Emerging Opportunities

The future of our grain and oilseed products is finally looking up thanks to emerging opportunities in bioplastics, biochemicals, and biocomposites.

Environmental concerns, along with self-sufficiency in energy are currently being addressed with increased ethanol production from corn and wheat and the start-up of bio fuel production from soybeans and canola.

But just as Ontario’s grain and oilseed sector stands to benefit from this innovation, the question becomes; do Ontario producers have the financial base to capture this opportunity? Equally important, will we be able to supply this market and see profit from it, or will it again be supplied by U.S. grains and oilseeds subsidized by the U.S. Farm Bill?

Ontario is positioning itself as the leader in the bioeconomy and our citizens are certain to benefit from this prosperity. But first the entire industry needs to be sure that the primary supplier of the inputs - the producer - is both financially prepared and poised for profit in market opportunity.

Compared to their American and European counterparts, Ontario producers have been at a real disadvantage financially. The U.S Farm Bill has protected its producers from lows in the marketplace and loss of equity. At the same time both U.S. and European farm policy has distorted the marketplace and caused further hardship for Canadian grain and oilseed farmers. These countries continue to protect their farmers from future market lows. Our provincial and federal governments have done little to address the long-term damage to the family farm caused by international subsidies and poorly administered safety nets.

Ontario Grains & Oilseeds, a coalition comprised of the seven commodity organizations representing corn, soybeans, wheat, canola, coloured beans, white beans, and seed corn, was formed to work with Ottawa and Queen’s Park to improve safety nets and overall agricultural policy. We have been building relationships within government and the agricultural industry, and promoting our objectives in the media.

We have had positive responses from both levels of government with ad-hoc payments that have potentially addressed the shortfalls in 2005. But much work needs to be done to address the structural weakness of income support programs. We have focused our efforts in this area by proposing long-term, sustainable, industry-specific solutions that will work in tandem with current income stabilization programs.

We are asking the federal government to fund companion programs with provincial flexibility, allowing certain hard-hit agriculture sectors to benefit from industry and regionally specific programs.

Provincially, we want Queen’s Park to work with Ontario grain and oilseed growers in building a new, stable long-term partnership called the Risk Management Program.

The Risk Management Program is a form of insurance – farmers pay annual premiums and the program provides a payment only if world-price averages drop below an established threshold. This program does not set Canada up to compete in the world trade subsidy wars, but it does protect Ontario farmers when foreign subsidies push world prices down to an unsustainable level.

Ontario Grains & Oilseeds has been building partnerships across the country to deliver the message to governments. In December, Ontario and Quebec grain producer organizations formed the Ontario-Quebec Grain Farmers’ Coalition. The coalition also joined the Canadian Federation of Agriculture. The Ontario Federation of Agriculture, also a member of CFA, has passed and supported numerous resolutions supporting the Risk Management Program.

Other members of CFA, including Saskatchewan and Manitoba, have supported federally funded companion programs with provincial flexibility. This gives us a stronger voice at the national level.

The Farmers Feed Cities! brand continues to inform urban and rural non-farm families of the farm income crisis. The campaign runs outreach initiatives to help build understanding by reminding our urban counterparts that an investment in farm families is a sound investment for our government.

Feel free to check out the latest news and features at www.farmersfeedcities.com.

We are expecting both federal and provincial elections in the next eight months. As politicians prepare their election platforms, we have an immediate window of opportunity to get the Risk Management Program on the political agenda. Politicians are starting to take notice, since both provincial and federal candidates know the strong value of the rural vote in determining winning parties.

Visiting MPs and MPPs is critical right now if we want results. Phone your local directors to find out when visits are scheduled, or take the Ontario Grains & Oilseeds message to an event your local politicians will be attending.

Ontario producers need a long-term Risk Management Program so that family farmers and rural communities can continue to be a part of Ontario’s prosperity.