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: 399

▶ 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

Canada Launches Carbon Market Working Group and Agriculture Watches for Opportunities

Federal, provincial and territorial governments have launched a new working group to explore greater cooperation among Canada's carbon markets, farmers and agricultural organizations may be watching closely for future opportunities.

Ag Canada Raises Durum Export Forecast; Lowers Ending Stocks

Agriculture Canada has reduced its forecast for Canadian durum ending stocks in 2026-27 amid stronger-than-expected exports, while raising its average price outlook. In its October supply-demand update released Tuesday, Ag Canada lowered projected durum ending stocks by 150,000 tonnes from September to 1.35 million, reflecting an upward revision in expected exports, partially offset by lower anticipated domestic use. Despite the reduction, ending stocks are still projected above the 1.102 million tonnes carried out of 2025-26 and the 512,000 tonnes remaining at the end of 2024-25. Ag Canada increased its 2026-27 durum export forecast by 250,000 tonnes to 5.3 million, down 9% from last year's record but 15% above the five-year average. Meanwhile, expected domestic feed, waste and dockage use was reduced by 100,000 tonnes to 433,000 tonnes, partly offsetting the impact of higher exports on ending stocks. Canadian durum exports have started the crop year strongly, with 787,000 ton

Higher Diesel Prices Put Further Squeeze on Canadian Farm Margins: FCC Report

Record-high diesel prices are putting additional pressure on Canadian farm profitability and transportation costs, with consumers potentially facing higher grocery bills later this year, according to a new report from Farm Credit Canada (FCC). The FCC Economics report examines how elevated diesel prices are affecting Canada's agricultural supply chain, from farm production and livestock operations to transportation, food processing and retail. Using an assumed 80% increase in diesel prices from pre-Iran war levels, FCC estimates Saskatchewan grain producers could see crop margins reduced by $14 to $21/acre, depending on soil zone. That scenario compares diesel at $1.18/litre before the war with $2.13 this autumn. For a 5,000-acre farm, the additional fuel expense would range from $68,000 to $106,000. In Ontario, FCC estimated that an equivalent increase in diesel prices, from $1.28 to $2.30, could reduce corn and soybean margins by $16 to $30/acre, depending on crop and tillage s

Saskatchewan Harvest Virtually Now Complete

Mostly dry weather this past week pushed the 2026 Saskatchewan harvest to near completion. The weekly crop report on Thursday pegged the provincewide harvest at 97% complete as of Monday, up 4 points from the previous week and slightly behind 99% last year. Favourable weather allowed producers to make good progress, leaving only a small number of acres of later-seeded crops still standing, the report said. Harvest is furthest advanced in the southwest and west-central regions, where 99% of crops have been combined. The northern regions are 97% complete, followed by the east-central region at 96% and the southeast at 95%. Most major crops are now almost entirely harvested. Spring wheat, durum, barley, lentils and field peas are all 99% complete, while oats are 98% finished and canola is 96% done. The harvest of fall rye, winter wheat, triticale, mustard and chickpeas is complete. However, some later-maturing crops remain further behind, including flax at 88%, canary seed at 92%,

Understanding and Applying Canola Disease Diagnostic Results

Disease testing through Canola Diagnostic Services can confirm which diseases are present in a field, but knowing how to act on them can be challenging. The real value of diagnostic testing is understanding what those results mean and using that information to make informed management decisions to protect future canola crops. Blackleg and Verticillium In Manitoba Canola Growers’ Diagnostic Testing, blackleg and verticillium stripe results are combined into a single report. For each stem analyzed, the report indicates whether blackleg and verticillium stripe were detected. For verticillium stripe, the report includes an estimated DNA load and an infection category. DNA load reflects the amount of pathogen DNA detected in the sample and can vary depending on plant maturity at sampling. The infection category provides a general indication of disease presence, but it cannot be linked directly to yield loss as the relationship between infection and yield loss is still being researched.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service