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Scugog Citizen -- Tuesday, April 25, 1995 -- 17 > FARM NEWS A The future of Canada's multi billion farm industry will depend to a large part on searching out new international markets and cutting costs at home, a group of farmers was told last week. Speaking to more than 140 at the 10th annual Blackstock and District Lions Club 'Farmers Night' at the Blackstock Rec Centre, Lyle Vanclief said Canadian farmers are going to have to be "creative and innovative" if they want to keep the international markets they already have and capture new ones. , Vanclief, Liberal MP for the largely rural Eastern Ontario riding of Prince Edward- Hastings is Parliamentary assistant to federal Agriculture minister Ralph Goodale. He is touted by many as an eventual successor to Goodale in Prime Minister Jean Chretien's cabinet. Vanclief told his audience there are "amazing and unlimited opportunities" for Canadian farm exports. He cited the fact Japan currently imports $40 billion in food each year. Canada's share comes to $1.6 billion. "That's not bad, but we could be doing better," he said. Presently, he said, about 46 per cent of Canada's gross farm income is from exports with about $8 billion from the United States, by far Canada's largest farm trading partner. Vanclief said Asian countries with booming economies hold the best opportunities for Canadian exports. Taiwan, for example with a population of 21.5 million imported 3,000 Holstein cattle from Canada because of the huge advancements made in health and genetics by Canadian breeders, He predicted a 50 per cgnt increase in trade with Asia gver the next five years and said agri exports by the year 2000 from Canada have been targeted to reach $30 billion. While he spoke of the opportunities in new trade, Vanclief warned his audience that farmers will have to get by with less government help than in the past. The federal budget agriculture, he said, will go down 19 per cent (from $2.1 to $1.9 billion in the next two years) And this will mean cuts in federal ag staff by about 2,000 jobs, or 18 per cent. "We have to put a system in place that:is less dependent on government and more on the marketplace. Farmers want their income . from the marketplace rather than the mailbox," he stated. ' While stating that these cuts are needed, he pledged that Canada's world-wide reputation "for quality and safety of food will not be in jeopardy. And future assistance must go hand in hand with growth in the industry, he said. In response to a question from the floor, Vanclief said farmers under supply management (eggs, chickens, dairy products) there will be a certain degree of stability until 2001 when the tarrifs are eliminated. Know your costs by Joel Bagg, Agricultural Representative Many farmers are finding it increasingly difficult to maintain or increase their levels of income. We keep hearing and reading about competitiveness, changing market demands, GATT, NAFTA and increasing demands for capitalization. Our industry is changing rapidly and many segments are undergoing some rationalization. As individual farm businesses, we are going to have to be good to survive. Do you know what your cost of production is? You should. This is a fundamental business question. Many of the successful farm businesses in Durham Region are participating in the Ontario Farm Management Analysis Project offered by the Ontario Ministry of Agriculture, Food & Rural Affairs. By participating, you will be provided with a detailed financial analysis of your farm business. This financial analysis will help you answer such questions as "What are my costs of production per hL of milk, per 1b. of gain, per tonne, etc.?", "Where could | cut costs?", "Can I handle more debt?" "How do I compare to the rest of the industry?", and "What is my competitive position?" This is the time of year when most farms complete . their business analysis. Information provided is strictly confidential. We help you prepare an accrual income statement, a balance sheet, a crop acres and yield [8 summary, and a summary of sources and uses of cash. This can usually be done in an hour or so at the kitchen table. A computer program calculates costs, returns, trends, financial indicators, etc.. This information can be used as a valuable tool in making farm business decisions. Summaries are also available for Durham Region and the province. These can be useful in determining how competitive you are in the industry. If you are interested in participating, or would like more information, contact the Ontario Ministry of Agriculture, Food: & Rural Affairs office in Port Perry. for . After that, he said, there are no clear answers at this time. "Agriculture is no easy piece of cake these days, it's not easy," said Vanclief, whose family operated a dairy farm when he was growing up. Vanclief showed why he may be the future federal minister of Sprites, His long speech v was Vanclief tells farmers to find new markets peppered with facts and figures about what is a complicated and very important rt of the Canadian economy. The industry is worth some $75 billion to the economy and employs 1.8 million people. Here in" Durham Region, farming is second to the auto industry in economic benefits, with 3500 farm families and about the same number employed in the industry. Vanclief was introduced by Durham MP Alex Shepherd. Head table guests included Durham chairman Gary Herrema (a former Farmers Night guest speaker) and Scugog Mayor Howard Hall. Lyle Vanclief (centre) Parilamentary assistant to the federal Agriculture minister, was guest speaker at the annual Blackstock and District Lions Farmers Night last week. At left is Bill Ingrim of the Lions Club and Club president Don Cliff. See article above for Vanclief's message to the farmers that evening. OFA mad at Ma Bell Bell Canada's recently announced plans to seek increases for monthly rural telephone rates and to charge for local calls, has left the Ontario Federation of Agriculture "furious", says OFA President Roger George. "Communication services in many areas of rural Ontario are archaic and outdated, yet Bell Telephone has. the audacity to suggest we should pay more for less. If they really want to even out payment for services, then let's see them put 'party lines' in urban areas. That would be equality," he said. Mr. George went on to point out that many farm operations can not even equip their offices with something as simple as fax machines because the phone service is so obsolete. "Ontario does not just revolve 5 "ONTARIO TIRE & FARM EQUIPMENT : 66 Brock St. E. 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Long distance payments rural residents make to Bell more than subsidizes the current monthly rate." The OFA will seek status before the CRTC hearing to vigorously oppose Bell's proposal. In addition, the OFA is encouraging all rural residents to contact the CRTC, their members of parliament, Bell, Canada, and their municipal councils. "The message is simple," said Mr. George. "Left to Bell, rural Ontario residents will be nothing short of road kill on the information highway." HM High Pressure Cleaning BW Environmentally Friendly Cleaning Supplies «+ HM Eavestrough Cleaning as : x C.C.C. 18 $ Cedar Creek Contracting > DEREK FITZGERALD GIVE YOUR HOME a FRESH LOOK! MOBILE POWER WASH MW Fresh Water M Brush Service © CALL 985-2957 or : 985-3540 S| Don't Pay (905) 985-0715 O\e « NAPOLEON - NEW LOCATION 180 CASIMIR ST., PORT PERRY OVERRIDGE ' FIREPLACE WAREHOUSE "ill October '95 No Payments - No Interest (O.A.C.) 1-800-638-4751