Tobacco Board Sees Brighter Days Ahead

Source from:  The Tillsonburg News Monday July 10, 2006 07/11/2006

Farmers told full buyout strategy on the way Is there light after the "darkest days" ever faced by Ontario's tobacco growers? Tobacco board chair Fred Neukamm hopes so. Neukamm told the 49th annual meeting of the Ontario Flue-Cured Tobacco Growers Marketing Board here yesterday that joint meetings this week with government officials have launched a plan and timetable for a full exit from the industry for farmers. "Our goal is a resolution and direction (for an exit plan) by early fall," he said. "There are several very complex issues that need to be dealt with, but everyone has their marching orders…the board will be doing everything it can… to advance the ball toward the goal posts." After years of trying to remain viable throughout an onslaught of anti-tobacco government policies, Neukamm said the tobacco board over the past 12 months has "thrown up our hands. We give up." "The war on tobacco and strategies geared toward the elimination of the industry have succeeded in snuffing out any glimmer of hope of survival for the tobacco grower in the long term," he said. Jason Lietaer, general manager of the board, said the recent Smoke Free Ontario legislation, which made it illegal to smoke in the board's head office and tobacco warehouse, was the "perfect example" of why the board has undertaken a full exit plan. At the heart of the plan proposed by the board is payment of $3.30 per pound for a grower's basic production quota. Funding required is estimated at $897 million over a negotiated time period. A further $63.2 million would top up growers who received an earlier quota buyout, which cost $87.5 million. A special fund from the sale of tobacco products across Canada is suggested to finance the proposal. The plan also proposes funding of $150 million for a comprehensive redevelopment strategy for communities affected by the loss of their tobacco growing economy. Hugh Zimmer, a former Otterville area grower who got out under the earlier quota buyout program, warned the board should watchdog the disbursement of funds to community related projects. Zimmer cited a grant provided under the Community Transition Program for risers in the new gymnasium at Simcoe Composite School made under the guise of promoting tourism. "That's just a horrible abuse (of the fund)," he said. Neukamm said he is heartened by commitments from both the federal and provincial governments to participate in the full exit process. He credited the support of local politicians, particularly MPP Toby Barrett and MP Diane Finley, who was guest speaker at the annual meeting. "Minister Finley has worked hard on our behalf and we are thankful for her guidance and assistance," Neukamm said. This year's crop size is 55.5 million pounds, the lowest in the history of the board. The 2005 crop resulted in 83.9 million pounds sold with a total value to producers of $182 million. Enditem