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

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

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