More safeguards needed for tobacco production licensing

Tuesday, January 20, 2009

© Copyright AgMedia Inc

by SUSAN MANN

Tobacco farmers who stay in business instead of taking a buyout from the federal government’s Tobacco Transition program should have a contract with a licensed dealer or manufacturer, recommends Larry Martin of the George Morris Centre.

In his paper called ‘Thoughts on Licensing Requirements for Tobacco Production,’ Martin says the current quota system will end as part of the Tobacco Transition program and be replaced with a new licensing program.

Linda Vandendriessche, chair of the Ontario Flue-Cured Tobacco Growers’ Marketing Board, says they’re discussing licensing details with the province but nothing has been finalized. The board has already discussed some of Martin’s ideas with farmers. “What’s in his report are logical areas for discussion,” she says.

Martin says now it’s illegal to sell tobacco to unlicensed buyers and that should be retained. But it’s not enough. Instead farmers should have a contract with a licensed dealer or manufacturer or proof their production is for legitimate new product research. Farmers must also be required to have access to tobacco production and storage infrastructure and supply the location of the production and storage site. These requirements would help curtail contraband production.

Currently about 30 per cent of cigarettes smoked in Canada are contraband.

While details aren’t finalized, Martin says the program may include these requirements:

-    the license will give a farmer the right to produce an unlimited amount of tobacco but the farmer will have to produce the crop or lose the license;
-    producers getting a license can’t take the current federal compensation package or have taken a previous one;
-    the license isn’t transferable; and
-    governments will enforce the new rules.

Martin says once the current quota system ends it’s expected a contract-type of production system will emerge similar to other processed horticultural products. BF