Ontario Tobacco Growers to be Bought Out

Source from:  tobaccofarmquarterly.com July 11, 2006 07/12/2006

Ontario tobacco growers have been told that an industry exit plan is being set in motion, according to a report in the Tillsonburg News. The chair of the Ontario Flue-Cured Tobacco Growers' Marketing Board, Fred Neukamm, told the board's annual meeting yesterday that meetings with government officials had launched a plan and timetable for a full exit from the industry for farmers. He said the goal was to resolve outstanding issues by fall. After years of trying to remain viable in the face of anti-tobacco government policies, the board had thrown up its hands during the past 12 months, said Neukamm. "We give up," he added. The plan proposed by the board envisages a payment of $3.30 per lb for a grower's basic production quota, which will cost an estimated $897 million. A further $63.2 million would be needed to top up the payments to growers who received an earlier quota buyout, which cost $87.5 million. The payments would be financed by a special fund from the sale of tobacco products across Canada. Enditem