Ontario Agriculture

The network for agriculture in Ontario, Canada

More Quota Policy Problems

I heard this weekend that a farmer is selling his farm - valuing quota at $30K (right now it is capped at $25.5K) -- because it is a going concern. Then today - I hear that some big producers are going to buy up those types of farms and keep milking cows on them for the required 2 years -- before moving the cows and quota to their own operation.

Is this going to happen very often? It's going to make it VERY VERY tough for anyone else to buy quota -- if the only way it is sold is along with a farm.

DFO tries to fix one problem (high quota price)-- and creates another. Will they change the policy again?

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Replies to This Discussion

Permalink Reply by Darin Nooren on May 9, 2011 at 5:28am

Youre right,

 

Over inflating the value of the land or the cows just to compensate for the capped quota value is creating problems for the dairy guys and the cash crop. It adds false value to an acre of land. it also makes it tougher to buy the quota because now youre buying 100 kgs at a time which only the big outfits can afford instead of breaking it up into smaller parcels. This needs to change or there will be five dairy farms in ontario in 20 years.

 

 

Permalink Reply by GEORGE VAN DORP on June 15, 2013 at 6:05am

I have a similar problem.Bad hip caused me to put in robot that did not work.penalties , shut off and a fire caused me to partner at London Dairy Farm(LDF).High crop prices and a new hip,influenced me to start to build a new barn.When LDF was told he quit paying me and DFO policies are starving me out.I tried to rent a nieghbor's farm and LDF threatened him.Found a half full start up nieghbor but DFO regulations prevent me from going there...London Dairy Farm is still filling Quota and putting money in his pocket.I can't support my family anymore,,,,,HELP!!!! 

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