A hostile environment for farming today

Agriculture operates in a much-changed business environment today – an environment of high costs and poor prices -- where farmers are finding it increasingly difficult to make sound, long-term decisions.

Much of farming today is facing its greatest of challenges of the past 15 to 20 years and there are no simple answers in sight.

 Coupled with government rules and regulations and red tape and forms to fill out, farmers and business people of all stripes are up against an increasingly hostile environment.  Regrettably, this also compounds problems in rural Ontario – closed car dealerships, shuttered downtowns, and an out-migration looking for work. We’ve seen it in towns like Delhi.

For the benefit of all, it is incumbent on government to work with various commodity groups to establish long-term solutions and, at minimum, provide short-term financial assistance to enable some to make it through the year.

Having said that, markets should be driven by market forces, not government policy. Ontario farmers have trouble competing with the United States because of many factors – the Canadian dollar being one, but also largely because many government policies south of the border are more pro-farming.

Currently, cattlemen are caught in a real margin squeeze with the introduction of Enhanced Feed Ban regulations not in harmony with our major trading partner south of the border. But the combination of the rising Canadian dollar, with surging feed, fuel and fertilizer cost is also squeezing beef and hog producers.

Ontario’s fruit and vegetable growers have been suffering through some of the worst financial difficulties of all times. The reasons are complex but result in the same pressure seen by beef and hogs – high costs and poor prices.

CanGrow recently announced the closure of two processing plants – a vegetable plant in Exeter and peach/pear processing in St. Davids. In addition, Cadbury-Sweppes, which was a grape juice plant in St. Catharines, has closed its doors. As well, the last sweet cherry briner east of the Rockies has been shut down.

On tender fruit farms, labour makes up 65 per cent of annual expenses. By 2010, it is expected that labour rates will increase by 28 per cent, or $90 million yearly for the fruit and vegetable industry.

Government policy and inaction with respect to the illegal tobacco trade have resulted in a market meltdown for Ontario tobacco farmers, manufacturers and retailers. Recently, I again sent letters to Federal Cabinet Ministers. Provincially, I have written several letters and, as Opposition we have put forward a Finance Committee motion asking the provincial government to saddle up its 40 per cent share of the cost of an exit program.

With the varying factors affecting the different commodities, solutions seem difficult to find. There is aid through risk management programs but many feel that it is not enough of an answer. Farmers in many fields are of the mind that policy change is a priority.

As well, our farmers are not only competing with other countries, but also other provinces. Ontario farmers need and deserve a level playing field within domestic markets – farmers are always more than willing to play by the rules, but they should be fair for all involved.

Right now we need both levels of government to sit down, roll up their sleeves and get the job done for our farmers.