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DURHAM AGRICULTURAL NEWS By Rod Stork, Acting Agricultural Representative Asseasing Your Business - A Must: Today's farm operations operations involve many dollars of investment in land, buildings, machinery and livestock. Today's farms also turn over many dollars during a fiscal year. In our last column we stressed stressed the importance of having your farm records up to date. This can be done through such things as Canfarm, the Ontario Ontario Farm Account Book, a chartered bank's computer program, an ' accountant or any other number of ways. We also mentioned that in many cases, decisions are made that will help the farmer lower the taxes payable while possibly hurting long range planning and stability of the business. Most farms today are on the "cash" basis of recording information information and filing their income tax. This system has many advantages in that you report your income in the year received and deduct expenses in the year paid. Inventories and accounts payable and receivable are not used to compute income. The, "accrual" method involves the reporting of income in the year it is earned regardless of when payment is received, and deduct expenses when they are incurred whether they are paid or not, and adjusting adjusting for inventory change. From a farm business management management standpoint, the best method is the accrual method. However, many farmers find this difficult to do on a day- to-day or month-to-month basis. We strongly urge farmers to prepare an accrual statement at least once a year. In order to do this, you need to take a physical inventory of all of your livestock, feed crops and supplies, as well as your accounts receivable and payable. At the end of the fiscal year, OMAF has prepared prepared a specific sheet entitled, "Farm Inventory Worksheet", Worksheet", which will help you to "Take Stock" at year end. Most lending institutions also have similar sheets whidti can be used by the farmer to do an accurate inventory count. The effectiveness in putting yourself in the most advantageous advantageous income tax position can have very real effects on the success or failure of your farm business. Farmers should always remember that. income tax considerations are only one of the factors in overall management decisions decisions on your farm. As a successful farm manager, manager, you should ask yourself a number of questions when considering tax management alternatives. 1) Can you afford the purchase of capital items? 2) Does your decision have long term implications for your business? 3) Will any accrued tax savings balance out with any extra cost involved? > 4) Have you examined all possible alternatives available available to you? If you wish to reduce taxable taxable income you could consider: consider: 1) Pay off all outstanding accounts payable on seed, spray, fertilizer, etc. 2) Purchase livestock for cash. 3) Pre-pay seed and fertilizer fertilizer for the coming year. 4) Pay wages to family members including spouse, making sure that this was for work performed. 5) Hold off sales of taxable items until the new fiscal year. 6) Investigate the use of Registered Retirement Savings Plans and other retirement planning tools. 7) Make sure maximum capital cost allowance is being taken. If you are on the cash basis and wish to increase your taxable taxable position, or bring yourself from a loss position you might consider: 1) Collecting accounts receivable, 2) sell livestock and farm products if price is right, 3) not taking maximum capital cost allowance, 4) delay payment of accounts payable until the new year, 5) make use of the livestock inventory provision. These are only suggestions and must be considered in the context of the total farm. Such things as high interest rates, high input costs, low commodity commodity prices and other factors must be considered. Assuming your record keeping is up to date, your ' accountant or bookkeeper is in a position to help you make these decisions. East Central Farm Conference Conference Planned: Details of the 1983 East Central Farm Conference Conference have been announced by the Planning Committee. The five-day program will feature different commodities during the . week-long program, beginning on Mon day, January 17th will feature speakers on various topics related to the commodity of the day. The following is a listing of the various days: 1) Monday, January 17th - Sheep Day-Theme: "Keeping Your Dollars at Home". 2) Tuesday, January 18th - Soil & Crop Day - Theme: "Reducing Production Costs". 3) Wednesday, January 19th - Beef Day - Theme: "Challenging "Challenging the Beef Industry". 4) Thursday, January 20th - Dairy Day-Theme: "Managing "Managing in the New Economic Climate". Climate". 5) Friday, January 21st - Pork Day - Theme: "Managing "Managing in an Ever-Changing Industry". All the programs, except Pork Day will be held at the Ontario Government Buildings, Buildings, 322 Kent Street West, Lindsay, Ontario beginning at 9:30 a.m. each day. The Pork Day will be held at the Rock Haven Motor Hotel in Peterborough beginning at 9:30 a.m. We will be sending out complete complete programs to all Durham East farmers in the near future. However, we encourage encourage you to mark the week of January 17 - 21,1983 and plan to attend the day(s) of your choice. OAC Conference Planned: The Annual Agricultural Conference Conference sponsored by the Ontario Agricultural College ' and the Ontario Ministry of Agriculture and Food will be held on January 4, 5 and 6th, 1983 at ■ the University of Guelph. This Conference also features features various commodity programs programs and brings in producers, producers, agri business and government personnel to provide resource information. On Tuesday, January 4th, the program will feature "Cutting Costs in Growing and Finishing Beef", the 1983 Poultry Industry School and a Pesticide Symposium. Financial management of Farm Business in an unstable economy will be featured on Wednesday, January 5th. On Thursday, January 6th the programs will include: "Tips for Minimizing Costs and Maximizing Crop Profits", and "Earth in Manure Storages". All of the programs will begin at 9:45 a.m. and are held at various locations in Guelph. Anyone wishing to attend, can get more information by contacting contacting the Agricultural office. Christmas Greetings! Staff at the Ministry of Agriculture and Food office in Bowman-, ville wish to take this opportunity opportunity to wish everyone a Very Merry Christmas. It has been our pleasure to serve you in 1982. We look forward to 1983 with renewed enthusiasm and we wish you and yours, the very best in 1983. O.F.A.'s Lobbying Has Paid Off "The Ontario Federation of Agriculture's (OFA) persistent persistent lobbying has paid off," OFA president Ralph Barrie said, following the federation's federation's 46th annual convention. He was referring to announcements made during the convention by Ontario's minister of agriculture and food, Dennis Timbrell. At the banquet during the convention, Timbrell announced that the Ontario Farm Adjustment Assistance Program (OFAAP) would be extended another year, and that changes would be made to the farm tax system. "The OFA has been pressing pressing for both of these for some time now," Barrie said, "and Proposes Changes to System will Eliminate Property Taxation Din YOU KNOW! Bowmanville's Only New Car Dealership offers Complete Collision Repairs including: -- Free Estimates -- Insurance Claim Repairs -- Minor and Complete Refinishing -- Frame Repairs -- Alignment Facilities -- Available Rental Cars J COWAN PONTIAC -- BUICK LTD. BOWMANVILLE ONT 166 King St. E. 623-3396 Proposed changes to the farm tax system in Ontario will eliminate property taxes on productive farmland, Agriculture Agriculture and Food Minister Dennis Timbrell told the annual convention convention of the Ontario Federation Federation of Agriculture today. "Our overall objective in this project is ultimately to restructure restructure the farm tax system on the most efficient, equitable equitable and progressive basis possible," Timbrell said. He thanked the OFA for their support of a re-structured re-structured tax system. The proposals call for provincial provincial property tax rebates in 1984 of 100 per cent on farmland farmland and farm buildings for farmers who qualify for rebates. Farm residences would be treated as other similar residents in the same community, except that the residential lot would be assessed at 50 per cent. At present, qualifying farmers receive property tax rebates of 50 per cent covering farmland, farm buildings and residences. Under the new plan, the minimum production requirement requirement to qualify would be raised from a gross income of $5,000 to $8,000 for 1982 and 1983. When the new tax system is in place in 1984, minimums would be a gross income of $12,000 in southern Ontario and $8,000 in northern and eastern Ontario. "When this tax package takes full effect, I would expect that the total net property taxes will be reduced for the vast majority of farmers," Timbrell said. The estimated net additional additional benefit to the farmer in 1984 will be about $20 million bringing bringing the total benefit of the rebate program to more than $85 million. "What we are attempting to do is remove unfairness and inconsistencies from the tax system, and at the same time, support and strengthen the position of our productive farming community," he said. As part of the changes, a Farm Tax Appeal Board will be established to settle disputes disputes regarding production criteria. The board will include representatives from the rural community. "I believe the tax package represents a fair and comprehensive comprehensive response to the real need for change as expressed by the farming community," Timbrell said. The proposal will give Ontario farmers a system that compares favorably with other jurisdictions. It taxes farm residences on the same basis as those in the urban area with tax on the residence lot discounted by 50 per cent. The changes "will exert a positive and progressive effect" on Ontario's farm and food production, he said. I'm really pleased that many of our requests have been met." The OFAAP offers various kinds of financial assistance to farmers, including interest deferral, interest rebates and loan guarantees. "This program program will provide some help in the short-term, but with many commodity prices falling, falling, the farmers' cash flow problems may - unfortunately -be more serious in 1983. That's why OFA is going to continue encouraging the provincial and federal governments governments to reach some kind of agreement on a three-party stabilization plan," Barrie said, The stabilization plan was discussed with federal agriculture agriculture minister, Eugene Whelan, at the convention. He expressed the hope that the two levels of government would reach agreement in the early part of 1983. Barrie said the provincial government's proposal for changes in the farm tax system system is a real indication of OFA's influence. Treasurer Frank Miller had decided to shelve the changes, but after OFA held meetings and talk? with government officials, cabinet divided to go ahead with the proposals. "Many farmers are going to benefit from the new 100 per cent rebate on farm land and buildings," Barrie said. At present, farmers receive a 50 per cent rebate on farm land, buildings and residences. Under the new proposal, which will take effect in 1984, a 100 per cent rebate will be given on farm land and buildings. buildings. Farm residences will be assessed separately, and at a rate similar to other residences residences in the area. To qualify for rebate, the farm must have a minimum production of $8,000 in 1982 and in 1983. In 1984, the minimum production for rebate will rise to $12,000 in southern Ontario but remain at $8,000 in eastern and northern Ontario. Farms TURKEY DURING CO-OP CHRISTMAS TURKEY DAYS Let your family enjoy a FREE Grade A Tend-R-Fresh Christmas Turkey from your local Co-operative with* the purchase of: • 6 tonnes of any CO-OP Balanced Feed, or • 2 tonnes of any CO-OP Supplement, or • 1 tonne of any CO-OP Premix, or • 600 kg of any CO-OP Mineral. * Offer Available From Monday, December 13th to Friday, December 17th, 1982. *NOTE: • Limit 2 turkeys/family • Feed must be for delivery, before Jan. 7,1983 • Minimum turkey weight 8Z? lbs. DURHAM FARMERS' COUNTY CO OP Taunton Rd. and Hwy. 115, Orono Telephone 983-9134 or 903-9135 (Toll t-REE In Area Codo 416) 1-0U0-263-78U5) Patrick G. Deegan DENTURE THERAPY CLINIC 5 GEORGE STREET BOWMANVILLE 623-4473 or 263-2026 with the best of fall: a superstar choice of suits and sport coats to put the zest of autumn In your wardrobe and take you on through winter in top form. The great feeling Johnny Carson Apparel gives you begins with the price. Bradley Suit, $195 00 JOHNNY ORSON /1RB4REL INC. LAY-AWAY FOR CHRISTMAS MEN'S WEAR MIDTOWN MALL OSHAWA--725-8092 r ALL MAJOR CREDIT CARDS ACCEPTED King SI. Wes! JP'S ^Dominion Shoppers Drug Canadian Tiro John Street that do not meet the minimum production criteria for tax rebate will, however, continue to be assessed according to productivity values. A retired farmer or the widowed spouse of an active .farmer who chooses to reside on the farm will be eligible for the rebate for a reasonable period, if the farm qualified for the rebate prior to retirement or death of the farmer. "We wanted the minimum to remain at $5,000," Barrie said, "and the government wanted to jump immediately to $12,000. I could see the gradual increase as an acceptable acceptable compromise in good times, but with prices so depressed, I'm afraid many farmers will be ineligible." Barrie, a dairy farmer from Perth, in Lanark County, was elected for his fourth term as president. For the fourth year, the first vice-president is Ron White, also a dairy' farmer, from Denfield (Middlesex). The new vice-president is Mary Wicks, a dairy farmer from Bobcaygeon (Victoria). She is the first woman to be elected to one of the top three positions. The other executive members members are Keith Buchner, a dairy farmer from Oxford; Merle Gunby, a Huron pork producer; Brigid Pyke, a Frontenac County ' dairy farmer; and Harry Pelissero, an egg producer from Niagara. 50 Years Ago Thursday, December 15th, 1932 Listed below are the hockey players who attended the junior practice at the local arena. Russell Hayes, Dave and Clarence Osborne, Jim Cully, Ted and Bill Bagnell, Clarence Oke, George Veale, Bill Dunlop, Fred Mutton, Bill Mutton, Bob Kent, Bert Wiseman, Wiseman, Carl Raby, Ernie Hunt, Willie Wallace, Ross Mc- Knight, Murray Butler, Jack Mutton, Mervin and Russell Oke, Leon Gunn. Listed below are the members members of the Newcastle Public School Rhythm Band. Jean Gray, jingle sticks; Mabel Gray, Grace Cotter, Myrtle Foster, tambourines; Pauline Deline, sounding box; Lorna Harris, sand bars; Dolly Purdy, xylophone; Ruby Gibson, Gibson, sticks; June Allin, Lorna Flood, Cyril Meadows, bells; DickLovekin, triangle; Douglas Douglas Walton, cymbals; and Donald Jose, drums. Mr.. T.R. Reed, has been re-elected president of the Clarke Conservative Association. Association. At the annual banquet for the Alice Jackson and Sparling Sparling Mission Bands held at Trinity United Church Sunday School room on Monday, the following appeared on the program. Violin duet Paul and Kevin Symons, reading Ronald Richards, piano solo George Morris. 25 Years Ago Thursday, December 19th, 1957 Santa Claus, in the person of Dr. V.H. Storey, visited the Christmas staff party at Memorial Hospital on Monday evening. Helping Santa distribute distribute gifts were Velma Gay and Ruth Cully, For the White Gift Service at St. Paul's United Church, the Junior choir occupied the choir loft and were under the direction of Ruth Bragg and Bertha Colville. The organist was Mrs. Reta Dudley. Rev. Harold Turner conducted the service. Miss Emma W. Werry of Toronto, well-known native of Durham County, is the author of the meditation being used on Monday, February 10th, by an estimated eleven million people around the world who are readers of the "Upper Room". Carol singing led by Myrtle Hall with Ina McNaughton at the piano, herald the arrival of Section Two The Canadian Statesman, Bowmanville, December 15,1982 5 Price of Eggs Drops to New Two Year Low Canadian farmers can expect two cents less for their eggs on Monday as a result of a price change announced in Ottawa today by the Canadian Egg Marketing Agency. This 1 reduction means that producers, producers, faced with drops of six cents a dozen since September, September, will receive the lowest price for their eggs in over two years. In announcing the price reduction, CEMA General Manager, Jean Brassard, said, "The price farmers receive in December is the same as what they were paid in November 1980. I advised consumers when this decline started, that egg prices should be low through Christmas. They have been. If interest rates and feed prices stay down, the farm price for eggs should remain low through The winter." Brassard explained, This two cent drop wee caused by lower interest rates and feed costs in November. Feed costs, lower in all provinces except Newfoundland, Prince Edward Island and Saskatchewan, Saskatchewan, are a direct result of the feed grain surplus in Canada. Lower interest rates reduced the producers operating overhead overhead and profits." CEMA establishes at the start of each month the farm- gate price for Grade A Large eggs using a formula which reflects changes in on-farm costs to produce the eggs. The Agency establishes the price producers receive. The price consumers pay is set by retailers and wholesalers. Btm and Blatant Bast Madlyn Wilcox and as Mrs. Kris Kringle, assisted by Helen Nelles, at the December meeting of the Band P Club. Harry Lome Martyn proudly proudly drove a team of horses with a large box wagon containing the first load of wheat into the new pool elevator on November November 21st in Saskatchewan, according to the newspaper, The Shaunavon Standard of that province. Harry is the son of the late J.B. Martyn. 10 Years Ago Thursday, December 28th, 1972 Former U.S. President Harry Truman, 88, died early Tuesday morning, after several weeks in hospital. Cash winners for "300" Club are Bob Benson, D. R, Caldwell, Caldwell, Doug Kemp, George Jackson and Ken Cryderman. Work crews are excavating and preparing the land for the new subway under the C.P.R. tracks at the west end of town. Miss Fukunago's grades five and six class at Vincent Massey Public School recently held a Bake Sale at the school and raised $34 which they donated to Memorial Hospital. The Canadian Statesman Advertising ' Deadlines Display - Tues. 4:00 p.m. Classified • Tues. 12:00 noon INSURANCE AGENTS. your small-business clients (3 plus) will benefit from the convenience of a Blue CJflJP Plan benefit package. For detail! contact: Michael Good Oshawa, Ontario L1G4W5 5?(416) 433-5541 5220-1 T