Increase in Check-off Necessary for OCPA Survival

Ryan Brown, Interim General Manager, OCPA

OCPA has been lobbying the Ontario Government since early in the year to increase the licence fee (also known as check-off) authorized under the Grain Corn Marketing Act (“GCMA”). An increase of $0.20/per tonne will allow OCPA to continue to pursue its multi-pronged
attack against unfairly traded U.S. grain corn while still allowing it to rebuild its financial reserves.

Delays in granting the OCPA’s request threatens its very survival
We launched the anti-dumping and countervailing duty (“AD/CVD”) complaint because our members are in desperate need of relief. It was the only action we could take to help ourselves(1) and we have literally ‘bet the farm’ on this case. Our recent setback of a “no injury” finding by the CITT is devastating to Ontario corn growers who, in the absence of an “injury” finding by the CITT on remand following a successful judicial review and without improved Governmentsponsored income support, now have little to protect themselves against historically low prices in the immediate and foreseeable future. Further delays, in increasing the OCPA's check-off revenues, threaten its continued
participation in this self-help trade remedy process and so jeopardizes the survival of its organization and members.

Increasing check-off has no cost for the Province and it is important and urgent to the OCPA
The OCPA’s request for an increase in check-off is without financial cost to the Province. Increased check-off is also without financial cost for corn users. The OCPA requires an increase in its check-off to ensure that the OCPA remains financially strong and is able to pursue its mandate and membershipsanctioned activities.

Premier McGuinty has promised to help Ontario corn farmers
In a letter from Premier McGuinty to Bill Hearn(2) the Province acknowledges that “corn producers are caught in a crisis – one that is not of their own making. It is a crisis that is having an impact on our economy and our rural communities.” The Premier also said “we are determined to help our farmers, especially at this critical time”. Amending the GCMA and its regulations now to increase check-off is one immediate and cost-free way for the Premier to fulfill part of his promise to help Ontario corn farmers.

OCPA’s AD/CVD case should not affect the Province’s decision to implement the OCPA’s request
The AD/CVD case has been vigorously opposed by the Canadian operations of many deep-pocketed U.S. based corn users who have made
exercising the OCPA’s legitimate trade remedy law rights expensive. OCPA believes that many of its opponents have lobbied the Ontario government suggesting that the AD/CVD case will have many negative impacts on downstream users of corn. We do not believe there is any merit to these suggestions. However, even if there were, these considerations should not affect the Ontario Government’s decision about the OCPA’s request for an increase in check-off. The concerns of CCP’s opponents are addressed through the legal process already in place at the Federal level. The OCPA has consulted with its membership which has approved the increase of its check-off At OCPA’s last Annual General Meeting a resolution was passed by an overwhelming majority for the increase of OCPA’s check-off. Members will have a further chance to debate this issue when a resolution confirming membership support for the proposed increase is put forward at its semi-annual
meeting this September.

The proposed amendments to the statute and regulations are straight forward The legislative and regulatory amendments to give effect to this request are straight forward and only require the Government to delete seven words from s. 6(1)(a) of the GCMA and replace the
number 39.9 cents with 59.9 in Ontario Regulation 539.

Raising the check-off limit is consistent with the legislative history of the Grain Corn Marketing Act
The legislative debates about the GCMA indicate that it was supposed to provide “long-term financial stability of what has developed into a very important producers’ organization in Ontario”. The 40-cent limit does not currently provide the OCPA with the long-term financial stability that it needs to be an effective organization. There is nothing in these debates that could be used as a justification for not eliminating
or at least raising the check-off limit. It has been over twenty years since the 40-cent limit was imposed and, at the very least inflation has taken its toll.

In the lead up to the OCPA’s semiannual meeting on September 12th, three separate resolutions (one from each of Regions 1, 10 and 15, and each one supporting an increase in check-off) have been received. Members will therefore have a further chance to consider this issue and send a strong message to the Ontario Government on September 12th.

1 Pursuing the AD/CVD case to conclusion is only one of several prongs. Long term, CCP has asked the Federal Government to use the trade remedy tools at its disposal to achieve meaningful reductions in U.S. farm subsidies via WTO negotiations. But WTO negotiations or a WTO complaint against massive U.S. subsidies will not provide the immediate relief that Canadian corn farmers urgently require. In the meantime, CCP will also continue to ask Canadian Governments to implement an effective farm income stabilization program. Despite their differences in the AD/CVD case, this is something on which corn users and corn growers agree: Canadian grown corn is the life-blood or a number of value-added products and industries in Canada – i.e., food processors rely on corn for their products, ethanol producers rely on locally grown corn to make clean fuel and thousands of Canadian livestock producers cannot feed
their animals cost effectively without a home-grown crop. A healthy and robust domestic agricultural sector is in the best interest of both Canadian corn farmers and corn users.
2 Trade Counsel to OCPA.