July/August 2007
Index
Canadian Corn Producers Disappointed with Federal Court of Appeal
On June 5, 2007 the Federal Court of Appeal dismissed
the application for a judicial review of the Canadian International Trade Tribunal’s
May 2006 noinjury finding. The Canadian Corn Producers (CCP) are very disappointed
with the court’s decision and are currently considering their options with
respect to all prongs of its attack on dumped and subsidized U.S. corn. As stated
in their news release, CCP will continue to lobby the Canadian government to
request a dispute resolution panel in its WTO consultations regarding trade
disporting U.S. farm subsidies.
Canada Launches Complaint Over U.S. Farm Subsidies
Since Canada initially requested World Trade Organization (WTO) consultations with the U.S. in January of this year, eight other countries (the European Union, Australia, Brazil, Argentina, Nicaragua, Guatemala, Uruguay and Thailand) joined the consultations as third parties, to challenge the United States on subsidies provided to U.S. farmers under the U.S. Farm Bill.
A
resolution was not reached at the consultations held in February.
On June 8, 2007 International Trade Minister David Emerson asked for a World
Trade Organization (WTO) dispute settlement panel to rule on whether U.S. agriculture
subsidies breach that country’s own international trade rules. Minister
Emerson indicated that Canada is taking a step to fight against U.S. subsidies
that are hurting Canadian farmers.
Canada has argued that the U.S. is breaking WTO rules by providing American
farmers with export credit guarantees to sell corn, wheat, soybeans, sugar and
other products on the international market. In addition, Canada has also argued
that the U.S. exceeds its WTO commitment levels on
subsidies by billions of dollars.
The Canadian Corn Producers responded to the government’s announcement
with the following news release:
Canadian Corn Producers Encouraged by Canada's Request
for WTO Panel
In a news release on June 8, 2007, Canadian Corn
Producers (CCP) expressed encouragement with the government’s announcement
that Canada has formally requested a dispute resolution panel in its WTO consultations
with the U.S. regarding tradedistorting U.S. farm subsidies. Many of the subsidies
in Canada’s WTO complaint are the same subsidies that CCP challenged last
year in its domestic trade remedy complaint to the Canadian
International Trade Tribunal (CITT).
Ryan Brown, spokesperson for CPP, stated that CCP is pleased that Canada is
using its international trade rights at the WTO to discipline massive and WTO-illegal
US farm subsidies. This will help protect Canadian corn farmers from the adverse
effects caused by these subsidies. Canada’s panel
request is the culmination of over two years of CCP working with the Federal
Government to use its existing legal rights at the WTO to challenge US farm
subsidies.
Benoit Legaut, another CCP spokesperson, stated that real action by the Federal
Government to protect Canadian corn farmers from trade-distorting US farm subsidies
is important because both the CITT in May 2006 and the Federal Court of Appeal
earlier this week have rejected
CCP’s request for a domestic trade remedy.
CCP supports Canada’s request for a WTO panel and will do what it can to
help Canada win the case. Canada’s WTO trade action has also been
supported by 32 other countries. As Canada’s WTO trade action could potentially
level the playing field between US corn farmers and Canadian corn
farmers without compromising the interests of Canadian corn users, CCP hopes
that Canadian corn users will support this timely and important Government trade
initiative.
U.S. Blocks WTO Investigation
At the June 20 Geneva-based WTO meeting, the
U.S. moved to block a WTO investigation which was launched by Canada that the
U.S. exceeds its limits on allowable farm subsidies.
Under the WTO, the rules indicate that the establishment of a panel can be blocked
once.
Canada can take the request forward again to the next meeting.
WTO Talks Stalled
Trade talks among the WTO’s four most powerful
members (U.S., European Union, Brazil and India) have failed at the June meeting
in Potsdam, Germany, according to a CBC News report. These negotiations are
viewed as key in reaching a new global trade agreement by the end of 2007. Agreement
could not be reached concerning agricultural issues and access to markets.
International
Trade Minister David Emerson announced in June a new trade strategy where Canada
will negotiate free trade agreements with other
countries, and work towards improving the North American Free Trade Agreement
with the United States and Mexico. At a speech to business community members
in Gatineau, Quebec, Minister Emerson stated that the WTO remains the single
best avenue for trade liberalization for a small, trade-oriented economy like
Canada’s.
Canada has completed
negotiations with the European Free Trade Association (EFTA) countries of Iceland,
Norway, Switzerland and Liechtenstein.
This is the first free trade agreement Canada has struck since one was reached
with Costa Rica six years ago.
Free trade talks
will take place with several other counties in the coming weeks.
Statistics Canada
released a report in late May that realized net farm income for Canadian farmers
fell for the second consecutive year in 2006 to its lowest level since 2003
due primarily to rising interest, wage and fuel costs.
Realized net income declined from 2005 to $1.1 billion in 2006 which is also
lower than the previous five-year average.
Farmers Recovering Costs Beyond Their Control
In a letter to
Ministers Strahl and Dombrowsky on June 7, 2007, the Ontario Agricultural Commodity
Council (OACC) expressed the need for Business
Risk Management programs that would allow farmers to recover costs beyond their
control. Concern was expressed in the letter that existing programs are not
adequately addressing the gap between declining revenue and cost increases.
Several concerns were expressed in the letter as follows:
• Increasing globalization of the market place means that farmers are often
competing with imported products produced under vastly different environmental
and food safety rules than in Canada
• Foreign subsidies, particularly in the U.S. on specific products, not
only make it very difficult to compete, but also over time because of a
supply response, act to drive down international market values
• Farmers operating in nonsupply managed commodities are price takes making
it virtually impossible to recover increased costs from the market place
• Escalating energy prices are driving up costs for fuel, fertilizer, pesticides
and transportation
• Because farm gate prices are driven by international market values, the
recent appreciation of the Canadian dollar has had the effect of driving down
prices in Canada
• The increase in minimum wage in Ontario will have a significant impact
on production costs in the horticulture sector where labour costs account for
40 to 60 per cent of total operation costs.
A request was made that producers and government jointly design and implement
a cost of production formula which would adequately compensate farmers for costs
beyond their control.
RMP Announced by McGuinty Government
 |
At a farm
just north of Guelph on June 8, 2007, Minister of Agriculture, Food and
Rural Affairs Leona Dombrowsky announced a three-year Risk Management Program
to support the grain and oilseed sector, starting with the 2007 crop year.
The Risk Management Program, which is a price insurance program designed to offset losses caused by low commodity prices in a given year, will be developed through discussions with the Ontario Federation of Agriculture and representatives from the grain and oilseed sector. The province has made a three-year commitment to implement the Risk Management Program at its traditional 40 per cent share of the program. The province will also continue to push for federal participation. In the news release, Minister Dombrowsky stated that Ontario needs a multi-year strategy to stabilize and strengthen the province’s agriculture industry with effective risk management programming for the grain and oilseed sector. |
Relief Coming From Cost of Production Pressures
Minister Dombrowsky,
also announced on June 8, 2007 that the McGuinty government will provide $55
million to Ontario farmers through the new Ontario Cost of Production Top-Up
Program.
This payment represents the province’s 40% matching contribution to the
$400 million federal cost of production payment program outlined in the most
recent federal budget. Once the federal government releases their payment information,
the province, through Agricorp, will make direct payments to producers.
Producers who receive a federal payment will automatically receive a provincial
top-up equal to two thirds of the federal payment. If you are not sure if you
qualify for the federal payment, you can contact the federal government at 1-866-367-8506
or visit the federal website at www.agr.gc.ca/cop.
Risk Management Program a Big Step in Making Ontario Farms Viable Again
The Ontario Grains
and Oilseeds Safety Net Committee thanked the McGuinty government in a news
release on June 8, 2007 for announcing a
three-year Risk Management Program (RMP), starting in 2007.
RMP has been long-sought program that was first proposed as a solution to sliding
world commodity prices by Ontario’s grain and oilseed producers. The program
would stop the plummeting incomes of Ontario’s family farms and return
some prosperity and stability to rural communities.
Leo Guilbeault, chair of the Ontario Grains and Oilseeds Safety Net Committee
stated in the news release that ad-hoc announcements and
unpredictable programs like the Canadian Agricultural Income Stabilization program
(CAIS) don’t work. And we don’t need fixes to those programs. We need
RMP.
Ontario grain and oilseed growers have been hit hard over the last several years
with low commodity prices caused by international agricultural
subsidies, especially from the United States. The preferred solution has never
been ad-hoc government subsidies.
The grain and oilseed organizations have worked toward implementing RMP, a long-term,
sustainable, insurance-style program costshared
with farmers (through premiums) and the provincial and federal governments,
which would protect farm incomes against low average prices below
an agreed level.
It has been long believed by the grain and oilseed groups that the best way
forward is a partnership between farmers and government. As Mr. Guilbeault stated
in the news release, the Ontario government has demonstrated that they share
our beliefs and we are hopeful that the federal government will come to the
same conclusion.
$400 Million Cost of Production Payments
From an Agriculture
and Agri-Food Canada news release, applications for the $400 million federal
payment to help producers address high
production costs are now available. Most producers will have their benefits
calculated automatically.
Producers who did
not participate in the Canadian Agricultural Income Stabilization (CAIS) program
for 2004, or who began farming after 2004,
must send in an application. CAIS participants who filed in 2004 do not need
to apply.
Initial payments will be based on 2.36 percent of a producer’s average net sales of qualifying commodities for 2000 to 2004. The funds are part of a $1 billion federal commitment in Budget 2007 to improve national farm income programs. The remaining $600 million is earmarked to “kick-start” a new producer savings account program once agreement is reached with provinces and territories. Negotiations on the new program are now underway.
Applications can
be requested online or downloaded from the program website (www.agr.gc.ca/cop)
or by calling 1-866-367-8506. The deadline to apply is September 1, 2007.
Rural Connections…The
Ontario Municipal Rural Broadband Partnership Program is a one-time initiative
designed to reduce broadband infrastructure gaps in southern Ontario. The McGuinty
government announced on June 6 that they are accepting applications for the
program.
The $10 million program was announced in the 2007 Ontario Budget and is led
by the Ontario Ministry of Agriculture, Food and Rural Affairs, together with
the Ministry of Government Services and the Ministry of Small Business and Entrepreneurship.
Up to one third of the cost of qualifying broadband projects up to a maximum
of $1 million will be funded by the Ontario government. The remainder of the
funding will come from the municipalities and their project partners.
The objectives of the program are to reduce broadband infrastructure gaps in
southern Ontario, enable small and medium size businesses in rural
southern Ontario to fully participate in the digital economy, improve public
access to government services and information and support businesses and citizens
to effectively utilize broadband for economic and social development.
Canadian Agri-Food Awards of Excellence
Agriculture and
Agri-Food Canada (AAFC) is seeking nominations for the seventh annual Canadian
Agri-Food Awards of Excellence. AAFC in partnership with the Royal Agricultural
Winter Fair present these awards for outstanding achievement in innovation,
environmental stewardship,
export performance, voluntarism, and agricultural awareness and education.
A new award has been added this year for youth leadership.
The deadline for submitting nominations is September 7, 2007. The awards will
be presented at the Royal Agricultural Winter Fair on November 5, 2007.
For more information contact:
• AAFC at 1-800-410-7104 or email info@agr.gc.ca. The website is ww.agr.gc.ca/awards
• The Royal Agricultural Winter Fair at 416-263-3411.
Statistics Canada
announced in mid-June that Canada’s annual rate of inflation remained at
2.2 per cent in May and core inflation eased. The Bank of Canada’s core
index rose 2.2 per cent in May 2007 over May 2006 which is slightly lower than
April’s figure of a 2.5 per cent increase.
Affecting the increase were the costs of housing, mortgage rates, homeowner’s
replacement cost, food costs and the cost of operating vehicles.
There was some relief from an 8.8 per cent decrease in the price of natural
gas and 20 per cent decrease in the cost of computer equipment and supplies.
Market analysts are forecasting that an interest hike is on the way.
In early June,
AGCare released a report “Caring for the Land – Our Farm Environmental
Commitment” which highlights the environmental programs and projects Ontario’s
farmers have been involved in over the past two decades. For more details, see
AGCare’s article on page 7 or the new website www.caringfortheland.com.
Nutrient Management Training Course
OMAFRA offers training
courses for farmers and agricultural service providers interested in learning
more about the Nutrient Management Act (NMA), or who are phased in under the
NMA.
Who might be phased in?
• Farms with over 300 Nutrient Units (ie. 100 beef backgrounders, 6,000
weaners)
• New farm operations with over 5 Nutrient Units (ie. 5 horses)
• Existing farms who are applying for a building permit for animal housing
or manure storage
• Manure brokers
• Companies and individuals who apply nutrients to land on phased in farms
The Nutrient Management Training schedule is posted on the OMAFRA web site:
http://www.omafra.gov.on.ca/english/nm/cert/courses.htm
To register for a course, or to find more information about nutrient management,
call the Nutrient Management Information Line at 1-866-242-
4460.
Agricultural Research Projects Receive Federal Funding
Nine agricultural
research projects in Guelph will receive $886,512 from Agriculture and Agri-Food
Canada (AAFC) in 2007-08. The announcement,
made in late May, states that 56 projects in Ontario will receive $6.2 million
under AAFC’s Science and Innovation Strategy.
The funds announced in Guelph will go to such projects as:
• Identifying linkages between dietary fibre and human health;
• Developing strategies to reduce Salmonella contamination in pork and
poultry products; and
• Developing starch structure modifications for nutritional and industrial
applications.
In Ottawa, 26 research projects will receive $3.4 million that will go to such
projects as evaluating biodiesel use in agricultural equipment, adapting
cropping systems to climate change, and developing techniques to quantify and
reduce greenhouse gas emissions for a cleaner and healthier environment.
In total AAFC announced they will invest $22.1 million for 233 research projects
across Canada for 2007-08.
An article posted
by Don Comis on the USDA website indicates that Agricultural Research Service
scientist Kurt Rosentrater is working on creating new foods from the ethanol
byproduct, distiller’s dried grains (DDGs).
The new foods could include cookies, breads and pastas that are low in calories
and carbohydrates but high in protein and fibre.
The Canadian Federation
of Agriculture (CFA) expressed in a news release that Canadian farmers are feeling
betrayed by the process of implementing the new Growers’ Own Use (GROU)
program for pest control products. On the eve of implementation three products
have been removed from the program based on patent and exclusive use provisions,
leading farmers to question the good faith of the pest control product companies
participating in the program.
CFA states that the GROU program should be a tool to complement the existing
Own Use Imports (OUI) program, which allows farmers to import and use less expensive
pest control products already approved for use in Canada. CFA has insisted the
OUI program be maintained in the event the GROU program did not work.
E.U. to Debate Allowing the Imports of GMO Maize
According to a
Reuters news story, E.U. food safety experts will be debating in June about
allowing the import of genetically modified (GMO) maize. The maize is known
commercially as Herculex RW and also by the code number 59122. Herculex RW is
made jointy by Pioneer Hi-Bred International, a s subsidiary of DuPont Co. and
Dow AgroSciences unit Mycogen Seeds.
If the experts approve importing the seed, it would be used for food, animal
feed and industrial processing.
Herculex RW protects against larval stages of corn rootworm, which eats through
plant roots which results in reduced yield and nutrients. It also resists the
active herbicide ingredient glusofinate ammonium.
7,500 Ontario Farmers are Improving Our Environment
Member of Parliament,
Bruce Stanton, announced on behalf of Minister of Agriculture and Agri-Food,
Chuck Strahl in late June, that 7,500 Ontario farms have completed Environmental
Farm Plans (EFP) in the past two years.
The Canada-Ontario Farm Stewardship Program (COFSP) provides assistance to producers
in implementing their EFP. The Canada-Ontario Environmental Farm Plan and COFSP)
Program receive $59 million, over five years, in federal funding for onfarm
beneficial management
practices. Applications to the COFSP can only be made once producers have successfully
completed an EFP. The program runs until March 31, 2008.
Drought
Reducing China’s Grain Output
According to a
news release from Taiyuan, drought is affecting 26.7 million hectares of farmland
in China and is reducing the country’s grain output by 30 million tons
each year.
Wei Chao’an, vice minister of Agriculture with the Chinese government stated
that in recent years their government has invested more than 700 million yuan
(91.3 million U.S.) to equip 666,700 hectares of land with water saving technologies.
The initiatives have help to absorb 2.7 billion cubic meters of rain water per
year and save 1,260 meters of water per hectare.
Good
Things Grow in Ontario
In a June 21 news
release, Minister of Agriculture, Food and Rural Affairs Leona Dombrowsky stated
that if we buy Ontario, everyone wins, because we are supporting our farmers,
and processors, our rural economy, our environment and ourselves with healthy
food from here at home.
“Good things grow in Ontario” is the message that the Ontario government
wants people to remember the next time they go shopping.
Dr. Lorne Hepworth,
President of CropLife Canada, responded to a report issued by the David Suzuki
Foundation regarding incidents of pesticide
exposure in Canada.
Dr. Hepworth stated that the pest control products industry has always considered
the safe handling and use of the products to be a top priority.
Significant investments have been made in educating people about using pest
control products safely.
CropLife Canada states that the industry’s efforts in safety education,
combined with aspects of the new federal Pest Control Products Act, will help
further protect Canadians from accidental overexposure to pesticides. Dr. Hepworth
further stated that they are open to all measures aimed at improving safety
while ensuring the availability of these important tools which help to feed
Canadians and protect public health against insects and
disease.
Ontario field crop
reports prepared by the Ontario Ministry of Agriculture, Food and Rural Affairs
(OMAFRA) crop specialists are available by
contacting the CropLine at 1-888-449-0937.
Technical information can also be obtained at the OMAFRA Field Crops Webpage
at www.omafra.gov.on.ca/english/crops/index.html and Crop
Pest Ontario at www.omafra.gov.on.ca/croppest/.
Pride Seeds announced
this spring in a news release that all Pride G3 hybrids will feature new YieldGard
VT Triple technology.
Pride G3 hybrids will utilize the new VecTranTM transformation technology, which
provides a more direct insertion of multiple value added traits into the plant.
According to Pride Seeds, the result is more consistent and superior corn rootworm
control when compared to other technologies available on the market.
All Pride G3 YieldGard VT Triple hybrids combine the following technologies
into one seed package:
• Premier high performance genetics
• New YieldGard VT Triple which provides inside out protection from corn
borer and corn rootworm
• Roundup Ready crop safety yield advantage
• Poncho 250 to protect against other soil borne insects.
For more information on new Pride G3 YieldGard VT Triple hybrids, contact your
local Pride Seeds dealer or visit www.prideG3.com.
Monsanto Deal to Increase Number of Modified Genes in Crops
From an Associated
Press news release, Monsanto Co. had been cited as announcing a research partnership
with biotech company Chromatin
Inc. that aims to increase the number of modified genes Monsanto can insert
into commodity crops like corn and soybeans.
According to the report, Monsanto is focusing more on producing what is called
“stacked” crops that have multiple patented genes. For example, instead
of just producing its own pesticide, a stacked corn seed could also tolerate
Roundup herbicide and be resistant to drought conditions.
More GM Crops Being Tested in India
Two types of GM
corn may be approved by the Genetic Engineering Approval Committee for field
testing in India. Developed by Monsanto India, YieldGard corn and Roundup Ready
Corn (NK603) are ready for testing.
Biotech for Sustainable Agriculture
In a June edition
of The Economic Times, Harvey Glick, director, scientific affairs, Monsanto,
writes about how food security remains a global challenge and famine still threatens
several parts of the globe. There remains a critical need to develop new agricultural
technologies that will increase yields and eliminate crop failures and famines.
Many scientists believe that new plants developed using modern biotechnology
will play
an important role in increasing our ability to produce enough food.
Glick also refers to the positive impact biotech crops have had on the environment
with reduced use of pesticides, fuel and water as well helping to
decrease greenhouse gas emissions.
Watch the next
issue of the Ontario Corn Producer as each political party will be invited to
present their agricultural platform of their election
campaign.