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Ruff's Green Houses Pleads For Government Help To Stay Alive

By 250 News

Friday, March 07, 2008 04:00 AM

                

Prince George, B.C. - Agriculture Minister Pat Bell says Ruffs Greenhouses have been a major player in the tree planting business in this area and the principals have been trying very hard to work their way out of a problem that was, for the most part, not their making.

Bernie Ruff  ( in photo at right) says Farm Credit Canada is in the process of putting his business into receivership after he became delinquent on a Farm Credit loan.

Bell says Ruffs have been a major player in the seedling business accounting for between ¼ and ½ of the seedlings grown in this region "And we hope there will be a good outcome in the end."

Ruff  outlines the problem this way;  he was hit by a wind storm in October 2006 that not only destroyed a major part of his greenhouse operation but the seedlings in it as well.

"We didn’t have insurance on the crop which was valued at $2 million dollars because the insurance would have cost us about $250,000 a year."   

Ruff says on the prairies when they have a wind or natural disaster, "They are given a grant to help them out, but not so in this case, I guess because I’m in the seedling business. "

Ruff says if his business closes (which is what the Farm Credit is proposing) it will put 30 to 50 seasonal employees out of work as well as 8 full timers.

"Some of these people have worked here for the past 25 years including one woman who is now 75 years of age. Where would she get work now?"

The company has grown trees for CANFOR for the past 25 years and has operated a large cold storage facility.

"We suffered a natural disaster and we need some help to get us through the mess we are in. "  The company is in arrears with the Farm Credit to the tune of $250,000 dollars on a $2 million dollar loan on the property and equipment.

"It’s not as though we don’t feel when can’t work our way out of this" Ruff says , "we have been raising about $2 million dollars worth of seedlings annually, along with receiving $250,000 in revenue from our cold storage operations ."

MLA’s Pat Bell and Shirley Bond, says Ruff have been trying their best to help our company. "The province announced in the throne speech that they are going to ramp up planting of seedlings and I am hoping that this may be a way for the government to help us out for a year until we get back on our feet. "

The company was started by Anna and Otto Ruff in 1958 and the company has done business in this area ever since.

Ruff  is running out of options "I have been paying the staff out of my own pocket but the receivers are saying that within the next two weeks they will shut the company down and lay off all the employees and there is nothing that I can do about it. "


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Comments

Try growing other crops that there is a bigger demand for....people always need self therapeutic plants, or plants to make good quality rope out of.
Another bowl of gruel, I beg of you Mr Bell.
Hell, if the Federal Liberals could continually give Bombardier interest free loans, I don't see why the government can't do something for you.
I do get a little tired of people who do not purchasing insurance, and then suffer a lost and expect government ( you and I ) to pay for it. I have my house insured, car (with optional coverage ) and even my business is covered. Yes it costs but in return I am covered. He took a gamble, with the employees and a family business and has lost. It is tragic but also self-inflicted.

The unsympathetic opinions expressed above are on the mark, but in fairness, should'nt the Ruffs receive consideration from the feds, as do grain farmers, and beef farmers?
metalman.
Hey lunarbase you are blaming him, comeon get real. Check out the insurance cost, and you say its his fault, amazing.
I feel sorry for these people, but I do not agree with government bail-outs.
Usually,all that does is prolong the agony.
And who decides who gets the cash injection and who doesn't?
How does government give to one, and not to the others?
Before making such a decision to not get insurance he should have checked to see if he would qualify for any of the various federal programs. They only exist because people lobbied and got them started. If a program didn't fit his needs he should have been lobbying, before the lost.

Plus don't forget, life is not fair. If he was a failing aerospace / transportation company based in Quebec with long family ties to the government, he would would be covered.
"B.C. is spending less than one per cent of the provincial budget on reforestation at a time when the Interior's pine forests are being destroyed by the mountain pine beetle, impacting the economies of all Interior towns."

http://www.canada.com/vancouversun/news/business/story.html?id=71e8c703-ce04-4dea-84b1-6e09d2c7bac4&k=40545&p=2

At a time when the cost of fuel is jacking up freight on anything that must be hauled in, a local producer like Ruffs is very important to PG. Not only in the local jobs provided but the higher the cost, the fewer trees we will have planted to replace our dying forests.

Governments provide disaster relief to farmers all the time, what is the difference?
A very strong point, giter. Perhaps the perspective should be oriented toward maintaining a local seedling supplier. It is indeed difficult for we laypersons to have to decide 'who gets the hand out' but for some reason the govies do not have the same difficulty, hmm. So if we the tax payers help the Ruff Greenhouse, do we then offer assistance to IFS for their extensive investments in greenhouses at Ness Lake? How about the guys down by Red Rock (PRT ?) do they get a hand out too?
Don't get me wrong, I am all for assistance to a local industry, but I believe these are fair questions.
metalman.
Well said gitterdun!
I say bail them out!! The business is viable. This is just a short term slap in the face---a perfect storm scenario. The Ruff's can return the investment back into the community. We taxpayers pay out many companies to assist the economy. $2 Mil is a drop in the bucket!

There is funding for beetle kill. So take the funding from there?! The trees have to be replaced. The airshed certainly can use a few hundred thousand seedlings to improve the quality I breathe daily.

The Feds, Prov and city should crack open their wallets!!! My goodness, if we can send politicians to China and patch potholes weekly...certainly we can support this local farmer!

Besides, the province will get it all back in July with the carbon tax --- revenue neutral right?
i agree....get them back on their feet. On globle news last night Gordie dished out a big multi-million $$$ to the Vancouver art gallery, the lid on B.C. place is going to be replaced...cost unknown.....its boomin down south...big time!! 2010...Whistler....lower mainland....Pat ,Shirley and John...better take off the rose coloured glasses!!
Being someone who is close to this family and knows the details of this story, I would like to clarify a couple of things. First, Ruff's is NOT asking for funding, they are only requesting that the government supports them by way of a letter of guarantee that would allow them to refinance with another bank, effectively solving all their problems. Their reputation in producing seedlings and being a great place to work speaks for itself and going forward even with these challenges wouldn't stand in their way. Secondly, regarding insurance, the base price is $250,000 for fire which there is no risk of. The risk of freezing and snow load is where the price goes up in multiples and the only company that might possibly entertain covering them is Lloyds of London. The fact that this company has been here for almost 40 years and has NEVER had anything like this happen before also suggests that $300,000 a year is a lot of money to flush down the toilet for something that is unlikely to happen again.
so how much do you suggest the government spend so save 8 jobs?

these must be high paying like in the aerospace industry if you have to work at 75 and can't retire
but I do agree that more is needed to reforest
maybe a repayable loan is in order but at what cost if the 1st loan can't be repaid on schedule
A letter of guarantee would take what, 15 minutes of the higher-up's time to draft? I would say that is an affordable, doable solution. There has never been a problem for this company to service its debt, no one is asking anyone else to do that now.
Big-Wayne, I think you're missing the point. They're not asking for money, they're asking for a letter of guarantee to give to the bank so they can refinance through the bank.
There is a significant cost involved if the business goes under. There may well be a shortage of trees. This is a bad thing, period. If the business is solvent then what is the problem with the province guaranteeing the loan? This does not look to me to be a bailout (a la terrace) as the company isnt asking for a grant and is profitable.
As for the suggestion that the owners hsould have been lobbying for cheap insurance coverage before the incident (and were thus to blame for their own misfortune): that falls under the heading 'proof that aliens live amoung us'.
I agree there is a big cost if the company goes down but to me it looks like they are asking for a grant and not just a guarantee as they are already $250,000 behind on a $2,000,000 loan
Mr. Ruff compares this to natural disasters on the prairies and the grants they receive
but maybe I'm reading this story wrong
This would be less than the amount of money spent on businesses and homes that built in the lowlands in Prince George who were flooded this year. They got hit by an environmental disaster and so did he. Why the difference in treatment? Notice the BC Liberals is giving millions to Vancouver for a new art gallery and nothing to the forest industry. Check this site for more on their spending.
http://billtieleman.blogspot.com/
Is this "green" or are the BC Liberals just "Green in Name Only (gino's)?
Anybody who thinks the B.C.liberals are truly"green"thinking needs to give their heads a shake!
What they really are in fact, are masters of spin and deception.
We however are pretty good at buying into the bullsh**t!
Thanks for clarifying bigdog....so then what's the hold up from the govt????

Grab em and shake em upside down and take a grant along with a letter of guarantee.

If what you have stated is factual bigdog, seems to me our big three should jump at this chance for some big PR!!

Ruff's should get the letter. It's sounds like a no brainer to me.
They have been trying to find a solution for 18 months and have been given the typical form letter response "We're looking into it." There is no stone they've not turned over. It's easy for the powers that be to say in the throne speech that they want to invest in forest seedling nurseries, but we know that talk is cheap. Even the receiver hired by Farm Credit Canada that has taken control of the nursery has told them after 2 days of familiarizing himself with the company that it is a viable business. DUH!! You don't stay in business for 40 years by being stupid. I do know that the staff at Ruff's is flooding the premier's office with faxed letters of support asking for some action, but who knows if they actually make it onto his desk.
Like Andyfreeze, I don't agree with government bailouts. However, if this was out east somewhere the cash would be flowing freely.