MINISTER RECOGNIZES TURMOIL IN ONTARIO AG SECTOR
by David Morris, Ontario Corn Committee

Steve Peters, Minister of Agriculture and Food, began his remarks to the 2005 Corn, Soybean and Wheat Conference by offering congratulations, on behalf of the Premier, to the three organizations for holding their first joint conference. "It's more important now than ever before to communicate with government and other producers with one voice. Speaking with one voice will draw greater attention to the dire straits faced by Ontario farmers." Noting that prices for corn, soybeans and wheat were at 25-year lows, and that realized net farm incomes for 2005 would be negative, the Minister said, "It's not fair. It's just not right."

Mr. Peters went on to say that while the McGuinty government recognizes the seriousness of the problem, they see it as a national issue requiring a national solution. He reported that when he met with his colleagues from across the country recently, he strongly voiced his concerns to the federal Minister of Agriculture. "I have to say," commented Mr. Peters, "that I was very disappointed with his response. There was very little acknowledgment of the federal responsibility to address this problem." He went on to encourage those present to share their concerns with farm organizations in other provinces and to urge them to work with their provincial governments so that the federal government would hear a unified voice coming from across the country.

The Minister continued to lay responsibility for the lack of action on this issue at the feet of the federal government and the on-going dispute about equalization payments. "Ontario sends $23 billion a year more to Ottawa than we get back," he said. "We must keep more of our money here in this province so we can address the needs of our own people."

Mr. Peters said that Ontario is committed to improving the long-term stability of agriculture in this province and to building an even stronger agricultural economy here. Signing on to the Agricultural Policy Framework was part of that process. With respect to CAIS, he commented, "I agree with the bulk of your arguments that CAIS does not work for you. We're now in the process of assessing how it can be improved. I've appointed an Advisory Group, made up of Terry Daynard, Hector Delanghe, Graeme Hedley and Jack Wilkinson, to review the risk management system in Ontario. The report from this group will guide us as we actively work to address the current crisis and improve the system for the long-term." He also promised that the delivery of CAIS payments would be much smoother in 2005 than it was in 2004. "It had damn well better be!" he said. "We've got to get more money into farmers' hands more quickly."

The Minister added that the province is also working with producer groups to develop a replacement plan for the former Market Revenue Insurance Program, and the comparable program for the horticultural sector. In the meantime, the $88 million remaining in the previous program will be distributed to farmers within the next few weeks.

Mr. Peters concluded on an optimistic note saying, "In the future, we must go beyond looking for ways that agriculture can just survive, to creating ways for it to thrive. We have to develop a long-term vision and we must think strategically. I like to think that 100 years from now, historians will look back at today and say, "That's when agriculture entered a new era. We have to seize the opportunity or others will. I want to assure you that as a government we value you and need you. We want to work together with you to create a new environment for agriculture and brighter days ahead."