Search
Better Farming OntarioBetter PorkBetter Farming Prairies

Better Farming Ontario Featured Articles

Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


New Brunswick balks at quota caps

Friday, March 13, 2009

© AgMedia Inc.

by SUSAN MANN

How fast Ontario plans to bring in a $25,000 per kilogram cap on quota prices and what steps it will use to get there are among the points Dairy Farmers of Ontario’s board will hash out later this month.

The P5 provinces, Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island have initially accepted a common quota policy that would apply to all dairy farmers in those provinces. Now they have to implement it and one sticking point may be quota caps.

Bill Mitchell, DFO assistant communications director, says New Brunswick may not accept the policy on capping quota prices at $25,000 per kilogram as part of the package. The New Brunswick organization is still expected to go ahead with the other elements and will decide on the cap at its board meeting this month.

Early indications from spring regional meetings underway this week “are that Ontario farmers want the board to proceed with most or all of the elements of the harmonization,” Mitchell says.

Implementation of most policies begins August. But some policies, such as the quota cap, could be phased in over time. All are expected to be in place by 2011.

The policy covers quota sales and purchases, over and under production credits, over-quota production, non-saleable quota, transfers, a new entrant program, and over utilization.

At the Ontario organization’s board meeting this month will make decisions on how quickly some of policies, such as the quota price cap, would come into effect and what steps are needed during the next two years, Mitchell says.

Why is the proposal to cap the quota price at $25,000 per kilogram? Mitchell says it’s because that amount is already being used in some provinces and Quebec has been working towards that cap for some time.

If quota demand exceeds supply in any month the available quota is pro-rated. Each province can decide for itself how it will pro-rate the quota.

Phil Cairns, DFO senior policy adviser, says the policy doesn’t include any provisions for farmers in the five provinces to buy and sell quota on one exchange. The exchanges in each province will continue to operate.

One disadvantage to quota caps is it may take some farmers who are expanding their operations longer to get the entire quota they need. But on the other hand the goal of the cap is to keep the price “related to the productive value of the quota and not any speculative value,” Mitchell says.

Ontario farmers’ over production credits would be cut under the new policy to 10 days from 20 days. The 30 days of under production credits would stay the same. The changes come into effect in 2011.

For more than 10 years, Ontario has been part of the P5 pool to share markets and revenues. It has been a long-term goal of the P5 provinces to become a governing-type of body that makes policy decisions. As a first step, representatives from the P5 provinces decided to go ahead with harmonizing quota policies. BF


 
 

Current Issue

June/July 2025

Better Farming Magazine

Farms.com Breaking News

Ontario Tender Fruit Season off to a Strong Start

Monday, July 14, 2025

Ontario's 2025 tender fruit and table grape season is off to a promising start reports the Ontario Tender Fruit and Fresh Grape Growers. While the weather may be too hot for some farmers, it has has been ideal for producing a sweet and juicy crop. A cooler-than-usual spring delayed the... Read this article online

Ontario farmers get boost for energy upgrades

Friday, July 11, 2025

The governments of Canada and Ontario are investing up to $3 million in the third round of the Agricultural Stewardship Initiative (ASI). This funding will help farmers improve the energy efficiency of their operations and support the long-term sustainability of the agriculture... Read this article online

Swede midge and cabbageworm found in Ontario canola

Thursday, July 10, 2025

As reported on the OMAFA website fieldcropnews.com, Ontario canola crops are at various growth stages, ranging from seedling to full bloom depending on planting time and region. Winter canola is now fully podded, and harvest is expected to begin soon in Essex and other southern... Read this article online

BF logo

It's farming. And it's better.

 

a Farms.com Company

Subscriptions

Subscriber inquiries, change of address, or USA and international orders, please email: subscriptions@betterfarming.com or call 888-248-4893 x 281.


Article Ideas & Media Releases

Have a story idea or media release? If you want coverage of an ag issue, trend, or company news, please email us.

Follow us on Social Media

 

Sign up to a Farms.com Newsletter

 

DisclaimerPrivacy Policy2025 ©AgMedia Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Back To Top