May/June 2008

Index

Corn, Soybean and Wheat Boards Sign New MOU

Plans to form one Ontario corn, soybean and wheat organization were officially back on the table today, April 2, 2008, after the chairs of the three
organizations signed an updated Memorandum of Understanding (MOU).

The Chairs of Ontario Corn Producers’ Association (OCPA), Ontario Soybean Growers (OSG), and Ontario Wheat Producers’ Marketing Board (OWPMB) officially signed the updated Memorandum of Understanding, reaffirming all three boards’ commitment to bringing plans for a single
organization to a producer vote.

“In signing the MOU today we’re saying we’re committed to seeing this process through, to allow producers of corn, soybeans and wheat to decide
whether we’ll have one organization for the three commodities,” says Leo Guilbeault, Chair of Ontario Soybean Growers.

Work on the MOU began in 2004 when all three organizations signed on to an original agreement to pursue the formation of one organization, with no predetermination of what that organization might look like. While much progress has been made in firming up a proposed structure for the organization – called Grain Farmers of Ontario – the process was suspended in November 2007.

“Signing this MOU today allows us to recognize the progress that has already been made, while committing to specific objectives and structure that
will take this process to a producer vote,” says Dave Whaley, newly-elected Chair of OWPMB.

While the previous MOU outlined a parallel process – involving one committee with elected representatives, and another with general managers and staff – the newly-appointed working group involves Chairs and General Managers from all three organizations with Rod Stork serving as facilitator.

The Working Group is working closely with the Ontario Farm Products Marketing Commission (OFPMC) to ensure all requirements are addressed to
move forward with a producer vote. The OFPMC is the regulatory body responsible for the supervision of Ontario’s marketing boards and representative associations.

Producer participation in the future vote, which is conducted by OFPMC is extremely important. The results of the vote will be used by the OFPMC to determine whether it recommends to the Minister that the formation of Grain Farmers of Ontario should occur.

“During the interval this winter when the process was suspended, grain and oilseed producers made it clear that they wanted to be able to vote, and we’re pleased to be able to respond to their direction,” says Dale Mountjoy, President of Ontario Corn Producers’ Association (OCPA).

Producer information packages and timelines for conducting a producer vote are currently being finalized.

OCPA Welcomes New Staff Support

Corn Producers’ Association (OCPA) welcomed new staff support in research & technology and communications.

Crosby Devitt, Research Manager for Ontario Soybean Growers (OSG) and Ontario Wheat Producers’ Marketing Board (OWPMB) will incorporate OCPA research into his job description. Lisa McLean, Communications Manager for Ontario Grains & Oilseeds, will expand her role to include OCPA
communications. Erin Fletcher, Stakeholder Relations Manager for OWPMB will incorporate responsibilities for the Ontario Corn Producer Magazine into her existing duties.

“We welcome Lisa, Crosby, and Erin to the OCPA team, and are delighted that we have the opportunity to increase efficiencies by sharing staff
resources with our two partner organizations,” says Ryan Brown, General Manager of Ontario Corn Producers’ Association (OCPA). “All three of these individuals already work closely with OCPA; they each bring a great deal of skill and experience to the table.”

OCPA, OSG, and OWPMB have shared office space since 2005 and in 2004, the three organizations signed a Memorandum of Understanding (MOU) to pursue the formation of one organization representing Ontario corn, soybean and wheat producers.


 Senate Committee Looking into Farm Input Prices

In April 2008, the Canadian Standing Senate Committee on Agriculture and Forestry announced they were looking into the increase in farm input prices in Canada. Canadian farmers have been facing significant increases in costs such as fuel and fertilizer in recent years, and despite the reasons behind this increase, the question remains whether input prices in Canada are competitive relative to those existing in the United States.


 Premier Defends Ontario Ethanol Production

As reported in the Globe and Mail, Ontario Premier Dalton McGuinty stated on April 16, 2008 that the government’s three-year-old program that
supports the production of cornbased ethanol is not the dominant factor in increasing the price of corn and other commodities.

The Premier stated that other factors are causing all grain prices, not just corn, to increase. Energy prices have been rising, there are severe droughts in some parts of the world limiting some crops and China and India have an emerging middle class that is seeking a better quality of
food, all of which have been contributing factors to rising food costs.

Mr. McGuinty also stated that the Ontario government will not reconsider the government’s program of helping ethanol producers despite concern that it is driving up food prices.


EU Rethinking Decision on Mandatory Biofuels Targets

The Dow Jones and the Guardian newspaper reported that the European Commission is backing away from its decision to make its 2020 biofuels targets mandatory.

A commission official had stated that the target is now secondary since high standards of sustainability being drafted for biofuels sourcing and
manufacture would make it impossible for the target to be met.

The European Union targeted a 10 per cent quota of biofuels in all gasoline and diesel by 2020 as part of a climate change package to reduce emissions 20 per cent by 2020 and increase the amount of renewable energy to 20 per cent.


Brazil's President Says Biofuels Are Not Pushing Up Food Prices

Brazil’s President, Luiz Inacio Lula da Silva has insisted that crops used for ethanol are not responsible for driving up food prices, as reported in the
International Herald Tribune.

At the start of a two-day state visit, the President of Brazil had met with Dutch Prime Minister Jan Peter Balkenende with the hope that he could encourage investment in Brazil’s biofuel industry by the Dutch government.

Ministers from both countries were signing an agreement to intensify co-operation on biofuels.

Farmland Values Increase

Farm Credit Canada (FCC) reported in its Spring 2008 Farmland Values Report, released in April, that the average value of farmland in Ontario increased by 1.2 per cent in the second half of 2007.

FCC provides information about the changes in land values across Canada twice a year.

“Canada’s farmland values are reflective of our national agriculture trends. High land prices in Western Canada are being driven by factors including
strong grain and oilseed sectors while challenges in the hog and beef sectors in Central and Atlantic Canada are resulting in smaller increases,” says Rémi Lemoine, FCC Senior Vice-President, Portfolio and Credit Risk. “We’re also seeing more competition in terms of farmland buyers, who range from foreign and domestic investors, urban buyers, absentee landowners and traditional producers.”

In the last three semi-annual reporting periods, farmland values in Ontario have increased by 1.7 per cent in the last half of of 2006; 2.7 per cent in the first half of 2007 and now 1.2 per cent in the last six months of 2007.

Overall, Canadian land values increased by 7.7 per cent in the last six months of 2007. This increase is consistent with Canada’s growth trend since
2000.

“FCC’s Farmland Values Report is one of the many ways that we’re helping primary producers and others involved in agriculture make strategic business decisions to help them grow and prosper,” says Lemoine. The complete Farmland Values Report is available at www.FarmlandValues.ca.

Statistics Canada Planting Intentions Report

Statistics Canada released the results of a survey of 16,000 Canadian farmers growing principal field crops April 21, 2008. It is too early to assess
planting conditions for the spring and Statistics Canada realizes that economic and environmental conditions are always subject to change.

Quebec farmers may plant a record 593,100 acres of soybeans this year, up 36.4 per cent from 2007 while Ontario farmers intend to plant 6.2 per cent fewer acres in soybeans.

According to the report, farmers in both Ontario and Quebec indicated that they intend to plant fewer acres of grain corn with a 13.1 per cent drop in Ontario to 1.8 million acres, and an 11.1 per cent drop in Quebec to 998,400 acres.

Ontario Government Plans Ban on Cosmetic Pesticides

Government of Ontario
Premier McGuinty announced on April 22, 2008,that his government was planning on introducing legislation that would make Ontario’s pesticide rules among the toughest in North America. It would also replace a variety of municipal by-laws in place across the province.

It was indicated in the news release that the ban would likely take affect next spring and wouldn’t affect pesticides used for farming or forestry.
Golf courses would still be able to use pesticides, but must meet certain conditions. Pesticides would still be used for health and safety concerns
such as controlling mosquitoes, which can carry diseases like West Nile Virus.

CropLife Canada
In an April 22, 2008 news release, CropLife Canada expressed support in principle for Ontario’s new proposal aimed at ending the nonessential use of pesticides, but urged that new legislation be founded on the weight of scientific evidence available globally.

Nationally, Health Canada is responsible for evaluating all pesticides to determine if they are safe and effective before they can be used or sold. All
pesticides, whether they are used in agriculture, golf courses or on lawns or gardens, have been assessed by Health Canada for potential risks to human health and the environment with special attention to children’s health.

“The focus needs to be on how best to ensure that these nationally approved products are used properly, and only used where and when they are
truly needed, stated Dr. Lorne Hepworth, President, CropLife Canada.

AGCare
AGCare (Agricultural Groups Concerned About Resources and the Environment) called on the McGuinty government in an April 22, 2008 news release to implement regulations that will eliminate irresponsible and non-essential pesticide use.

“Twenty years ago, Ontario’s farmers recognized the need to regulate pesticide use to ensure the safety of their health, their families, and the food they produced,” said Richard Byleven, Chair, AGCare. “Farmers helped develop a mandatory certification program that ensured that any farmer using pesticides was properly trained to do so safely to protect health and the environment.”

AGCare promotes pesticide safety training for farmers such as the Grower Pesticide Safety Course which became mandatory under the provincial Pesticides Act over 20 years ago. For further information, contact Jackie Fraser, AGCare, 519-837-1326.

Developing Rural Leaders of the Future

Gary Schellenberger, Member of Parliament for Perth-Wellington, announced on behalf of the Honourable Gerry Ritz, Minister of Agriculture and Agri-
Food, $1.1 million to provide leadership and learning opportunities to the next generation of agricultural leaders. The announcement was made on April 22, 2008 at the Ontario Association of Community Futures Development Corporations annual conference.

“Young Canadians are key to the survival of our rural communities and this Government is making sure they have the leadership skills they need to succeed,” said MP Schellenberger. “A generation of strong and able rural youth will carry Canada into the future.”

The Centre for Rural Leadership will partner with 4-H Ontario, the Ontario Rural Council and the Foundation for Rural Living to provide leadership learning opportunities across Ontario.

Project funding, which will go towards the development of various leadership programs and conferences, will be provided by Agriculture and Agri-Food Canada through the industry-led Agricultural Adaptation Council (AAC).

For more information, contact Nadine Armstrong, Communications Manager, AAC, 519-822-7554.

Government of Canada Invests $2 Million for Research and Regulatory Efficiencies in Agriculture

The Honourable Gerry Ritz, Minister of Agriculture and Agri-Food announced on April 12, 2008 that the Government of Canada is committed to keeping our farmers competitive by removing unnecessary regulations and red tape. The Government is investing in a project to study the regulatory environment in the agriculture sector with the outlook of encouraging competitiveness and prosperity.

Minister Ritz stated in the news release, “The Government of Canada is committed to giving our world-class farmers the tools they need to compete at home and abroad. We are committed to funding research and working in partnership with industry, stakeholders and academia.”

The federal contribution of just over $2 million will assist the University of Western Ontario in the five-year Agriculture and Agri-Food Project (AAFP) that will evaluate the impact of government regulation on the agriculture sector. The AAFP will help industry, government, academia and stakeholders to share knowledge, identify and address emerging issues, and provide advice and recommendations on regulations.

The AAFP will be co-ordinated by a Regulatory Impact Chair at the Richard Ivey School of Business.

The funding is provided by Agriculture and Agri-Food Canada through the industry-led Agricultural Adaptation Council.

Everyone Has a Stake in the Future of Agriculture

A new TV advertising and web campaign was launched on April 16, 2008 by the President’s Council. The message – everyone has a stake in the
future of agriculture.

The campaign, “Farming Grows Ontario’s Future”, encourages all consumers to look at farming differently and consider how they can contribute to the industry’s sustainability.

Greg Devries, Chair, President’s Council, stated in the news release, “Consumers have a significant role to play in contributing to the long-term
sustainability of agriculture in this province.”

For more information about the campaign, visit the website at www.growourfarms.ca.

Farm Credit Canada Invests $500,000 in Rural Canada

Farm Credit Canada (FCC) announced in early April that they will invest $500,000 from the FCC AgriSpirit fund for local capital projects in rural communities across Canada.

Across Canada, 58 projects were chosen to receive AgriSpirit funding this year. These projects include: Leamington District Memorial Hospital Foundation, Taxandria Soccer Club, Vittoria and District Foundation, Dr. Russell M. Hall Family Health Centre, Hickson Central Public School Outdoor Playground Committee, Orangeville Agricultural Society, Stratford General Hospital Foundation, Mildmay Doctor Recruitment and Retention Committee, Cargill and District Community Fund, Bruce County Museum and Cultural Centre, Friends of the South Mountain Library and Armour, Ryerson and Burk’s Falls Memorial Arena/Community Centre.

Interested community groups will have another opportunity to access the FCC AgriSpirit fund. Applications will be accepted for 2008 from May 1 to June 16. For more information visit the website at www.AgriSpirit.ca.

Environmental Farm Plan Funding Extended One Year

In an April 17, 2008 news release by the Ontario Federation of Agriculture, it was reported that funding for the Environmental Farm Plan had been extended for one year. The previous agreement between all funding partners had expired at the end of March.

This announcement will allow Ontario farmers to continue with projects on their farms to preserve and protect the environment through the Canada-Ontario Farm Stewardship Program.

Over 30,000 Ontario farmers have completed environmental farm plans and some of the more common projects include: using GPS (Global Positioning System) technology in the fields to improve cropping; improving manure handling; adding vegetated buffer strips of land to protect source water and water well upgrades.

Participation in the program has continued to increase since the inception of the cost-share program in 2005. There have been a total of 12,270 farm participants completing 13,726 environmental projects.

Farmers interested in the variety of projects available under the program have to submit an application, undergo a peer review and indicate a
willingness to contribute a portion of the costs in cash, in-kind or a combination of both.

Small Wheat Yield Gain When Fertilizer Added to Herbicide

According to an article in the Ontario Farmer on March 25, 2008, the addition of Crop Booster with Buctril M produces a couple of extra bushels of
winter wheat.

Oligosol Crop Booster is a foliar fertilizer that contains manganese, zinc and other micronutrients. Dr. Peter Sikkema has run four trials with the product at the Ridgetown Campus research farm and found that, added to Buctril M, it increased yields an average of 1.8 bushels.

While that gain would not be considered statistically significant, Sikkema says it may be worth it for some producers.

In an April 2007 newsletter, Hensall District Co-op reported a 2.9 bushel average yield increase from a litre/acre addition of Crop Booster with the herbicide across four trials. At the time, the company said there would be a payback to the grower at a cost of $4.90/acre.

Crop Booster should be added to the tankmix before the herbicide to prevent antagonism, the newsletter said.

Key Points to Remember About Contracting

What is a contract?
The Dictionary of Canadian Law defines a contract as “an agreement between two or more persons, recognized by law, which gives rise to obligations that the courts may enforce” and the Oxford English Dictionary defines a contract as “a mutual agreement between two or more parties that something shall be done, that has legal effects and is enforceable by law”.

Ontario’s grain and oilseed groups and the Ontario Agri Business Association (OABA) (formerly known as the Ontario Grain and Feed Association) provided members of the local grain trade several years ago with laminated posters to put up in their facilities, as a reminder as to the legal obligations of a contract.

There are various types of contracts in the Ontario agricultural industry that are an important component of the business relationships between buyers and sellers, including grain and oilseed producers, dealers and processors. Contracts are used extensively in the buying, selling and movement of agricultural commodities. Contracts made between parties, whether in the form of a signed document, a verbal agreement,
or on a handshake, are legally binding and are required to be carried out until completion. Once a contract is made, the parties are legally obligated and committed to fulfill their respective terms of the contract.

Ontario’s grain and oilseed groups and OABA recognize the importance of contracts as a vital component of marketing within the grain trade industry. In order to promote the integrity of contracts, we encourage the fulfillment of the legal obligations and commitments of all contracts. Contracts will continue to be an effective marketing tool for the buyers and sellers of grains and oilseeds in Ontario.

Planting and Adoption of Genetically Modified Crops Increasing

Clive James, chairman and founder of the International Service for the Acquisition of Agri-biotech Applications (ISAAA), stated in a recent news
release that they have results in a 2007 report on the global status of genetically modified crops.

According to the report, genetically modified crops were planted on 282.4 million acres in 2007 in 23 countries, which is an increase of 12 per cent over 2006 and the second highest area increase in the past five years.

Of the 23 countries, 12 were developing countries and 11 were industrial countries. The growth that has been seen in the developing countries of the world is where this technology can have the biggest impact.

According to the report, adoption of genetically modified crops among resource-poor farmers is delivering unprecedented benefits that contribute towards the Millennium Development Goals of reducing poverty by 50 per cent by 2015.

The full report is available on the ISAAA website.

Monsanto Fellows in Plant Breeding Fund

The University of Illinois at Urbana-Champaign and Monsanto Co. have established the Monsanto Fellows in Plant Breeding Fund, as reported by
Monsanto Co. in an April 16 news release. The new fund will finance graduate fellowship students pursuing doctoral degrees in plant breeding at the
University of Illiniois’ Plant Breeding Centre in order to provide support for students working toward future careers in plant breeding.

The Monsanto Fellowships will be awarded to eight PhD students conducting research projects developed jointly with Monsanto in the area of
germplasm enhancement of agronomic and horticulturalAdditional information is available on Monsanto’s website at www.monsanto.com.

QUILTTM Fungicide Approved for Cereals and Corn

Syngenta Crop Protection Canada, Inc. announced on April 28, 2008, that QUILT™, a new liquid fungicide combining the power of two active ingredients, azoxystrobin (75 g/ L) and propiconazole (125 g/ L), has been approved for use on cereals and corn. Quilt provides longlasting
protection against a broad spectrum of persistent diseases including barley net blotch, barley scald, Septoria, tan spot, corn leaf blight, eye spot,
rust,and grey leaf spot.

According to Syngenta Crop Protection Inc., for growers of cereals, Quilt works best as part of a comprehensive yield management program. For corn growers, Quilt is effective on all types of corn – field, sweet and seed.

Quilt goes beyond disease control to maximize plant performance with its xylem mobile systemic activity, exhibiting the ‘X-Factor™’. This unique quality allows the active ingredient to move to unprotected leaf areas and maximize plant performance. The benefits of Quilt’s X-Factor include preservation of green leaf area, greater efficiency of water usage, improved CO2 assimilation, and broad spectrum persistent disease control, thus
enhancing both yield and quality.

Ontario Government Renews Partnership with University of Guelph

In late April, the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) announced that they had renewed their partnership with the University of Guelph. It was this partnership that resulted in the Omega-3 egg being developed.

OMAFRA and the University of Guelph have agreed to a new ten-year agreement, with a review after five years. Over the first five years, the university will receive $300,000 to help it continue its top-notch agri-food and rural research and development programs, animal health and food
testing services, and veterinary education.

In the future, the partnership’s research program will focus on seven themes that were recommended by the Agricultural Research Institute of Ontario, a group of agri-food industry leaders who advise the Minister of Agriculture, Food and Rural Affairs, and reflect today’s realities in the sector and our rural communities. The seven themes will include:

• Agriculture production systems
• Food for health
• Environmental sustainability
• Industrial uses for the bioeconomy
• Agriculture and rural policy
• Product development and enhancement
• Emergency preparedness.

All Corn Hybrids and Varieties Now Have Another Weed Control Option

Reported by BASF Canada in a news release, the Pest Management Regulatory Agency recently approved a label expansion for IMPACT herbicide
which will now include the application of IMPACT on corn varieties of 2700 crop heat units (CHU) or less. IMPACT can be used on all corn hybrids and varieties.

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