Ontario Agriculture

The network for agriculture in Ontario, Canada

http://www.lfpress.com/news/london/2010/02/16/12895161.html

before long they'll be asking for another 300m saying they can't afford to go on. tobacco is giving the rest of ag a bad name with their hands always out. time to let them find other crops on their own.

Ontario tobacco growers who took federal buyout money are exploiting loopholes to keep growing the crop, an anti-smoking lobby charges.

While virtually every Ontario producer took the buyout last year, the province still produced the same size crop in 2009 as it did in 2008 before the incentive to get out of the business kicked in.

If the program isn't getting growers out of the industry, it's "a colossal waste of money," says the federal Liberal health critic.

"Even if it follows the letter of the law, it's not the spirit," said Toronto MP Carolyn Bennett, a doctor. "I don't think the auditor-general would be happy with the way the government is spending this money."

Tobacco farmers were paid $286 million in compensation last year when the tobacco production quota system was scrapped and replaced with a new licensing system.

All but 18 growers took the buyout, averaging about $275,000, agreeing never to grow tobacco again.

But 118 growers were licensed last summer under the new system and an estimated 22-million-pound crop was produced, the same as in 2008.

Many people who hold the new tobacco licences struck deals with experienced growers who took the buyout, said Neil Collishaw of Ottawa-based Physicians for a Smoke-free Canada.

"Licences have been issued to non-farmers, sometimes living in distant communities, who provide legal cover to tobacco farmers who have been paid to stop growing tobacco, but are continuing to farm the same quantities on the same land," he said.

Collishaw said people have told him about tobacco farmers growing the crop for relatives or friends who are tobacco licence holders.

The Free Press was contacted by a former grower and a neighbour of a grower who confirmed Collishaw's claims about loopholes.

But Fred Neukamm, chairperson of the Ontario Flue-Cured Tobacco Grower Marketing Board, said the buyout program wasn't aimed at eliminating all tobacco production in Canada.

He said growers who took the buyout are legally allowed to work for a licence holder.

With a major investment in tobacco land and equipment, he said, many growers had no viable alternative crop.

"People are stuck with debt and stranded infrastructure with no viable transitional opportunities, so they are forced to seek employment," Neukamm said.

Last May, an Agriculture Canada deputy minister sent a letter to the tobacco board advising that farmers who took the buyout could work for a licence holder if the relationship was at "arm's length" and any payments for services were at "fair market value."

Agriculture Canada's Patrick Girard said the quota buyout program was put in place "to assist those farmers exiting the program to pursue new opportunities in agriculture."

He said any farmer who breaches the buyout program's conditions will have to repay the assistance they received, plus interest.

Last April, federal Agriculture Minister Gerry Ritz moved to tighten up the buyout program by requiring licence holders to sign a declaration saying they're not receiving money from the quota buyout program.

Farmers who took the buyout couldn't be a partner or shareholder in a licensed tobacco operation.

But Collishaw said former growers still have the chance to get lucrative salaries from licensees to grow the crop.

The tobacco licensees were also eligible for a federal interest-free advance payout program offered to agricultural producers.

Neukamm said the tobacco board is working "rigorously" to prevent any abuse of the system, requiring full disclosure from licence holders who rent land or equipment from a farmer who took the buyout.

The tobacco marketing board, which once served the interests of thousands of tobacco growers, is now a small government-appointed agency that oversees and enforces tobacco licensing. Its employees have shrunk from 15 to two and its Tillsonburg headquarters has been sold.

Neukamm said Physicians for a Smoke-Free Canada appeared to be on a "witch hunt" for tobacco farmers and should devote more effort to urging the federal government to curb the growing market for untaxed contraband tobacco.

Collishaw said the number of tobacco licences granted in Ontario is likely to grow next year.

Neukamm said more licences are possible because the production of Ontario tobacco lags behind the demand by manufacturers serving the Canadian market.

Views: 340

Reply to This

Replies to This Discussion

what happened here will make it difficult for a good longterm planning for the futhure of all agriculture supported by our prov. and federal treasures.
any program will need a clause to protect the programs from legal abuse of the system.

Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Premier Moe preparing for trade mission to China with focus canola and agriculture

Premier Scott Moe says an upcoming trade mission to China is aimed at protecting and expanding Saskatchewan’s role in global agriculture markets, particularly for canola. Moe confirmed he will travel to China within the next week, representing not only producers in Saskatchewan but also the wider Canadian canola sector and agriculture industry. “This is an industry that employs about 200,000 people in our nation and generates between $40 and $45 billion each year,” Moe said. “It’s not just important to Saskatchewan or the Prairies, but to all Canadians, directly or indirectly.” The premier said discussions will focus on maintaining market access for canola, pulses, pork and seafood, but stressed that opportunities extend beyond any single commodity. “My goal is to help pave the way for broader agreements with China as we diversify our trade,” the Premier continued. “There’s a bigger conversation to be had, not just with China, but also with India and other countries around the worl

Carney pledges $370M in incentives for canola sector

Ottawa has announced $370 million in new support for Canadian canola producers facing massive tariffs from China. The federal government said Friday that a new biofuel production incentive is meant to address “immediate competitiveness challenges” after China hit Canadian canola with a 75.8 per cent tariff last month. The measure was widely seen as a response to Canada’s 100 per cent tariff on Chinese electric vehicles. The funds are meant to “assist domestic producers and restructure their value chains,” Prime Minister Mark Carney said in prepared remarks as he announced a suite of supports for tariff-affected sectors in Mississauga, Ont. Carney also said the government will amend its Clean Fuel Regulations to “spur the development of a vibrant biofuels industry in Canada.” And he said the government will temporarily increase the amount producers can receive in interest-free advances to $500,000, and boost funding to support diversification to new markets. A day earlier, Carney’

Federal government misses the mark with support for canola industry

The Canadian canola industry is disappointed with the support measures announced today by the federal government in response to the closure of the Chinese market to Canadian canola seed, oil and meal. The announced measures fall short of what is required to support the industry during this unprecedented trade disruption. “We are discouraged with the government’s support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “We have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.” “Farmers should not be expected to borrow their way out of this situation," says Rick White, President & CEO of the Canadian Canola Growers Association (CCGA). “The Advanced Payments Program (APP) is not designed to provide the required support canola farmers need under this situation,” says White. “

Fertilizer Shipments Survey, third and fourth quarters 2024/2025

Data from the Fertilizer Shipments Survey are now available from The Daily.

Ottawa Announces Canola Sector Supports

The federal government is rolling out a suite of new measures to strengthen Canada’s canola sector and broader agriculture industry against mounting trade and policy challenges.  

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service