 1.00000 1.00000
1992 1.03733 1.03465
1991 1.05040 1.04674
1990 1.06380 1.05912
1989 1.07755 1.07179
1988 1.09166 1.08477
1987 1.10614 1.09807
1986 1.12101 1.11170
1985 1.13629 1.12567
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PAGE A20. THE CITIZEN, WEDNESDAY, MARCH 22, 1995.
AGRICULTURE f 95
Crop Insurance Commission designs tables
By Janice Becker
In a step to account for increased
crop yields due to improved to
technology, the Crop Insurance
Commission of Ontario has
designed a multiplier table to adjust
the numbers.
The multiplier can be used for
the past 10 years' corn and soybean
yields.
The resulting trended figures will
increase the average farm yield
over the affected time period.
Using the adjusted formula, the
sample yield increases the farm
average from 103.3 bushels to
110.46 bushels.
"Trending does not begin until
the third year of crop production,"
says Sam Bradshaw, district co-
ordinator with OMAFRA.
The first average is taken over
five years, with the other two years
filled in with an area average.
The use of factoring can be most
easily understood once several
years of yields have been accumu-
Continued from A19
chinchillas and thought it might be
interesting," said Ray.
While in the beginning, they kept
the chinchillas in the basement of
their home, this past fall a trailer
was put in on the property where
up to 200 of the hardy animals are
kept. Ray sets up breeding lines,
matching genetics for fur qualities,
productivity and health. "That's the
interesting part. To try and keep
improving the product you are sell-
ing," he said.
Known for their luxurious tri-
colour grey, each pelt brings in
roughly $30. It takes 100 pelts to
make a full coat. Pelts of poor qual-
ity that won't cover the feed bill arc
made into novelty items by a
crafter in Fingal, which Barb in
turn sells at the market.
. In order to run a chinchilla ranch
there is a code of ethics with ranch
certification which must be fol-
lowed. The ranch must be inspected
by a veterinarian, and guidelines
are set on the cage size, light and
temperature control. Though they
arc native to South America, chin-
chillas prefer cooler temperatures.
"They can take a lot of cold, but not
heat," Ray says.
When they're not busy with the
chinchillas, pigs or maple syrup,
Barb gathers eggs from the hens
they keep, while Ray grows crops-
on over 100 acres of land. In
between he works occasionally on
construction, while Barb also has a
part-time job. They ran a maple
syrup 4-H club last year; Barb is an
official maple syrup judge and she
recently joined the Huron 4-H
hoard of directors. Ray says,
"We've always liVed by a certain
latcd. If production began in 1990,
trending would not begin until
1992. In that case the 1990 figure
would be trended by 1.06380, the
1991 number by 1.05040 and so
on.
Buffering also plays a part in
bringing up the value of exception-
ally low yields.
When the average has been recal-
culated, taking trending into
account, the low yield is subtracted
from 70 per cent of that average.
One-third of the result is then
added to the low yield and the aver-
age is recalculated.
For an ongoing business, the last
10 years' worth of yields are used
for trending with the oldest figure
dropped each year.
Trending and buffering provide a
more stable farm yield, accounting
for extremely poor or exceptional
years. This in turn allows for more
even guaranteed production levels
for the calculation of crop insur-
ance coverage.
Another aspect of protecting the
farm income is through the market
revenue program.
Market revenue protects against a
reduced income caused by low
market prices.
Coverage can be purchased from
70 to 85 per cent coverage for vary-
ing premiums. The premium paid
by the farmer is only half the cost
as the federal and provincial gov-
ernments each contribute to the
other 50 per cent.
If a farmer had an average corn
yield of 120 bushels per acre and
rule; 'lead, follow or get out of the
way'."
That strategy seems to have car-
ried over to the Storey's two sons,
John, 12, and Allan, eight, who
assist in all aspects of the family
business. "They are both a big
help," says Barb. "They do every-
thing they can."
Running out of time is never a
bought 80 per cent coverage for
$1 2.7 0 per acre, the guaranteed
yield would be 96 bushels per acre.
If there were a total crop loss the
payout would be $26,496 for 100
acres at $2.76 per bushel.
"Though a total crop loss is not
common, market prices below the
worry, Ray adds, because it is
something he believes you always
have. "You just need to know how
to use it."
Work and taking chances is
something the Storeys thrive on.
"Someone once told me, 'If you're
not living on the edge, you're tak-
ing up too much space.' I like that,"
says Ray.
guaranteed level do occur," says
Mr. Bradshaw.
If the support price is guaranteed
at $3.11 and the average annual
market price is only $2.77, the dif-
ference of 34 cents per bushel
would be paid for the 80 per cent
coverage or 96 bushels per acre.
More information on crop trend-
ing, buffering, market revenue and
insurance can be obtained through
the OMAFRA office in Clinton.
Call Sam Bradshaw at 482-3428.
Farmers Experience Many
Health Problems
Farmers are more likely to die of
cancers such as leukemia, non-
Hodgkins lymphoma, and multiple
myeloma than any other occupation
group.
Farmers have higher mortality rates
for lip, prostrate, and stomach
cancer.
Half of all farmers over the age of
50 have greater than 50% hearing
loss.
How Trending Works
Year
Grown
Actual
Yields
Factors
(Corn)
Trended
Yields
1994 130 1.00000 130.0
1993 122 1.00000 122.0
1992 42 1.03733 43.57
1991 65 1.05040 68.28
1990 126 ' 1.06380 134.04
1989 119 1.07755 128.23
1988 117 1.09166 127.72
1987 58 1.10614 64.16
1986 135 1.12101 151.34
1985 119 1.13629 135.22
Average
Farm Yield 103.3 110.46
Chinchillas, attractive alternative