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: 395

▶ 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

Small Plane Crashes Near Fergus Into a Corn Field

A small general aviation aircraft crashed into a corn field north of Fergus, Ontario, on October 9, catching fire and triggering a major emergency response.

Western Canada’s Premier Fall Livestock Showcase

Manitoba AG EX is the province’s largest all-breeds cattle show. Drawing top breeders, livestock exhibitors, and industry leaders from across Manitoba, Saskatchewan, and Alberta. Held each fall in Brandon, Manitoba AG EX is more than just a cattle show, it’s a celebration of agricultural excellence, youth development, and community learning. With high-level competition in purebred livestock, interactive learning experiences for youth, and the return of crowd-favourite attractions like MooMania and EweMania, AG EX offers something for everyone. Highlights include the Little Lady Classic, Jackpot Bull Show, Junior Show and Showmanship, and the prestigious Supreme Breed Extravaganza, where breed champions go head-to-head for the title before advancing to the Canadian Western Agribition in Regina.

FCC Ag Summit in Winnipeg

Ideas to inspire. Insights to act. Looking to level up your farm business? Join us at the FCC Ag Summit, a series of free, one-day events to help Canadian producers like you strengthen the business side of your operations and prepare for what’s ahead. Have fun as industry experts share their latest findings and best practices. From technology and artificial intelligence to leadership, succession, workplace culture and the future of Canadian agriculture, the agenda is built to deliver value for farms of all sizes and stages. Bring your family, your management team or anyone involved in the decisions that shape your operation. Leave with practical takeaways and new connections to support your next steps.

Crop Report – October 6, 2026

Upcoming Events & News  • CropTalk Webinar: Marketing the 2026 Crop, Wednesday, October 7 at 9  am  • Get the print version of Seed Manitoba delivered directly to your door! Sign up for the print edition and/or the Seed Manitoba newsletter here: https://seedmb.ca/subscribe/   Weather Report   • Rain this week brought variable precipitation accumulations across Manitoba.  Southern regions along the US border in the East and Central regions received between 5 and 30 mm of rain. The Interlake and  Northwest regions saw accumulations of less than 1 mm over the past seven days.  The highest accumulation of precipitation was at Gardenton with 32.9 mm. Climate normals for total accumulated precipitation from May 1 to October 4 range from 261 mm to 404 mm and are based on 30-year historical data. Since May 1, large areas of the Northwest and Southwest regions have  accumulated more than 380 mm of precipitation. Seasonal accumulations are above normal for most of the Northwest, Southwest, an

Navigating Change. Seeding For Success.

Mark your calendars — the CrossRoads Crop Conference is back January 26 & 27, 2027 at the DoubleTree by Hilton West Edmonton, bringing producers, industry leaders, and researchers together for a day and half of learning, networking, and inspiration. Producers can lock in early bird pricing of just $179 plus taxes and fees before December 31, 2026, making it easy to secure a spot at one of Western Canada's premier agriculture events. Highlights of the 2027 CrossRoads Conference include: Keynote presentations from Damian Mason, respected agri-food leader; Mark Redmond with D’Arcy Hilgartner, speaking on the importance of research to producers; and Gitane De Silva, public policy leader. Expert sessions covering the latest in agronomy, farm business management, and ag technology. Networking Lounge & Industry Mixer networking opportunities with producers, researchers, and industry partners. Annual General Meetings hosted by Alberta Grains, Alberta Pulse Growers, and Alberta Canola Produc

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service