© AgMedia Inc.
by GEOFF DALE
While she has yet to read the full report, the chair of the Ontario tobacco board says there is merit in a George Morris Centre criticism of the new Tobacco Transition Program, particularly in the prohibition of succession.
The report by George Morris senior research fellow Larry Martin, says transition program rules affect succession planning, diversification by both participants and families and the “very structure of the family enterprise.”
“One of the biggest concerns which could have implications for those involved in any farming operation is the prohibition of succession,” Martin adds, noting “it is the nature of Canadian agriculture for one generation to help the next by loaning funds, making loan guarantees and renting the land.”
Tobacco board chair Linda Vandendriessche admits the deal has caused some grief because family opportunities could be lost. Ottawa’s $286-million buyout package included an offer of $1.05 per pound of quota.
The board has raised its concerns with the federal government, she adds, and awaits a response from to a letter sent recently to Ottawa.
Martin, also a director with Lake Erie Farms, is calling on immediate action from Federal Minister of Agriculture and Agri-Food Gerry Ritz to deal with the tobacco issue, noting, “If the minister does not act quickly, there will be almost no crop this year.”
Vandendriessche says while there will no longer be a quota system, there are about 100 eligible applicants that are seeking licenses to grow tobacco.
Media and public relations representative Linda Lietaer notes the vast majority of tobacco farmers opted for federal compensation.
Vandendriessche says the majority of producers will use the money to pay down significant debt, leaving some with “nothing in hand.”
“I know the $286-million is a big pot of money that farmers are grateful for but it’s not going to allow total transition in this area,” adds Lietaer.
Noting the current state of the economy, the board chair says she is deeply concerned about the five county area in southwestern Ontario. Individuals working in factory farms used to have the farm to fall back to. “Well they don’t even have that now, so these are difficult times here,” she says. BF
Tobacco Transition
From where I sit there is more evidence that the farmers that have accepted the transition payments, and then gone back into tobacco production, have robbed the government (read taxpayers). Tobacco has had its day and there has been 40 years of warning for the industry. Yes, there are other illegal sources but two wrongs don't make a right.
Farmers robbed by government
The government has taken away the family enterprises which took 3 and 4 generations to build up. My quota was taken from me by ultimatum. My markets have been given to smugglers and foreigners. My equipment has been made worthless. The only thing which is truly mine is debt.
And what have the government bureaucrats accomplished? The price of cigarettes is way down. Check at any reserve. Smoking rates are up. Youth smoking rates are up. Smugglers don't check for ID. A new generation of smokers has been created. The cigarette companies are foxier than you suspected.
So, the tobacco farmer is broken. Congratulations government, you have done it. Unfortunately, you lost the war on smoking which was your prime objective.
Ag Canada is even cutting off the final CAIS payment. Thanks for kicking us when we are down. You are a fine group of compassionate human beings. And the province can take a bow as well. By not paying for your 40% share, you have destroyed any hope of transition. I hope that you plan to buy a retirement property in the blowing sand dunes of Elgin and Norfolk. It will soon return to the desert that it was before tobacco. Even my former employees who transitioned to the auto sector are out of work. After 3 generations, we have a lot of former employees.
And for you supply management groups who sat by smugly while the tobacco board was dismembered, I have it on good authority that Harper is coming for you next. Guess which group he will attack first?!
family farm
Our family has been growing tobacco for 67 consecutive years, we were thinking about retiring this year and our son was going to take over. With this buy out none of this is posssible now.