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The Goderich Signal-Star, 1980-04-16, Page 19OFA president to .lead March up Parliament Hill by Alice Gibb Huron County farmers are going to Ottawa April 24 to join other farmers who are- asking the federal „ government to hold farm credit rates and to provide emergency `toans for farmers in financial difficulty. Ontario Federation of Agriculture (OFA) president Ralph Barri , speaking to H on Federation of Agri lture mem ers their monthly meeting in Ethel recently, said in this period of high interest rates, "I feel we (federation members) have to make our case strongly-, even though there aren't any easy answers." Mr. Barrie said both Eugene Whelan, Minister of Agriculture and Finance Minister Allan MacEachen have been invited to- meet with farmers from across the province. Mr. Barrie said the OFA is attempting to get .two . farmers who have experienced difficulties with the current high interest rates to tell their story to the media and the public. • "We hope to show the consuming public and society in . general that what is happening as a . result of these policies 'is' very detrimental to Canadian agriculture," he told federation members. The OFA president said the Ottawa trip was a chance for federation „members to live up to their slogan of "farmers working for fartn.ers". In his opening. remarks, the OFA president, a dairy and beef farmer from Lanark County said, "The OFA has some major achievements just behind them but some of the most serious problems are facing us that we've ever looked at." In addition to high interest rates, Mr. Barrie listed problems like energy prices, rural severances, foreign ownership and the question of disposing of industrial and nuclear wastes. Mr.. Barrie told the audience prime lending rates have risen about 12 times 'in the past two years. He said in 1970, the average farm in- debtedness was $11,000 and in 1979, it has risen to $40,100. He said the current economic situation is affecting farmers in three ways. The high interest rates are robbing the cash flow of younger farmers, so they 'have less per year to operate with. Mr. Barrie said high interest rates have also resulted in dramatic increases in prices at the farm supply area, which is already leading to shortages. Finally, he said the most serious result of the current economic situation is that "it's going to stop in- vestment in agriculture." He said the question today is why anyone would • invest in, agriculture with interest rates of from •14 to 16 percent, to get a six to 12 percent return for their investment. The OFA president said another area of concern for farmers is property taxes. He said assessments .on farm taxes were frozen in the early 1970s due to OFA lobbying but now the government is at- tempting to move to market value assessments. Mr. Barrie said when the OFA executive , met with the provincial Ralph Barrie J�ne 1 furrow' bYj treasurer Frank Miller to • ask for a long range policy on taxes,. Mr. Miller promised the policy would be ready by July. Mr. Barrie said the OFA has learned since the policy won't be ready by . July and said he suspects "we won't likely have a long range plan until we have majority government." In addressing the meeting's theme - "together we stand',' - Ralph Barrie said the 0F'A has had success with a number of issues, including the Petty Trespasses Act, amen- dments to the Environ- mental Protection Act and farm income stabilization programs. But he warned farmers are probably facing "more serious economic conditions than we have in some time." He said this is why the OFA is lobbying for short term emergency .loans for farmers. The OFA president said some of the other provinces . already have sotme ';pretty bloody significant interest assistance programs" for their farmers, par- ticularly in Quebec and British Columbia. He said for this reason, "part of our lobby must be directed to,.the provincial government" and told federation members the OFA executive will be meeting with the Ontario cabinet on April23. In response to 'Mr. Barrie's speech, Gordon Hill -of Varna, past president of the OFA, said part of the problem facing the farm com- munity is "the rates charged by banks and finance companies to both farmers and farm suppliers." Mr. Hill said,' "-it's the in the Lene's a', app'ec.ateq by Bob Trotter' E ida;e Rd Elma Ont N38 7C 7 Hope deferred maketh.the heartsick and hog far- mers across this nation must surely be feeling heartsick, especially the younger farmers with a high • debt. Most hog farmers with any insight have been ex- pecting a crunch for the last three years. But this spring has brought such disastrous conditions that not even the most pessimistic farmer in Canada predicted them. :, Let me explain. . • .. ' Hog prices are 30 per' cent lower this year than they were last year at this time. Most farmers suggest a breakeven point of between 50 and 55 cents a pound. As, this is written, prices are hovering around the 45 mark. Feed, the most important ingredient and'the major cost factor in hog -production, has -gone skyhigh, from - $180"a tonne last year to ni:ore than $200a tonne tfiiis year. Interest rates have risen to the point where some farmers are facing a SO per cent increase in interest charges. That's right: 50 per cent. It has happened because farmers have been forced into a poorer .credit rating. Banks, because they have to make'money,.too, are demanding appraisals of hog farms. Bankruptcies and foreclosures are common _today compared with virtually none during the last five years. ' Feed mills, often the backers or contractors for hog farmers, are not interested. Some farmers, faced with the terrible increases, have simply walked out. As mentioned before in this, corner, I. know one farmer. who walked into the bank, asked for money to put in his spring crop, was refused, dumped the keys to his hog barn on the bank manager's desk and walked out.. So, what's the solution? ' For one ,thing, easier credit terms. But farmers have been warned not to expect special treatment even though a march on Ottawa is being organized for April 24 to protest interest levels. Walter Baker,. Privy oun fl president in -the—for mer—Gonsery'ative– government, has already told farmers not to expect special treatment and no segment of society can be protected from world fin'anOal problems. rr ' I am of the opinion that farmers will have to'look to themselves to get through this period of financial worries. It has been suggested that each farmer who can afford it. should donate a feW gilts to help those in desperate straits. ' I hate to throw cold water on this proposal but a lot of older farmers resent those who have recently gone into production of hogs or who have recently ex- panded. This resentment is deep bec'auke the long- established farmers feel the newcomers and the ex- pansionists have caused the flooding of the market and the low prices. Others feel the pork beards in the various provinces should take the lead. But help is needed right now for a WATER WELL DRILLING "79 YEARS EXPERIENCE" • FARM • SUBURBAN • INDUSTRIAL .,MUNICIPAL • FREE ESTIMATES • GUARANTEED WELLS • FAST MODERN EQUIPMENT • 4 ROTARY A PERCUSSION DRILLS "OUR EXPERIENCE 'ASSURES LOWER COST WATER WELLS" DAVIDSON WELL DRILLING 4 Rotary and Percussion Drills LIMITED PHONE 357-1960 WINGHAM Collect Calls Atcepted "ONTARIO'S FINEST WATER WELLS SINCE 1900" lot of young farmers. It would take too much time and too 'much- organizing to get the various boards in- volved. By the time a plan was conceived, it would be too late. Henry Van Moorsel of Princeton• is an established pork producer but he is worried. 'He thinks an entire generation of farmers could be wiped out before the year ends. These are the young men. who recently went • into production. Most of them are excellent managers, efficient producers, innovative and eager to remain in business but are caught in the bad -timing bind of high costs, high interest and low prices. I don't know' the solution. Somebody should do something for these people, and somebody should do. something for all those young people in their first home facing intolerable interest rates. He that hath earned wa es,,put them in a bag with holes. Inte er st is one thing; usury is another. Let us all,. be happy and live within our means even if we have to borrow the money to do it with, said Artemus Ward more than 120 years ago. The problem comes when usury takes over as it has for so many young people. i�roEh drainage LIMITi D FARM DRAINAGE SYSTEMS We will be offering the same s'ervice'in Huron and Bruce Counties that has kept us foremost in Perth County sin- ' ice 1948 CALL USNOW FOR A FREE ESTIMATE 656-2618 396-4722 Or Write: Roth Drainage Limited R.R. 1 Gadshill, Ontario NOK 1J0 banks and finance companies that are going to cripple agriculture if allowed to continue (charging) these usurdus rates... Bev Brown, a federation director, told the audience she believes banks have behaved irresponsibly in loaning money to farmers they knew couldn't handle the debt. Now, she said, the banks are foreclosing much too quickly on these farmers. Bev Brown said when this period is over, "if you can , et your money anywh a else, I don't think you ould get it at the banks." Carl Hemingway, a Brussels area hog far- mer, said hog producers should consider folloWing the banks' lead and produce half the pigs and charge twice as much for them. Bev Brown said ,while high interest rates are hitting every sector of society, farmers, and particularly hog producers are "being asked to take a 10 to 40 percent cut in pay (in- come) and still meet their bank payments." She said, "•I don't mind tightening my belt, but I want everybody "else GODERICH SIGNAL -STAR, WEDNE,SE AY, APRIL 16, toxo -':Ass • 1►' across the country to take a cut in pay too." Doug Cameron, an Ashfield Township far- mer, said hog producers had to accept some of the blame for the current glut on the market "because we over -produced our market and have to live with it." Bev Brown said she disagreed, since ba.pks and finance companies flogged money to people "who wanted to build pig barns." She added if banks had hada district quota on . the money loaned for pigs, then "we wouldn't have the glut we have today." She said in one year, 30 new pig barns were constructed in one Huron County township alone. Following the discussion, Merle Gunby said the Huron Federation executive had prepared three policies to bring to the federal government's,attention at the -April 24 eeting in Ottawa. Ralph Barrie told the audience farmers find themselves in a more difficult situation than others because in some areas, farmers just can't cut back. "You can't plant half as much crop this year." BETTER TIME FOR. LET US DO THEM FOR YOU!! Residential & Rural e Driving Sheds Hog =>orns FARM CLASSIFIED - SECTION A. For sale D. Livestock GRASS SEED - Limited amount of forage mix- tures and straight seeds at last summer's prices. Available for immediate delivery. Also lawn grass mixtures. 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