© AgMedia Inc.
by GEOFF DALE
Producers deciding on whether to accept Ottawa’s $286-million buyout package filled 2,000 chairs set up at the Delhi Tobacco Auction Exchange Wednesday night.
Those who attended the information session say it’s unclear just how many in the region still growing tobacco would accept the federal government’s offer of $1.05 per pound of quota. What is clear is that producers are angry with the Ontario government for not contributing to the buyout.
Fred Neukamm, past chair of the Ontario Flue-Cured Tobacco Growers Marketing Board, says while the federal money may be enough to eliminate the quota, it’s likely insufficient for those still wanting to make use of their operations. “It is possible some may decide to rent their farms or infrastructures to others still eligible to grow,” he explains.
Neukamm, who still farms near Aylmer, says he “can’t afford not to take the money.” He has yet to make a final decision but says he’s looking for someone in the area interested in using his infrastructure.
“What was particularly disappointing about this package was the lack of provincial participation,” he says. He calls it a “matter of fairness,” noting Ontario introduced a $50 million buyout program in 2005. “There is a valid argument to be made that the remaining people shouldn’t be treated any differently.”
However, last summer, after a federal buyout for growers was announced, Leona Dombrowsky, Ontario’s minister of agriculture, said it was tobacco users’ turn to support exit strategies. “(W)e believe the taxpayers of Ontario have supported the industry (through the transition fund) and now it’s the users of the product who should fund an exit strategy,” Dombrowsky said.
Aylmer grower Alvin Lindsay says the lack of provincial dollars into the package was hard to understand because funds had been secured from the federal government’s $1.5-billion lawsuit against contraband tobacco products launched about five years ago.
Meanwhile, Ontario raised taxes, “which resulted in the floodgates opening for illegal tobacco in this province.” He estimates illegal tobacco products account for 70 per cent of Ontario’s sales. That’s more than provincial estimates of 50 per cent “and the province doesn’t even get taxes from any of that.”
While he used to grow tobacco on 60-70 acres, his sales last year were based on a carryover of product from the previous season. “We’re still thinking about what to do,” he says. “The majority will probably reluctantly take the offer because they don’t really have any other real choices. I don’t know how viable renting is. And you have to make up your mind soon because the deadline is getting close.”
Admitting the mood in the Delhi hall was “somber” and the decision facing producers “bittersweet and very difficult”, board chair Linda Vandendriessche says efforts will continue to “complement the federal dollars.”
Pointing to the need for an “effective transition” and ways to “re-stimulate the economy” in the area, she adds the board will continue efforts to talk with provincial government officials. “Going after federal money wasn’t a piece of cake,” she says, noting negotiations “took years.”
In a region covering five counties with more than 100,000 acres of sandy soil, the industry boasted more than 2,600 farmers back in the 1980s when tobacco was Ontario’s most valuable crop. After the final auction was held last week, less than 500 were growing tobacco.
Producers have until end of the day March 23 to notify officials whether they will accept the buyout. BF
Comments
We continue to hear from farmers themselves, that they WILL grow tobacco even after TAKING this buy out MONEY... that there are ways! So, why is there a BUY OUT? Is it going to be policed and have severe penalties if agreements are broken? If not, what is this teaching our young people... that it is alright to lie and cheat?
The money being used for this farce BUY OUT should be used to combat the ILL EFFECTS of what everyone knows TOBACCO causes... our health care system is already over burdened!
It is a quota buyout. Farmers sell their quota to the government. Only those who take the buyout will not be able to grow. A son or other relative who is over 21 can continue to grow. These are the rules set out by the government. There is no lying or cheating involved. Smokers pay for their health care by the high taxes they pay unlike the obese, alcoholics, etc. Studies have proven this already.
"A son or other relative who is over 21 can continue to grow" ON THE FARM THAT HAS ACCEPTED THE BUYOUT?
IF SO, many taxpayers, including myself, do not understand why A BUYOUT then, for the quota on that farm!
AND, when you smoke, your actions have affected others' health... people who have chosen NOT TO SMOKE for the good of their health.
Many studies have shown that obesity and alcoholism are ILLNESSES... starting to smoke is a CHOICE.
WOW
it just hit our local newspaper that farmers are also POOLING their quota, will split the $$BUYOUT money$$ and then some of those farms will continue to grow tobacco
so
why is there a BUYOUT?
how dishonest is that!
These are the rules the government has set up. Obviously, the government is allowing farmers to grow.
The buyout is for quota only.
I don't believe (as do many others who are not tobacco farmers) that the rules say that the farmers can pool their quotas, split the 'transition' money, and then continue to grow tobacco.
The intent was/is, if you take the buyout, you are not growing tobacco.
That's the problem, isn't it?
You believe what the press is telling you but you did not see the rules and you did not listen to the government representative who attended a meeting to explain them.
Lets not be naive. If the government wanted to stop farmers from growing they would have made different rules.
In fact, if you remember Minister Ritz and Minister Finley making the announcement on Aug. 1, 2008, they said "no strings attached". That as we know, was not true.
our local government official has stated that pooling quota was not the intent
wrong doers often justify their choices
rumors, coffee shop talk do not qualify as truth, make sure that what you say really is the truth.
no, i did not transfer any tobacco quota. i do hate gossip and rumors. those who did are following the rules set up by the government that it had to be done by a certain date.
Yes, there was a date set for the quota buyout, but not all the shady dealings that we know are/were going on
Take the $$$= don't grow tobacco nor get a new license
Pretty simple and clear
Quota buyout was also to service tobacco farmers' transition into something else!
Read today's London Free Press. Now you can rest easy that farmers cannot receive the quota buyout and keep growing.
The money is simply farmers selling their quota to the government.
Farmers in other countries like the U.S.A., Australia, received money for transitioning to other crops. Not in Ontario but Quebec farmers received $2.40/lb, which included money for transitioning to other crops and for useless equipment.
HA! WHEN THE BOARD IS TELLING THE TOBACCO FARMERS HOW TO DO IT AND THE BOARD IS DOING THE EXITING PROGRAMMING! HA! FURTHER MORE, THE BOARD NEEDS TOBACCO GROWERS FOR THE 'NEW SYSTEM' THAT IS BEING RUN BY THE PEOPLE FROM THE BOARD, JUST UNDER ANOTHER NAME! HOW CRAZY IS THAT?
"Linda Vandendriessche, chairperson of the tobacco board, said producers have always been allowed to transfer quota."
SHE CONTINUES TO SAY IN THAT ARTICLE
“They may be doing it for income tax reasons or whatever, but divesting is allowed within the spirit of the program."
FROM SAME ARTICLE... "Vandendriessche said reviews would be done to
ensure the program is not being exploited....“We believe the producers are doing their personal business and have read the document they have signed and are going to stay within the spirit of the program,” she said." THEY HAVE THEIR OWN INTERPRETATION OF THE 'SPIRIT OF THE PROGRAM' AS DO ALL SWINDLERS OR CONIFERS!
"Vandendriessche said some quota have been transferred in recent months. She said she couldn’t comment on whether the number of transfers was unusually high." YEAH RIGHT!
THE BOARD AND THE FARMERS DO NOT BELIEVE THEY ARE DOING ANYTHING WRONG, IE. EXPLOITING OR ABUSING THE SPIRIT OF THE BUYOUT OR... BREAKING THE LAW.
IT HAS ALWAYS BEEN CLEAR:
TAKE THE BUYOUT, EXIT THE TOBACCO INDUSTRY
DON'T TAKE THE BUYOUT, GROW TOBACCO UNDER THE NEW CONTRACT SYSTEM.
NO ONE IS SAYING THEY CAN'T KEEP THEIR TOBACCO FARM AS THEIR CHILDREN'S INHERITANCE, BUT YOU DON'T TAKE THE BUYOUT THEN!
THESE FARMERS ARE LIKE LITTLE CHILDREN WHO WANT THEIR CAKE AND TO EAT IT TOO.' THEY RATIONALIZE WHY THEY DESERVE IT BOTH WAYS; THE BUYOUT AND STILL GROW.
IT IS SO WRONG AND SHAMEFUL!
It is shameful that you are trying to prosecute farmers by what you read in the paper. It's not the whole story.
My bet is that there will not be many farmers growing. Those who are will be checked out by both the board and the government.
it is still going on, and we all know it
Too bad you are so ill informed.
don't be so naive
The Farm Products Order has made it impossible for anyone who takes
the buyout to keep growing. Rules and regulations are very strict.
Well, let's hope it really works that way. There certainly were a lot of 'things' happening over the last few months. The buyout did not equate to no more growing!
Don't know what you mean. All I know is farmers were facing very difficult decisions. The sad part is that most of the tobacco used in Canada will come from somewhere else. Did it solve anything?
well, they've got their money and they are still crying
the 'things' that people are writing about is: they can grow their tobacco if they don't take the buyout
but, if they take the buyout, that farm is done for tobacco
what is so hard to understand?
it is in the newspapers and on the news again, that they want to grow
then, they shouldn't have taken the buyout
you are talking a great deal of money
lots of people are losing their lifetime jobs these days, and they are not getting any buyouts
The farmers who took the buyout CANNOT grow.
Their children or sharegrowers who owned no quota and did not get any money can.
Yes, lots of people are losing their jobs. The government did not destroy their business. You would think with so many businesses going under that the government would encourage one that provides jobs for so many and where the product is still in demand.
the story keeps changing
now, you are saying once again, that their 'children' can grow or their sharegrowers can grow?
interesting
this was the business of 'pooling' quotas once again
as for the job creations; literally, they bring in thousands of workers from Mexico, Jamaica, etc?
to reduce their costs?
and the government did not destroy their business
tobacco effects killed tobacco
it's time it was accepted and believed that tobacco kills people; second hand smoke kills those smart people who do not smoke and do not want to breathe in someone else's smoke in any fashion
There is still a market out there. People still smoke but because of high taxes they just buy it from the reserves. The government loses those tax dollars and the ones from farmers as well.
Off shore workers spend much of their money here that's a benefit to the economy.
it sounds like there is a great deal 'shady' things going on
farmers are not taking this offer in 'good faith' or in the fashion it was intended
so sad
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