Public funding helps one farmer, but hurts another

Norfolk County endive growers are asking if public money should be allowed to fund one farmer’s venture when it has the potential to hurt another farmer nearby involved in the same business.

The sore point is a $300,000 community transitions program grant to Aylmer-based Del-Bec Farms Ltd., owned by Richard Deleebeeck. The $15-million provincial program is geared to help communities in the tobacco belt offset the pain of a collapsing tobacco industry. Community futures development corporations in Brant, Norfolk, Oxford and Elgin Counties administer the funds.

According to a July 28, 2006 news release, the grant had “the potential to expand the Belgian endive market for other area farmers.” But, instead, charges Brenda Lammens who grew the crop with her husband Raymond until earlier this year, “they (the program and Del-Bec) put us out of business.” 

After the grant was issued, Lammens claims that the price difference between Del-Bec’s price and theirs grew to as much 70 cents per pound. Unable to compete, the couple wound up their endive business. They still grow asparagus. Two full time workers were laid off their jobs. Raymond is training for another job.

Peter and Leasa Janssen have also felt the impact of the lower prices. They decided not to raise endive prices over the past year despite increases in production costs, says Leasa.

The community transition plan’s co-ordinator, John Klunder, maintains due diligence was applied to all grant applications.

He refused to discuss details of the Del-Bec Farms grant application because of confidentiality concerns. Nor would he say who undertook the required market impact assessment.

Better Farming asked how giving one business money under the program could be justified when other businesses offered the same service or product within the area the program was intended to serve. Klunder responded: “The only statement I will make is that we did complete due diligence (in the program) and are completing a review of the market impact. Until that review is done, there is not that much to say.”

Brent Ross, a spokesperson with the Ontario Ministry of Agriculture, Food and Rural Affairs, says that the Ontario Treasury Board will review the program as part of normal practice when the province contracts a third party to administer funding on its behalf.
The community futures development corporation’s review of the program’s economic impact is due in December.

What will happen if these reviews reveal problems? Ross said that any insights would be put to use when designing similar programs in the future. Leasa Janssen has another idea. For those who have “literally lost their businesses over this,” the province should provide full compensation, she wrote in a Sept. 22 email. “For those who have been put at risk, the Ontario government should re-level the market place.”