Mitchell scratches deferred payment ban Friday, December 17, 2010 by SUSAN MANNOntario Agriculture Minister Carol Mitchell implemented a regulatory change this week that enables farmers to continue using deferred payments for their grain crops for the time being.And that means its “business as usual,” she says in a telephone interview.Agriculture Ministry spokesperson Sarah Petrevan says a deferred payment agreement has to be voluntary between all parties, must be put in writing, and it clearly has to define when the grain dealer or elevator operator will pay the producer. In addition, the dealer or elevator operator can’t extend payment to a farmer beyond July 1, 2012.The need for the agreements to be voluntary is “protecting the farmer’s choice to enter into a deferred payment agreement,” she says.On November 29 Agricorp issued a notice saying it would be cracking down and enforcing the ‘no deferred payment’ rule in the Grains Act. But Barry Senft, Grain Farmers of Ontario CEO, says farmers have been using the practice of deferred payments for more than 20 years. Dave Buttenham, CEO of the Ontario Agri-Business Association, says the ministry recently determined that deferred payments weren’t permitted after completing a legal review of Grains Act regulations.Buttenham says Agricorp’s move to crack down on the practice “in the mid stream of harvest was nothing short of a nightmare.”Grain elevator operators, dealers and farmers were confused and frustrated both by Agricorp’s notice to implement the ‘no deferred payment’ rule and the timing of the announcement. Senft says they were getting 25 calls a day from concerned farmers, while Buttenham says the agri-business association was also getting lots of calls from dealers and elevator operators.Both groups asked the agriculture minister and Agricorp to clearly outline how they planned to implement the change.Buttenham says they are pleased with Mitchell’s decision to continue allowing deferred payments for now. The bigger question is “how do we deal with this moving forward?”He says dealers and elevator operators view deferred payments as a producer issue. “If the producers say this is something that they need our primary role is to ensure elevator and dealer interests are covered.”Senft says they don’t know how many farmers use deferred payment arrangements. But many producers use the tool to manage tax, especially in years like this one when there are both good crops and good prices. “This year would have been a year when it might have been used even more so than in an average year.”Senft explains “it’s a tool that’s used to level off income from one year to a next.”Both Grain Farmers and the agri-business association are breathing a sign of relief that they don’t have to scramble and cancel current deferred payment arrangements by the end of this year.Grain Farmers and the agri-business association will be meeting with Agricorp and the provincial agriculture ministry early next year to determine how deferred payment arrangements can be incorporated into the Act along with what type and size of fund is needed to pay farmers in the event of elevator bankruptcies.Senft says the minister’s regulatory change gives the industry time to thoroughly review the practice of deferred payments and come up with a long-term solution.“It seems that since this has come into question we’re finding this is a well-used practice,” he explains, noting Grain Farmers would look favourably on having it continue.If an elevator went bankrupt it would be up to the Grain Financial Protection program board to decide if a farmer with a deferred payment arrangement would be covered and they’d decide that on a case-by-case basis, Senft says.In the longer term, a decision must be made to determine if deferred payment arrangements will be excluded or included in the Grain Financial Protection Fund.Senft explains that currently the Grains Act stipulates payment to farmers must be made within 10 trading days after the grain is delivered, while sales from storage must be made by 2 p.m. of the next trading day after the day of sale. For basis or delayed price contracts, 75 per cent of the current market price must be paid by 2 p.m. of the next trading day after the day of sale with the balance being payable when the producer prices the grain to close out the contract. BF Fall rebound for farm product prices Province quashes hopes for retroactive bunkhouse payments
Calf Auction Raises Funds for Youth Monday, June 30, 2025 Wyatt Westman-Frijters from Milverton won a heifer calf named Ingrid through a World Milk Day promotion by Maplevue Farms and a local Perth, Ontario radio station. Instead of keeping the calf, 22-year-old Westman-Frijters chose to give back to the community. The calf was sent to the... Read this article online
Cattle Stress Tool May Boost Fertility Friday, June 27, 2025 Kansas State University researchers have developed a cool tool that may help reduce cattle stress and improve artificial insemination (AI) results. The idea came from animal science experts Nicholas Wege Dias and Sandy Johnson, who observed that cattle accustomed to their environment... Read this article online
Ontario pasture lands get $5M boost Friday, June 27, 2025 The governments of Canada and Ontario are investing up to $5 million to strengthen shared community grazing pastures. This funding supports the province’s plan to protect Ontario’s agriculture sector and help cattle farmers improve pasture quality, ensuring long-term sustainability and... Read this article online
Health Canada sets rules for drone spraying Wednesday, June 25, 2025 Health Canada has approved the use of drones, also called Remotely Piloted Aircraft Systems (RPAS), for pesticide application under the Pest Control Products Act (PCPA). Drones are considered aircraft by Transport Canada, but Health Canada treats them differently due to their unique... Read this article online
Twelve Ontario Agri-Businesses Receive Funding Support Wednesday, June 25, 2025 Bioenterprise Canada has announced the successful recipients of the second call for proposals under the Ontario Agri-Food Research Initiative (OAFRI) Commercialization Stream. Twelve organizations across Ontario will receive support to bring innovative agri-food solutions to the... Read this article online