January 2007
Index
As of the end of November, $180.5 million in
CAIS 2003 program year payments had been triggered by 39% of 29,053 Ontario
applicants, with
payments averaging $15,863. By comparison, 11,369 Ontario field crop participants
triggered 3,791 payments totaling $23.3 million and averaging just $6,164. The
$180.5 million also includes $19.5 million in payments triggered through participant
amendments (the term used to describe appeals). As of the end of November, $189.6
million in CAIS 2004 program year payments had been triggered by 43.3 % of 26,366
applications processed to date averaging $16,605. By comparison, 10,477 Ontario
field crop participants processed to date had triggered 4,114 payments averaging
just $7,973 totaling $32.8 million. The $189.6 also includes $8.4 million in
participant amendments. As of the end of November, $140.9 million in CAIS 2005
program year payments had been triggered by 47% of 21,203 applications processed
to date averaging $14,185. Again as a comparison, 9,239 Ontario field crop participants
processed to date had triggered 4,641 payments averaging only $7,732 for a total
of $35.8
million. In terms of the file processing for all 3 years, CAIS 2003 and CAIS
2004 program years are essentially complete. CAIS 2005 is approximately
78% complete (calculated using the files on hand that meet all program requirements)
with the intention to have that number up to 95% completed by the end of 2006.
Agricorp has already started receiving CAIS 2006 applications; however, have
not yet started to process as the national agreements have not been signed.
One other statistic to note with regard to processing timelines; it took Agricorp
roughly a year to process CAIS 2003 applications. That number was reduced to
44 weeks for CAIS 2004 and has targeted 26 weeks for CAIS 2005 application processing
completion.
myCAIS
Agricorp is still putting a lot of effort into CAIS program delivery through
myCAIS. They received roughly 2000 applications through this internet mechanism
and hope to more than double its usage for the next CAIS program year. One area
they are improving is to have CAIS 2006 up and
running in a January/February timeframe verses April for last year’s program.
CAIS Fees
The fee option notices, which most producers would have received long ago, were
sent out to over 27,000 producers in 2 stages. Less than 1 % of the producers
changed their coverage from last year. The fee invoices, which most producers
are more recently receiving, are due for payment December 31, 2006. If this
payment is not made, late penalties will apply. The calculation is based on
0.045% of one’s reference margin plus a
$55 administrative cost share. This invoice is for CAIS program participation
for protection producers have already received. The next CAIS
program participation fee will come due in April 2007.
P1P2 Hybrid Inventory Adjustment
The Federal and Provincial government announcements regarding the CAIS inventory
adjustment payments to reflect the new calculation method (P1 P2 hybrid) are
planned to be mailed out the week of December 4, 2006 for the CAIS 2003 program
year. The CAIS 2004 program year projected
payment timelines are the week of December 11, 2006 and the CAIS 2005 program
year inventory adjustment payments are not expected to flow until late winter/early
spring which is when the Federal government direction is expected to be received.
Statements outlining benefit calculations are not expected to be available until
January/February 2007.
In terms of the CAIS 2006 program year, there
will not be any inventory adjustment as the P1P2 hybrid method will be a part
of the CAIS benefit
calculation.
Ontario Grains and Oilseeds Payment
The Ontario Grain and Oilseed program had roughly
20,000 participants take part in the program. The program was slated to pay
out $80 million,
which it did through the initial payments. Therefore, there will not be a second
payment as there are no residual funds left.
Ontario Pre-Budget Consultations
The Ontario Grains and Oilseeds Safety Net Coalition
has been participating in Pre-Budget Consultations across Ontario. The problem
for Ontario
grain and oilseed producers is a result of international agricultural subsidies.
Although prices have rebounded on some commodities recently, it is
uncertain how long it will last. Government at both levels recognize the fact
that the grains and oilseeds sector is in crisis due the following reasons:
• trade injury
• long-term price decline
• inadequate government support programs
• appreciating Canadian dollar
• rapidly increasing energy costs
Ontario’s grain and oilseed sector has a solution for the financial crisis
which has plagued
the industry for the past three years. Any solution should be based on the following
principles:
• there needs to be a partnership between government and farmers
• government investments should be rolled over from year to year, but participating
farmers would be required to make an annual investment
• funds earmarked for grain and oilseed producers through CAIS must be
redirected through a more appropriate mechanism
• programs must be structured in such a way as to insulate Canada from
trade challenges
• the lifespan of any program would be finite
Ontario’s
grain and oilseed producers developed a solution; the Risk Management Program
(RMP) which is based on:
• a commodity- specific support program
• payments for producers would be potentially triggered twice a year whenever
“opportunity” prices fall below an agreed floor
• payments would be based on individual historic average yields and planted
acreages
• whenever “opportunity” prices drop below an agreed floor
• the past three years have been exceptionally bad for Ontario grain and
oilseed producers. An average cost of the programs in more “normal”
years would be about $375 million; $225 million federally and $150 million provincially.
Ontario grain and oilseed producers envision RMP as a bridge to the future of
the Ontario agriculture industry. A key mandate of the provincial
government is to make Ontario a leader in new and innovative products, and also
to maintain the economic viability of farming families and rural
communities. RMP accomplishes both.
Ontario Grains and Oilseeds Meet with Rural Caucus
On December 6,
2006, the Ontario Grain and Oilseed Committee made a similar presentation to
the Ontario Rural Caucus concerning the crisis in the grain and oilseed industry
and the long-term solution that is required. Also highlighted was the new national
coalition that has been formed between Ontario and Quebec.
Ontario and Quebec Form a Safety Net Coalition
Grain and oilseed
farmers have strengthened their voice at the national level with the creation
of the Ontario-Quebec Grain Farmers’ Coalition. The
coalition, an initiative of Ontario Grains and Oilseeds and the Federation des
producteurs de cultures commerciales du Quebec (FPCCQ) representing 41,000 grain
and oilseed farmers, is working with the Canadian Federation of Agriculture
and is open to partnering with other provincial and national
organizations with similar concerns.
A representative
of the FPCCQ stated that the need for this coalition is a direct result of the
Canadian government not responding to the very real
need for financial programs which support grain and oilseed farmers.
The Ontario-Quebec
Grain Farmers’ Coalition is actively lobbying the federal government to
provide provincial flexibility in federal program funding that is earmarked
for grain and oilseed farmers. The coalition is willing to work with government
to find a solution for the financial crisis plaguing the industry.
OACC Requesting Transparency in APF Consultations
The Ontario Agricultural
Commodity Council (OACC) has submitted a letter to Ministers Chuck Strahl and
Leona Dombrowsky concerning the consultation process for the Business Risk Management
(BRM) pillar of the Agricultural Policy Framework (APF). In the letter, OACC
members are
asking for a more open and transparent process to allow for input from national
and provincial commodity groups and national and provincial general farm organizations.
The BRM principles which guide the structure and design of programs need to
be reviewed.
In addition, OACC
highlights the fact that the APF is not working for some sectors and to correct
the problems, the APF needs to allow regional
flexibility as well as flexibility to target programs to ensure the long term
stability of all of agriculture.
Discussion documents
which are being used for the APF consultations are available on the Agriculture
and Agri-Food Canada website at www.agr.gc.ca/nextgen or by calling 1-800-O-Canada.
On December 18,
the Canadian Federation of Agriculture (CFA) announced that they will evaluate
the next generation of agriculture policy currently under development by the
federal government and issue a report card. The process used to develop the
policies will also be graded.
CFA President,
Bob Friessen, has stated the future of Canadian agriculture is on the line and
has stressed the importance of farmers being involved in the APF II consultations.
Fundamental changes and competitive policies are required to build a stong and
profitable industry in Canada.
The CFA report
card contains a list of criteria in which it will measure success for the development
process and the final product. Those criteria are:
| 1) | A process of engagement for policy development that respects the democratic will of the agricultural industry and the solutions proposed by farmers through their grassroots organizations; |
| 2) | Demonstration of true partnership and collaboration in the development of the next generation of agricultural policy, not simply “consultation”; |
| 3) | A clear vision for the future of Canadian agriculture, guiding the industry to becoming world leaders as solutions providers of the world’s food, health, energy and environmental needs; |
| 4) | Practical,
incentive-based programs that build sustainable initiatives contributing
to the public good such as environment, food safety and animal health; |
| 5) | Predictable, bankable and flexible business risk management programs that address the extraordinary risks, subsidy distorted markets and declining incomes faced by Canadian farmers; |
| 6) | Clear
support for identifying, maintaining and strengthening the marketing structures
that enable Canadian farmers to be profitable in the marketplace; |
| 7) | Practical solutions for young, existing and potential farmers to enter the industry and be successful; |
| 8) | Achieve a more responsive and efficient regulatory system that facilitates innovation within the industry; and |
| 9) | Coordinated, whole production chain strategies that facilitate innovation, build partnerships, profitability and competitive industries into the future. |
While the federal
government is conducting their consultations, the CFA is continuing to develop
its own Canadian Farm Bill agriculture policy proposal. CFA will continue to
urge the government to include the ideas it contains in the next generation
of agricultural policy.
Income Challenges Could Have Serious Outcomes
The Standing Committee
on Agriculture and Forestry have completed their first phase of a two-part study
on rural poverty.
The report highlights
the demographic and income challenges facing rural Canada which they indicate
could have serious outcomes for all Canadians.
With 90% of farm
families relying on off-farm income to survive, young people are leaving rural
Canada to find employment in large urban centres and are not going back. The
result is a rural population base that is aging and shrinking.
There is evidence
of increasing incidences of depression, suicide, mental illness and family violence
in rural Canada.
There is also evidence
that the rural foundations on which we built our Canadian economy are in danger
of collapse.
The Committee insists
though that despite the many challenges, there are some communities that have
found ways to improve their local economies.
More information
on the work of the Committee can be found at www.senatesenat.ca/agvo.asp.
Alarm Bells Raised with Collapse of DOHA Round
Canadian Senator,
Donald Oliver was quoted in a press release from the Canadian Group of the Inter-Parliamentary
Union (IPU), November 29, 2006 that the near collapse of the Doha round of world
trade negations has raised alarm bells in governments around the world. The
Senator also stated that as a member of the Standing Senate Committee on Agriculture
and Forestry, he has seen first hand the corrosive impacts on farm families
of
trade distorting subsidies and tariff walls.
Discussions on
the state of WTO trade negotiations took take place in Geneva, Switzerland,
December 1, 2006.
Proposed Model for Corn, Wheat and Soybeans
A proposed model
under which OCPA, Ontario Wheat Producers’ Marketing Board and Ontario
Soybean Growers could be brought together has been
developed. There was an insert with the December 12 edition of the Ontario Farmer.
The information is also available on the website www.ontariocorn.org under Proposed
Unification Model for Bringing Corn, Soybeans and Wheat Together.
Since the model
is not finalized, producers have the opportunity to review it and provide further
input. Check the list of County and Regional meetings to find out when the meeting
in your area is taking place.
GreenField Ethanol Announces New Plant
On December 8,
2006, GreenField Ethanol, formerly Commercial Alcohols Inc., announced a 200-million
litre, state-of-the-art ethanol plant that will be built at Johnstown, Ontario.
The plant will use approximately 20 million bushels of corn per year and will
be operational by mid-2008.
Distillers Grains Ministry Advisory Group
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has established a Distillers Grains Ministry Advisory Group (DGMAG). The purpose of the group is to provide advice to OMAFRA on the direction and scope of activities related to opportunities and issues of the growing ethanol sector in Ontario with particular focus on distillers grains (DGs).
The DGMAG includes
10 to 15
representatives from several commodity groups, agribusiness, University of Guelph,
ethanol industry and OMAFRA. Participating from OCPA is Tom Wilson.
Monsanto Canada Establishes Grower Advisory Council
Monsanto Canada
has established a Canadian Grower Advisory Council based on the success of a
US Council that was started in 2001.
The Canadian Grower
Advisory Council will provide strategic advice and guidance to the company on
issues that impact its Canadian business
and identify new opportunities to help Canadian growers gain increased value
from the crops they produce.
At a small gathering
in December, Brian Doidge was presented with a small token of appreciation for
his dedication and service to the Ontario Corn
Producers’ Association and Ontario’s agricultural industry. Best wishes
to Brian in his retirement.
The federal Minister
of the Environment, Rona Ambrose, announced the appointments of Janet Benjamin
and Pauline Browers in December, to the
National Round Table on the Environment and the Economy (NRTEE).
The Canadian government
looks to the NRTEE for environmental and economic advice on environmental issues.
The NRTEE explores
opportunities to integrate environmental conservation and economic development.
OFA Takes the Line Fence Act to Queens Park
The Ontario Federation
of Agriculture requested from the members of the Standing Committee on General
Government to leave working of Section 20 of the Line Fences Act unchanged.
That section of the Act requires owners of former railway rights of way that
been turned into trails to be responsible for constructing and maintaining the
fences of those properties.
The deadline for
applying for interest-free loans under the ESCAP or fall Advance Payment Program
for corn is February 28, 2007. For more information see the Back Cover.
Elimination of Farm-Fed from Cash Advance Programs
OCPA was recently
notified by Agriculture and Agri-Food Canada that the farm-fed option for the
Cash Advance Programs for crops will be
eliminated from the new program, which includes livestock, they are launching
in April of 2007.
OCPA welcomes Linda
Rendle to the OCPA Team. Linda accepted the position of Financial Officer and
we look forward to working with her.
OCPA extends best
wishes to both Cathy Lysnes and Elaine Goddard who have both left the OCPA for
new opportunities.
Farms Want Pay For Care of Environment
Australian farmers
want to be paid for the environmental work they do on their properties and are
pushing for policies to manage droughts. The story goes on to say that the National
Farmers Federation (NFF) has flagged the need for a ‘generational shift
in thinking’ in planning agriculture’s future. This would focus on
maximizing agricultural sustainability through better managing of the environment,
better drought planning, improving transport links, making tax changes to encourage
rural jobs and ensuring biosecurity. The ideas are in the NFF’s budget
submission to the Federal
Government. NFF president David Crombie was quoted as saying that because climate
change and water reform required long-term solutions, it is essential to embrace
farmers in planning now. The fact is Australia’s 130,000 farms occupy 60
percent of Australia’s landmass and use 60 percent of Australia’s
water.
Agriculture and
its end-users contributed about $103 billion or 12 percent, of gross domestic
product and supported 1.6 million jobs. The NFF wants
the Government to develop an environmental stewardship program and pay land-holders
to produce the ‘environmental outcomes’ demanded by society.
300 Bushel Corn Yields No Longer 'Pie-in-the-sky'
According to this
story, a generation ago Iowa farmers would not have imagined harvesting 200
bushels of corn per acre. Now it is commonplace and crop experts see 300 bushel-per-acre
yields on the horizon. How soon corn growers will cross that threshold is a
subject of contention. But the jump in yields cannot happen soon enough. Demand
for Iowa’s leading crop is soaring, and new ethanol production is driving
much of the demand. Pressure is growing for U.S. farmers to raise more grain.
Adding acreage
by shifting soybean acres to corn production – widely anticipated in 2007
– will help farmers
meet the demand; however, boosting corn yields also will be key. Plant breeders,
seed corn suppliers, agronomists, farmers and others must collaborate to hit
the 300 bushel-per-acre goal, industry experts say.
New Pesticide Regulations to Protect Canadians
On December 12,
2006, the Honourable Tony Clement announced that Canada’s Government is
taking the next step in its world-leading Chemical Management Plan by announcing
two new regulations to govern pesticide use. Effective April 26, 2007, the Minister
of Health said that pesticide companies will be required to report to Health
Canada all the adverse effects associated with their products. Effective January
1st, 2007, pesticide companies will be required to begin collecting pesticide
sales data to report to Health Canada on an annual basis. These new regulations
will have a much greater capacity to monitor pesticide use and impacts in order
to make sound regulatory decisions stated the minister. He continued by saying
that Canada’s New Government is ensuring that we can protect human health
and the environment, while preserving access to safer and
economically important pesticides. The regulations build on the Government of
Canada’s Chemicals Management Plan, which will protect Canadians’
health and their environment by making sure that chemical substances are managed
properly so as to not pose concerns.
Tennessee Plant is World's First to Produce Propanediol from Corn Sugar
Commercial production
of Bio-PDO™ from corn sugar is a significant milestone for agriculture
and for Pioneer Hi-Bred International, according to
company officials. Pioneer is a subsidiary of DuPont which announced DuPont
Tate & Lyle Bio Products, LLC, an equallyowned joint venture of DuPont and
Tate & Lyle, the first commercial shipments of Bio-PDO™, from its $100
million facility in Eastern Tennessee.
According to Pioneer
President Dean Oestreich, Bio-PDO™ is a totally new cornbased product that
can be used to make a variety of consumer
products replacing petroleumbased propanediol. This is pretty exciting news
to both farmers who are growing corn and consumers who are taking
advantage of these new products made from the renewable resources of agriculture
stated Oestreich. It is being used in a new DuPont fiber called Sorona®,
which is made into carpet. It also has great softness, comfort and stretch-recovery
which make it great for use in apparel. It is well suited for cosmetics, liquid
detergents and industrial applications like anti-freeze. The production of Bio-PDO™
consumes 40 percent less energy and reduces greenhouse gas emissions by 20 percent
verses petroleum-based propanediol. Production of 100 million pounds of Bio-PDO
™ will save the equivalent of 10 million gallons of gasoline per year,
or enough to fuel 22,000 cars annually. Oestreich says Bio-PDO™ is a perfect
example of the commitment on the part of DuPont and Pioneer to develop new industrial
markets for agricultural producers and more renewable products for
consumers.
New Soybean Pulls Nitrogen from Soil, not Air
In a report from
the United States Department of Agriculture, growers may soon have the option
of planting a non-transgenically modified soybean variety that improves recovery
of nitrogen from landapplied animal waste. That’s thanks to a newly released
soybean germplasm that removes large amounts of nitrogen applied to soil. If
developed into a new cultivar, it could become an ideal candidate for animal
producers managing waste generated by their operations.
The Agricultural
Research Service (ARS) released the soybean germplasm, called Nitrasoy, in conjunction
with the North Carolina Agricultural Research Service at North Carolina State
University in Raleigh.
Today’s commercial
nodulating soybean varieties forge a give-and-take relationship with bacteria,
called rhizobia, which thrive in the plants’ root nodules in soil. The
bacteria turn nitrogen gas (making up about 80 percent of the atmosphere) into
nitrogen fertilizer that the plant can use
to make proteins.
Uniquely, Nitrasoy
is a nonnodulating soybean germplasm with a large requirement for soil-applied
nitrogen to obtain excellent seed yield. Its
capacity to recover applied nitrogen from soil reduces the risk of possible
nitrate pollution of groundwater. In field testing, Nitrasoy accumulated up
to 17 percent more soil-applied nitrogen in its seed than did its parent. In
other tests, Nitrasoy was number one in average seed yield when compared to
three other genotypes, after each had been fertilized with swinelagoon effluent.