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: 338

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

Keith Kreps Appointed President of 21st Century Equipment

Scottsbluff, Neb. — 21st Century Equipment is proud to announce the appointment of Keith Kreps as President, effective July 1, 2025. Kreps steps into the role following five years as chief operating officer and brings more than two decades of executive leadership experience in the agriculture equipment industry.

Crop Outlook Improves Across Alberta, But Peace Region Remains Parched

Timely rains in June have brought some much-needed relief to Alberta’s crop producers, particularly in the Central, parts of the Southern, and North West regions. While conditions have improved significantly in recent weeks, it’s a mixed bag across the province — and farmers in the Peace Region are still waiting for a true turnaround. As of June 30, provincial crop conditions are sitting at 61% good to excellent. That’s a full 11-point jump from mid-June, though still trailing the 5- and 10-year averages by 8 and 6 points, respectively. Spring cereals are ahead of schedule, with most regions reporting progress that surpasses typical benchmarks. In the South, cereals are already heading out, while Central and North West areas are mostly at the boot stage. Broadleaf crops like canola, dry peas, lentils, and mustard are flowering earlier than normal across the board — a positive sign, but one that hinges on moisture availability through the critical reproductive stages. Surface moisture

Five Manitoba students awarded with scholarships from MCGA

Manitoba Canola Growers Association (MCGA) is proud to announce the recipients of the 2025 high school scholarship program, awarding five $1,000 scholarships to graduating students in Manitoba.  This year’s recipients are heading into a variety of academic paths, from nursing to engineering, but all share a strong connection to rural life and caring for the land. Whether headed to large universities or faith-based institutions, each student expressed a passion for contributing to their communities and pride in their agricultural roots.  The 2025 MCGA scholarship recipients are: Addison Bruce, Miami, MB: Bachelor of Science  Sarah Krahn, Rivers, MB: Pre-Nursing, Bachelor of Science  Addison Schmidt, Elm Creek, MB: Briercrest College and Seminary Makenna Sumner, Neepawa, MB: Bachelor of Science Trent Tomoniko, Franklin, MB: Bachelor of Science in Engineering “The talent and dedication we saw in this year’s applications were truly inspiring,” says Warren Ellis, Chair of MCGA. “These st

Crop Report for the Period July 1 to July 7, 2025

Growing conditions throughout Saskatchewan continue to vary. Rainfall and warm temperatures in some areas are allowing crops to progress nicely, while other areas continue to experience dry conditions which is stressing crops and leading to rapid development. There was less rainfall last week than the week prior, with the Hanley area receiving the most in the province with 44 millmetres (mm). The Serath area received the second highest rainfall with 33 mm, followed closely by the Lampman and Semans areas with 32 mm and 28 mm, respectively. Other areas received much needed rainfall, but producers are hoping for more in the coming weeks. Limited rainfall in many areas has caused soil moisture levels to drop since last week. Currently, provincial cropland topsoil moisture is 55 per cent adequate, 33 per cent short and 12 per cent very short. For hayland, topsoil moisture is 43 per cent adequate, 38 per cent short and 19 per cent very short. Finally, moisture levels in pasture topsoil is

Advancing monitoring and decision-making tools for wireworm in Alberta

Why is this research important for Alberta ag? Wireworm is a serious pest for many growers, particularly in the Prairies, where there are 3-4 dominant species. The damaging larvae live for several years in the soil, feed on multiple crops, and have patchy distributions. For these reasons, wireworm is difficult to monitor, and no economic thresholds are currently available. As new chemical seed treatments enter the marketplace, there is an obvious need for a decision-making framework for wireworm management to help producers with questions like if and when to invest in chemical seed treatments. Since wireworm is the primary reason that cereal seeds are treated with insecticides on the Prairies, the information gathered from this research can potentially reduce unnecessary pesticide use. This research will explore the possibility of using overhead imagery to detect wireworm damage patches, how damaged patches differ from undamaged areas, and methods and intensity of sampling needed to

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service