December 2007

Index


AgriFlex: New Policy Component

The Canadian Federation of Agriculture (CFA) reported in a November 9, 2007 news release that proposed to the federal government a new component for the “Agri” suite of programs for the next generation of agriculture policy. The program, called AgriFlex, will establish federal
funding to support cost-shared regional agriculture programs that meet the broad national goals of the overall policy framework.

The AgriFlex Program is defined as:

A new federal funding envelope to develop new programs, Business Risk Management (BRM) and non-BRM (e.g. environmental or food safety
programs), to address regional needs within broad, overarching national objectives, that are cost shared federally and provincially
Including flexibility within existing national BRM and non-BRM programs for regional administration, delivery and allocation of funds CFA president, Bob Friessen, agrees that Canadian farmers need national programs like AgriInvest and AgriStability which set broad overarching goals for the
agricultural industry. But tailormade programs that meet unique regional needs within the broad national goals are also needed.


Grain Farmers Support CFA's Proposed AgriFlex

According to a November 16, 2007 news release, the Ontario-Quebec Grain Farmers’ Coalition wholeheartedly supports the Canadian Federation of
Agriculture’s (CFA) proposal that the federal government include “AgriFlex” in its next generation of agriculture policy.

The proposed program would be included in the “Agri” suite of programs and would address the need for “companion” programs by partnering federal funds with existing provincial partners. This type of program would provide regional flexibility which, according to William Van Tassel, President of the Ontario-Quebec Grain Farmers’ Coalition, would adequately address the needs affecting our diverse agricultural industry across Canada.

The Ontario-Quebec Grain Farmers’ Coalition will be working with CFA to draft a formal proposal for AgriFlex for the federal government.


Progress on New Programs for Canada's Ag Sector

Following a meeting of the Ministers of Agriculture from federal, provincial and territorial governments, they announced in a communiqué on November 17, 2007, that significant progress had been made on programs in the new business risk management (BRM) suite for farmers and other
elements of Growing Forward which is the new policy framework for Canada’s agriculture, agri-food and agribased products industry.

An additional announcement was made that the Ministers intend to seek approval to continue non-BRM programming currently in place under the Agricultural Policy Framework (APF) for up to one additional year. This would allow a transition period for the development and implementation
of Growing Forward programs.

The suite of BRM Programs that the Ministers are looking to finalize, seek approval and implement was outlined in the communiqué as follows:

AgriInvest producer accounts that provide coverage for small margin declines. AgriInvest will replace the coverage under the Canadian Agricultural Income Stabilization (CAIS) program for margin losses of 15 per cent or less. The program will provide producers with flexible coverage for small income declines, as well as support for investments to mitigate risks or improve market income through farmer contributions to the accounts and matching government contributions based on a percentage of allowable net sales of eligible commodities.
AgriStability improved marginbased program that provides producers with assistance for larger income declines. AgriStability replaces the coverage previously available under CAIS, compensating producers when their margin in the program year is more than 15 per cent lower than their reference margin (their average margin from previous years). Producers who participated in 2006 CAIS will automatically receive a notice with information on their fee. For others wanting to participate, the enrollment deadline is December 31, 2007.
AgriRecovery disaster relief framework. AgriRecovery will ensure rapid assistance for producers hit by smaller natural disasters. These disasters are defined as regional in scope, have a relatively small impact on the Canadian industry, can be easily contained and have few trade implications. The Ministers will seek approval for the traditional 60/40 federal/provincial joint funding. In the event of larger natural disasters that result in relatively large costs to governments, are national in scope, significantly affect the competitiveness of the Canadian agricultural sector, result in potential health risks to Canadians and may result in significant trade implications, the Ministers committed that their governments would work quickly to address the unique circumstances and respond to the needs of producers.
AgriInsurance federal, provincial and territorial governments are continuing work to enhance production insurance plans to better meet the need of producers. Leading up to the New Year, further grassroots input will be gathered through provincial and territorial consultations. Early in the New Year, national consultations will be held. The consultations will focus on the design of the new Growing Forward programs. One element of program design is to enable provincial-territorial flexibility, consistent with national objectives, so that provinces and territories can adapt programming to local needs.



Welcomed News, But Concerns About Ministers' Meeting

The Canadian Federation of Agriculture (CFA) welcomed the news from the federal-provincialterritorial agriculture ministers’ meeting that the programs under the old Agriculture Policy Framework (APF) will be extended for one year. CFA President, Bob Friesen, indicated in a news release that this will give the industry time to work with government on the new programs for Growing Forward (new set of risk management programs which will replace the APF).

CFA expressed their displeasure that discussion on regional flexibility didn’t seem to happen. A vital component for success in the next generation of agriculture policy is ensuring the provinces are able to tailor some business risk management (BRM) and non-BRM programs to meet their unique regional needs.



Canada Requests New WTO Panel

Canada’s Minister of International Trade, David Emerson, announced on November 8, 2007 that the Canadian government is requesting the establishment of a new World Trade Organization (WTO) dispute settlement panel on the issue of U.S. tradedistorting domestic agricultural subsidies.

In June of this year, Canada made a similar request to the WTO to rule on whether the U.S. had exceeded its domestic spending limit of $19.1 billion every year during 1999 to 2005 with the exception of 2003. The request was blocked by the U.S. Canada had to wait to re-file the request.

Brazil shares Canada’s concerns and is also requesting a new WTO dispute settlement panel as well. It is expected that the two cases will be heard by a single panel.

Canada is continuing to seek substantial reductions in U.S. trade-distorting domestic support in the WTO Doha negotiations.


CFA Welcomes Trade Action Against U.S.

In a November 15, 2007 news release, the Canadian Federation of Agriculture (CFA) applauded the Canadian government for announcing that it would pursue a trade challenge against the U.S. for exceeding limits on farm subsidies.

EU Proposing to Cut Subsidies to Large Farms

The European Union (EU) Executive Commission is seeking to reduce agricultural subsidies to large farms and shift money into smaller-scale rural development; EU officials were reported as saying in an Associated Press news item.

The EU’s head office indicates that large farm holdings do not face the same pressure of survival as smaller family farms.

EU’s farm ministers will be iscussing the Commission’s proposals in the near future.

Deadline for CFFOP Extended

The deadline for the Canadian Farm Families Options Program (CFFOP) has been extended for producers to apply for Year 2 (2006 program year) to December 14, 2007.

Only those producers who were approved for the 2005 CFFOP are eligible to apply for the 2006 program.

December 14, 2007 is also the deadline to participate in the Canadian Agricultural Skills Service (CASS) Program and/or the Canadian Farm Business
Advisory Service (CFBAS).

For more details, call the Options hotline at 1-866-367-8506.


$1.3 Million Invested in Ontario Ag Awareness Campaign

On November 19, 2007, the Government of Canada announced that it will support an agriculture awareness campaign to showcase the positive
contributions made by Ontario farmers and their families, by investing $1.3 million into the campaign. Farmers work hard and play a vital role all across Canada.

The awareness campaign will be run by the President’s Council. The 18-month campaign will use television ads and a website to showcase the positive contributions made by Ontario farmers and their families.

The $1.3 million will flow through to the President’s Council from the Agricultural Adaptation Council’s CanAdvance program.


Retail Sales Tax Exemption Expanded

In the Ontario Ministry of Agriculture, Food and Rural Affairs Agricultural Business Update, an amendment was made to Regulation 1013 under the
Retail Sales Tax Act to expand the definition of “farming”. The definition was expanded to include certain post-harvest activities such as the cleaning, sorting, grading, packing, packaging and storing of crops, where these activities are performed by a farmer in combination with the growing of the crops.

Materials for building and equipment purchased for this purpose will now be exempt under the Retail Sales Tax. For more information, visit the Ministry of Revenue website at www.rev.gov.on.ca/english/notices/rst/59.html.


OFA President Acclamied for Second Term

In a November 14, 2007 news release, the Ontario Federation of Agriculture (OFA) announced that Geri Kamenz will serve a second term as President for 2008.

Nearly One Third of Rural Mailboxes are Unsafe

As reported by Phil Couvrette in the CanWest News Service, Canada Post is currently conducting a three-year assessment of all 843,000 rural
mailboxes across the country. This follows the almost 1,000 complaints by postal carriers operating in these areas over the last 18 months. While 70 per cent of rural mailboxes are considered safe, 30 per cent are considered unsafe.

A Canada Post spokesperson had stated that some rural areas are safe for the postal carriers but other areas represent dangers due to narrow, unpaved and increasingly busy roads. Canada Post is legally responsible for the safety of the postal carriers.

For some Canadians living outside of cities, they may have to move their mailboxes to a more safe area. Other considerations if your mailbox is deemed unsafe, is to use a community mailbox, share with a neighbour’s mailbox, receive free lockbox service at a local post office or local postal outlet offering postal services.


Canadian Farm Business Management Council Agriwebinars

The Canadian Farm Business Management Council is offering a series of Agriwebinars. Agriwebinars are seminars that you can participate in from home over the internet. Although you do need to register, there is no cost to participate and you only need to register once.

For a list of the upcoming seminars, visit the website www.agriwebinar.com. Past seminars are available as well.

World Ethanol Industry Sends Letter to UN Secretary General

In a joint letter issued by the Canadian Renewable Fuels Association, United States Renewable Fuels Association, European Bioethanol Fuel
Association and the Brazilian Sugar Cane Industry Association, concern was expressed with the Interim Report of the United Nations Special Rapporteur on the Right to Food submitted by the General Assembly on August 22 and with Mr. Jean Ziegler’s public declarations to the international
media in late October.

They state in the letter that the apocalyptic statements made by the Special Rapportuer who called biofuels a “crime against humanity” and a “recipe for disaster” are unjustified and unacceptable.

The letter addressed the misrepresentations in the report such as the food vs. fuel debate where biofuels lead to famine; where petroleum prices have increased 70% over the last three years and this has been largely responsible for food price increases; whereas the association’s letter says agricultural prices have only increased by 7%; a growing biofuels industry results in social improvements, increased job opportunities and income growth; and biofuels provides one of the most sensible and attractive solutions to date which has been confirmed by several respected international studies.


Canada's Trade Surplus Smallest Since 1998

Canada posted its smallest trade surplus in almost nine years in September, as the strong Canadian dollar and a sagging U.S. economy cut into exports, as reported by the CanWest News Service.

The trade surplus fell 38 per cent to $2.65 billion in September according to Statistics Canada, which is down from $4.29 billion the previous month. This is its lowest level since December 1998.

TD Securities economics strategist, Jacqui Douglas, expects to see further strength in imports since the Canadian dollar has continued to appreciate, making U.S. goods even cheaper for Canadian consumers and businesses.


Farm Related Death Rates Among Children Not Decreasing

According to a report released by the Canadian Agricultural Safety Association, farm related deaths among Canadian children have not decreased.

Through an analysis of the Canadian Agricultural Surveillance Program fatal injury data over a fourteen year period, 1999 to 2003, 274 children and youth from the ages of 1 to 19 years old were killed in agricultural injury events. This represents 17.4% of all agricultural fatalities during the surveillance period.

During a ten year period from 1990 to 2000, 2,828 children and youth of the same age category were admitted to hospital for at least one day for the treatment of agricultural injuries.

Almost two thirds of all fatal agricultural injury events among children and youth involved agricultural machines. The top five causes of agricultural fatalities in children and youth 19 and under were bystander/alighted passenger runovers (17.2%), machine rollovers (15%), extra rider runovers (14.2%), drowning (12.4%), and machine entanglements (5.5%). A review of these numbers indicate that nearly 50% of farm related deaths in
children and youth under 19 result from machinery runovers and machinery rollovers.

The Childhood Agricultural Safety Network released a poster earlier this year, “It’s Easier to Bury A Tradition than a Child”. It is one item that the Canadian Agricultural Safety Association has been using to remind Canadian agricultural workers that farm safety should constantly be on their minds.


Monsanto Signs Long-Term Agreement With Young Farmers

In a November press release, it was announced that Monsanto Canada has signed a three-year working agreement with the Canadian Young Farmers’ Forum (CYFF). According to Trish Jordan, Monsanto Canada’s Director of Public Affairs, the mandate of CYFF fits with their interest in
providing leadership and development opportunities for rural youth and encouraging people to pursue their interest in agriculture.


Hydro Policy Changes Needed

Ontario Federation of Agriculture (OFA) President, Geri Kamenz, stated in a recent OFA Commentary that OFA has developed a farm policy for electricity.

OFA believes that the hydro debt needs to be paid off in less than 25 years. At the same time, Ontario must focus on increased generation capacity, major conservation efforts, an improved delivery network and innovative ways to encourage private contribution to the grid.

OFA is calling for changes to the rate structure for hydro that will reflect peak and off-peak consumption. Farmers, manufacturers and the forestry and mining industries need rates that will make job sustainability possible. Commercial and excessive residential users need rates that will make it feasible to sustain farming, manufacturing and primary resource sectors in Ontario.

Shifting away from coal-fired generating plants while encouraging initiatives by small power producers that will reduce the level of greenhouse gasses is supported by OFA, and they hope the government will be supportive as well.


Significant Greenhouse Gas Reductions Expected with Johnstown Ethanol Plant

As reported in a news release, the results of an analysis done on GreenField Ethanol’s Johnstown plant demonstrate that the plant, which is currently under construction, will generate substantial reductions in greenhouse gas emissions once the plant becomes operational.

The Delphi Group, a wellrespected third party, is using a sophisticated modeling mechanism to conduct a greenhouse modeling analysis on the Johnstown plant. GreenField Ethanol wants the plant to have the smallest CO2 footprint possible.

The results show that the ethanol produced at the Johnstown plant will displace 370,000 tons of CO2 per year or 9.25 million tons over the life of the plant. This is the equivalent of taking 46,000 cars off the road permanently.


Monsanto Canada Appoints New Director

On November 12, 2007, Monsanto Canada announced the appointment of Dr. Brian Treacy to the position of director, regulatory affairs based in Ottawa.

Dr. Treacy will be responsible for directing Monsanto Canada’s regulatory and compliance teams to manage biotechnology and herbicide safety approvals. In addition, he will work with Monsanto’s global regulatory team to co-ordinate international regulatory requirements with other world areas such as China, Japan and Europe.

Monsanto’s regulatory office is responsible for managing plant biotechnology approvals in crops such as canola, soybeans, corn, alfalfa, sugarbeets and cotton as well as pesticide approvals for Roundup® brand herbicide products.

Dr. Treacy replaces Bob Ingratta who retired in November after 32 years of service.

® Roundup Ready is a registered trademark of Monsanto Technology LLC., Monsanto Canada Inc., licensee.

Testing Dozens of Hybrids at Once

Maizex Seeds Inc. has developed a product for site specific testing which allows producers to evaluate multiple hybrids on individual environments. The interaction between genetics and the environment need to be considered with the advancements in modern genetics and trait technology. The
new product, GETT, is a water soluble tape that holds up to 50 hybrids which is wound onto a spool and planted with a conventional planter. For more information visit the website at www.maizex.com/gett.php or by calling1-877-682-1720.



Monsanto CEO Says Yields Will End Fuel vs. Food Debate

Monsanto Company Chairman, CEO and President, Hugh Grant, stated at the World Food Prize Borlaug Dialogue on Biofoods and Biofuels that there is no true food versus fuel debate, or at least there shouldn’t be, as reported on the Brownfieldnetwork.


Number of Breeders Declining

In the November issue of Top Crop Manager (East), there is a story about the shortage of plant breeders becoming a crisis. It is a crisis that is affecting the U.S. as well as Canada.

Traditional breeding programs are not attracting as many students as much as other programs like biotechnology and molecular genetics are. With many breeders retiring or reaching retirement age, and companies wanting to get advanced seed technologies to market quickly, some think there is
a looming crisis.

Dr. Elizabeth Lee, a corn breeding researcher at the University of Guelph, states in the article that one of the problems is not enough is being done to attract quality grad students into the traditional breeding programs. Another problem is reduced funds for breeding programs.

Dr. Lee, Dr. Istvan Rajcan and Dr. Duane Falk are working together to build a centre for plant breeding education at the University of Guelph. This group is looking to attract funds to support graduate students. In addition, they are building a pool of private sector funds in the hope of securing matching funds from government.

For the full story, visit the website www.topcropmanager.com/plantbreeding.


DuPont Expands in Biotech

DuPont Co. is expanding into biological materials for nextgeneration alternative fuels, plantderived ingredients for silkier skin lotions, and textiles made from a corn-based polymer that helps carpets shed stains, according to a story published by Gary Haber of The News Journal.

The new corn-based polymer, called Sorona, provides a unique combination of benefits to a wide variety of applications. Sorona is used in the making of apparel produces clothing that is comfortable, attractive and easy to care for. In carpets, Sorona provides permanent stain protection that is built-in so it can never wear off. Sorona thermoplastic polymers have a range of uses for automotive parts and components and electrical and electronics systems due to its performance and molding characteristics.


BtMaize Trials in Egypt

Egypt has harvested Bt maize trials that have demonstrated that the crop is highly resistant to maize borers according to CropBiotech Update.

Professor Magdy Masoud, who is with the faculty of agriculture at Saba Basha, Alexandria, reported that infestation in the conventional maize variety was 78% while the Bt maize was not affected at all.


Members of the Egyptian National Biosafety Committee, representatives of the Egyptian maize program and the Agricultural Economic Institute were presented with the results of the trials. It was found that ear weight compared to the total plant was 34% in the conventional maize and 54% in the Bt variety. Silage production was 28% higher in the Bt maize than the conventional variety.


Philippine Government to Subsidize Bt-Corn Planting

As reported by the Sun.Star on November 19, 2007, the Philippine government’s Department of Agriculture is targeting at least 5,000 hectares (12,350 acres) where the Bacillus thuringiensis corn (Bt corn) will be planted under a subsidy program.

Farmers who chose to plant the transgenic crop would be given a subsidy. The purpose of the subsidy is to boost the country’s corn productivity by encouraging farmers to grow high-yielding crops developed through biotechnology. Agriculture Assistance Secretary for Operations, Dennis Araullo, had stated that growing these crops will help the farmers to maximize profit while helping to solve the problem of hunger and poverty.


Report from Intergovernmental Panel on Climate Change

In a November 17, 2007 news release, Canada’s Environment Minister John Baird congratulated the Nobel Peace Prize-Winning Intergovernmental Panel on Climate Change on the release of its fourth and final report which covers key aspects of global climate change.

Minister Baird stated that the science is clear and Canada, like the rest of the world, needs to take immediate action on climate change. The Minister also stated that this is the reason the Canadian government announced their Turning the Corner plan. The plan sets tough and achievable mandatory targets for all major industrial sectors which will cut greenhouse gas emissions 20% by 2020 and 60 – 70% by 2050.

This report has been released as the Canadian government is preparing for the Conference of Parties to the United Nations Framework Convention on Climate Change to be held in Bali, Indonesia during the first part of December.

The Intergovernmental Panel on Climate Change released its Fourth Assessment Report in several volumes throughout 2007. The first volume, released in February, covered the physical science basis for climate change. The second volume, released in March, covered climate change impacts, adaptation and those aspects of our infrastructure, lifestyle and ecosystems that will suffer as our climate changes. The third volume, released in April, covered the actions the world can take to reduce the severity of our changing climate.


Farmers Feed Cities! Goes to the Royal

The grain and oilseed groups had a Farmers Feed Cities! exhibit at the 2007 Royal Agricultural Winter Fair. The campaign continues to have a very positive reception with people young and old, urban and rural, Ontarian and non-Ontarian.

Marking Twenty Years of Research of Safe and Better Foods

The Government of Canada is celebrating the twentieth anniversary of Agriculture and Agri-Food Canada’s Food Research and Development Centre (FRDC) in Saint-Hyacinthe, Quebec.

Minister of Agriculture and Agri-Food, Gerry Ritz, stated in a recent news release that Canada’s ability to produce safe and high quality foods is due in no small part to the expertise, professionalism and dedication of the research community.

FRDC was established in 1987 and was the first research centre dedicated entirely to food processing. For 20 years AAFC research teams at FRDC and across Canada have worked together to increase knowledge of food systems and advance innovation and growth of the Canadian food industry.


Recognizing Women in Agriculture

Farm Credit Canada is accepting nominations for women who are leaders in Canadian agriculture. The nominations may be for women who are agricultural producers, teachers, agribusiness operators, veterinarians, researchers, community builders or who may have some other connection to agriculture.

Five women will be chosen for the Rosemary Davis Award and will attend the 2008 Simmons School of Management premier leadership conference for women.

The deadline for nominations is January 21, 2008. For more details, visit the Farm Credit Canada website at www.FCCRosemaryDavisAward.ca or call 1-888-332-3301.

[Back to top]