February 2008
Index
Ontario Preparing for the 2008 Budget
Ontario Minister
of Finance, the Honourable Dwight Duncan, held Pre-Budget Consultations across
the Province in preparation for the 2008 budget.
Ontario Grain
& Oilseeds
On behalf
of the Ontario Grains & Oilseeds, David Start thanked the provincial government
in a Pre-Budget Consultation for investing in Ontario’s farming future
by launching the three-year Risk Management Program (RMP), even though the federal
government has stated it will not provide funds for RMP.
The Ontario-Quebec Grain Farmers’ Coalition, of which the Ontario Grains
& Oilseeds is a part of, is asking the federal government for AgriFlex.
The
coalition created the AgriFlex proposal that would allow the federal government
to fund programs like RMP. Working with the grassroots and provinces, other
programs could be designed under AgriFlex to address needs in other sectors
and regions. AgriFlex has been endorsed by the Canadian Federation of Agriculture
as well.
RMP was designed to provide grain and oilseed producers with a long-term mechanism
to plan for a stable future. The Ontario Grain & Oilseeds have asked the
provincial government to investigate making the RMP a permanent program, to
consider retroactive coverage for the RMP for the 2006 crop year and to address
the need for the federal government to work with Ontario to build a foundation
of business stability on which family farmers can rely on.
Ontario Federation of Agriculture
The Ontario Federation of Agriculture (OFA) made a Pre-Budget Submission as
well, highlighting several key areas such as farm income programming, energy,
wildlife damage compensation, ecological goods and services, competitive tax
environment and agricultural research.
The complete presentation is available on the OFA website at www.ofa.on.ca.
In December, the federal government announced that $600 million was on its way to farmers across Canada. The funds are being delivered through AgriInvest accounts based on 2.63% of farmer’s average Allowable Net Sales (ANS) from previous years.
Producers started
receiving their AgriInvest Kickstart letters in the first part of January notifying
them how much had been deposited into their,
AgriInvest accounts and giving them the option of withdrawing the funds or leaving
it in the account. Farmers do not have to make a matching deposit to receive
the money. An additional federal deposit may be made at a later date depending
on availability of funds.
If you have not
received a letter, applications are available by calling 1-866-367-8506 or visiting
their website at www.agr.gc.ca/agriinvest.
Deadlines for AgriInvest:
• March 31, 2008 – deadline to submit the AgriInvest Kickstart application
• June 30, 2008 – Deadline to respond to the AgriInvest Kickstart
letter (or 30 days from the date of the letter, whichever is later)
• September 30, 2008 – deadline to submit the 2007 AgriInvest application
without penalty
• December 31, 2008 – deadline to submit the 2007 AgriInvest application
with penalty
• 90 days from the date of your Deposit Notice – deadline to make
your 2007 AgriInvest deposit
From the Canadian Federation of Agriculture: Some Progress
Seen in WTO
A new working paper
issued by WTO Agriculture Chair Crawford Falconer shows some progress on issues
of importance to Canadian farmers. The paper, released January 4th, focused
on export competition, domestic support and market access issues. The Canadian
Federation of Agriculture (CFA) believes Falconer has taken some positive steps
on market access and domestic support. However the CFA is also concerned there
was no similar movement on sensitive products.
On market access, CFA is pleased to see Falconer recommend the complete elimination
of in-quota tariffs over a five year period. The previous WTO modalities text
had focused on reductions and possible elimination of some in-quota tariffs,
but never explicitly addressed the need for
complete elimination within a defined time frame. Other countries use in-quota
tariffs to extensively limit access into their markets. Canada already has low
in-quota tariffs and has been fulfilling its market access obligations under
the previous trade agreements.
“The elimination of in-quota tariffs would provide a definite market access
boost, and more profitable market access, for our agricultural exporters –
particularly our hard-hit livestock sector,” said Bob Friesen, CFA President.
“And as well as helping our exporters it emphasizes the level of access
our own sensitive commodities already give other countries into our market.
It would be a victory and a vindication for the Canadian balanced trade
approach.”
Concerning domestic support Falconer included new provisions related to the
level of cuts and the implementation period. Under those provisions, Canada
would not be required to make a cut in aggregate measure of support (AMS) spending
on the first day of implementation. However, the major spenders on domestic
support – the U.S., EU, and Japan – would be subject to a larger 30
per cent initial cut.
“The CFA applauds Falconer’s efforts
to recognize who the big spenders are and penalize them accordingly,” said
Friesen.
However CFA was disappointed to see little change from the original modalities
text on the issue of sensitive products. The text does not give
Canada the room to adequately protect and maintain its supplymanaged sectors.
Under the current text Canada would still only be allowed to protect 4-6 per
cent of dutiable tariff lines as sensitive and would have to increase import
quotas for any commodities that did not implement their full required tariff
cuts. CFA had hoped to see more flexibility and some clear text that would allow
Canada to retain the use of special safe guards for certain product lines. CFA
was also concerned to see the paper suggest the complete elimination of state
trading enterprises (STEs). CFA believes the choice to establish an STE is an
internal decision that should be made by farmers and their governments, not
the WTO.
“Slowly we are seeing real progress in these trade talks. We have moved
closer to a good outcome for our exporters, now we need to push for movement
for our sensitive sectors,” said Friesen. “The CFA will continue to
work with Canadian negotiators to get a good deal for all Canadian producers
in every sector.”
2008 Field Crop Budgets
The Ontario Ministry
of Agriculture, Food and Rural Affairs (OMAFRA) has crop budget samples (Publication
60) available on their website for estimating expenses for several different
crops for 2008. These forms are available on the OMAFRA website at www.omafra.gov.on.ca/english/busdev/facts/pub60.htm
or for more information you can call 1-877-424-1300.
OMAFRA also has some other financial analysis and cost of production tools available
for crop production, livestock production, managing cash flow,
strategic planning, preparation of business plans, guide to custom farm work
and others on their website at www.omafra.gov.on.ca/english/busdev/analysis.html.
On-Farm Diesel and Gasoline Storage Tanks
The Ontario Federation
of Agriculture (OFA) has provided comments to the Technical Standards and Safety
Authority opposing the proposed
amendments on Regulation 216/01 under the Technical Standards and Safety Authority
Act, 2000. The amendment would require farmers with over
5,000 litres of combined diesel and gasoline storage to be qualified as a site
operator.
OFA has recommended that on-farm diesel and gasoline tank volumes not be aggregated,
the tank volume threshold for diesel tanks be set at 10,000 litres and for gasoline
tanks 5,000 litres and that eligibility for these thresholds only apply to farmers
with a valid Farm Business Registration Number.
Favourable Pool Returns for Ontario's Wheat Producers
The Ontario Wheat
Producers’ Marketing Board (OWPMB) announced on January 14, 2008 that the
second interim pool payments will be made and the estimated final numbers for
the 2007 pool program have been released.
The estimated final payments are well above the harvest prices in all classes.
Larry Shapton, General Manager of OWPMB, stated that they are pleased with the
performance of the pool this year despite the comparatively low initial payment.
Farm Product Price Index Moved Higher
Early in January,
StatsCan reported that the Farm Product Price Index (FPPI) increased 16.5% for
crops in October 2007 compared with October,
2006. Overall, prices for livestock and animal products were 4.6% below their
October 2006 level. Prices for supplymanaged commodities continued
their upward trend.
Prices farmers received for their commodities fell 3.5% in October from September,
as declines were recorded in both the overall crops index and the livestock
and animal products index.
Canada's Food and Consumer Safety Action Plan
In a joint news
release from the Honourable Tony Clement, Minister of Health and the Honourable
Gerry Ritz, Minister of Agriculture and Agri-Food on January 15, 2008, it was
announced that a public consultation on the proposed Food and Consumer Safety
Action Plan has been launched. The Action Plan, which was announced by Prime
Minister Stephen Harper on December 17, 2007, outlines a series of initiatives
designed to modernize
and strengthen Canada’s safety system for food, health and consumer products.
Interested Canadians, stakeholders, industry, provinces and territories have
an opportunity to learn details of the plan and are encouraged to
provide feedback.
The Action Plan focuses on three key areas:
• preventing problems in the first place
• targeting the higher risks
• rapid response
The full discussion paper is available on the Healthy Canadians website, www.healthycanadians.ca.
ExcelGrains Canada
is part of the Canadian On-Farm Food Safety Program and is funded by Agriculture
and Agri-Food Canada’s Canadian Food Safety and Food Quality Program. It
is currently managed by the Canada Grains Council with direction by a farmer
Management Committee.
The On-Farm Food Safety Initiative outlines the safest possible production practices
for farmers producing cereals, oilseeds, pulse and special crops. Producing
safe food and feed and protecting it from hazards is the primary focus. The
initiative is built on scientific data to give farmers and their customers’
extra assurance that the grains were produced, handled and stored on the farm
in the interest of food safety. It was designed to
create a marketing advantage and enhance Canada’s reputation as a leader
in food safety. The initiative is based on the internationally accepted food
safety control system called Hazard Analysis Critical Control Point (HACCP).
The Canadian On-Farm Food Safety Initiative for grains is voluntary and available
to any interested Canadian farmer. The initiative for grains has been built
by farmers from all parts of Canada in co-operation with scientists, agronomists,
Agriculture and Agri-Food Canada, farmer and industry
associations, Canadian Grain Commission, Canadian Food Inspection Agency and
provincial and territorial governments.
A Producer Manual is available by contacting the Canada Grains Council, by telephone
at 204-925-2130 or by e-mail at office@canadagrainscouncil.ca. The manual details
and lists the safe production practices plus a process for record keeping that
demonstrates appropriate steps at the right time were put in place by the farmer.
Some farmers are using the manual for Identity Preserved (IP) contracts
that satisfy specialty markets.
Several news reports
are available that indicate that fertilizer prices are increasing due to world
demand for nitrogen, phosphorus and potassium and prices are expected to continue
increasing into 2008.
Proposed Provincial Ban on Pesticides
Health-care and
environmental experts joined together in holding a press conference on January
15, 2008 and are asking Premier McGuinty to ban the use and sale of “cosmetic”
pesticides across Ontario. The provincial government has been working on a provincial
ban on “cosmetic” pesticide use.
See page 12 of this issue for AGCare’s reaction.
CropLife Canada responded to this issue stating in a news release that scientific
evidence needs to be the foundation for discussion as Ontario moves forward
with regulations regarding the use of pest control products in lawn and garden
care. CropLife Canada is calling on Health Canada to join the discussions with
the Ontario government to help answer questions regarding how these products
are tested, evaluated and registered for use.
Determination and Drive Shared by 2007 OYF National Winners
Farm families running
an Ontario hog operation and a diversified Saskatchewan crop operation shared
the spotlight as Canada’s 2007 Outstanding
Young Farmers (OYF) according to a December 11, 2007 news release. Harry and
Leony Koelen of Paisley, Ontario, and Norman and Laura Shoemaker of Mossbank,
Saskatchewan were named OYF national winners at the organization’s national
banquet in St. Hyacinthe, Quebec on December 7th, 2007.
A strong desire to farm brought Dutch immigrants Harry and Leony Koelen to Canada
in 1991. They arrived with a backpack, $2,000 and a dream
of building their own hog farm. The ambition they carried to their new home
continues to drive the success of H & L Koelen Farms Limited, home to their
1,110-acre and 5,400-sow operation near Paisley, Ontario.
Norman and Laura Shoemaker share a similar drive and determination for agriculture.
They met at the University of Saskatchewan while studying agriculture, and after
graduation set out on a deliberate, planned approach to build and grow a successful
family farming operation. Today they operate Shoemaker Agro Inc., a 5,440 acre
diversified crop operation at Mossbank, Saskatchewan.
“This year’s OYF winners epitomize what it takes to build and grow
a successful agribusiness, starting with a clear idea of where you want to be,”
says Sylvain Gascon, president of OYF. “Not many things happen by chance,
and the Koelens and Shoemakers are great examples of what planning
can yield. Both these families envisioned the kind of operation they wanted
for themselves, and their families…and set about to build it. What a great
reminder of all that is possible when you work for yourself.”
Harry Koelen answered an ad to work on a Canadian hog operation in 1991, after
completing a degree in pigs and poultry in Holland. And he’s never looked
back. With their 16 employees, the Koelens operate their farm on two locations
in barns designed for minimal movement of sows and piglets shipped at 17 days
of age. Through the Environmental Farm Plan and Nutrient Management Plan, they
have made improvements including water computers and meters, decommissioning
wells and containing compost area runoff. They have received many production
awards and maintain overall efficiency with daily and weekly schedules for feeding,
breeding, heat checking and building maintenance. True to their roots, the Koelens
have hosted more than 35 exchange students since they began farming in Canada.
And their five children (aged 3 to 12) are picking up their parents’ work
ethic as they help in the barn.
Effective succession planning helped Norman and Laura Shoemaker get their start
in agriculture. Their goal was always to create a profitable business from very
limited capital. And their plan has clearly worked, in large part to their decision
to separate land ownership from their business,
choosing to rent much of the land they farm. Norman and Laura farmed in partnership
with his family for six years, and then incorporated the operation to facilitate
the generational transition to Norman and Laura. Today, they work as a team
to operate their grain and pedigreed seed operation. Their diversified operation
includes barley, chickpeas, lentils, wheat and canola.
Energy consumption has been reduced with direct seeding, and Environmental Farm
Plan improvements include GSP autosteer on their air seeder and a sharp shooter
spraying system.
Norman and Laura know that the flexibility of their operation gives them time
to focus on raising their two children (aged 9 and 11), and pass on their love
of farming to the next generation. They are also both active in their community,
especially with Kinsmen and Kinette Clubs.
In addition to this year’s winners, the other five 2007 honourees are also
outstanding examples of the diversification of Canadian agriculture. They are:
John and Clair Green, Springfield, PEI, dairy producers; Marco Richard and Chantal
Pitt, Ste.-Brigette-des-Saults, QC, milk-fed calf operation; Rod and Kristi
Guilford, Clearwater, MB, purebred Hereford operation; Russell and Suzi Friesen,
La Crete, AB, grain producers; and Bert and Debbie Bos, Abbotsford, BC, sod
producers.
Completing its 28th year, Canada’s Outstanding Young Farmers’ program
is an annual competition to recognize farmers that exemplify excellence in their
profession and promote the tremendous contribution of agriculture. Open to participants
18 to 39 years of age, making the majority of income from on-farm sources, participants
are selected from seven regions across Canada, with two national winners chosen
each year. The program is sponsored nationally by CIBC, John Deere, Bayer CropScience
and Agriculture and Agri-Food Canada, and supported nationally by AdFarm.
$50,000 Gift Expands 4-H Program
It was announced
in Toronto, December 17, 2007 that the Canadian 4-H Council is the recipient
of a $50,000 grant from TD Bank Financial Group,
which will be used to create the TD 4-H Leaders Development Program. With up
to $5,000 available to each province, the program is designed to support new
volunteer training, the development of volunteer resource materials, and guidelines
on how to start and maintain a new 4-H Club.
“The timing of the new TD 4-H Leaders Development Program is excellent
as we look to grow and strengthen our volunteer base across the country,”
said Bob McAuley, Canadian 4-H Council President. “TD Bank Financial Group
recognizes the essential role volunteers play as 4-H continues to develop the
next generation of agricultural leaders.”
TD also supports the educational goals of 4-H members through the TD 4-H Agriculture
Scholarship, which provides a $2,000 scholarship to 10 students annually. Combined
with today’s donation, TD Bank Financial Group has provided$70,000 this
year to support 4-H across Canada.
“The Canadian agriculture industry is a global powerhouse, and to maintain
this position we need to ensure resources such as 4-H continue to be available
for youth who are interested in learning about and participating in this field,”
said Craig Bremner, Vice President Agriculture Services, TD Canada Trust. “TD
has been focused on making a difference together with 4-H since 1955 and we’ve
been witness to the tremendously positive impact 4-H has on its members. We
believe this $50,000 donation will help 4-H enhance its already impressive program.”
A generous supporter of the Canadian 4-H Council for the past 52 years, TD Bank
Financial Group is committed to helping students pursue their academic goals.
In addition to the TD 4-H Agriculture Scholarship, TD Bank Financial Group participates
in a range of community giving activities and programs including the TD Canada
Trust Scholarships for Community Leadership, TD Canadian Children’s Book
Week and the TD Friends of the
Environment Foundation. The bank also supports a host of local, regional and
national programs across Canada promoting literacy and education, children’s
health and the environment.
The Canadian 4-H Council is a not-for-profit agency that co-ordinates all national
4-H activities in Canada. Founded in 1933, the Council offers
conferences, exchanges, scholarships and international travel opportunities
to 4-H members and leaders across the country.
Ontario Government Boosting Research
The McGuinty government
announced January 15, 2008, that it was providing $2.5 million to the Agricultural
Adaptation Council to support Ontario’s agri-food sector. The funding,
which is part of the $150 million announced in the 2007 Economic Outlook and
Fiscal Review to increase competitiveness and help Ontario’s hog, horticultural
and cattle farmers, is geared towards new ideas and innovation in Ontario’s
agri-food sector.
To receive funding, projects must:
• address gaps in support of agriculture and food research and technology
transfer;
• include pilot activities, research and analysis designed to reduce cost,
enhance sector diversity, increase yields, improve product quality or
x develop
new products and markets;
• be market oriented and ready for practical application;
• have agri-food industry support; and
• have benefits that go directly to the sector.
University of Guelph Researchers Look at Turning Plant Waste into Biofuels
The growing demand
for ethanol has Canadian farmers harvesting corn kernels at a rapid pace, but
the rest of the plant has been going to waste –
until now, according to a January 8, 2008 news release.
Three leading scientists from the University of Guelph have teamed up to investigate
how to turn corn husks, stalks and leaves as well as straw,
switchgrass and even wood chips into usable biofuels.
Their three-year $600,000 study examines how to break down the plant cellulose
and unlock the biofuels from the wasted biomass.
“Making ethanol from plant cellulose would offer an alternative to using
food crops to produce energy as well as a lucrative use for waste biomass,”
said Prof. Anthony Clarke, Department of Molecular and Cellular Biology, who
is working on the project with physicist John Dutcher and chemist Jacek Lipkowski.
Cellulose ethanol is made by treating fibre with enzymes to yield sugars that
are then fermented to ethanol for fuel. But, turning plant cellulose into
ethanol is more difficult than the process used for corn ethanol, and finding
ways to make this process more efficient has become like “the holy grail
of agriculture,” said Dutcher.
The densely packed cellulose fibres are what lend plants their toughness, allowing
a tree to grow hundreds of feet high without falling over. Although the inflexibility
of the cellulose makes it difficult to break down, there are natural enzymes
that can degrade the plant structure. Cows, for example, can digest the plant
fodder because their guts contain specially evolved microbes able to gnaw through
cellulose.
The researchers hope to copy this natural breakdown right down to the molecular
level by combining a range of expertise and tools, from genetically engineered
microbial enzymes to nanoscale microscopy and imaging.
By learning how nature breaks down cellulose in biomass and improving on that
process, they hope to help the biofuels industry make a product
that’s greener and more economically viable, said Clarke.
“We’re trying to help with the efficiency of the process. If we can
see this better, we can study the efficiency better.”
This project is funded by the Natural Sciences and Engineering Research Council,
the BIOCAP Canada Foundation and the Alternative Renewable
Fuels Research and Development Fund of the Ontario Ministry of Agriculture,
Food and Rural Affairs.
Syngenta Announces Canadian Registration of Two Products
Syngenta Crop Protection
Canada, Inc. announced in early January the Canadian registration of Primextra
II Magnum and Callisto tankmixes with glyphosate, subject to acceptance of the
final label, for post emergent use in glyphosate tolerant (GT) corn hybrids.
Readers of No-Till
Farmer selected Monsanto’s YieldGard VT Triple insect protection as the
2007 “No-Till Product of the Year,” according to a January 14, 2008
news release from No-Till Farmer.
SeCan's "GROWTH" Product Guides for 2008
SeCan announced
their new “Growth” Product Guides for 2008 in the last part of December.
In addition to the distribution of the Guides, more
in-depth “Technical Bulletins” for SeCan varieties are available at
www.secan.com.
Although research
has been done over the last several years to improve drought tolerance in some
strains of corn, companies such as Pioneer, Monsanto Co. and other biotech companies
are racing to develop new strains of corn and other crops that can thrive when
water is in short supply. In a Reuters news release, January 13, 2008, it is
reported that scientists are predicting a trend of worsening drought and hotter
temperatures
around the globe. France, Spain, Argentina and parts of the U.S. and Canada
have seen yield reductions due to drought-like conditions.
Since corn is a key raw material in processed foods, is a major animal feed
and is a major feed stock for the ever increasing ethanol market, the
biotechnology companies are focusing their research on improving drought tolerance
in corn first.
ayer CropScience
announced January 15, 2008 that they had launched their “Mix It Up”
awareness campaign and website. Ross Deveson, Cereal
Herbicide Portfolio Manager, with Bayer CropScience states that farmers can
incorporate three essential management practices to break up the
predictability weeds thrive on; crop rotations, rotation of herbicide modes
of action; and traditional crop practices. Visit www.mixitup.ca
for more
information.
Daynard to Manage Agri-Food Policy Institute
The Ontario Agri-Food
Policy Institute, located at the Ontario AgriCentre in Guelph, announced on
January 14, 2008 the appointment of Terry
Daynard as Managing Director. The Institute has the mandate of identifying,
assessing and promoting new policies designed to enhance the well-being of Ontario’s
agricultural products in an increasingly competitive global environment, as
well as researching opportunities for the development of new products including
health, food, nutrition, bioplastics and other materials.
Government of Canada and Spain Sign Letter of Intent
On January 9, 2008,
the Government of Canada and the Instituto Nacional de Investigacion y Tecnologia
Agraria y Alilmentaria (INIA) signed a Letter of Intent on agriculture and agri-food
research interests.
The objective of the Letter of Intent is to facilitate the exchange of information
and technical expertise between Canada and Spain. As stated in
the news release, the document reflects both countries’ commitment to enhance
their research capacities to protect the environment and promote
sustainable agriculture development in concert with strengthening bilateral
trade relations.