For Release: March 29, 2005
McGuinty Government Helping Ontario Farmers
Provides New Support for Grain, Oilseed, and Tobacco Growers
TORONTO - The McGuinty government is boosting its support for Ontario's
farmers by providing additional support to eligible grain and oilseed
producers, and introducing a transition fund for tobacco farmers, Minister
of Agriculture and Food Steve Peters announced today.
"We recognize and value the contribution that our agriculture sector
makes to the economic and social well-being of every Ontarian. That's
why we will provide an additional $129 million to Ontario's farmers,"
said Peters. "We are firmly committed to working with all members
of the industry to create a stronger, more sustainable future for our
farmers and food processors and our rural communities."
Through a new $50 million Tobacco Community Transition Fund, the government
will provide $35 million to assist tobacco growers wishing to exit the
industry. Tobacco growing communities will receive $15 million to encourage
economic diversification and innovation.
"Ontario communities know what works best for their residents and
are in the best position to deal with local issues," said Maria Van
Bommel, Parliamentary Assistant to the Minister of Municipal Affairs and
Housing (Rural). "By targeting assistance towards a community transition
program, we are helping affected rural communities in tobacco-growing
areas find new ways to prosper in the long term."
"Our Board welcomes the government's participation into an adjustment
assistance program for tobacco producers," said Fred Neukamm, Chair
of the Ontario Flue-Cured Tobacco Growers' Marketing Board. "We see
this announcement as a positive first step toward meaningful discussion
on a long-term solution for our farmers - a solution which needs to include
government, tobacco manufacturers and farmers."
The government will also provide $79 million in funding through the Market
Revenue Program (MRP), to ensure that eligible grain and oilseed producers
receive the province's full 40 per cent of 2004 program benefits prior
to spring planting. This new funding is in addition to the $88 million
delivered to farmers who participate in MRP earlier this month. The government
will continue to work with the industry to develop a longer-term solution.
"I'd like to thank Minister Peters and the Ontario government for
their commitment to farmers," said Tom Cox, Chair of Integrated Grain
Processors Co-operative and a cash-cropper. "This funding means that
our farm will have much greater confidence putting a crop in the ground
this year, and the government's pledge to work on longer-term solutions
means a more sustainable future for the industry."
"Despite the fact that the negative effects of severely depressed
commodity prices on the agricultural community is a national issue, our
government has shown the leadership required," said Peters.
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Contacts:
Dave McLeod
Ontario Ministry of Agriculture and Food
519-826-3198
BACKGROUNDER:
Ontario to Provide its Full Share of Market Revenue
Benefits for 2004 Crop Year
The Ontario government will be putting an additional $79 million into
the Market Revenue Program fund and will be making additional payments
to eligible grain and oilseed producers by spring planting.
The Market Revenue Program (MRP) is cost-shared between the federal and
provincial governments and producers. The business risk management program
provides financial support to participating grain and oilseed growers
when market prices fall below an historic average and is designed to ensure
producers receive 90 per cent of historical average prices and yields.
To ensure the additional payments are delivered to Ontario's farmers
in advance of spring planting, payments will be based on projected 2004
crop returns.
Under the terms of the Agricultural Policy Framework (APF), the MRP and
other province-specific business risk management programs are slated to
end with the 2004 crop year. Government and industry representatives are
continuing to work on a new generation of programs that better meet the
needs of Ontario's diverse agriculture sector while reflecting the goals
of the APF.
In addition to these working groups, the government recently established
a four-member Advisory Committee on Business Risk Management Programs.
The committee will assess the extent to which the two current national
business risk management programs (Canadian Agricultural Income Stabilization
program, Production Insurance) are providing adequate farm income stabilization
benefits to Ontario agriculture and make recommendations on revisions
to those national programs, or the introduction of new programs or program
elements.
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Media Contact:
Dave McLeod
Ministry of Agriculture and Food
519 826-3198
BACKGROUNDER:
SUPPORT FOR ONTARIO TOBACCO FARMERS AND THEIR COMMUNITIES
The Tobacco Community Transition Fund is a new $50 million initiative
designed to assist Ontario's tobacco growers and their communities. The
government of Ontario will provide $35 million to the Flue-Cured Tobacco
Growers' Marketing Board to assist growers who wish to exit the industry.
A further $15 million will be administered by existing Community Futures
Development Corporations in the tobacco growing region to encourage long-term,
sustainable economic development.
The government recognizes that its Ontario Tobacco Strategy, designed
to improve the health of Ontarians by reducing tobacco use in the province,
will negatively affect both tobacco growers and their communities, by
reducing demand for their product. This fund complements that strategy.
"On behalf of the residents of Norfolk County, I want to thank Mr.
Peters for his strong representation of Ontario's tobacco growing region,"
said Rita Kalmbach, Mayor of Norfolk County. "This assistance means
communities like ours can build a stronger, brighter future."
In October 2004, the Minister of Agriculture and Agri-Food Canada, Andy
Mitchell, promised $71 million in transition assistance for tobacco growers
in Ontario and Quebec. The government of Ontario anticipates that both
the tobacco growers' board and the economic development agencies will
work with the federal government to design and implement a programs that
complement federal initiatives.
There are approximately 770 flue-cured tobacco growers in Ontario, down
from almost 1,100 in 1998. Revenues to tobacco producers dropped by approximately
$140 million between 1998 and 2004. The 2004 crop was set at 87.9 million
pounds, down from 94.1 million pounds in 2003, and from 154.9 million
pounds in 1997.
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Media Contacts:
Dave McLeod
Ministry of Agriculture and Food
519 826-3198
Kim Wingrove
Ministry of Municipal Affairs and Housing
519-826-4533
