Ontario Grain & Oilseed Crisis Update (April 12, 2005)

What we need:
The Ontario Grain & Oilseed Group is committed to working with government to meet our needs for the success of Ontario's distressed grain & oilseed industry.

• We need $300 million to make up the shortfall between anticipated revenues from all sources and mounting costs for the 2005 crop.
• Government must implement an adequately funded, effective replacement program for Market Revenue Insurance (MRI), using the requested $300 million as seed money to fund the program.
• Refinements must be made to CAIS to make it more effective.

What we've done:
The Ontario Grain & Oilseed Group has formed an advisory panel that will work on a recommendation for an MRI replacement program. This panel will consider the following questions for an MRI replacement for the '05 crop year:

• What crops will be covered?
• To provide income support, should payments be triggered by decline in market price below a pre-determined support price?
• Should the program be commodity specific or whole farm?
• Should the program make payments per bushel or per acre?
• How should the support price be calculated?
• How should the market price be calculated?
• How should the program be paid?
• Should payments be based on the previous year's acreage per crop as did the MRI program? Or should payments be based on commercial sales?
• What would be the linkage to CAIS? To Crop Insurance?
• Should producers pay a premium to enrol and participate in the program?
• Should this new program be an Ontario-only program or a national program? Individuals or groups are invited to make written submissions for the panel's consideration at the following address:
  Seed Corn Growers of Ontario 825 Park Ave. West Chatham, Ontario N7M 5J6 Or by fax or e-mail to:
  (519) 352-0526 msantavy@seedcorngrowers.on.ca

Summary:
Producers will receive an immediate cash infusion from the federal and provincial governments to contribute to shortfalls from the '04 crop. Ontario's grain & oilseed sector has been lobbying for $300 million to address shortfalls for the '05 crop. We are now focusing our efforts on developing longer-term solutions such as MRI replacement and changes to CAIS.

Next Steps:
The Grain & Oilseed Safety Net group is meeting with rural caucus to discuss MRI replacement. The group will present its recommendations to rural caucus and Minister Peters in preparation for the joint federal-provincial meeting in July. The group is also requesting a meeting with Minister Mitchell. The Grain & Oilseed Group remains committed to the Unified Voice process of all sectors working collectively to support their asks to government.

What producers can do:
Our message has been heard by many MPPs, but it is vital that Ontario grain & oilseed producers keep the pressure on our government to meet our longer-term needs. Visit the Ontario Federation of Agriculture's website at www.ofa.org for templates to help plan these meetings. Growers can also visit the website of every grain & oilseed organization to obtain a copy of the grain & oilseed position paper.

Ontario Grains and Oilseed Groups:
Ontario White Bean Producers' Marketing Board
Ontario Canola Growers' Association
Ontario Coloured Bean Growers' Association
Ontario Corn Producers' Association
Ontario Soybean Growers
Ontario Wheat Producers' Marketing Board
Seed Corn Growers of Ontario