Tobacco Growers Get $35M

Source from:  Samantha Craggs - SIMCOE REFORMER The Simcoe Reformer 03/31/2005

Funds to help farmers leave industry too little, too late: Barrett The provincial government has finally announced money to help tobacco growers, but the local industry is viewing it as a first step rather than a permanent solution. Agriculture Minister Steve Peters announced $35 million yesterday to help growers exit the industry, and $15 million to encourage economic diversification and innovation in communities. It is a start, but a long-term solution is still needed, says Fred Neukamm, chair of the Ontario Flue-Cured Tobacco Growers' Marketing Board. He was also hoping to see $50 million in direct assistance to growers, with the innovation money on top of that. "The indicators have all been there and we're pleased that it's finally here," he said. "It's been a long and frustrating road for us." Neukamm says the province's funds will be combined with the Ontario share of the federal government's commitment of $67.1 million. A program will be quickly developed and farmers will be able to apply for the aid "within weeks." Neukamm also liked Peters' indication that he will provide leadership in future discussions for long-term solutions. The $15 million will be available through the Community Futures Development Corporation. Peters says groups, including municipalities, will be able to apply for funding for new initiatives that will provide jobs and keep money in tobacco-growing regions. The Elgin MPP says he was "very satisfied" to finally make the announcement on an issue that was part of his election campaign. "I have been talking to my colleagues as a caucus, as a cabinet minister and in the premier's office for a long time," he said. "We have honoured the commitment we made, and certainly I was roundly criticized for the delay in the announcement. But I've always spoken consistently of the growers and the community." Peters suggested further action in improving the industry may rest with the federal government, citing the increase of tobacco imports from other countries by more than 50 per cent since 1999. Local MPP Toby Barrett says the announcement is too little, too late. He says rural rallies "unquestionably" influenced the announcement's timing, and he encourages farmers to stay vocal and visible. Barrett says the $50 million promise of two years ago is not enough, particularly since only $35 million of it will be direct compensation. He will try to have the issue discussed in the legislature today. "I don't want to be negative," he said. "We have asked so many questions about this in the legislature. We have been to so many meetings and we've wheeled out the tractors and the signs, but I regret to say that it is not enough, and more is needed." Yesterday's announcement included $79 million in funding through the Market Revenue Program to ensure that eligible grain and oilseed producers receive benefits prior to spring planting. It is in addition to the $88 million to farmers who participated in the program earlier this month. This is good news for Norfolk grain and oilseed producers experiencing commodity prices at 25-year lows, says Tom Vandertuin, president of the Norfolk Federation of Agriculture. But like tobacco, it is not enough. "It's at least an acknowledgement by the provincial government that they understand there's a definite problem," Vandertuin said. "We have made some inroads. We need to continue to lobby more. Hopefully they won't say 'this will keep them quiet for a couple of years,' because it definitely won't." Enditem