Ontario Grain & Oilseed Crisis Update (April 19, 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 met with a total of 60 MPPs and senior staff members to inform them of the current farm income crisis for the grain & oilseed sector. Our advisory panel is working on a design for a replacement program for MRI has already met once and will continue to work on solutions for the Group to bring forward to both the federal and provincial governments.

Next Steps:
The Ontario Grain & Oilseed Group will be taking the initiative to call on other grain & oilseed organizations nationwide for coordination of our federal lobby effort to bring changes to CAIS. At the provincial level, Rural Caucus has expressed keen interest in meeting with the Ontario Grain & Oilseed Group to hear the recommendations of the advisory panel of producers for developing an MRI replacement program. Government representatives are likely expecting our campaign to lose momentum during the busy planting season, but it is imperative that the Ontario Grain & Oilseed Group remain visible until we achieve a longer-term solution for Ontario's grain & oilseed industry. The Group encourages producers to take advantage of rainy days to visit with MPPs and continue sending letters and emails expressing how this farm income crisis affects you and your family.

What producers can do:
Producers will receive an immediate cash infusion from the federal and provincial governments to contribute to shortfalls from the '04 crop. Here's what producers should know:
Producers who were in TISP (Transitional Industry Support Program) will automatically receive the federal payment. Any producers who were not in TISP - even producers who were in NISA - will have to apply. The applications are available on Agriculture Canada's website, http://www.agr.gc.ca/fip/main.html. The application deadline is July 31st. Producers should be aware that the federal payments will count as income for 2005 CAIS but WILL NOT be counted when calculating the reference margin in subsequent years. Producers who are not in CAIS, but apply for the funding, will still receive payment. Provincial Agriculture Minister Steve Peters has said payments from the provincial government will NOT count as income for 2005 CAIS. Both provincial and federal payments are expected in April. Producers should watch this space for periodic updates on the progress of the Ontario Grain & Oilseed Group as we continue to work with government to meet the farm income needs for Ontario's 25,000 grain & oilseed producing families.

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