MELITA, Man. – A note scrawled in black marker clings to the door of a farm implement dealership here.
It tells customers that the dealership is closed “due to economic conditions.”
The business went bankrupt, nudged into insolvency by an economy that rises and falls with the fortunes of farmers.
Dean Tremaine was the only worker left at Antler River Equipment last week. He was packing implement parts into boxes and preparing to leave a job he had held for 17 years.
A few months ago, he was hoping to form a partnership to buy the Case-IH dealership in Melita. Those hopes were dashed by a sluggish farm economy and wet weather that swamped farmers’ fields this spring.
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Other business owners in the community are nervous, wondering what will happen after harvest is done and farmers learn the full effects of spring flooding.
At the True Value store, owner Brenda Skelton saw sales begin to slide last December. Farmers now are buying only the necessities.
“I’m sure we’re really going to notice it come Christmas this year.”
Mayor Ken Carels is confident his community will endure the turbulent times. But he wants government support for local merchants. He sees interest-free loans as one way to help businesses brace for the coming months of uncertainty.
“I don’t think we’ve felt the full crunch yet,” said Carels of this community in southwestern Manitoba. “I think it’s still to come.”
The Manitoba government has formed a task force to learn how it might help businesses in regions affected by flooding this spring. Headed by former Tory MLA Bob Rose, the task force visited a dozen towns and spoke with more than 100 businesspeople.
“There’s a surprising level of confidence out there yet,” said Rose. “But there are some big concerns.”
The group gathered people’s thoughts during the past two weeks. It will now make recommendations to the province.
An underlying theme among businesspeople was that government safety nets for farmers need to be improved, said Rose. Businesses also said they need a program that can provide interest relief or guaranteed loans to merchants.
Meanwhile, farmers in the Melita area are preparing for the worst and hoping for the best.
Lyle Forsyth figures he and his father can overcome this year’s hardships. They farm north of Melita, where many fields went unseeded because of wet weather this spring.
The Forsyths planned to trade in one of their combines this year, but changed their minds because of low grain prices and flooded fields.
They seeded about a third of the 3,600 acres they normally plant.
“We could use another combine and we could use another tractor, but it won’t be happening any time soon,” Lyle said.
With harvest already under way at the Forsyth farm, Lyle lamented the loss of the local Case-IH dealership. Parts for their combines are now harder to come by. It also cost Melita more than a dozen jobs.
“That has been a real hindrance for us. We’ve been running all over the damned country for parts here.”
