Huron Expositor, 2001-03-14, Page 6II -THE HURON IDIPOs1T011, March 14, 2001
Agriculture
Families need good communication
when passing farm to next generation
By Susan Hundertmark
Expositor Staff
With the rising value of
family farms and the rising
age of farmers at an average
of 55, it's becoming more
important to plan ahead for
intergenerational farm
transfers, local junior farmers
were told at a Young Farmers
Forum at the Seaforth
Agriplex March 2.
"You have to talk openly to
your parents about whether
or not you want the farm, you
have to earn their respect and
you have to always
communicate,"
said Brian
McGavin, of
McGavin
Farm
Equipment in
Walton.
"It's always
sad to see a
big operation
split up when
the family
can't get
along. Make
sure it's
discussed and
get something
written down,"
he said.
Most of the problems with
farm succession is emotional,
said Ed Danen, of
Danensview Farms, a dairy,
veal and cash crop operation
near Tavistock.
"There can be different
philosophies of management
between father and son and
other siblings that may or
may not want to get involved.
It depends on the generation
gap and how big it is," he
said.
Danen said many farms
will be passed from one
generation to the next soon
since the average age of
farmers in 55.
And, because the value of
farms is so much larger than
it was 25 years ago while the
yearly farm income is low,
Danen says more planning is
involved in farm succession
these days.
"There's more and more
money involved. While you
could buy 100 acres for
$40,000 25 years ago, fewer
people just own 25 acres
anymore and most farms are
worth about $700,000 today.
That's a lot of money to
come up with all at once and
it's very hard to get into
farming now
without your
parents'
backing," he
said.
In Danen's
case, he and
his brother
Jack came
home from
school at the
University of
Guelph in the
early 1990's
to work on
the family
farm after a
short stint
working for
Quoted
'It's best if the
child with the
farm doesn't
have a huge
millstone of
debt around his
neck,'
BIR Carmichael of
Clarice life Insurance
someone else.
"It's important to work off -
farm for awhile to see what
the other side looks like and
have another boss you have
to take orders from before
you work for and with your
parents. Then, the hard work
with your family doesn't look
so bad," he said.
By 1995, the brothers and
their parents incorporated the
farm, which they divided into
shares. Danen and his brother
are working at buying shares
from their parents as often as
they can afford it.
"The goal is for Jack and I
to have our own herd and
farm. But the trick is keeping
everything fair and equitable.
It's going to get more
complicated than easier in the
short term," he said.
Paul Coultes, of RR 5
Brussels, also told the group
that he and his brother are
working at buying shares
from his father in their
incorporated company Maple
Ridge Beef Farms.
He said they both draw two
shares, of the 100 shares
available, each year along
with a salary.
"It will be an awful hill to
climb before we know where
we're going,"
he said.
McGavin
said his
family has
also worked
out an
agreement
with shares in
several
incorporated
companies
with the
number of his
father's
shares going
down as he
and his
brother work
at earning
more and
more shares.
He said his sisters have
been paid with some frozen
shares and will also receive
something in his father's will.
As well, McGavin said his
family has bought life
insurance on each other, with
the stipulation that the money
be paid to their wives.
"If our children want to get
into the business they could
work their way in with shares
too," he said.
Bill Carmichael, of Clarice
Life Insurance,
recommended life insurance
as an easy way to keep farm
transfers fair and manageable
for the whole family.
Carmichael said many
farmers have had to carry
huge debts when their
parents' wills gave the farm
to them but stipulated they
had to buy out their non -
farming siblings.
"It's best if the child with
the farm doesn't have a huge
millstone of debt around his
neck. When it's stipulated
that you have to pay your
sister her share, after 10 or 15
years of paying her out of the
profits, you're making
nothing and she's not
working on the farm and you
get fed up," he said.
He added
that a huge
debt could end
up leading the
farmer into
bankruptcy or
forcing him to
sell the farm.
Carmichael
said many
farmers are
now buying
life insurance
worth half the
value of the
farm and
equipment for
the siblings
that will not be
getting the
farm.
"If your
farm's worth $1 million, give
the other kids $500,000 each.
But, how much is fair is an
emotional argument that
varies from family to
family," he said.
Carmichael reminded the
junior farmers that farmers
are not expected to pay any
capital gains tax when farms
are passed from generation to
generation.
"Farmers have a huge
equity but a notoriously low
income so figuring out how
to afford life insurance can be
a problem but all the other
options are much more
expensive in the long run."
he said.
Quoted
The goal is for
Jack and I to
have our own
herd and farm.
But, the trick is
keeping
everything fair
and equitable,' -
Ed Danen, of
Danensview Farms,
Tavistock
County lobbies for EFP funding
By Sarah Caldwell
Goderich Signal Star Staff
•
Huron County council has put their support behind
lobbying for funding for the Environmental Farm Plan (EFP)
program which Huron leads in the usage of provincewide.
The Environmental Farm Plan and incentive program has
helped 900 Huron County farmers voluntarily complete $5.2
million in environmental improvements to their operations
since 1993. The program is in jeaopardy because current
federal funding for the program is almost used up .
Huron leads the province in the number of participants in
the program, Lambton trails in second place with 560
participants.
County council supported a motion from the Town of
Caledon, at their March 1 meeting, to lobby for extended
funding for the Environmental Farm Plan Program.
The EFP allows producers to voluntarily attend a free
workshop on the program, complete a binder of material
assessing the environmental sustainability of their operation
and, if they are eligible, receive a $1500 incentive rebate to
make their operations more environmentally sustainable.
Newborn pig feeder
earns St. Columban
farmer an award
By Wendy Glamor
Special to The Expositor
A self -designed newborn pig feeder that earned St.
Columban farmer Ken Ryan a Pork Congress award last
year is making a difference in his operation.
Ryan's disappointment with commercially -produced
feeders drove him to invent his own.
"I could never find (a newborn pig feeder) that would
work and stay working," said Ken Ryan, who won a
second place award of $100 from the Ontario Pork
Congress.
The problem with commercial newborn pig feeders is
that the feed can spill easily and the feed that spills falls
through the slated floor and is wasted, said Ryan, who
operates a pork farm of approximately 175 sows.
He also found that purchased feeders were easily
destroyed by the sow.
The feeder, which costs $15 to build, is made of ABS
piping and works with gravity to let down just the right
amount of feed.
According to Ryan, the cheapest commercial newborn
feeder costs $20.
Ryan believes that his invention has saved him time and
money, as his feeder is not only cheaper than commercial
feeders, but it does not have to be filled as often as
commercial ones and can hold more feed.
While Ryan is not planning on marketing his invention,
he has given away several copies of instructions that
would allow other pork producers to create similar
feeders.
"It's better, stronger and cheaper," said Ryan.
In total, $1.1 million in incentive money was handed out in
Huron County since 1993, compared to the $5.2 million spent
in total project costs. The producers are willing to spend $5
for every $1 they receive, said Huron's EFP program
coordinator George Thompson.
In addition, the farmer's labour to complete these projects is
not included in the total project costs but they account for
270,000 hours spent completing the projects.
Hensall children
welcome at Kids' Club
The Hensall shuffleboard
scores for March 6 are as
follows: (six games) Grant
McGregor 560, Edna Dietz
504, Lorraine Alexander
492, Merle McLellan 435.
(5 games) Dave Woodward
500, Isabel Rogerson 396,
Al Hoggarth 386, Lloyd
Lovell 349.
At Hensall United Church
Pirie Mitchell was the
minister with Belva Fuss
playing the organ. The
ushers were Glen and Lois
Hayter with the elevator
being operated by Ross
Kercher. Flowers were in
memory of Bill Clark.
At Hensall Carmel
'Presbyterian Church Tracy
Whitson Bahro's message
was "The Narrow Door:
Commitment and Divine
Disappointment."
Joyce Pepper was the
organist with Al Hoggarth
and Harry Smith receiving
the offering. Dorothy
Taylor was in charge of the
church school.
The Kids' Club meets on
Friday, March 16 at 6:30
p.m. in the church basement.
All ages are welcome for a
time of music. stories. crafts,
and more. Communion will
he observed on Sunday April
I with Rev Rocland
Hartmans.
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