Tobacco Belt Buckles

Source from:  Lfpress.ca 02/24/2009

For over 50 years, the golden leaf fueled prosperity in the sandy soils of Ontario's tobacco belt. Now with the tobacco marketing system officially dead, there are fears the north shore of Lake Erie could see a return to the dust bowl days. Last week, about 2,000 people packed into a meeting in Delhi to hear the details of a federal buyout program that will end the tobacco quota marketing system that has been in place since 1957. The media were not allowed into the closed meeting, but those inside described the mood as sombre. "It was really bittersweet. I have to welcome the dollars because its what we needed but eliminating our way of life is tough," said Linda Vandendriessche, chairperson of the Ontario Flue-Cured Tobacco Growers' Marketing Board. Tobacco growers have until March 23 to take the federal buyout offer of $1.05 for each pound of quota they hold. If they take the buyout they must agree to get out of tobacco growing permanently. Farmers who choose to continue growing tobacco will have to get a provincial licence. The licence will not be granted until the producer provides proof they have a contract with a cigarette manufacturer. Larry Martin, a researcher at the George Morris Centre at the University of Guelph said the contract requirement might help to stem the flow of tobacco into the black market by ensuring all tobacco produced has a legitimate buyer. Even before the demise of the quota marketing system, Martin estimated sales of contraband tobacco made up 30 per cent of the market. The illegal tobaccos sales cost the federal and provincial government hundreds of million of dollars each year in lost tax revenue. The contraband was also blamed for accelerating the decline of the legal tobacco market. Martin said the licensing requirements will provide a good basis for legal production. "There's a lot of self-interest on behalf of the cigarette manufacturer in making sure there's not too much contraband," But Martin cautioned the effectiveness of the new provincial tobacco licence will depend of how well the rules are enforced . "Tobacco is not like any other product. Very few products have a huge and growing contraband market," said Martin. At its peak in the 1970's tobacco was Ontario's most valuable cash crop, with 2,600 producers scattered across Norfolk, Elgin, Oxford, Brant and Middlesex Counties. Over 1,000 people continue to hold tobacco quota, but only a few hundred grew the crop last year. Tobacco is revered as a miracle crop that was first introduced to the north shore of Lake Erie in the late 1920s. The area was considered depressed because traditional crops such as corn and wheat did not do well in the light, sandy soil. The formation of the marketing board in the 50s paved the way for a solid, lucrative market that made tobacco the envy of other producers and poured cash into communities such as Tillsonburg, Aylmer, Delhi and Simcoe. As the industry declined over the years, farmers have tried to replace tobacco with a long list of alternate crops including ginseng, peanuts, asparagus and even lavender. But it has been difficult to find any crop that pays as well as tobacco. There is also concern that the elimination of tobacco could lead to widespread soil erosion. The sandy soil has been maintained through the years through the careful rotation of cover crops such as rye. "We have very fragile soil and it's a big responsibility to handle it," said Vandendriessche. If farmers plant more traditional crops and are unable to keep up with regime of cover crops, she warns erosion is a serous threat. "You are going to end up with a dust bowl that will blow across roads,"said Vandendriessche. She believes there is potential for growers in the area to switch to crops such as switchgrass that stabilizes the soil and can be used to produce biofuels. Haldimand-Norfolk MPP Toby Barrett said the federal government buyout won't be enough to help many former tobacco farmers facing financial collapse. The Tory member has been calling on the provincial government to supplement the $1.05 per pound buyout under the traditional 60/40 federal-provincial split. He said the provincial government has to devote more money and effort to promote the production of fruit and vegetable crops in the former tobacco belt. "We have tremendous potential in that area … We have tens of thousands of acres in this microclimate that has become available after 80 years," said Barrett. Martin agrees the tobacco belt can boost production of horticultural crops to cash in on the "buy local" trend that has been sweeping the food and restaurant industry. He said that might require more investment in irrigation equipment and new quality standards that would allow the area to promote local produce as a premium product. The future of the tobacco marketing board is in doubt, since its main function was to supervise quota and auction the crop on behalf of producers. In recent years, the board has gradually been reducing staff at its Tillsonburg head office and winding down its auction centre in Delhi. But Vandendriessche believes the board might still play a role in representing farmers who stay in the business, although she declined to speculate on how many farmers would continue to grow tobacco. "There will still be growing tobacco under licence and those people will have something to say and will probably want to be represented," she said. Enditem --- TOBACCO PRODUCTION Ontario flue-cured tobacco production sold by auction: 1957: 147.6 million pounds 1958: 173.2 million pounds 1959: 145.2 million pounds 1960: 198.8 million pounds 1961: 182.9 million pounds 1962: 156.2 million pounds 1963: 179 million pounds 1964: 136.4 million pounds 1965: 153,.9 million pounds 1966: 214.7 million pounds 1967: 195.8 million pounds 1968: 200.4 million pounds 1969: 226.3 million pounds 1970: 199 million pounds 1971: 201.7 million pounds 1972: 166.7 million pounds 1973: 232.7 million pounds 1974: 238 million pounds 1975: 209.5 million pounds 1976: 159 million pounds 1977: 204.8 million pounds 1978: 229.5 million pounds 1979: 149.2 million pounds 1980: 213.6 million pounds 1981: 219.8 million pounds 1982: 153.5 million pounds 1983: 214.8 million pounds 1984: 169.8 million pounds 1985: 169.7 million pounds 1986: 129.4 million pounds 1987: 110 million pounds 1988: 133.4 million pounds 1989: 145.8 million pounds 1990: 123.2 million pounds 1991: 154.1 million pounds 1992: 131.1 million pounds 1993: 156.4 million pounds 1994: 129.6 million pounds 1995: 152.1 million pounds 1996: 142.2 million pounds 1997: 154.9 million pounds 1998: 150.5 million pounds 1999: 142.3 million pounds 2000: 106.4 million pounds 2001: 117 million pounds 2002: 108 million pounds 2003: 93.9 million pounds 2004: 87.8 million pounds 2005: 83.9 million pounds 2006: 55.4 million pounds 2007: 34.3 million pounds 2008: 22 million pounds