Times-Advocate, 1982-06-30, Page 15•
My war or the hlghway
may not be the only way
By Jack Hagerty, Area
Coordinator and Farm
Management Specialist
"It's my way or the
highway." That's what one
frustrated bank manager said
,about a farm business that
was in drastic financial
straits.
The farmer watched his
equity erode from 60 percent
to 20 percent of assets in just
three years. The bank
manager repeatedly asked
what adjustments were
planned to turn the situation
around, or to at least stop the
erosion of equity. But the
farmer couldn't or wouldn't
make a decision. He hated to
part with any of his 450 acres
of land. He hated to sell any
of his machinery and run the
risk or relying on custom
operators. The very thought
of an auction sale to clear off
some assets was akin to shock
treatment.
All the obvious choices
Stargazers of
Mesopotamia and Egypt
used celestial bodies to
determine time and by 600
B.C. had developed a' near -
perfect calendar. The.
calendar allowed man to plot
dates, including birthdays..
But only the birthdays of
kings warranted the effort.
were distasteful. He was con-
fused and hurt but still had a
sense of humour - a positive
sign.
He said, "it reminds me of
thistoryof the crops specialist
who continued year after year
to call on a tenant farmer to
give him weed control advice.
But, each year the weeds got
worse. Then one day the crops
specialist dropped by and
tohis surprise the fields were
clean - not a weed to be seen."
The tenant farmer explained
it this way. "You see, the
landlord came around and
said if I didn't cut those weeds
it would be my last year on
this farm. And no one ever ex-
plained it to me quite that
way before."
The farmer should be the
puppeteer - not the puppet.
That's good policy! But, the
facts of life are that the per-.
son or institution with over 50
percent of the shares has a lot
of power. And when equity
erodes to 20 perent.then so-
meone has eight votes to the
owner's two votes:
The owner can only assume
control when there is liquid
cash flow to pay all operating
costs, to service debts and to
pay for family living.
One question farmers
should ask themselves -
"what is my main product".
That's not a hard question to
answer if you're Ontario
Hydro - you're in the business
of producing electricity. Just
as Ontario Hydro has
generators that produce elec-
tricity, so do farmers have
generators. The generators
are in the form of sows that
produce little pigs, calves that
gain pounds of beef, or hens
that lay eggs. If Ontario
Hydro sold off their
generators they'd soon be out
of business.
Farmers who sell ' off
"generators" of their main
product are courting disaster
a few months down the road.
Farmers who sold sows last
winter in order to retain
machinery or an extra parcel
of land are no doubt wishing
those "generators" were still
around to produce weaner
pigs at $70.00 each.
A farmer in such financial
difficulties has to make a
choice. The decision may Ile
to take action. The decision to
take no action has predictable
consequences. The malignan-
cy of interest arrears wit con-
tinue to grow. It may be that
major surgery is the only op-
tion. But, don't take just one
person's advice.- seek opi-
nions of other advisors such
as a local chartered accoun-
tant, another banker and/or
an Agricultural Represen-
tative, "It's my way or the
highway," may not be the on-
ly way.
RETIRING SUPERINTENDENT HONOURED - Don Kenwell, a superintendent with the Huron County Board of
Education received a plaque recently from the South Huron Association for the Mentally Handicapped for his
great assistance over the past number of years. Kenwell is retiring at the end of the month. From the left are
Myra Lovell of the Assocation, Sheila Clarke of Special Education Services of the Board of Education, Don Kenwell
and Assoicotion executive director Don Campbell.
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•
This giant recession af-
fects almost every sector of
the economy but when
agriculture is suffering, the
ripples are felt throughout
the economy.
For example, the farm
machinery slump` is worse
than previously thought as
hopes for a turn -around this
year are quickly fading. The
-big three in the automobile
industry are offering all
kinds of incentives. Farm
machinery manufacturers
are doing the same thing
such as rebates and sub-
sidized financing to urge
farmers to buy.
The sales slumps have
• brought widespread
discounting on list prices.
The idea behind it is that it is
easier to offer discounts and
special deals than to simply
cut . the price. Dealers can
introduce the deals quickly
DIAMOND JUBILEE SCROLL — The Ausable-Bayfield Conservation Authority
received a Diamond Jubilee Scroll Wednesday celebrating 60 years of the provin-
cial forest agreement. Above, Dave Ablett of the Wingham office of Natural
Resources presents the plaque to Authority vice-chairman Gordon Johnson and chair-
man John Tinney. T -A photo
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•
Dietrich Const. & Metal Products a
RR No. 8, Parkhill
Phone 294-6940
Form & Commercial Construction
Complete Building Service
Concrete Forming
Power Trowelling
Framing
Manufacturer of Metal Trim
Free Estimates
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NEW EQUIPMENT AT
CLEAROUT PRICES
John Deere 4440, 20.8 x 38
triple outlets. Cab, heat, air, 1982 model.
42,000°°
John Deere 4640, 20.8 x 38
cab, heat, air, 1982 model.
$47 900°°
John Deere 2140 15.5 x 38 rack and pinion, side
frames and block heater.
$17,400"
Call . For Details
VAN -CROSS
FARM EQUIPMENT LTD. `�oNNOEESEJ
"John Deere Sales & Services"
1 Mile East of St. Thomas on Hwy 3
Telephone: 631-7230
Topnotch
facility opens
Topnotch Feeds Limited
officially opened the second
phase of their expansion
programme at Port Stanley
on June 23.
In 1978 two large silos, with
a capacity of 220,000 bushels,
were built together with a
25,000 bushel -per -hour
elevator leg and receiving
station. A new 80 -tonne truck
scale arid office area were
also built at that time. This
phase of the expansion
tripled the storage capacity.
The expansion just
completed includes three
silos 40'x110' with capacity
for 110,000 bushels each. Also
installed was a '25,000 bushel -
per -hour -electronic load:out
scale. Total storage capacity
at the elevator is now 665,000
bushels.
While the increased
storage space is necessary,
the major improvement is in
the speed at which trucks
can be unloaded and lake
vessels can be loaded. 11 is
now possible to unload a 30 -
tonne truck in three minutes.
Total cost of the two
projects is in excess of one,
and one half million dollars.
J.M. Cunningham,
General Manager, said that,
in the company's opinion,•
these facilities will be
required to handle soft
winter wheat and corn grown
in the immediate area, '
Ontario exports both of these
crops and water tran-
sportation is still the most
economical method of
transportatiori.
Topnotch Feeds Limited
operates feed mills and grain
elevators at 10 locations in
the province, with Head
Office in Seaforth. Topnotch
is owned by James
Richardson and Sons,
Limited, with head office in
Winnipeg. Richardsons have
been invdlved in the grain
business in Canada since
1857.
Don't Forget
to call
Town Line
Collision
228-6700
and then, if a turn -around
appears likely, they can also
end the bargains.
More important, though,
dealers do not get stuck with
high-priced, old stock. And
this is important. It is tough
enough making a living, just
making ends meet, without
getting stuck with over-
• priced implements.
Manufacturers insist that
the good deals being offered
have more buyer appeal
thansimply cutting, the price.
Could be but the slump in
sales has them all spending
sleepless nights. Almost
every Canadian is aware of
the precarious position
Massey -Ferguson is in. The
company has been teetering
on the brink bf disaster for
years. To t>il 'of April,
the company r• iirted losses
of almost $30 milliop com-
pared with an $8 million loss
a year ago.
International Harvester in
Chicago reported a loss of
$149.4 million in the months
to the end of April and that is
in U.S. Dollars.
About the only reasonably
healthy farm equipment
manufacturer is John Deere
Ltd. of Grimsby. The parent
company, Deere and Co. of
Moline, III., reported first
quarter earnings of $3
million. But they, too, have
been hit hard. Those figures
compare badly with the
same period last year: A
profit of $90 million in the
first quarter.
Which is a roundabout way
to prove that when
agriculture is healthy, most
of the economy is healthy.
When Western farmers have
a bumper crop, more grain
cars are needed. When more
grain cars are needed, the
steel mills flourish, the
manufacturers are happy,
all the ancilliary businesses
are booming. retailers and
dealers get more sleep at
nights and the entire
economy gets a boost.
But the farm picture
continues 10 look bleak in
spite of the fact that pork
prices are high and beef
prices, too.
Farm bankrupticies to the
end of May were up 60
percent across Canada.
Even the militant groups of
last•fall and this spring are
surprisingly quiet.
"Farmers are ground -
hogging it," says Bill
Wolfe, an executive member
of the Canadian Farmers
Survival Association.
Hank Wilson
Has Finally
Done It!'
His shop is now open to
repair your small
engines, or give him a
chance to fix whatever
you have that's broken.
His specialty is antique
farm engines.
Monday to Friday,
8:00 a.m.
to 6:00 p.m.
Tuesday & Thursday
7:00 a.m.
to 9:00 p.m.
C.M. Wilson II utsgirisas
Centralia, Ontario
228.6436
Letters are appreaated by Bob Trotter Wale Rd Elm,ra
"They've gone home. The
whole thing now is survival
any way you can do it. They
(farmers) are sick of talking
to politicians who don't pay
any attention."
I can't discount the words
of Walter Miller, former
president of the old Ontario
Farmers Union, a man with
radical ideas and tremen-
dous leadership abilities.
"Nobody is facing up to the
fact that we are in a full-
scale rural depression;: not
just a recession. The
politicians and everybody
else are playing with
dynamite here because they
are sabotaging the food
supply. Do we have to bare
shelves before somebody
does something?
Right on Walter.
Empty bellies are the
greatest incentive for drastic
action. A hungry person is a
desperate person.
And before I forget: A
correction in a previous
column. Dennis Trimbrell's
new plan for aid to farmers
does not - repeat, not - in-
clude money to fix farm
homes. The farmstead
RY.gisa>bar Cfr
RIM MEMO `'....-
SCSOOLM OCT ll
On N3B2C7
improvement program will
not give you any money for
your house; only for out-
buildings. Apparently, a
couple of county agreps got
swamped with inquiries for
homestead improvement.
Youth seek
Guineas title
Don Parka
Agricultural Representative
In Huron County, 23 4-H
Beef Calf Club members have
nominated their steers for the
1982 Queen's Guineas Com-
petition on Friday, November
19. To be eligible, the steer
must weigh no more than 750
pounds at weigh -on between
May 1-15 and 150 days later
weigh at least 850 pounds bet-
ween October 1-15. It must
make an average daily gain
of at least 2.3 pounds during
the five-month period. The
advance fitting and prepara-
tion of the steer for the Com-
petition must be carried out
by the 441 exhibitor.
4-11 members nominating
steers are: George Alton,
Sharon Alton, Steven Alton,
Suzanne Alton, Gary Arm-
strong, Kevin Bishop, Mike
Bishop, Pat Chambers, Scott
Cooper, Bill Gibson, Mary
Gibson, Greg Hoggarth, Paul
Hoggarth, Kevin Johnston,
Bill Kinsman, Brenda
Merkley, Rick Poels, Anne
Proctor, Allan Pym,
Margaret Pym, Allan Benn-
ing, David Townsend- and
Julie Townsend.
4-H agricultural club
• statistics
There is a lot of enthusiasm
for 4-H in Huron County this
year. The 38 agricultural
clubs are now under way
planning 4-H club activities
and participating in county
and provincial programs.
Some 385 members have
enrolled in over 500 projects..
This is an increase in in-
dividual membership of about
25 percent over previous
years. About 300 families are
involved in the -4-11
Agricultural Club program.
We are fortunate in Huron
to have 89 leaders volunteer-
ing their time and talents to
help the development of our
youth through 4-H.
Drainage pays off
in water table control
Good drainage bwers the water table. while the sal
retains ample moisture fa healthy plant growth Excess •
water is removed. leaving only Derated capillary water fa
crops
roth drainage
IMITED
FARM DRAINAGE SYSTEMS
Gads Hill, Ontario NOK 1J0 0 (519) 656-2618
Jun. 30,1982 Pone 15
8 -hp
Lawn Tractor
John Deere 108 Lawn
Tractor has 80 -inch
mower, 8 -hp engine,
and 5 -speed shift -on -
the -go transmission.
Rear bagger, front
blade, and snow
thrower available.
11 -hp
Lawn Tractors
The John Deere 111
and 111H feature a
38 -inch mower. The
1-11H has a
hydrostatic drive
system for one -lever
control of direction
and speed. Rear bag-
ger, front blade, and
snow thrower
available.
'•
Lawn and
Garden
Tractors
Seven power sizes -
10 to 19.9 hp. Triple -
safety starting. Color -
coded controls.
Fiberglass hood.
Variety of im-
plements available.
r�.
(f_LI • 0
cfb
Stock Up Now To ' id Your Home, Barn
or Patio of Those Flying, Crawling Pests
Fly Sprays
Hydrostatic
Drive...
Hydraulic Lift!
Choose from, two
models of 300 Series
Tractors: the 14:hp
314 and the twin -
cylinder 17 -hp 317.
Both havehydrostatic
drive to let you
change ground speed
without shifting or
clutching. And
hydaulic lift - single
function on the 314,
dual -function on the
317 - to give you
fingertip control of
attachments.
You also get color -
coded controls,
cushioned seat,
triple -safety starting.
Stop in today for a
test drive.
Bait Granules
Be Sure To See The
KONK
Air -Guard Mister
* Livestock
Sprays
AUTOMATIC INSECT
CONTROL SYSTEM
Lawn
'Sweepers
John Deere Lawn
Sweepers are
available in widths of
31 or 38 inches. Tow
one behind your lawn
tractor or rider to
save hours of raking
time. Heavy-duty
hampers provide
non-stick cleanout.
The System That Brought Fly Control
To Hundreds of Area Residents
Last Year
Exeter District Coop
235-2081
Blyth 523-4244
Exeter 235-1115