Tobacco Growers Disappointed with Buyout

Source from:  lfpress.ca By HANK DANISZEWSKI, SUN MEDIA Fri, August 1, 2008 08/04/2008

Ontario tobacco farmers got news of their long-awaited buyout this morning when a $286 million transition program was announced here this morning by federal Agriculture Minister Gerry Ritz. The amount will buy out tobacco growers' quota at the rate of 60 per cent of a $1.74 a pound. The remaining 40 per cent is expected to be picked up by the provincial goverment. Ritz's announcment was met with polite applause but few smiles by the hundreds of tobacco growers gathered in the Delhi Tobacco Auction Exchange for the announcement. Ritz explained that the federal money was actually coming from the settlement announced yesterday with the major tobacco companies over their participation in the cigarette black market in the 1990s. Many growers said the amount was far below their expectations and would not allow them to get out and move on to other crops. Linda Vandendriessche said the buyout was the best the tobacco board could achieve under the circumstances and will allow for an orderly wind-down of the industry. She expects only about 150-200 growers to remain in business, who will likely sell directly to cigarette companies on a contract basis in the future. For the full story, read tomorrow's Free Press on the web or in print. To subscribe to The Free Press, click on our subscription page. Enditem