Apple growers ponder fee hike

Thursday, February 11, 2010

by SUSAN MANN

Ontario apple growers have until March 1 to vote on a proposed fee increase of $10 an acre over two years.

The first $5-an-acre increase would be this year raising the annual fee to $25 from $20. There would be a further $5-an-acre increase for 2011 that would make the fee $30.  About 235 members of Ontario Apple Growers have the opportunity cast their vote by mail. The vote is being conducted by the Apple Growers and not the Farm Products Marketing Commission.

For an average farm of 72 acres, the increase would be $360 for this year and a further $360 for next year. All apple farmers with 10 acres or more must belong to the Apple Growers and pay the fee. Farmers with less than 10 acres can voluntarily join and their annual fee is $200 plus GST. The fee for voluntary members isn’t slated to increase as part of this proposal.

Brian Gilroy, chair of the Ontario Apple Growers, says a majority of ‘yes’ votes are needed for the proposal to be approved. “But we’re hoping for a much greater vote in favour than just a simple majority and we’re anticipating that we will get support for it.”

The current $20-an-acre fee has been in place since 2004 when the organization was established.

Gilroy says the increase is needed partly to offset increased costs for research and promotion. There has also been a decrease in the acreage that can be used to fund the organization to 12,500 from 15,000 six years ago.

Another reason the increase is needed is due to a change in the way governments now provide funding to organizations for promotion and research. Instead of government grants, there are now contribution agreements. Gilroy says they have to spend the money first before they can tap into government programs to help offset their costs.

To be eligible to vote, farmers have to be members in good standing with Ontario Apple Growers.

Results will be reported by around the middle of March through a newsletter and a posting on the Apple Growers web site. BF