Flue grower board signs 2008 crop deal 'under duress'

Thursday, October 9, 2008

by BETTER FARMING STAFF

Tobacco board chair Linda Vandendriessche described the crop arrangement that was made Wednesday as “a huge blow to our producers.” She said the terms of the deal were “dreadful” and were agreed to “under duress.” The crop size is reduced more than a quarter from last year’s 32 million pounds and the price per pound offered is down as well. The target price of $1.93 cents a pound is 35 cents less than last year.

Vandendriessche said the board worked for 10 months and did the best it could to negotiate a better deal. The industry wants to buy Ontario tobacco at a world price.  “They haven’t been recognizing the high input costs that we have as producers.”

Vandendriessche stressed that the federal money to buy growers tobacco quota is still in place. “As a board, we have been assured that (federal money announced in late July) is still there.” Nonetheless, the current tobacco pricing deal makes the need for a new transitioning program similar to the Tobacco Adjustment Assistance program of 2005, with provincial participation, that much more necessary, she said. BF