by SUSAN MANN
Ontario grain farmers’ message outlining the need for a permanent risk management program was well received by the province’s rural politicians during a recent meeting, says farm leader Don Kenny.
Kenny, the chair of Grain Farmers of Ontario, says members of the organization’s grains and oilseeds safety net committee met with the Ontario Legislature’s rural caucus Tuesday morning at Queen’s Park in Toronto to convince them the current risk management program should be made permanent.
The risk management program was introduced in 2007 as a three-year pilot. That expired
in 2009 and the program was extended for one year last year.
Most of the members of the rural caucus “are very much on side with making it a permanent program,” he notes.
Ontario Agriculture Minister Carol Mitchell says by email she told the leaders at the meeting the risk management program is important and “provides participants with a sense of stability as they plan for the future.”
She says in the email “its important that we continue to have an open and honest dialogue as we work together on making the risk management program permanent.”
Kenny says they’re hoping to see money for the program included in the provincial budget to be released next month. “We’d like to see the commitment from the Liberal government in the budget coming forward.”
The Ontario Progressive Conservatives released a statement after the morning meeting saying if they’re elected in this fall’s provincial election they’d support working with the industry to implement a permanent risk management program, Kenny notes.
Mitchell says part of the work farmers and the provincial government must now do is get the federal government “on board.” Mitchell says she’s already talked to federal Agriculture Minister Gerry Ritz about the importance of the program for Ontario farmers and she’ll continue talking to him about it.
Kenny says they’d like the federal government to be part of the program and fund its 60 per cent but farmers still want the provincial government’s commitment to fund its 40 per cent. “Hopefully the federal government will come on side,” he says.
Similar to an insurance program, farmers pay premiums for coverage under the risk management program. It protects them against uncontrollable factors, such as commodity price volatility and collapse, input cost increases and currency fluctuations.
Risk management program claims are only triggered if the market price for a commodity falls below the provincial average costs of production.
On the Agricorp website it says for the 2007, 2008 and 2009 crop years, the risk management program provided more than $50 million to Ontario grain and oilseed producers.
Without a risk management program, grains and oilseeds farmers would need to resort to lobbying for ad hoc programs to cover losses when commodity prices collapse. But Kenny says ad hoc payments are always paid after the damage has been done and they never go to the right people – the people who are hurt the most.
“Ad hoc payments just don’t work in our industry,” he says.
The program is also beneficial for the government. Kenny says. “It’s an insurance-type program and it addresses the need when it comes.”
With current commodity prices, the program’s costs would be minimal, he adds. BF
Comments
Even though, as a grain farmer, I'd like nothing better than see government subsidizing both ethanol and a RMP program for grains, any responsible policy advisor would advise government to fund one program or the other, but not both.
Given the tremendous financial benefits grain farmers derive from ethanol, government and agriculture would both be far better off if we took RMP away from grain farmers, and gave it to livestock farmers instead.
Stephen Thompson, Clinton ON
Your comments forget to mention that one reason the ethanol program was started in the US was because grain farmers were going broke selling $2.00 corn. Livestock producers benefitted for years on the corn farmers loss. Right now cattle farmers have good prices and the main reason feedlots are losing money again is because of the high cost of replacement cattle. Why should cattle farmers expect to make a living on the back of corn farmers? Any efficient cattle farmer would grow his own corn anyways and the decent price of corn after ethanol would not have a detrimental effect on his bottom line. Even a year ago corn prices were below the cost of production with the rising cost of fertilizer, seed etc. That is why grain farmers need an RMP program.You were well supported when BSE broke out in 2002.
Dan Patterson
Lambton
All farmers need the RMP.
Why do we need more programs? So they can create more government funded jobs? The pennies that reach the farms and the policies and paper work that's required to get them are not worth it. If the government wants to spend money on agriculture then send a cheque directly to the farmer maybe I could buy a tank of fuel or a tire something useful instead of buying into a program and creating another government job in the name of agriculture.
When was the last tme we had a good program from liberals or conservatives , federal or provincial? Farmers this year have gone nuts buying and renting high priced land with high grain prices supported by Ontario ethanol processors subsidized by Ontario government till 2017 . Machinery dealers are being pressed with farmers buying.
Does anybody remember the start of the FARM INCOME PROBLEM ACTUALLY GRAIN AND OILSEED PROBLEM with farm demostrations in mid 2005.
How do they cry and spend like drunken sailors funding by FCC,... only to get debt write downs when the bottom falls out. Then do it all over 10 years latter .
Could it happen again
If only the GFO farmers would openly display all the cost expenses lines of RMP more farmers would join .
2002 was when RMP idea was hatched today is 2011 the program is flawed and federal govt doesnt want to set an example of double standard for world trade talks.
Maybe this Egg industry gets cracking as lawsuits fly
February 25, 2011 will straighten things out. As it stands no sound judgement of legislation has taken place in the last 10 years ,just political nonsense.
The whole story is that we grain farmers have no right to expect government to subsidize us once through ethanol, and once again through RMP.
Why should we be on the receiving end of two subsidies which serve exactly the same purpose, when livestock farmers aren't receiving any subsidies at all?
More to the point, why should grain farmers be on the receiving end of ethanol subsidies which cause financial hardship to other farmers, and still expect to be on the receiving end of RMP subsidies as well?
Stephen Thompson, Clinton ON
Before people gang up to crucify me, I should point out that when Helen Johns was our MPP, she would regularly ask why her government should fund two programs which did effectively the same thing. We quickly learned that unless we knew the answer to that question, to stay home until we did.
The Grain Farmers of Ontario would appear to have not learned that lesson.
Stephen Thompson, Clinton ON
The Grain Farmers would appear to have not learned. When you look at all the topics of BF archives you soon see the disgusting situation of non success for the betterment of farmers.
the Perfect Storm Ontario "middle east of Canada" we come in this world with nothing we go out with nothing Greedy farmers.
Could you quit going on about ethanol subsidies we as grain farmers get no subsidies to produce corn for ethanol unless you are farming in the U.S. We are still subject to market fluctuation, rising input costs and weather conditions. The subsidies go to the big fuel companies lets not forget corn ethanol takes as much fossil fuel energy to grow as it produces in ethanol energy so the more acres grown the more petroleum based fertilizer and petroleum base pesticide is bought and more fuel is bought to plant,move etc. What is driving the price of corn is the mandate the U.S has imposed on how much ethanol is to be in fuel that's the real cash cow. So the tax payer either pays it as a subsidy or at the pump have your choice.
RMP is ONLY paid when prices are low and have hefty premiums paid by the farmer in years that have no payment. You as a cattle farmer can collect RMP on that corn you feed your cattle, whether you sell the corn as grain or beef. IF you grow corn for your cattle you have NOTHING to complain about. If you buy corn for your cattle then that's too bad (corn growers don't owe cattle farmers CHEAP feed!). As a cattle farmer you have recieved your fair share of subsidies. I know because I use to have cattle, but got out because I wanted to sell my corn as grain instead of paying way too much for western stockers. You are really sounding like a spoiled two year old wanting smarties when he is too overweight anyways.
D.P.
Support Facts:
1. Ontario/Canadian Livestock farmers (not including Que.) have always and continue to receive more program dollars than U.S. livestock farmers while Ontario/Canadian grain farmers continue to receive less.
2. Quebec farmers continue to receive more support for livestock and all other commodities than Ontario/ Canadian and U.S. farmers.
So, it would appear that Plan A "leveling the playing field" on # 2. may not make U.S. livestock farmers happy. Plan B... Countervail Quebec dumping?
Federal programming is failing and RMP is working. Not sure what the issue is here.
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