Times-Advocate, 1985-04-24, Page 17Tirnes-Advocate, Aril 24, 1985
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RECEIVING LINE -- Jack Riddell and wife Anita greet some of the more than 800 guests who accepted
the open invitation to beef -on -a -bun at the Pineridge Chalet.
Was it 'l'rudeau who said : When you
are in bed with an elephant. you are
aware of every move it slakes"
Later. 1 think he or someone in his
Cabinet put in gutter English: When
you sleep beside an elephant, every
time it passes wind. you can be in
trouble.
Which is what is happening to hog pro-
ducers in Canada. A month ago. the
Yanks finally decided to impose a du-
ly on allpork imported from Canada.
The U.S. Department of Commerce
ruled that Canada illegally subsidizes
the export of hogs and pork. illegal
because of the General Agreement of
Tariffs and Trade.
The department objects to the im-
ports of Canadian pork on the grounds
that subsidies have been paid to
farmers through stabilization pro-
grams both federal and .provincial.
and through government services in
hog grading and Record -of -
'Performance testing.
Canadian farmers pointed out
months ago that no stabilization
payments were made for hogs that
were exported but the V.S. Depart-
ment of Commerce boys did not see
it that way. And it is a big market :
ab.iut 30 percent of all Canadian pork
was being shipped to the 11.S., a total
of $542 million in 1984.Thal is a big
chunk of our market.
II diel not happen overnight. Discus-
sions began months ago and a ruling
could have been passed in January
but the Yanks waited until late
March. There will also be further
hearings to determine if the amount
of the duty is fair - it lower than
originally planned - and then to deter-
mine if the U.S. hog and pork industry
has really suffered damage from the
Canadian exports.
Under GATT, the Americans must
justify the duty.
The tariff has had an immediate
and heavy effect on the Ontario
market. Prices on top-quality hogs
droped from 66 cents a pound to 62-37
within a few days. It is difficult to
establish a break-even price for
farmers because some have heavy
debts to carry and some inherited the
farm and some have built slowly and
steadily over the years. However, the
farmers 1 talked to in the last couple
of weeks have generally agreed that
they cannot make money at 62.37
cents 0 pound. The break-even point
for many of them is about 66 to 70
cents a pound.
It is ironic that Ontario farmers will
suffer the most because they ship the
most hogs yet Ontario's provincial
subsidies are the lowest in Canada.
The Americans have gained the up-
per hand. obviously. by taking such
drastic action so soon. Further hear-
ings will be held this month as well as
in June and August. Canadians will be
challenging the elephant's actions on
the size of the countervailing tariff as
well as its validity. As mentioned,
Canadian hogs which are exported
are exempt from any stabilization
payments.
The key decision is whether or not
the tariff will become permanent and
that will be made in August.
It is quite a blow to the industry dur-
ing a time when farming in Canada
has become a precarious occupation.
One hog in three is exported by the
United States either alive or as pork.
The hog industry is North American,
not Canadian and d has been for 50
years.
So, the elephant, after threatening
action since November, has finally
raised its tail and dropped a load on
Canadian hog producers.
All we can do is wait for the mess
to be cleaned up. About the only
positive feature of the whole affair is
that pork prices will drop a little
across Canada. The consumer will get
cheaper pork chops for summer -
barbecues.
It's an ill wind and all that baloney.
Pork bologna`?
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Capital gains
should stay
The Conservative election promisee
of the 1984 federal election to
eliminate capital gains tax on
farmland targets the wrong people
and will have unacceptable effects
both in the short-term and the long-
term according to the Christian
Farmers Federation of Ontario. -
The CFFO's Provincial Board has
adopted a formal policy statement
calling for the retention of capital
gains tax on farmland. The tax should
stay, the Federation says for both the
sake of agriculture and in the interest
of fairness in public policy.
"Farm policy should not help those
going out of business at the expense
of beginning and struggling en-
trepreneurs," the statement says.
"The elimination of the tax is not
designed to help farm entrepreneurs
deal with the risk of agricultural pro-
duction or marketing".
"Beginning farmers would be
seriously disadvantaged by the pro-
posal," the Federation says. "They
would have to compete for land with
purely investment money seeking a
tax free capital ' gain by holding
farmland."
e e r era ion is oppose • o en-
couraging investors to purchase
farms since more investor ownership
of foodland will force more farmers
to lease. This, the Federation fears,
will lead to increasing foodland
degradation since Ontario does not
have a tradition of long-term leases.
Existing policies that allow family
farmers to defer capital gains tax on
farmland when it is sold within the
family and that allow a roll-over of
$120,000 or capital gains into an RRSP
provide enough opportunities for tax
sheltering, according to the
Federation.
A SPACEMAN CAME TRAVELLING — Jason Popple and Danny Up -
shall represented visitors from the year 2135, at the Huron Centen-
'al—School play "This Las e - was it is and It will be". The play
portrayed three time periods: 1835, 1985 and 2135.
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RR 1, Dashwood, NOM 1 NO
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