January 2008

Index

G&O Group Says Premier on the Right Track

The Ontario Grain & Oilseed Group (G&O) expressed in a December news release that they are pleased with the initial comments made by Premier
McGuinty about the Liberal government’s record since being re-elected in October.

Premier McGuinty stated in the November 29 Throne Speech that “We’ve got $1 billion in support so far for agriculture. We’re coming to the table with a new Risk Management Program. We just couldn’t wait on the federal government to come, so we’re moving ahead on our own.”

This is in addition to where the government renewed its support for the grains and oilseeds’ Risk Management Program and pledged to increase support for the Rural Economic Development Fund by 50 per cent.

Leo Guilbeault, representing the Ontario Grains and Oilseeds, stated in the news release: “If Ontario’s rural communities are to survive, farmers and
government must work together to create programs that stress predictability and sustainability allowing producers to plan for the future, and steer away from the ad-hoc crisis-funding model that clearly has not worked.”

2007 Economic Outlook and Fiscal Review

The McGuinty government announced in the 2007 Economic Outlook and Fiscal Review, released in December, that the government is committing $150 million to meet immediate and on-going needs for cattle, hog and horticulture producers. It is anticipated that $130 million will be delivered directly to approximately 13,000 farmers beginning in February 2008. The remaining $20 million will be used for a variety of initiatives aimed at developing a more sustainable future for these producers.


 RMP Cheques in the Mail

Agricorp announced in mid-December that they had begun printing and mailing pre-harvest Risk Management Program (RMP) cheques. They were expecting that more than 10,000 grain and oilseed producers who submitted their complete applications would receive their cheques by Christmas. For more information, visit the Agricorp website at www.agricorp.com or call Agricorp toll free at 1-888-247-4999.


 Financial Support Announced for Ontario Cattle, Hogs and Horticulture

Provincially

The McGuinty government announced on December 14, 2007, a $150 million financial aid package for Ontario cattle, hogs and horticulture for
immediate and ongoing needs.

In a government news release, it is stated that the funds will help farmers manage the effects of lower returns due to higher input costs, a stronger Canadian dollar and lower market prices. This funding builds on the $135 million provided earlier in the year to assist grain and oilseed
farmers compete and succeed in the global economy.

Of the $150 million, about $100 million will be provided to cattle and hog producers, about $30 million will be delivered to horticulture producers, and the remaining funds will go toward a variety of initiatives towards a more sustainable future.

Federally

On December 14, 2007, the federal government also announced financial support for livestock producers. In a Canadian Press news item, it was
indicated that Minister of Agriculture Gerry Ritz said the government would offer an extra $1 billion in loans through advance payment programs. The
Advance Payment Program was expanded in 2007 to include livestock loans up to a maximum of $400,000 with the first $100,000 being interest-free.

Details were not available at the time of writing, but Minister Ritz indicated that more money would flow through existing support programs such as
AgriInvest and AgriStability.


Farm Business Decision Calculators

The Ontario Ministry of Agriculture, Food and Rural Affairs has a number of farm business decision calculators available on their website. They
include budgeting tools for crops and livestock; for equipment there are calculator tools for custom farm work rates, lease analyzer and machinery cost; for buildings and land there are calculator tools for building rent, land cost and land leasing; and there are several tools available for business investment. Visit the website www.omafra.gov.on.ca/english/busdev/downtown.htm for more information.


Farm Product Price Index Higher

According to a StatsCan report, the prices that farmers received for their commodities rose 5.4 per cent in September from September 2006. There was a sharp rise in prices for most crops with a 14 per cent increase in September compared to September 2006. Prices for the supply-manage commodities of poultry, dairy and eggs also recorded increases while prices for livestock and animal products were 2 per cent below the September 2006 levels.

U.S. Agricultural Policies Set to be Investigated by WTO

At a December 17, 2007 meeting, the World Trade Organization (WTO) launched an investigation into the U.S.’s multibillion-dollar farm subsidies that Canada and Brazil claim are breaking international rules.

Although the requests were submitted separately by Canada and Brazil to investigate U.S. agricultural subsidies, the WTO set up a single Dispute Settlement Panel to assess the two countries’ concerns. It is expected that the panel will assess the complaints and return a report within six
months.

The talks for the Doha Round are currently deadlocked over disputes between rich and poor nations and between the U.S. and EU on agricultural subsidies.

CFA Welcomes Liberal Task Force Initiative

The Canadian Federation of Agriculture (CFA) welcomes an initiative by the federal Liberal Party to look at key issues facing agriculture. Liberal leader Stephan Dion announced the creation of a task force within his party to investigate critical issues affecting the prosperity in agriculture such as the high cost of production and issues facing the livestock industry.

Named to head the task force are Agriculture Critic Wayne Easter and Cindy Duncan-McMillan, a former President of the Quebec Farmers Association and current nominated election candidate.

CFA President, Bob Friesen, stated in the CFA news release that it is critical that the recommendations from this task force be useful in the government/industry partnership work on ‘Growing Forward’ and that the final results are not left on a shelf to collect dust.

OFA Delegates Elect Leaders, Approve Change

The annual convention of the Ontario Federation of Agriculture (OFA) wrapped up their November convention after going through some serious business – everything from restructuring the governance structure to electing leadership for the coming year.

Geri Kamenz was acclaimed president of OFA for a second term; Vice-Presidents Bette Jean Crews of Northumberland County and Don McCabe of
Lambton County were elected; the inaugural meeting of the OFA Board of Directors on November 21st elected four executive committee members – Wendy Omvlee of Haldimand County; Debra Pretty-Straathof of Arnprior Region; Terry Otto of Ottawa Region; and Mark Wales of Elgin County, the newest executive member.

The theme of the convention was “Change, Challenge, Opportunities” as the speakers illustrated over the two days of the event. David Smardon of
BioEnterprise made a presentation dealing with Agricultural Innovation – The New Wave. Kevin Stewart, host of television’s AgVision, outlined details of an Agriculture Awareness program he is developing, intended to help consumers understand the benefits of modern agriculture.

Ontario’s Minister of Agriculture, Food and Rural Affairs, Hon. Leona Dombrowsky, told the convention’s 450 delegates and guests her government “intends to continue to work closely with this industry (agriculture).” Speaking of her work for agriculture within Canada, she said her colleagues
across the country “know I represent the wishes of Ontario’s farmers” when the agriculture ministers meet.

Speaking on a panel, former Ontario Premier Bob Rae told delegates: “In order for the farm lobby to succeed in Canada, it has to make a common cause with others who are concerned about what is going on.” Former OMAFRA Minister Helen Johns, on the same panel, said: “We need to have our own food production; we need to have our own farmers, and we need to have our own rural communities.”

Bob Friesen, President of the Canadian Federation of Agriculture, discussing food labelling issues, said: “Consumers deserve to have the information
they need to make choices.”

Report; Rising Food Costs Not Due to Ethanol Production

The Renewable Fuels Foundation commissioned Informa Economics, Inc. to conduct an assessment of potential causes of consumer food price inflation. This has been done since public debate has intensified over the expansion of the ethanol industry and to what extent has the ethanol
industry caused food prices to increase.

Some of the key findings include;

• The “farm value” of commodity raw materials used in foods accounts for 19 per cent of total U.S. food costs, a proportion that has declined significantly from 37 per cent in 1973. For food products where corn is only one of several farm-produced inputs, the proportion to the total product cost attributable to the cost of corn is even less than 19 per cent.
• The remaining portion of total retail food costs is known as the marketing bill. It includes the costs of labour, packaging, transportation, energy, profits, advertising, depreciation, rent interest, repairs, business taxes and other costs not attributable to basic agricultural commodities. The marketing bill has a higher correlation with the consumer price index (CPI) for food than does corn. Energy and transportation costs have increased considerably over the last several years with crude oil surging to nearly $100 per barrel in November during the same time period that price of corn has increased.
• The proportion of the average American’s disposable income that is spent on food has declined steadily from 21 per cent of disposable income in 1950 to below 10 per cent in 2006.

The report concluded that there is no single factor driving consumer food prices, or the moderately higher-than-average inflation rate during the first three quarters of 2007, but that there is a complex and interrelated set of factors that contribute to food prices.

The full report can be viewed on the website at www.informaecon.com.

Ontario Young Farmers Forum in Conjunction with the OFA Convention

Ontario Young Farmers Forum 2007 was a huge success as over 90 participants from across Ontario converged on the Doubletree International Plaza Hotel in Toronto on November 18th and 19th in conjunction with the annual Ontario Federation of Agriculture (OFA) Convention.

This year’s theme, ‘Facing Challenges to Create Opportunities,’ included a program of speakers and experts from across North America who could tell their own success stories and provide advice on setting up successful farm operations.

The panel of communications experts included Jackie Fraser of AGCare, Kelly Daynard of Ontario Farm Animal Council, Adele Pelland of Quarry Communications and Brent Hanson of CTV Kitchener who discussed the challenges of communicating the agricultural story. Important principles
included making agricultural stories interesting and relevant to the ever-increasing non-farm population to increase awareness.

Ontario and Quebec to Discuss Trade and Labour

As reported in the Ottawa Business Journal, it was agreed between Ontario Premier Dalton McGuinty and Quebec Premier Jean Charest to start talks on a 2006 trade co-operation accord to expand the strategy to improve trade relations and labour mobility between the two provinces and hold a joint Cabinet meeting in the spring of 2008.

Ontario is Quebec’s second-largest trading partner after the United States, with total bilateral trade valued at $70 billion a year. Premier McGuinty stated in the report that this is roughly 30 per cent of Ontario’s overall interprovincial trade.


CanAdvance Speaker Investment Initiative

As producer meetings are planned across the province throughout the winter and new speakers considered, remember the Agricultural Adaptation
Council’s CanAdvance Speaker Investment (CSI) Initiative. CanAdvance can assist any Ontario producer group to attract top-calibre speakers to producer meetings by sharing the costs associated with keynote speakers.

In addition, CSI funds can be used to help Ontario’s agricultural and agri-food industry organize and implement new industry conferences and meetings by providing partial funding towards events.

The maximum funding available to applicants is $5,000.

For more information please visit www.adaptcouncil.org or contact the Agricultural Adaptation Council at (519) 822-7554.

OFAC and AGCare Turn 20

On April 17, 2008, AGCare and its sister group, the Ontario Farm Animal Council (OFAC) will celebrate their 20th anniversaries. To celebrate this
achievement, both organizations are planning a gala celebration of the past 20 years.

The afternoon will feature a communications workshop and AGCare’s annual general meeting. The evening will feature a banquet, a commemorative
presentation related to events and activities of the past two decades as well as entertainment.

Watch for more details in the coming months.

Grower Pesticide Courses

Most of the Grower Pesticide Safety Courses and Exam Only Sessions are held between December and April. If you have questions or require certification call 1-800-652-8573 or visit the website www.opep.ca/GrowerTraining/courses.cfm.

Farm$mart Agricultural Conference

The Farm$mart Agricultural Conference is celebrating its 10th year of presenting an informative agricultural conference that brings something for the whole farm family. The conference is being held on January 19, 2008 at the Ontario Agricultural College, University of Guelph.

Some Resistance to Ethanol Plants

While many local residents may love the idea of an ethanol distillery and the benefits it would bring their local economy, they become concerned when the plans reveal the location of the plant is close to them. As reported in the New York Times, plans announced for an ethanol plant in Sparta, Wisconsin, triggered complaints that it would spoil the view from the municipal golf course. Residents worried that the emissions would
taint the milk-based products made at nearby Century Foods International which is the community’s largest employer. Concerns were raised as well
about potential smells from the plant. The ethanol plant in Barrie, Ontario, experienced similar challenges as the Sparta plant.

GreenField Ethanol Now Buying Corn for Johnstown Plant

GreenField Ethanol announced December 10, 2007 that they are now buying corn for the Johnstown plant in Eastern Ontario under the newly expanded Ontario Buy Direct Program.

The bids are posted on their website, www.greenfieldethanol.com.

Expansion Considered for Port of Prescott Storage Facility

According to an Ottawa Sun story, Edwardsburgh-Cardinal Township is considering expanding the 125,000-tonne grain storage facility located at
Port of Prescott. GreenField Ethanol’s Johnstown plant is located across the highway from the grain storage facility and has booked 25,000 tonnes of permanent storage space at the port grain elevator. The facility experienced a shortage of storage space for corn in the fall due to wheat and soybeans not yet being shipped to market.

Minister Ritz Builds on the Promise of Canadian Biofuels

While at the Canadian Renewable Fuels Summit in Quebec in early December, federal Minister of Agriculture Gerry Ritz announced a new federal biofuels bill and the details of the federal ecoENERGY for biofuels program.

According to details in the Marketwire news release, the new biofuels bill will make the necessary changes in law to ensure the federal government
meets its goal of an average renewable content of 5 per cent ethanol and 2 per cent biodiesel in Canadian gasoline and diesel fuel.

The ecoENERGY for biofuels program will invest up to $1.5 million over 9 years to boost homegrown production. This program will make investment in
production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices.

It is expected that 20 new world-class biofuels facilities will be built in the coming years and create over 14,000 new jobs in rural communities.

Bt Maize Benefits Found in Egypt

The Egypt Biotechnology Information Centre has found that corn borers were adequately controlled when Bt maize was planted in Egyptian maize trials and that yields increased by 30 per cent over the conventional varieties. They also found that silage production increased by 24 per cent when Bt maize was planted. These findings were presented at a workshop on the importance of biotech crops by Professor Magdy AbdelDhaher.


 Some in the U.S. Taking a Stand as Oil Prices Surge

In a Reuters news item it is reported that some homeowners in the U.S. Northeast are taking a stand against record oil prices, American dependence on Middle East oil and climate change by turning to biofuels to heat their homes during the cold winter months.

A bill was proposed by Massachusetts Governor Deval Patick that would require all home heating oil and diesel fuel contain at least 5 per cent of the cleaner-burning fuel by 2013.

The bill, if passed, will make Massachusetts the first U.S. state to require home heating oil to contain biofuels, beginning with 2 per cent renewable fuel alternatives by 2010 and increasing to 5 per cent by 2013.


 Ontario Agr-Food Education Launches Farmsfoodfun.com at Royal Winter Fair

Farmsfoodfun.com, a fun and interactive website where kids can explore farming and food and learn more about topics related to agriculture, food and nutrition, was launched at the Royal Agricultural Winter Fair in November, 2007. A co-operative effort between OAFE, Ontario Farm Animal Council and AGCare, the website is anchored by OAFE’s Farms, Food and Fun Agri-Knowledge Trivia Challenge and also features games, educational fact sheets and craft activities. Links to other agriculturally focused games and activities are also available for further exploration of the industry.

“The website will make a great resource for students and teachers alike,” says Sally Huffman Brown, Interim Executive Director at OAFE. “This website will reach a wide range of people and educate them on topics such as food, agriculture and proper nutrition – something we cannot teach
enough to our children.”

Students and families had an opportunity to explore the website at the OAFE booth at the Journey to Your Good Health display at the Royal.


2007 Ontario Corn Crop Summary

In the 2007 Ontario Corn Crop Summary, it is stated that the 2007 crop will go down as the year that could have been. More than 2.1 million acres of grain corn were planted; a near record, and the first time that acreage eclipsed the 2 million mark since 1985. The crop got off to an amazing start and the main challenge to the crop, and what prevented it from perhaps beating last year’s record breaking yields was below average rainfall
in most parts of the province. In the end, the provincial average corn yield will end up very close to 135 bu/acre, which is the 5-year average.


ClearOut 41 Plus Available for Direct Sale

The Farmers of North America (FNA) announced in a December 10, 2007 news release that ClearOut 41 Plus glyphosate will now be available for direct sales to Canadian farmers.

The FNA has an agreement with Albaugh, Inc., who took over the Canadian registration in November, that allows the FNA to directly sell the generic product to farmers, without requiring them to go through the permit application procedures imposed by the Pesticide Management Regulatory Agency (PMRA).

For more information, visit the FNA website at www.fna.ca.

Syngenta Experimental Corn Lines Optimize Water Use

Using a combination of selective breeding of native and biotech traits, Syngenta is producing hybrids designed to yield well across a variety of weather conditions, according to an article from Seed Today.

Wayne Fithian, a corn product business lead for Syngenta stated in the article that water optimization technology stacked with the Agrisure traits for insect resistance and glyphosate and gloufosinate tolerance will give corn growers the opportunity to manage risk, reduce crop stress and produce a consistent yield year after year with less concern about moisture availability.

Pride Seeds Launches 2008 Hero Hybrids

Pride Seeds has announced its 2008 list of Hero Hybrids that profiles the hybrids that have performed well. To be assigned the Hero Hybrid designation, the hybrid has had to perform at the top of its class over a range of growing conditions and over multiple testing seasons.

For more information on Hero Hybrids, contact your local Pride Seed dealer or visit the website at www.prideseed.com.

Agreement Reached at UN Climate Change Conference

According to media reports, it was a challenge but countries reached an agreement on international climate change action at the United Nations Climate Change Conference in Bali, Indonesia on December 15, 2007.

The decision reached in Bali sets out an agenda that frames the discussions that will take place over the next 2 years and sets a deadline of 2009 to complete the negotiations.

Canada’s Environment Minister, John Baird, stated in an Environment Canada news release that he is pleased to see the world sign on to a new
international agreement that acknowledged all countries must play a role.

The new international agreement will replace the Kyoto Accord.

Publicly Funded Research at U of G Provides Economic Benefit

In a Canadian Press news release, December 17, 2007, it was reported in a Deloitte and Touche report that research grants at the University of Guelph translate into billions for the Ontario economy.

In addition to innovations such as the Omega-3 eggs, there were also considerable noneconomic benefits flowing from the university’s research on
diseases such as SARS, avian flu and mad cow disease.

The Deloitte and Touche report, which comes as the school and the Ontario government negotiate to renew the expired funding deal, concludes that $55 million in public funds yielded more than $1 billion in economic gains over a single year.

University President Alastair Summerlee stated that there is a great deal of interest, from both federal and provincial governments, to ensure that
intellectual property in the university is commercialized. At the University, they believe they do a good job of taking discoveries and spinning off
companies and commercializing results. Therefore, they requested the report from the accounting firm to quantify it.

The report also highlighted some concerns of stakeholders that noted that government funding stayed flat, around $50 million annually, over the 10 year deal.

Consumer Price Index Increased in November 2007

Mainly as a result of higher gasoline prices and mortgage interest cost, consumer prices increased 2.5 per cent between November 2006 and November 2007. This is slightly higher than the 12-month change of 2.4 per cent posted in October.

Other contributing factors to the increase in November are homeowners’ replacement cost and restaurant meals.

Climate Trends and Variations

Environment Canada released a bulletin called Highlights from the Climate Trends and Variations Bulletin for Canada. The highlights include:
• Autumn 2007 was the 19th warmest on record, since nationwide records began in 1948, with temperatures 0.7 degrees Celcius above normal.
• The climate region in Canada with the highest ranked above-normal temperature this autumn was recorded in the region covering southern Ontario and Quebec (+1.4 degrees Celcius, 5th warmest)
• This autumn was the 12th wettest on record in Canada, with precipitation at 9.7 per cent above normal. The full bulletin can be viewed on the Environment Canada website at http://www.msc-smc.ec.gc.ca:80/ccrm/bulletin/national_e.cfm.

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