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Ag tribunal rejects appeal request

Monday, March 15, 2010

by SUSAN MANN

Dairy Farmers of Ontario isn’t required to return more than $300,000 in quota transfer assessments to an eastern Ontario dairy farmer who left the industry because of foot problems, the Agriculture, Food and Rural Affairs Appeal Tribunal ruled recently.

The Tribunal dismissed the appeal by Benoit and Isabelle Lachaine of Chute-a-Blondeau. The Lachaines operated a family farming corporation called Ferme Benoit Lachaine Inc.

In its March 5 written ruling, the Tribunal says a significant part of Lachaine’s case was based on financial hardship but it could not find any evidence of the hardship.

Benoit sold his entire quota, 88.5 kilograms, in six separate transactions between September 2007 and February 2009, for $2,145,878.82. He also disposed of his dairy herd for $140,000. The transfer assessment on Benoit’s quota transactions was $367,055.21.

“Benoit testified that the 15 per cent transfer assessment created a major affect on his family,” it says in the written Tribunal decision. Despite his efforts to transition to cash crop farming from dairy, “his income level is not the same and as a result he must re-train himself in order to find work off the farm.”

With three daughters in full-time university and his plans to register in a two-year computer science program in the fall, Benoit testified that if granted the exemption the money would be well utilized by his family.

Benoit told the Tribunal he couldn’t continue dairy farming because of unexpected medical problems related to arthritic pains in his foot.

In July 2008 Benoit asked for an exemption to the Dairy Farmers’ November 2006 quota assessment policy for two previous quota transactions and for subsequent transactions. The policy imposed a minimum 15 per cent transfer assessment on all transactions on the quota exchange. That policy was replaced in August 2009 by new quota policies introduced in five eastern Canadian provinces that included a price cap on quota of $25,000 a kilogram.

Dairy Farmers denied Benoit’s exemption request and his request for reconsideration.

“We find there is nothing special, unique or extraordinary about Benoit Lachaine’s circumstances or medical condition to warrant an exemption from the transfer assessment,” it says in the Tribunal decision. BF
 

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