The end of the family tobacco farm

Friday, May 1, 2009

© 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