Dairy entrants face high deposit fee

© AgMedia Inc.

Dairy Farmers of Ontario introduce tough requirements to ensure new entrants are serious about the industry


The real issue here is that these new potential producers had second thoughts between the time they applied and the time when it came to bid, and rightly so. I am sure they had full intentions of bidding, but became scared. With all the pressure on supply management I don't blame them them for not bidding.This is another example of DFO's blindness and ignorance of a serious situation and now they are forcing further financial stress on new producer's, some of who want nothing more than "to farm". Raube Beuerman, Dublin, ON

The second issue is the design of the program itself. When this New Entrant program was first introduced, I helped one of my clients prepare his application to this program and was horrified at the cash flow and income tax implications starting in whatever year it was that repayments had to start. Simply stated, the numbers didn't work unless my client had the financial equivalent of a "fairy god-mother", and he didn't, so he never applied.

Stephen Thompson, Clinton ON

If supply managed boards wanted to salvage any bit of respect from consumers, farmers or any other industry observer they would have used quota allotments/increases to develop a program to bring in new producers instead of further pampering the already pampered few. Their current programs are laughable, especially with today's low interest rates. Quebec's program is slightly better but not good enough. AS one financial expert put it, Mr. Kevin O'Leary on last nights Lang and O'Leary exchange "DFO is evil, evil, evil.... Raube Beuerman, Dublin, ON

Comical,If every Corporation had a CEO like Kevin O'Leary I don't think any farmer would have any chance of making any money whatsoever and if they were like him that is actually why supply management was created and is still needed today.It is so odd that some farmers are happy that Kevin O'Leary makes billions but if a farmer makes a profit they are upset.
John Van Dyk

In his customary style, Mr. Van Dyk is so unable to dispute O'Leary's claim that DFO is "evil, evil, evil", that he resorts to the only counter-argument supply management supporters ever seem to be able to make - "shoot the messenger".
Get over it, Mr. Van Dyk, there's an entire generation of non-supply managed farmers under the age of 40 who completely agree with O'Leary, and they're almost literally breathing down your neck, just waiting for the chance to end the "evil, evil, evil" you so completely, and so-selfishly, defend.

Stephen Thompson, Clinton ON

I have never been against anyone making a profit and have ever implied that I am in any of my comments. Furthermore, I want all farmers to be successful. When it comes to Mr. O'Leary the difference is that he made his millions without the use of a monopoly. Also, anyone at DFO should step back and ask themselves why would a financial expert such as Mr. O'Leary want to criticize our system? Raube Beuerman, Dublin, ON

There is not enough money in the dairy business for a Capitalist middleman to make money because the dairy farmer is getting his fair share.
John Van Dyk

You would have been correct to have noted that there is not enough money in the Canadian dairy business for the processing and retail sector because supply management is giving it all to dairy farmers who, in turn, obviously care nothing about "Capitalist middlemen", consumers, or even other farmers. And since even DFO's own numbers showed that Ontario consumers were, in late 2010, paying almost 38% more for milk than US consumers, and that the Ontario farm gate price of milk was within pennies per liter of the US retail price, your opinion about any sort of "Capitalist middleman" is ridiculous. Kevin O'Leary and I both have MBAs from the University of Western Ontario - your comment makes it abundantly clear you don't. If you don't know what you are talking about, and have nothing to say, please stop criticizing those who do.

Stephen Thompson, Clinton ON

NB, NS and PEI still have new farmers starting under their respective new entrant programs (part of the P5 venture).

Post new comment

To prevent automated spam submissions leave this field empty.
We welcome thoughtful comments and ideas. Comments must be on topic. Cheap shots, unsubstantiated allegations, anonymous attacks or negativity directed against people and organizations will not be published. Comments are modified or deleted at the discretion of the editors. If you wish to be identified by name, which will give your opinion far more weight and provide a far greater chance of being published, leave a telephone number so that identity can be confirmed. The number will not be published.