The Goderich Signal-Star, 1980-04-02, Page 33The Farm Edition, Week of April 2, 1980 • 3
Hydro should share decisions with farmers: Porter
Ontario Hydro has finally
been put in its place by the
recommendations of the Por-
ter Royal Commission on
Electric Power Planning, ac-
cording to spokesmen for the
farm community.
"For more than six years
we've been saying that Ont-
ario Hydro planning and de-
cision making is lousy," said
Lloyd Moore, Chairman of
the Food Lund Steering Com-
mittee. "Food land has been
ignored and big mistakes
have` been made. Butnow we
have been vindicated."
Porter has recommended a
joint planning process and
that real decision-making
authority should be shared
with fagners.
The Food Land Steering
Committee is an umbrella
group for seven farm organ-
izations including the Ont-
ario Institute of Agrolegists,
the Ontario Federation of
Agriculture, the National
Farmers. Union, and the
Christian Fanners Federa-
tion of Ontario.
"It's a break through for
us," sais Elbert van Donker-
sgoed, Secretary -Treasurer
of the Committee, and the
Committee's representative
at many, of Porter's hearings
throughout the five years of
the Royal Commission's life.
"Porter has -taken a careful
look at the decision-making
process of the past and found
that the concerns for food
land and of the farming com-
munity have been ignored.
The only way to change this,
is to have joint planning and
shared decision-making.
The Food Land Steering
Committee met near Listowel
to review the Porter report
the clay after it was released.
•`We've'agreed," said El-
bert van Donkersgoed, "to
seek an early meeting be-
tween ourselves,. senior Ont-
ario Hydro management and
Dr. Porter."
Porter recommends that
more initiative be left to
citizen representatives.
"We've decided to take
the initiative" said van Don-
kersgoed. "We want to work
out the details of this joint
planning and shared deci-
sion-making immediately.No
Financing should be
based on ability to repay
The amount of credit re-
quired to finance your farm
operation should be suffic-
ient for your needs and
should be based on your
ability to repay the borrowed
funds.
Some farmers "finance as
they go" -- with no over-all
plan of action or commitment
of credit to meet their fin-
ancial needs. This may result
in an "on-off" credit situs:
tion which may limit future
growth.
A better way to meet your
over-all financing needs is
"line -of -credit" financing.
This method of borrowing
establishes your total farm
credit requirements each
year; a number of approp-
riate "credit lines" are set
up for you, depending on
your ability to repay rather
than being limited solely to
the amount of collateral sec-
urity you can put up.
A package of this kind of
credit consists of separate
authorized "lines" to prov-
ide you with operating credit
and facility to purchase capit-
al items, such as machinery,
breeding, stock and land. ,
Once they are established,
the credit lines can be used
as you need them throughout
the year without further
authorization by the bank.
Until you actually -:borrow
or use these funds, you do
not pay interest charges.
The credit lines are re-
viewed each year and in-
creases or decreases are
made in accord with your
neeeds .and' repayment abil-
ity. Obviously; since line -of -
credit financing is geared to
your ability to repay and your
track record, it is to your
advantage to borrow from a
single lender.
This type of financing lets
you plan with more confid-
ence since your credit needs
have been identified for the '
entire year. It also lets you
operate on a cash basis --
taking advantage of price
discounts and special
"buys" that may arise. It
lets you proceed on schedule
with growth- orr development
projects, without having to
worrY whether the necessary
cash .orcredit will.. be mail-
able.
There are four basic steps
in setting up a line -of -credit
and your bank manager can
help you with them.
First, a budget of hext
year's operation is required
to estimate your probable net_
farm income and the related
debt repayment capacity.
Second, you must esti-
mate your, total' investment
capital needs for the .year,
including purchases of mach-
inery, buildings, breeding
stock and land.
Establish single
milk standard
"Implementing a single
— - -goal ty-standard4or•-atl -farm--•
milk and farm premises must
encompass, at the same
time, one pool pricing for all
milk producers 'in the prov-
ince.," says Fred Kabbes,
Chairman of the National
Farmers Union Dairy Com-
mittee in Ontario.
The Ontario Milk Market-
ing Board has decided on a
program which will require
all Group two , mol producers
to meet:the quality standards
of the Group one pool
producers, with complete
conversion by September 1,
1981.
Mr. Kabbes, an Arthur,
Ontario area dairy farmer,
said he agrees there are
benefits that go along with
one pool quality, with sub-
stantial savings in. trucking
-arid _ administration -fees,-
"But, after .more than 14
years . in operation . the
-O : M :•M -B :~ can=nvw--etrds--it'
discrimination of Group two
I producers and accept one
price pooling for all quality
milk."
According to an O.M.M.B.
information bulletin the• plan
is: commencing Feb. 1, 1980,
all milk will be -required to
meet Grade A quality re-
quirements, (less than
100,000 bacteria per ml,);'
commencing Sept. 1, 1980,
the milk quality penalties
applied in the Group one pool
will become effective for the
Group 2 pool; and, commenc-
ing Sept. 1, 1981, all prod-
ucers will be required to have
farm premises that meet the
Grade A standards.
"A great. many Group 2
pool shippers already qualify
for Grade A standards, and
have -'_for _some time there-
fore they are entitled to a
Turn to page 110
- Third, a cash flow analysis
is needed to determine the
amount of operating loans
you will require to meet your
peak seasonal needs.
This information is used by
you and the bank manager to,
set up realistic line -of -credit
for the year, tailored to your
debt handling capacity.
more Ontario Hydro projects
should go forward without
the new decision-making
process being in place."
Farmers were pleased that
Porter is predicting a much
slower growth in electricity
needs than Ontario Hydro's
predictions in the past. This
confirms the views of farmer
spokesmen throughout the
hearings that Hydro's for -
casts were unrealistic.
Spokesman fox the Huron
Power Plant Committee, also
participants in the umbrella
group, were pleased with the
strong recommendation ag-
ainst another power plant
along Lake Huron.
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