Rural Economic Development (RED) Program

For immediate release: December 29, 2006

Ontario Government Strengthens Rural Communities

Toronto - The McGuinty government's support for the agri-food industry and investments in rural infrastructure during 2006 have helped build a stronger foundation for future prosperity, Minister of Agriculture, Food and Rural Affairs Leona Dombrowsky said today.

"We've made great progress in co-operation with Ontario's rural communities, farmers, food manufacturers and the many other businesses they support and depend on," Dombrowsky said. "Our government has consistently been there to help during the difficult times, and is moving in new directions that are good for the environment, good for the economy and good for the health of all our citizens."

During 2006, the government:

• provided $235 million over and above ongoing programs to help farmers deal with circumstances beyond their control, bringing total assistance to more than $900 million over the past three years
• made an initial investment of $32 million out of a committed $520 million to boost Ontario's ethanol production, creating jobs and new markets for the agri-food industry, and cleaner energy
• committed more than $200 million to rural communities to help improve bridges, roads, solid waste management facilities, water and wastewater treatment facilities, as well as to revitalize economies, enhance local skills and increase access to health care services.

"We're very proud of our record in rural Ontario, and are looking forward to even greater achievements in 2007," Dombrowsky said.

2006 In Review: Government Achievements
For Rural Ontario

Ontario's rural communities significantly contribute to the identity and prosperity of the province. The McGuinty government is on the side of families who live in rural Ontario and has made important investments to strengthen rural communities.

In early 2006, the government released its Rural Plan Update, titled "Building Strong Rural Communities: Working Together for Success … And Achieving It." This document details the province's progress in helping rural communities achieve more prosperity, more job opportunities, improved access to health care and education, better decisions about land use, better protection of the environment, and a higher quality of life.

This year, the Ontario government has committed more than $200 million to the rural communities, to help improve bridges, roads, solid waste management facilities, water and wastewater treatment facilities, as well as to revitalize economies, enhance local skills and increase access to health care services.

Highlights of this year's achievements for rural Ontario include:

Rural Economic Development (RED) Program

The Rural Economic Development (RED) Program provides funding for projects that are community-based partnerships that support sustainable rural economies in three priority areas: improved access to health care services, revitalized communities and downtowns, and enhanced skills training.

Under this program, 33 projects were approved for funding in 2006, in which the province is investing $9.6 million. This funding, in addition to the investments made by the communities themselves, amounts to a total investment of more than $46 million.

Project examples:

• The government is contributing $973,000 to the "Journey to your good health" project for the Royal Agricultural Winter Fair and Ontario Agri-Food Education Incorporated. This project includes an interactive program which engages elementary school students in hands-on learning about how food and exercise affect health.
  

• The government is contributing $1.7 million to Ferrero Canada in partnership with the City of Brantford to implement a recruitment and specialized training project to support the 900,000 square foot state-of-the-art chocolate and confectionary manufacturing facility in Brantford, Ontario. This facility, which officially opened on October 20, 2006, is the largest of its kind in North America, and will employ up to 1,200 skilled workers by 2009.

Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF)

Under COMRIF, the governments of Ontario and Canada, together with their municipal partners, will contribute up to $900 million towards improved infrastructure across the province. Projects to ensure clean and safe drinking water, better sewage systems, improved waste management processes, and safer roads and bridges will be funded. Green infrastructure is a priority, with at least 55 per cent of funding going towards projects involving water quality, sustainable communities and innovation.

In 2006, the governments of Ontario and Canada announced a joint investment of more than $235 million in 88 communities through Intake Two of COMRIF. These investments will provide municipalities with the support they need to renew essential infrastructure in their communities.

COMRIF Intake Three is anticipated to be announced in winter 2007.

Asset Management Program (AMP) component of COMRIF

In December 2006, the governments of Ontario and Canada launched the Asset Management Program component of COMRIF. Ontario and Canada are cumulatively investing up to $5.96 million to help eligible municipalities and local services boards (LSBs) with asset management planning and capacity building. Consistent with the COMRIF program, eligible municipalities and LSBs are required to contribute one-third of the total costs of AMP initiatives. Municipal contributions may reach $2.98 million, for a total AMP investment of nearly $9 million.

Other Rural Funding

In addition to this year's commitments under COMRIF and the RED Program, the province committed $60 million to help Ontario municipalities renew their infrastructure, and $9.6 million for economic development.

Other Rural Development Initiatives

Downtown Revitalization - The ministry continues to help communities to create and implement downtown revitalizations. Seven new pilot communities are working through the revitalization process

First Impressions Community Exchange (FICE) is a structured process that reveals the first impressions a community conveys to visitors. Volunteer "visiting teams" from two exchange communities do unannounced incognito visits, record their observations and provide constructive feedback to their exchange community. Fifteen of these exchanges were arranged in 2006 involving 30 communities. The knowledge gained through the FICE experience is being used for positive community action for downtown revitalization, tourism development, investment attraction and community strategic planning efforts.

Business Retention and Expansion (BR+E) - This program promotes job growth and economic prosperity in rural Ontario by helping communities identify both opportunities for expansion and the barriers facing local businesses. In 2006, staff completed BR+E coordinator training sessions in Owen Sound, Ingersoll, Morrisburg and Midland, which were attended by 80 participants. Two community of practice sessions were held, with approximately 70 participants sharing their best practices in implementing BR+E in their local communities. Twenty-nine communities have started new BR+E projects since January 2006.
A number of seminars and workshops were also conducted on topics ranging from increasing local tourism to linking small businesses to apprenticeship opportunities.

Rural Summer Jobs Service

Each year, the Rural Summer Jobs Service program assists 4,000 students in rural Ontario obtain summer jobs. This program supports youth employment in rural areas and helps youth gain valuable work experience. Through the program, the government provides a $2/hour student wage subsidy to employers who create summer employment opportunities for students.

Backgrounder 2

2006 In Review: Strengthening Ontario's Agri-Food Sector

The government supports a vision for an agri-food sector that is innovative, sustainable, globally competitive, responsive to consumer needs and contributes to Ontario's economic, environmental and social health. This vision was endorsed by the government and industry at the second Premier's Summit on Agri-Food in February 2006.

The summit also resulted in the Premier's Awards for Agri-Food Innovation Excellence, a five-year, $2.5-million program to recognize farm-based ideas that generate new products, new jobs and new opportunities in the agri-food sector. It also generated the highly successful Outlook Conference, with a line-up of international speakers and panels who examined how innovation in Ontario's agriculture and food industry can create more opportunities for farmers and rural communities and lead to better health for Ontarians.

Ontario's Rural Plan 2006 update report demonstrated how the Province is boosting economic development, addressing infrastructure needs and meeting the unique needs of residents in rural and northern communities.

Among other 2006 achievements are:

Competitiveness and Economic Support

• Helping farmers build a more sustainable future by providing $125 million in immediate financial assistance, putting money in their pockets before spring planting. A total of $80 million went to grain and oilseed producers to offset losses on the 2005 crop, $25 million to producers of edible horticultural crops to offset past losses and extend the Self-Directed Risk Management program for 2006, and $10 million for an Ontario livestock and poultry traceability system to help industry strengthen emergency management and capitalize on market opportunities.

• Announcing an additional $185-million investment in rural Ontario. Of this, $110 million is going to farmers and $75 million to rural infrastructure. More than $900-million has been provided to farmers to help stabilize incomes since 2003.

• Investing $32 million in the construction of new ethanol plants, which will provide jobs, economic opportunities, new markets for farmers, and cleaner air for all Ontarians. The funding is part of the $520-million Ontario Ethanol Growth Fund, which will also provide operating grants worth up to $60 million annually for the new plants in Hensall and Aylmer, as well as existing facilities in Chatham and Collingwood.

• Providing $4 million in new funding for transitional support for an affordable deadstock collection system. In total, the government has provided more than $9 million for this service since the BSE crisis in 2003.

• Providing $1.7 million to support Atwood Pet Food Limited. The company has made a commitment to the livestock industry to find an affordable, environmentally safe rendering and recycling system for a portion of livestock mortalities.

• Helping educate students about agriculture by supporting Ontario Agri-Food Education Inc. with $1.2 million over three years. The 2006 installment, worth $400,000, was the third under a memorandum of understanding between the province and the organization.

• Supporting learning opportunities for the next generation of agricultural leaders by providing the Centre for Rural Leadership with $152,000 over two years. The funding will go towards the organization's Advanced Agricultural Leadership program, one of the longest-running, most successful programs of its kind in the world.

• Helping young people gain new learning experiences in their communities by providing $2.1 million over three years to 4-H Ontario. This year marked the second installment of $700,000.

• Supporting farm gate sales to the public with a $60,000 investment over three years in the Ontario Farm Fresh Marketing Association. This year, a second installment of $20,000 was provided to the organization to help farmers market their produce, products and agri-tourism experiences to the public.

• Investing in programs to promote farm safety. The government is providing a total of $360,000 over three years to the Farm Safety Association to help it reduce injuries and illnesses on Ontario farms. This is the first installment under the memorandum of understanding between the province and the organization.

• Recognizing with Foodland Ontario Retailer Awards 28 grocery retailers who have done an outstanding job of promoting the produce grown by Ontario farmers.

• Investing $140,000 in the Royal Agricultural Winter Fair to continue promoting agricultural awareness in Ontario, across the country and around the world.

• Providing $270,000 over three years to Farmers' Markets Ontario to support the growth of farmers markets, which have $1.9-billion economic impact on the province's rural economy. The 2006 installment of $90,000 is the second under a memorandum of understanding signed by the province and the organization.

• Introducing a new regulation under the Farm Implements Act that supports smaller farm equipment dealers, their customers and the rural communities they support and depend on.

• Food industry investments made in Ontario this year include:

• Kellogg North America is investing in its first new cereal plant on the continent in almost 20 years. The $108-million plant, being constructed in the Belleville area, will initially employ 120 people and provide positive economic spinoffs in the local economy.

• Saputo Inc. - Riverside Cheese and Butter Division is investing $4 million for expansion capacity.

• Blommer Chocolate, based in Chicago, purchased the existing World's Finest Chocolate plant in Campbellford, Ontario. The purchase resulted in retention of about 30 jobs in eastern Ontario.

• Wrigley Canada Inc. is making a significant investment to expand and add new lines to their Toronto facility. Once completed it will be Wrigley's North American centre for sugar-free gum.

• Bunge Canada announced a $50 million development of a new oilseed refinery that will be located on the company's Hamilton crushing property.

Healthy Environment

• Establishing the Nutrient Management Science-Based Standards Committee to develop measures that build on nutrient management practices and protect drinking water without placing undue burdens on the agriculture industry. The committee will develop recommended nutrient management standards for the ministers of agriculture, food and rural affairs and the environment by 2008.

• Putting in place clear land use planning tools that strengthen rural communities and the agricultural sector. The government improved Minimum Distance Separation (MDS) formulas to ensure fairness in their use for farm operators, property owners and proponents of new development.

• Investing $426,000 over three years in the Ontario Soil and Crop Improvement Association's efforts to give farmers the tools they need to make their farms even more economically and environmentally efficient. This year marked the first installment of $142,000 under the memorandum of understanding signed by the province and the organization.

Food Safety

• Extending application deadlines for the Meat Plant Assistance program to help industry meet requirements of a new, more stringent meat regulation. The $25.4-million program is being delivered over four years and is designed to help the industry in education, training, technical and business decisions and facility and operation upgrades.

• Recognizing eight Ontario food manufacturers for obtaining HACCP Advantage certification. The program helps companies further safeguard the food supply, meet customer demands and capture new markets.

• Enhancing the province's ability to prevent and respond to animal disease threats like avian influenza by transferring $25 million to the University of Guelph to support animal health in the province.

• Taking steps to further protect the health and safety of Ontarians by consulting on details of an animal health strategy. Meetings were held in late fall to determine the tools needed for a more comprehensive approach to animal health.

Research and Innovation

• Establishing the Minister's Strategic Advisory Committee to help the government strengthen the agri-food industry for the benefit of rural families. The 16-member committee is drawn from a broad cross-section of the industry and will advise the minister on how to best implement an industry vision and strategic directions that came out of the 2006 Premier's Summit on Agri-Food. The committee also advised on the design of an Outlook Conference on innovation in the agri-food sector, held on November 8-9, 2006, and will provide an update on industry progress at the next Premier's Agri-Food Summit, being planned for early 2007.

• Appointing an advisory panel to examine the future revitalization of the Vineland Research Station in the Niagara region. The four-member expert panel was given $200,000 in funding and charged with exploring how the facility can be transformed into a modern, revitalized centre of excellence that serves the industry in the region and throughout the province.

• Completing the transfer of 14 research stations and three colleges to the Agricultural Research Institute of Ontario. This initiative will better align the management of the province's agricultural research infrastructure with program priorities, and leverage greater investment from the agri-food industry.

• Supporting 17 new research projects that will help strengthen the province's agri-food sector. In partnership with the federal government, the Ontario government has committed more than $1.75 million through the Alternative Renewable Fuels Research and Development Fund and the Life Sciences and Agri-Food Innovation Fund.

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