May/June 2007
Index
As of March 31, 2007, 98% of the 2005 CAIS applications were processed. An average payment of $15,249 was paid to 12,421 of 26,181 Ontario applicants. Total payments for the 2005 CAIS program year amount to $189.4 million at the end of March. Ontario field crop applicants triggered 5,573 payments totaling $47.9 million with an average payment of $8,602.
For the 2004 CAIS program year as of March 31,
2007, 11,513 of 26,508 participants triggered payments of $191.9 million with
an average payment of $16,670. Ontario field crop participants triggered 4,059
payments totaling $31.3 million with an average payment of $7,704.
As of March 31, 2007 for the 2003 program year, the number of producers triggering
payments increased slightly to 11,421 and the amount of payments decreased slightly
to $180.3 million with an average payment of $15,785.
Processing of 2006 applications for off-calendar year ends began late February
with priority being given to participants experiencing financial distress. An
update will follow in the next newsletter. Completed applications are due June
30, 2007.
Deadline for 2007 CAIS Extended
The deadline for producers to join the 2007 Canadian Agricultural Income Stabilization
(CAIS) program and pay the 2007 fee will be extended to November 30, 2007 while
proposed changes to business risk management programs are under discussion.
However, the 2006 program deadlines have not changed and producers are still
required to pay their fee by April 30, 2007 to be eligible for the 2006
program.
myCAIS
Information for myCAIS, including user names and passwords, were mailed in late
February. Approximately 2,300 applications have been submitted electronically
for the 2005 program year.
CITI/OITP
Payments for the CAIS Inventory Transition Initiative (CITI) and the Ontario
Inventory Transition Payment (OITP) have been completed for 2003 and 2004. Statements
were being mailed at the end of March.
For 2005, CITI and OITP payments will be processed once the governments decide
on what the percentage calculation from residual funds.
For 2006, the P1P2 hybrid will be delivered as part of normal CAIS processing
and cost shared by governments.
Ontario-Quebec Grain Farmers' Coalition
The Ontario-Quebec Grain Farmers’ Coalition
is under new leadership.
William Van Tassel, 1st Vice President of Federation des producteurs de cultures
commerciales du Qubec (FPCCQ), and Walt Charbonneau, Past Chair of the Seed
Corn Growers of Ontario will lead the Ontario-Quebec Grain Farmers’ Coalition
as President and Vice President respectively.
The recent budget announcements are viewed by the coalition as steps in the
right direction, especially the $1 billion toward reforming the Canadian Agricultural
Income Stabilization (CAIS) Program.
The coalition is seeking a national income support program with regional flexibility
so that provinces can design programs to meet specific local
needs. For grain and oilseed producers, this will mean longterm income stability
and predictability. Companion programming would provide long term, bankable
solutions to farmers.
Ministers of Agriculture Meeting in Winnipeg
In the Federal-Provincial-Territorial Communique
that was released April 12, 2007, an update was provided on the federal and
provincial Ministers
of Agriculture meeting held in Winnipeg to discuss ongoing collaboration among
governments and industry on new business risk management
programming, the development of the next generation of agriculture and agri-food
policy, World Trade Organization (WTO) negotiations and
enhanced feed ban regulations.
In preparation for the June Ministerial meeting, a task team has been formed
to develop proposals on funding approaches for the disaster framework. A task
team will also be working on the savings account program with established principles;
it will be cost-shared; cost-neutral for
each government; and, will replace the top tier of the income stabilization
element of the business risk management suite.
In discussions about the next generation of agriculture and agri-food policy,
task teams have been established to develop a framework based on what was heard
in the consultations. A common theme from the consultations that was a priority
for all jurisdictions was regional flexibility in programming. Proposals will
be developed and discussed at the June meetings for a clearer definition of
regional flexibility within national objectives.
Canadian Corn Producers Thank Government for WTO Consultations
The Canadian Corn Producers submitted the following
letter to Prime Minister Harper, Minister Strahl and Minister Emerson on April
18, thanking the federal government for initiating WTO consultations with US.
Dear Prime Minister Harper, Minister Strahl and Minister Emerson:
The Canadian Corn Producers (CCP) would like to take this opportunity to express
our appreciation for the Government of Canada’s ambitious move to initiate
consultations with the US at the World Trade Organization (WTO) on their trade-distorting
subsidies for corn in particular, and all agricultural product subsidies in
general. The fact that many other countries have requested they be part of this
consultation only magnifies the
importance of the step that Canada has taken.
As you are aware the Canadian Corn Producers, a coalition of the Ontario Corn
Producers’ Association (OCPA), the Federation des Producteurs de
Culture Commerciales du Quebec (FPCCQ) and the Manitoba Corn Growers Association
(MCGA), has long been requesting that this action be taken by the government
in an effort to reduce the injury to our members caused by the seemingly endless
financial support that the US provides to
their corn producers who in turn have dumped that subsidized product into our
trading area and significantly reduced the price available to our producers.
As this type of negotiation is known to take a considerable length of time to
resolve and the re-affirmed commitment to Doha coming out of the April 12, 2007
Federal and Provincial Ministers of Agriculture meeting, we were also pleased
to see your continuing commitment to agriculture as evidenced by your recent
$1 billion announced changes to farm support programming in Canada. We want
to continue to offer the government an opportunity to work with our sector to
ensure the proper delivery mechanisms are utilized to effectively target the
funds to the sectors needing
assistance. That is why we have worked so hard to seek a national income support
program with regional flexibility that provides long term income stability and
predictability; a topic that was a common theme during the consultations and
also received some attention at this Minister’s meeting. That being said,
Ministers have spent a lot of time on consolidating the work done on margin-based
and saving accounts programs. We would like to
remind you that income stabilization programs will not address the negative
effects the US farm bill causes our industry; effective companion programs will
provide the long term and bankable solutions our sector needs for future sustainability.
Some opponents would argue the rise in commodity prices in the past 4-5 months
have solved all of our sector issues. However, in the same 4-5 month period,
the input costs, particularly fertilizer, for producers have risen correspondingly.
As well, our associations track average pricing received by our producers and
we can decisively say that they are far lower than the current market would
imply. Another fact to note; this better pricing year is coming on the heels
of two of the
worst marketing years ever, which many producers are far from complete recovery.
We would therefore encourage your government to continue its efforts to develop
a strong flexible support program for our producers that would include the implementation
of companion programming resulting in a consistent level of support through
good times and poorer times, and which counteracts the trade injury caused by
foreign subsidies. Until such a program is fully developed, we feel we must
continue to pursue our Anti-Dumping and Countervailing Duty (AD/CVD) efforts
to provide some measure of support for our producers; much rather preferring
to put our resources into moving our industry forward by other means.
Original signed by Christian Overbeek, President, FPCCQ, Gary Unrau, President,
Manitoba Corn Growers Association and Dale Mountjoy, President, OCPA.
Canadian Farm Families Options Program
In an April 20 news release, the federal government
announced that the Canadian Farm Families Options Program (Options) will continue
for a
second year and will be open to those who received a payment for the 2005 program
year.
Over $141 million was paid to 15,000 individual farmers and farm families across
the country in addition to the business training and services that were offered
to them. Services such as the Farm Business Assessment and Canadian Agricultural
Skills Service (CASS) are designed to help them improve their farm or off-farm
income.
Producers who are not eligible for the Options program may still take advantage
of programs and services offered by Agriculture and Agri-Food
Canada to help them assess their business, develop a business plan, take training
to expand their skills and determine the feasibility of value-added opportunities.
These services are offered through programs including the Canadian Farm Business
Advisory Services, CASS and Planning and Assessment for Value-Added Enterprises.
Inflation Rises to 2.3 percent in March
Statistics Canada has reported that Canada’s annual inflation rate increased slightly from 2 per cent in February to 2.3 per cent in March which was largely due to higher gasoline prices. Nationally, gasoline prices increased by 12.5 per cent between February and March.
Other factors that have put upward pressure on
the inflation rate include a 5.4 per cent increase in the cost of mortgages,
a 6.9 per cent increase in the homeowner’s replacement cost as well as
increased prices for fresh vegetables and for food purchased in restaurants.
Kellogg Canada Inc. Receives $2.4 Million from Province
In an April 20 news release, Minister of Agriculture,
Leona Dombrowsky announced that the Province of Ontario was providing $2.4 million
to Kellogg Canada Inc. as part of its $5-million investment towards rural economic
development.
Kellogg Canada Inc. is expanding its cereal manufacturing capacity in North
America by building a new 200,000-square-foot plant in Belleville.
The Government of Ontario’s five-year, $2.5
million Premier’s Award of Agri-Food Innovation Excellence was announced
in the 2006 budget to recognize innovation in the province’s agri-food
sector.
Fifty-five regional awards, valued at $5,000 each, will be presented. On March
30 in Glencoe, the first 13 recipients of the regional awards were recognized.
An additional 7 awards were presented in the Grafton area on April 20.
Modest Increase in Ontario Farmland Values
According to a news release from Farm Credit Canada, the average value of farmland in Ontario increased by 1.7 per cent in the second half of 2006, down from 2.1 per cent in the first half of 2006.
Overall, Canadian land values increased by 2.5
per cent in the last six months of 2006.
Forward Sales Contract - Read it Carefully
Forward sales contracts are an option that many
producers use in marketing their corn to help manage their business risk. With
the volatility in the
marketplace, producers are encouraged to read through each contract before signing
it to ensure understanding of every condition within that contract and particularly
any new clauses.
ecoAgriculture Biofuels Capital Initiative
The ecoAgriculture Biofuels Capital Initiative
(ecoABC), formally the Capital Formation Assistance Program, was announced by
Agriculture and Agri-Food Canada on April 23, 2007. ecoABC is a four-year program
that will provide repayable contributions of up to $25 million per project to
help
farmers with the challenges of raising the necessary capital for construction
or expansion of biofuel production facilities. The 2007 budget will allocate
another $2 billion over 7 years.
Funding is provided for projects that use agricultural
feedstock to produce biofuels and that have new agricultural producer equity
investments
equal to, at minimum, five per cent (5%) of the total eligible project costs.
As the level of producer equity investment increases, the amount of funding
contributed increases.
For more information, visit www.agr.gc.ca/ecoabc, call 1-800-367-8506 or e-mail:
ecoABC@agr.gc.ca.
Eco-Friendly Laundry Ingredient From Cornstarch
The Agricultural Research Service, USDA, has
developed a new environmentally friendly ingredient for laundry and dishwashing
detergents called a
“cobuilder”. This ingredient, made from cornstarch and is biodegradable,
prevents the crusty deposits known as “scale” which can be a problem
in hardwater regions.
The process of making the polyester-based cobuilders involves the use of two
foodgrade additives – citric acid and sorbitol – and a heat-based
method of fusing them into polyester-based cobuilders. These cobuilders would
be degradable by microbes in soil and water. Further tests on the
product are being conducted.
Drought-Tolerant Maize in Africa
Recently launched is a drought-tolerant maize
seed that will help boost food production in African countries. The development
of the maize seed
is part of a project based at the International Center for Research in Agroforestry
in Nairobi. The maize project aims to supply the new seeds to
farmers in several African countries. The first droughttolerant, open-pollinated
hybrid varieties of maize and wheat were introduced into eastern
and southern Africa in 1999.
Comment on Clean Water Act Until May 12, 2007
The draft regulations for the Clean Water Act
have been posted on the Ontario government’s Environmental Bill of Rights
Registry at www.ontario.ca/enrionmentalregistry. The registry number is 010-0122.
The deadline for submitting comments is May 12, 2007.
The draft regulations establish the boundaries and names of each source protection
area and source protection region. A lead source protection
authority has been designated in each region. Each area will need to have a
committee established. It is suggested that representation on the
committees will be one third representing the interests of the municipality,
one third representing the interest of agricultural, industrial and commercial
in the region and one third representing the interests of the general public.
Some committees will have a seat for Aboriginal
representation. The proposed source protection areas and regions can be viewed
on the website indicated above.
Terms of reference for local drinking water source protection need to be developed
which will outline the work to be done and who will do it. The committees will
prepare the terms of reference.
The draft regulations will also specify what types of drinking water systems
cannot be included in the source protection planning process. The Ministry uses
the example of a private well serving only one residence which cannot be included
unless it is located in a settlement area designated in the municipal official
plan or is within a cluster of six or more wells.
Other items that will be included in the draft regulations are the protocol
for notifying the ministry if a drinking water hazard is discovered and it will
set timelines for the source protection planning process.
For more information contact the Ministry of Environment online at www.ene.gov.on.ca
or 1-800-565-4923 or 416-325-4000.
Environmental Farm Plan Workshops
A series of workshops is being held across the
province for the Canada-Ontario Environmental Farm Plan Program. For information
about workshops taking place in your area, contact your local Ontario Soil and
Crop Improvement Association (OSCIA) or visit their website at www.ontariosoilcrop.org.
Podcasts Now Available from OMAFRA
Producers can subscribe to receive OMAFRA’s
podcast for CropLine or Sound Advice - Audio Crop Updates electronically.
CropLine, produced twice a week during the growing season, offers crop management
tips, herbicide recommendations and pest alerts.
Sound Advice – Audio Crop Updates offers producers the latest crop production
news and information direct from OMAFRA crop specialists.
To subscribe to either of these podcasts, visit OMAFRA’s website at http://omafra.gov.on.ca/english/subscribe/podcast.htm.
For more information call 1-877-424-1300.
Canadian Grain Commission – Warmer Temperatures Bring Problems in Stored
Grain As the weather warms up, producers with stored grain are reminded to keep
monitoring grain quality. Canadian Grain Commission (CGC) Stored Products Entomologist
Blaine Timlick said the May to June
period is when insect populations increase and mould can spread if grain conditions
are favourable.
Ideally, stored grain should be kept at a uniform temperature below 15°C.
However, in the spring months, warmer external temperatures cause convection
currents in the bin that can result in condensation forming in the centre or
bottom of stored grain. Condensation can cause germination which produces heat.
Heat and moisture allow for mould growth and insect reproduction. Insects can
also move mould spores around, exacerbating the problem. Proper aeration of
stored grain to maintain a uniform temperature is recommended by Timlick to
prevent these problems.
If insects are found at this time of year, using fumigation or grain vacuators
are about the only options. Fumigants need to be applied by licensed pesticide
applicators and cannot be used below 5°C. Cyclone-based grain vacuators
are effective at causing mortality to rusty grain beetles, but the process is
usually slow. Contact insecticides such as malathion are not effective as the
insects must be active to pick up the particles and
succumb to them.
The CGC, Agriculture and Agri-Food Canada and the University of Manitoba's Biosystems
Engineering Department have produced detailed information on the management
of stored grain. The information is on the Canadian Grain Storage website at
http://res2.agr.gc.ca/winnipeg/cgs_e.htm or it can be obtained on a CD ROM called
Canadian Grain Storage. To receive a copy of the CD, contact your nearest CGC
office.
Farm Credit Canada Supporting Community Projects
Again this year, Farm Credit Canada (FCC) is
giving $500,000 to support capital projects in rural communities across Canada
with populations
under 100,000 through its FCC AgriSpirit Fund. This fund supports projects in
rural communities such as community centres, food banks, recreation centres,
care homes and playgrounds with renovations and equipment.
FCC is accepting applications for 2007 projects between May 1 and June 15, 2007.
For more information, contact your local FCC office or the website at www.AgriSpirit.ca.
Dr. Clarence Swanton has done some research that
suggests that corn plants change their growing patterns at the seedling stage
to accommodate
other plants such as weeds. This information was reported by Peter Epp from
a conference organized by Syngenta at the end of February.
The research indicates that producers need to manage weeds before corn reaches
the three-leaf stage or the “switchpoint” to avoid potential yield
loss. According to Dr. Swanton, research over four years found that corn seedlings
identify nearby weeds as potential competition and will grow
differently as a response. Seedlings are able to identify a change in the quality
of light and as a result begin to make physiological decisions resulting in
changes to ensure its survival.
Since waiting until sometime between the three-leaf and sixleaf stage can result
in half a bushel up to three bushels a day yield loss, Dr. Swanton
recommends that growers pay more attention to herbicide use in the early stages
of corn growth.
Syngenta Seeds: Largest Product Release in Company's History
Syngenta Seeds had its largest release of products in the company’s history with 34 new corn hybrids featuring NK(R) Brand AgrisureTM traits for the 2008 growing season. The NK Brand new hybrids available for the 2008 growing season will include heat zones that range between 2400-3150.
Weeds Are Becoming More Resistant to Glyphosate
Recent news reports are indicating that weeds
are becoming more resistant to the herbicide glyphosate, the main Roundup Ready
ingredient. According to a University of Illinois Extension weed scientist,
there are instances of weed species that are not controlled by glyphosate.
Ethanol Research Improved With One-armed Robot
Scientists with the Agricultural Research Service
in Illinois are using a robot to automate several procedures with an automated
system, which is the first of its kind, called the “plasmid-based functional
proteomics work cell.”
Some of the functions the robot is programmed to do include; extracting genetic
material from the cells of plants, microbes and other organisms,
making DNA copies of genes, inserting the copies into Escherichia coli, culturing
these bacteria so that the copies can be sequenced and their proteins identified,
and inserting desirable genes into yeasts used to make ethanol.
The robotic system is being used to modify new strains of Saccharomyces yeast
that can metabolize sugars locked up with corn fibre. These new
strains which are capable of breaking down corn fibre could result in 10 per
cent more ethanol from the grain. Currently they are getting 47 litres of ethanol
from 100 kg of corn.
Is BT Corn Refuge a Necessity?
According to reports from both Marlin E. Rice,
Integrated Crop Management from the Iowa State University and Tracey Baute,
Field Crop Entomologist, Ridgetown College, planting a Bt corn refuge is necessary
to reduce the risk of corn rootworms or European corn borers from developing
resistance to the technology.
For more information, growers are encouraged to check with their seed company
representative for refuge requirements. OMAFRA has the CropPest Ontario report
(Volume 12, Issue 01, April 20, 2007) available at www.omafra.gov.on.ca/croppest,
or call 1-877-424-1300.
Will Biotechnology Replace Nitrogen Fertilizer?
Molecular biology has resulted in highly desirable
and widely adopted traits for herbicide and pest resistance being incorporated
into plants. As additional research is done to develop genetically modified
plants with improved yields, increased stress tolerance and nutrient use efficiency,
research will also be done to determine the possibility of corn developing its
own nitrogen.
According to Dr. Tom Bruulsema, Potash & Phosphate Institute, the legume
family has always been able to make its own nitrogen. A complex
symbiosis with rhizobial bacteria lets them make the ammonium they need for
protein synthesis directly from the N gas abundant in the air.
They fix N using the nitrogenase enzyme of the bacteria.
Genetic engineering has and will continue to provide hybrids with increasing
yields and improved N use efficiency. Biotechnology has the potential
to improve the efficiency of how the plants use sunlight, water and nutrients.
Monsanto and BASF Join Forces
Monsanto and BASF announced in March that they
have formed a partnership to develop new genetically engineered crops.
As stated in the Associated Press news release, the companies will invest up
to $1.5 billion in the venture and will share information from their
separate research and development teams. Their goal is to speed development
of biotech crops that can boost yields and withstand environmental stresses
like drought and poor soil conditions.
Monsanto Offers Entrance Scholarships to 1st Year Agriculture Students
Rural graduating students from across the country
who plan to pursue studies in agriculture or forestry will have the opportunity
to earn a $1,500
entrance scholarship this summer by applying for a Monsanto Canada Opportunity
Scholarship.
The 2007 Monsanto Canada Opportunity Scholarship Program will award an estimated
50 scholarships to students entering their first year of post-secondary education
in agricultural sciences or forestry at a recognized Canadian educational institution.
Entering its 16th year, the Monsanto
Canada Opportunity Scholarship Program has awarded over $825,000 to thousands
of deserving students.
Monsanto Canada Opportunity Scholarships are available to students who meet
the following criteria:
• Students must come from a family farm and/or forestry background with
confirmed plans to enroll in their first year of post-secondary education
xxin an agricultural
sciences or forestry program;
• Students must have demonstrated academic excellence, leadership capabilities,
and a keen interest and involvement in their rural community;
• Students must submit a completed application form, which includes an
essay that outlines what area of agriculture or forestry they would like
xxto work in and why;
• All completed application forms must be post-marked no later than July
16, 2007.
Scholarship application forms and posters in both French and English are in
the process of being distributed to high schools, 4-H Clubs, provincial
and federal agriculture offices, farm retail outlets and seed companies. Application
forms are also available from Monsanto's CustomCare(R) line
at 1-800-667-4944 or they can be accessed online at www.monsanto.ca.
All applications will be reviewed by an independent panel of judges and winning
entries will be announced in September 2007.
Statistics Canada conducted a seeding intentions
survey in March. As a result of steady demand from the livestock industry and
increased demand
from the ethanol industry, a record area of grain corn may be planted in the
East.
In Quebec, seeded area should rise 13.0 per cent to 1.1 million acres, just
under the record set in 2002, while Ontario acreage may rise 32.3 per cent to
2.2 million acres, equal to the previous record set in 1981.
Soybean acres could fall in Quebec and Manitoba, and remain unchanged in Ontario.
March Commodity Prices a Record
In a recent CBC news report, the Bank of Nova
Scotia indicated that commodity prices hit a record in March, with agriculture
leading the way supported by metals and petroleum.
The agriculture sub-index rose 8.7 per cent from February on the strength of
higher prices for wheat, barley, cattle and Atlantic lobster.