Safety Nets
Nutrient Management
Source Protection Legislation
Crop Nutrients Council
CEPA Adds ‘Ammonia Dissolved in Water’ to Toxic Substances List
Registration of Poncho, Gaucho Seed Treatments
Lorsban Registration Status
Biosafety Protocol
Voluntary Labelling Standard for GE Foods
OCPA to Meet with U.S. Growers
OCPA Continues Support for U. of G. Corn Breeder Position
Bt Corn Info Available Online
Roundtable Discussions – Cereal Grains
Map Your Farm On-Line
AGCare Appoints New Executive Director
Corn Prices June 16, 2003

2002 and 2003 NISA Programs:
OCPA has learned that the 2002 NISA program is now operating normally for both deposits and withdrawals. We have also learned that interim withdrawals against the 2003 NISA program are now possible. The procedure and mechanism for these early withdrawals is the same as for 2002 and previous programs. For those producers needing or wanting early access to funds in their NISA accounts, it may be advisable to leave a small balance in the account. This would act to keep the account open and operational should the decision be made by AAFC to flow Year 2 Bridging Program payments through NISA accounts as was the case with Year 1 payments. This is not OCPA’s preferred method for distributing these Year 2 Bridging Program funds. Our expressed preference, in keeping with the advice to AAFC provided by the Ontario Agricultural Commodity Council, the CFA, the National Safety Nets Advisory Committee and many other groups, is a direct payment to producers.

Distribution of Year 2 Bridging Program payments:
As this newsletter is written, neither the distribution method nor the timing for the $600 million (federal portion) Year 2 Bridging Program payments has been finalized by AAFC. In mid-May, Minister Vanclief asked the CFA and the National Safety Nets Advisory Committee (NSNAC) for advice on distribution by May 23, but gave minimal time for response and reserved the option to ignore advice if it was not to his liking. In comments to the Standing Committee on Agriculture on May 26, Minister Vanclief was dismissive of the advice provided by CFA and NSNAC. However, at present it seems federal funds will be allocated to each province based on that province’s 5-year average Eligible Net Sales (Ontario’s share is 19.2% of the $600 m or $115.28 million). AAFC will then ask producer groups in each province for advice on the method of distribution within that province. Ontario is on record as willing to ante up its share of matching funds (in this case $76.85 m) for a total to be distributed in the province of $192.1 million. As stated above, OCPA’s preference is for these funds to be distributed within Ontario by direct payment to individual producers.

Market Revenue Insurance Program:
Interim payments for edible beans for the 2002/03 Market Revenue Insurance program have been announced by OMAF. No payment at all is expected for 2002/03 (old crop) corn because the current average weighted market price ($3.95/bushel) is considerably above the support price. There is also no interim payment for 2002/03 soybeans, but given the current average market price just below the support price, a small final payment of perhaps $0.05/bushel is anticipated following the end of the marketing year (perhaps distributed in November).

In a letter dated May 22, Ontario Minister of Agriculture and Food Helen Johns requested that AAFC Minister Vanclief “extend the MRI program, with support at 90% (for both price and yield), to cover the 2003 crop now.” Minister Johns went on to say that “the MRI fund is healthy and providing coverage at the 90% support level for the 2003 crop is feasible.” Extending MRI to cover the 2003 crop is consistent with OACC’s recommendations to extend the entire suite of companion programs pending clarification (and possible signing) of the APF Implementation Agreement. However, OCPA remains committed not only to extending MRI, but also to incorporating cost of production into the formula calculating support price.

As of this date, no response has been received from Minister Vanclief. This means that at present, MRI is not in place for the corn crop just planted.

Nutrient Management
OCPA has little new to report on this issue compared to the report in the May/June issue of the newsletter. Revised regulations as proposed by OMAF and MOE in their early March announcement are now under development, and likely to be announced in the near future (quite likely before this newsletter reaches you).

July 2003 remains the target date for implementation of NM plans for new livestock operations and those expanding to more than 300 nutrient units. As reported previously, other classes of operations will be phased in at later dates, with cash crop farmers likely to be phased in as of 2008. However, since the government has committed to ensuring funds are available to assist farmers with the cost of phasing in (although there has been no clarification regarding what portion of the cost they will cover), dates of implementation could be deferred further if funding is not available.

Many aspects of the nutrient management regulations need to be further formulated in consultation with the Nutrient Management Advisory Committee being established by Ontario Minister of Agriculture and Food, Helen Johns. As of the date of writing, no announcement has been made regarding the representatives on this advisory committee.

Source Protection Legislation
Representatives from the member groups of the Ontario Farm Environmental Coalition (OFEC) met early in June to discuss the implications for the industry of the recently released Advisory Committee report on watershed-based source protection planning. The report, released this past April, is available on the Environmental Bill of Rights (EBR) website http://204.40.253.254/envregistry/020298ex.htm as well as on the website of the Ontario Ministry of Environment http://www.ene.gov.on.ca/envision/water/spp.htm. Public comments on the report, which presents 55 recommendations for a planning framework for watershed-based source protection, could be submitted until June 21, 2003. According to participants in the OFEC meeting who also acted as advisory committee representatives on behalf of the industry, a full public consultation process is planned as well before the recommendations for the proposed legislation can be adopted.
Source protection is included in the recommendations arising from the Walkerton inquiry.

Participants at the OFEC meeting raised a number of concerns regarding the report, including:
• the recommendation that source protection legislation supersede other related legislation (such as Nutrient Management Act, Environmental Protection Act, Municipal Act, Planning Act, Drainage Act)
• emphasis on precautionary approach rather than science-based rules
• potential impact on water-taking for agricultural purposes
• manner in which potential risks will be assessed
• the need for ag industry input on Source Protection Planning Committees to be set up in each planning area
• who will cover costs for new measures to protect drinking water sources.

Measures imposed under this act, once passed, could potentially result in serious restrictions on farming operations throughout the province. OFEC will respond to the report on behalf of its members, expressing concerns and emphasizing the need for strong farm representation on the technical working committee currently believed to be working on details of the legislation.

OCPA will continue to monitor the progress of this situation and provide regular updates through this newsletter.

Crop Nutrients Council
A new Ottawa-based coalition formed by farm and agribusiness groups is designed to promote science-based best management practices for crop nutrients that enhance both the economic and environmental sustainability of agriculture. It is expected that the Council will give farmers a strong voice in the development of nutrient management policies.

With office and administrative support provided by the Canadian Fertilizer Institute, and a start-up grant provided through

CARD funding, the group will:
• promote the voluntary adoption of best management practices in the application of crop nutrients
• in cooperation with industry and other stakeholders, communicate to both the agriculture industry and the general public regarding the application of environmentally sound crop nutrient practices in food production
• encourage research in support of science-based crop nutrient best management practices.

The Crop Nutrients Council will be headquartered in Ottawa. The Executive Committee will include farm representatives, fertilizer industry representatives, and environmental representatives.

The Grain Growers of Canada (GGC) has recently affirmed its membership in the Crop Nutrients Council. OCPA will participate through its membership in GGC.

CEPA Adds ‘Ammonia Dissolved in Water’ to Toxic Substances List
Environment Canada has announced that on January 1, 2003, ‘ ammonia dissolved in water’ was added to Schedule 1 (List of Toxic Substances) of the Canadian Environmental Protection Act, 1999 (CEPA).

Prior to the addition of ‘ammonia dissolved in water’ as well as several other water pollutants to CEPA Schedule 1, a scientific assessment concluded that “they are entering the environment in amounts that have or may have an immediate or long term harmful effect on the environment or its biological diversity.” Stakeholders were consulted extensively throughout the scientific risk assessment process.

Adding these substances to Schedule 1 does not mean that they are being banned. Rather, it means that the Government of Canada can use a variety of measures under the CEPA legislation to minimize the release of these pollutants into the environment. Pollution prevention plans, environmental quality or release guidelines, codes of practice, economic instruments, environmental performance agreements and regulations are just some of the tools available.

The principal releases of ammonia to the environment from human activity come from municipal wastewater effluents into the aquatic environment, industrial activity (pulp and paper mills, mines, food processing, and fertilizer production, most releasing ammonia into the atmosphere), and agricultural activities (fertilizer application, which may release ammonia into air, and animal-rearing facilities, with potential releases into water). It is expected that activities undertaken through CEPA will focus on reducing the impact in municipal wastewater effluent.

Registration of Poncho, Gaucho Seed Treatments
OCPA is pleased that two new generation seed treatments, Gaucho and Poncho both from Gustafson, have now received registration from PMRA for use on field corn in Canada. Both products are effective for control of wireworm and other seedling insect pests of corn. (Specific labelled pests vary for the specific products and formulations). These registrations will provide Ontario corn growers with a substitute in 2004 for Lindane-based seed treatments for which registration is being phased out and supplies of which were believed inadequate to treat the normal portion of the 2003 crop.

Growers should note, however, that Gaucho and Poncho are registered for ‘commercial seed treatment’ only, meaning that the seed will need to be treated by the seed companies at their processing plants. OCPA and other groups are investigating whether there may be opportunity (and supporting data on efficacy, operator safety, etc.) on which to base a proposal for on-farm commercial application equipment to be used for seed treatment. (Note: the ‘drill-box’ formulations familiar to growers with the lindane-based products will not be considered for registration by PMRA or the seed treatment companies.)

Thus, growers will need to contact their seed sales rep. prior to ordering seed to determine which seed treatment meets their particular needs and what quantity of seed they will need to have treated.

Lorsban Registration Status
In mid March, the Pest Management Regulatory Agency (PMRA) posted proposed regulatory actions on their website in regard to chlorpyrifos (Lorsban), one labelled use of which is for control of corn rootworm in field corn. The PMRA proposal arose from their Phase 2 re-evaluation of organophosphate insecticides, conducted in collaboration with the U.S. Environmental Protection Agency (EPA).

In proposed regulatory actions, PMRA proposed to discontinue registration for chlorpyrifos use in field corn (along with a number of other discontinued uses in other crops and restrictions on remaining labelled uses).
OCPA’s letter to PMRA on this issue highlighted the following points:
• Mitigation measures to be implemented by PMRA should be fully harmonized with those implemented by the EPA, especially since “much of the scientific information used by the PMRA in its assessment of chlorpyrifos came from reviews conducted by the U.S. EPA” and that regulatory actions undertaken for non-agricultural uses following the Phase I re-evaluation of chlorpyrifos were “consistent with regulatory changes occurring in the U.S. for the same food commodities.” PMRA promotes harmonization of registrations for new products in Canada and the U.S., and this same principle must apply to decisions arising from re-evaluations or recommended registration cancellations. Failure to ensure harmonization of registered crop uses, use patterns, application methods, buffer zone widths, etc. could leave Canadian farmers at a competitive disadvantage relative to our American counterparts.
• OCPA does not support the proposed removal of the registration for Lorsban (chlorpyrifos) use in field corn, if that use is retained in the U.S. OCPA acknowledges that use of chlorpyrifos on field corn is relatively minor, as corn rootworm is effectively controlled at present by crop rotation. Although other insecticides (Force, Counter) are currently registered for use in corn for control of this pest, having access to products that will allow rotation of insecticide modes of action is a sound insect resistance management procedure.
• Since use of chlorpyrifos in field corn is minimal at present, removing this registered use would have negligible impact on the overall, cumulative risk potential from this product (as part of the organophosphate ‘risk cup’). OCPA does not anticipate that use of chlorpyrifos in field corn will increase significantly in future, but access to alternative control products is an important component of integrated pest management.

In summary, harmonization of the registered uses and use patterns for chlorpyrifos in Canada and the U.S. must be the guide for PMRA’s decisions - if a use is acceptable in the U.S. on a crop that is also grown in Canada, there is little rationale for not allowing that use in Canada as well, especially in light of the unrestricted movement of grains and food products between the two countries.

Biosafety Protocol
On June 13, the country of Palau became the 50th country to ratify the Cartagena Protocol on Biosafety to the Convention on Biological Diversity.

With the required number of 50 instruments of ratification/accession/approval/acceptance now reached, the Protocol will enter into force on September 11, 2003.

The Biosafety Protocol is designed to deal with the transboundary movement of Living Modified Organisms (LMOs). Canada has signed, but not yet ratified, the agreement. OCPA notes that few, if any, major grain exporting countries have ratified the agreement at this time.

For more information, see http://www.biodiv.org/biosafety/.

Voluntary Labelling Standard for GE Foods
The Canadian General Standards Board (CGSB) process to develop a standard for the voluntary labelling of foods to provide consumers with information regarding the presence or absence of ingredients obtained through genetic engineering continues.
Thirty-three user, producer and general interest groups were represented at a three-day meeting held in Quebec this past May. The Committee consists of 54 voting members in total.

According to Doryne Peace, committee chair, substantial progress was made in resolving outstanding issues at this meeting. A vote on the revised standard will take place this summer.

Two earlier versions of the Standard failed to achieve sufficient support to be passed under the consensus rules that guide the CGSB process.

If consensus is achieved with this vote, a voluntary labelling standard should be published early in 2004.

OCPA to Meet with U.S. Growers
On June 4, representatives of OCPA met with the Michigan Corn Growers’ Association in Port Huron as both groups prepared for a joint meeting with the U.S. National Corn Growers’ Association (NCGA) scheduled for June 19 in Lansing, Michigan.

The groups involved are interested in building stronger alliances as well as sharing knowledge and research in areas such as market development and environmental programs. Plans also include the development of a North American Corn Meeting.
Highlights from the meeting will be provided in the August/September issue of Ontario Corn Producer.
Update on OCPA Research Project Funding for 2003

Due to the need to utilize OCPA’s allocation of CORD (Canada-Ontario Research & Development) funds prior to the March 2004 termination date for the program, a number of projects were selected by OCPA last November for funding in 2003. These projects were described in the January 2003 issue of the Ontario Corn Producer.

At this time, there are no details on the availability of future funding for a ‘CORD-like’ program. Under the federal/provincial agreement over the last several years, CORD has been treated as a companion program. Minister Johns has included the CORD program on a list of companion programs submitted to federal minister of Agriculture and Agri-Food Lyle Vanclief to be funded from the ‘transition’ funding under the APF (Agricultural Policy Framework). However, with no Canada-Ontario agreement in sight, and many large issues still to be settled, it is likely to be several months before the next ‘CORD’ program is decided.

In light of this, OCPA did not commit to any other new projects in 2003, choosing instead to preserve some of the funds obtained through the research contribution on seed program to cover costs of ongoing projects continuing beyond 2003 (assuming the research progresses satisfactorily this year).

Thus, aside from the following projects that have been completed, the list of projects supported by OCPA in 2003 is comprised of the CORD projects listed in the January 2003 magazine and the ongoing projects listed in the July 2002 and Aug./Sept. 2002 issue of the Ontario Corn Producer.

Projects supported in 2002, now completed:
• Crop-based Indicators for Monitoring Spatial Variability in Corn Nitrogen Management
W. Deen, U. of G., Guelph; B. Ma, AAFC, Ottawa
• On Farm Implementation of Site-Specific Nitrogen and Manure Management
G. Wall, Soil Resource Group, Guelph
• Identifying N Management Units on the basis of Residual Nitrogen and Soil Structure
E. Gregorich, AAFC, Ottawa; B. Curnoe, U. of G., Kemptville
• Genetic Mapping of Corn Leaf Diseases
E. Lee, U. of G., Guelph; L. Reid, AAFC, Ottawa
• Evaluation of New Weed Control Options for Ontario Corn Producers
C. Swanton, U. of G., Guelph
• Effect on Corn Development of Anaerobic Micropores in Soils with Higher Clay Content, Larger Aggregate Size or Reduced Tillage
B. Kay, T. Tollenaar, W. Deen, U. of G., Guelph Reports on the results of these projects will be included in future issues of Ontario Corn Producer, as final project reports become available.

As well, the project “Economic Impact of Feeding High Protein Grain Corn and Silage to Beef Cattle,” under the direction of P. McEwen, U. of G., Ridgetown, has been deferred. OCPA will consider funding support for a modified proposal later this year.

Bt Corn Info Available Online
The Canadian Corn Pest Coalition (CCPC) has launched a new website that provides information on Insect Resistance Management strategies designed to protect the long-term effectiveness of Bt corn technology.

Visitors to the site can learn more on how farmers can successfully implement the requirements of the IRM strategy, including the proper establishment of non-Bt corn refuges, on their farming operations. Information is also provided on protocols for field monitoring along with laboratory and remediation procedures in the event of suspected or confirmed resistance to Bt in the European corn borer population.

Interested stakeholders can also find information on compliance, current news and breaking issues.

The Canadian Corn Pest Coalition was founded in 1997 and includes representatives of the seed corn industry, grower associations, regulatory agencies, academic institutions and extension and research staff from both provincial and federal governments. The organization’s current focus involves post-market stewardship of Bt corn hybrid technology for European corn borer and the development of similar strategies to address corn rootworm control.
Learn more by visiting the website: http://www.cornpest.ca

Roundtable Discussions – Cereal Grains
Agriculture and Agri-Food Canada recently announced the establishment of a joint government-industry Cereal Grains Value Chain Roundtable that will devise strategies for securing international market success. The primary objective is to find ways to expand exports of bulk cereal grains. This is one of several sectoral Roundtables set up under the International Trade pillar of the Agricultural Policy Framework.

Representatives from across the Value Chain, including producers, marketers, input suppliers and primary and secondary processors will meet in partnership with government officials at least twice each year over the next five years to examine markets and both current and future issues of importance to the sector. It is expected that subgroups will also be formed to work on various projects.

Four member groups of Grain Growers of Canada will be represented at the initial meetings to be held on June 24-25 in Winnipeg. OCPA will keep apprised of developments through the organization’s membership in GGC.

Map Your Farm On-Line
Oxford County farmers now have access to a broad range of land and water-related information that can be used for the development of nutrient management and environmental farm plans as well as for a variety of other purposes.

The ‘Map Your Farm’ online application provides integrated information that is currently housed at the County of Oxford, including soils, watercourses and aerial photography. It is geared specifically to Oxford’s agricultural sector for use in land management and precision agriculture.

The application was developed using Geographic Information Systems (GIS) technology, and allows users to view, customize and print maps. Users can select the information they want to appear on the maps. The service is offered by the County of Oxford at no cost to users.

Participants in educational sessions held this past spring expressed enthusiasm for the new project. More information is available on the ‘Map Your Farm’ website: http://maps.county.oxford.on.ca/mapyourfarm/

AGCare Appoints New Executive Director
Jackie Fraser, a 1996 M.Sc. graduate in Land Resources Management at the University of Guelph, has recently been appointed as Executive Director of AGCare (Agricultural Groups Concerned about Resources and the Environment). Prior to joining AGCare, Fraser served in the role of Environment and Resources Manager for the Aggregate Producers’ Association of Ontario.

Fraser replaces Diana Macdonald, who left the organization this past spring to pursue other interests.

The above figures are based on levies received by OCPA for commercial sales.

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