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Ontario Apple
Growers Newsletter - April 19, 2005
IN THIS
ISSUE
Safety Nets Program Update | AAFC
Announces New Support Initiative |
Income Crisis in the Canadian Apple Industry
Farmer ID Cards to Gain Retail Sales Tax Exemption
| National Tree Fruit Replant Proposal |
April Storage Holdings
OAG Agrees to Spring Radio Blitz | Foodland
Ontario Apple Radio Commercials Win Awards | Awards
for Ontario Apple Marketers
Ontario Apples Raise $38,000 for 5 to 10 A Day
Program | Research and Development Coordinator
| Research Projects Approved
Acreage Fee Update | Acreage
Measurements | GPS Mapping of Commercial
Apple Orchards
Environmental Program Launched in Ontario
| Apple Orchard for Rent
Safety Nets Update
- SDRM - It is expected
(but not yet announced) that the SDRM program will be extended
to include those growers who have a non-calendar year end
in order that their 2005 crop will be covered.
- SDRM Claims - 2003 tax
year claims are being issued to eligible producers. Applications
for 2004 tax year are due by September 30, 2005. Growers
who participated in the SDRM program for 2003 will automatically
receive application forms. The claims process for 2004 will
be the same as for 2003.
- SDRM/CAIS Linkage - Claims
received by producers under the SDRM program are not considered
eligible income for CAIS purposes, therefore, will not reduce
claims against CAIS.
- Production Insurance/SDRM Working
Group continues to work on new and improved P.I.
products for 2006 (post SDRM). The Working Group has recommended
that the SDRM program continue if such new products do not
materialize in time.
- CAIS Deposit Requirement:
• The deposit requirement has
been reduced to 22% of the reference margin from 26%.
• The deposit requirement has
been reduced to 1/3 of the full deposit requirement (1/3
of 22%).
• Producers with more than the 1/3
deposit requirement in their accounts will be allowed to
remove the excess amount from their CAIS
account. These producers will automatically receive notice
of the surplus amount and will be asked to advise AgriCorp,
in writing, that they
wish the excess amount paid to them by the bank.
• Producers with less that
the 1/3 deposit requirement will have until March 31, 2006
to deposit the additional amount needed.
• Governments are considering
doing away with the deposit requirement entirely. This decision
is expected soon. Stay tuned.
- CAIS Top-Ups - The 2003
CAIS reviews are nearing completion and growers are now
receiving their 24% CAIS top-up payments. Approximately
$45 million will be distributed for 2003.
- Production Insurance Rebates -
AgriCorp will soon be issuing rebate cheques to
producers in instances where producer crop insurance claims
reduced their CAIS claims.
- 2004 CAIS Applications - Applications
and claims for the 2004 tax year are now being processed.
Top-up payments will be made on 2004 claims at a later date.
The percentage rate has not yet been determined. In total
$45 million will be distributed as top-up payments. >>BACK
TO TOP
AAFC Announces New
Support Initiative
Federal Agriculture Minister Andy Mitchell has announced
$1 Billion in additional federal support for Canada's farmers.
In his announcement, he noted that Canadian farmers are being
adversely affected by high subsidies in competing countries,
overproduction and resulting low prices. $155 Million of this
amount will be paid to the cattle and ruminant industry. $841.5
Million will be paid to all producers in
Canada based on a percentage of their 5-year average ENS (1998-2002).
There will be an initial payment of 4.5% and a follow up payment
of approximately 1% (total 5.5% approx.). This is the same
mechanism used to provide federal support in the past. Growers
who received support payments in the last round, will not
have to apply, payments will be made automatically. Payments
will be made in April. The federal payment is not contingent
on matching funds from the provinces. >>BACK
TO TOP
Income Crisis in
Canadian Apple Industry
The OAG along with the other apple producing provinces
and the Canadian Horticultural Council have advised the federal
and provincial governments of the "Income Crisis" in the Canadian
apple industry. Losses across the country range from 25% to
40% reductions in returns for the 2004 crop - and this could
get worse. Imports being dumped into Canada from Washington,
shrinking exchange rates, subsidies in competing countries
and the world oversupply of apples have combined to make this
one of the worst years for apple growers. We will continue
to make our position known and will endeavor to find relief
including approval of the National Replant Program Proposal.
>>BACK TO TOP
Farmer ID Cards to
Gain Retail Sales Tax Exemption
Ontario's Finance Ministry announced April 1, 2005,
that farmer ID cards issued by general farm organizations
like the Ontario Federation of Agriculture (OFA) can now be
used to gain Retail Sales Tax (RST) exempt status at point
of sale. >>BACK
TO TOP
Farmers will now be able to buy their farm-related
items without paying provincial sales tax, saving themselves
the tax and the time it previously took to apply to the province
for a refund. To get the RST exemption when buying farm-related
products, the farmer must show the Farmer ID card to the vendor.
Items purchased this way are not for resale or use by a manufacturer,
the government's news release explains. Farmers who have chosen
not to have a Farmer ID card can still use their Purchase
Exemption Certificate (PEC) to buy farm-related items exempt
from RST. >>BACK
TO TOP
National Tree Fruit
Replant Proposal
The Apple and Tender Fruit Committee of Canadian
Horticultural Council have developed a proposal for a National
Tree Fruit Replant Program which would include apples and
other tree fruit crops. This proposal is expected to be finalized
by the end of May. A preliminary outline of the proposal has
been tabled with Minister Andy Mitchell for consideration
by the federal government. If accepted, growers would be eligible
to receive $4,000 per acre to replace existing plantings with
new varieties of tree fruit. Although the proposal calls for
federal government participation, provincial governments will
also be asked to partner in the program. >>BACK
TO TOP
A similar provincially funded program has
been in place in B.C. for 10 years and has resulted in the
replanting of 50% of their orchards to new more desirable
varieties and an estimated increase in the annual returns
to their producers of about $11 million per year on average.
April Storage Holdings
Attached are the April 1 st storage reports. Total
Ontario apple holdings, at 1.8 million bushels are up 5% from
2004 while fresh apple holdings, at 1.2 million bushels are
down 2.3%. Canadian fresh holdings are up 27.1% from 2005
and U.S. fresh holdings are up 41.5% from 2005. U.S. apple
holdings are at their highest levels in the previous five
years. >>BACK TO
TOP
OAG Agrees to Spring
Radio Blitz
As noted above, apple storage holdings are up from
last year and there is ongoing competition from imports, especially
from Washington. To provide our marketers with promotion support,
the OAG has approved $30,000 for a spring radio blitz. Foodland
Ontario will coordinate this effort and schedule radio commercials
and tags, every other week, throughout May and June. Ontario's
"Big Reds" will be featured - Idared, Empire, Red Delicious
and McIntosh. Ontario retailers will be advised of this activity
and asked to provide additional support for Ontario apples
during this period. Funding for this project will come from
the Canada-Ontario Research & Development Program.
>>BACK TO TOP
Foodland Ontario
Apple Radio Commercials Win Awards
We congratulate Foodland Ontario for winning the
Gold Medal in the United States, at the ACE Awards. The three
commercials are all related to apples and were aired during
the November apple promotion. The commercials are entitled
Ap Appleby, Nigel Applethorpe & Dr. Apple.
Congratulations - a job well done and thank you for your support
for Ontario apples. >>BACK
TO TOP
Awards for Ontario
Apple Marketers
At the recent 7 th Annual Ontario Global Traders
(Southwest Region) two awards were given to Ontario Apple
Marketers.
Congratulations to Martin's Family Fruit
Farm Ltd., Bay Growers' Co-operative Inc., and Norfolk Fruit
Growers' Association on winning the Partnership Award of Merit.
The Partnership Award of Merit r ecognizes the key partnerships
between suppliers of goods and services and their exporting
partner. Nominees must demonstrate how the business alliance
has produced mutually beneficial results.
Congratulations also to Martin's Family Fruit
Farm Ltd. on winning the Market Expansion (Product) Award
of Merit. This award recognizes the pioneering spirit of Ontario
Small and Medium Enterprises (SMEs) that have successfully
established themselves in a new export markets in addition
to existing markets.
Congratulations to all - well done! >>BACK
TO TOP
Ontario Apples Raise
$38,000 for 5 to 10 A Day Program
The Ontario Produce Marketing Association has reported
that Ontario apples have raised $38,000 for the 5 to 10 a
Day "For Better Health" Program. Ontario apples contributed
to the program during the months of April and November 2004.
These monies were contributed collectively by the participating
Ontario retailers and apple marketers. These monies will be
used to support the 5 to 10 a Day Program, the Canadian Cancer
Society and the Heart and Stroke Foundation. Congratulations
to all involved. >>BACK
TO TOP
Research and Market
Development Projects Approved to Date
The OAG has approved the following research projects:
Market Development Initiatives
- 2004 Ontario Apple Fall Promotion $ 19,000
- Empire Promotion - Late January $ 24,000
- March/April - Retail Display Contest $
7,000
- Spring Radio Blitz - Featuring "Big Reds"
$ 30,000
- Generic POS Material $ 22,500
- Web Site $ 11,000
- Sponsorship - CPMA Convention $ 2,500
Total
Generic Marketing Support $ 116,000
Research
- Research and Development Coordinator (3
years) $ 188,845
- GPS Mapping of Ontario Apple Orchards
(1 year) $ 125,400
- Fungicide Resistance and Rapid Testing
(1 year) $ 29,280
- U of G - Apple (John Cline) (3 years)
$ 289,465
- IFP - Rewrite & Distributed IFP Manuals
$ 2,500
Total
Research Support $ 635,490
A number of the research projects are contingent
upon matching funding approval. The OAG is aware of the needs
of the Organic Apple Industry and solicit input from that
sector on their research needs. >>BACK
TO TOP
Research & Development
Coordinator
The OAG has retained the services of Ms. Kelly Ciceran
as their Research & Development Coordinator. Kelly's duties
will include the administration of the $1.5 million in grants
which the OAG is eligible for under the Canada-Ontario Research
& Development Program. Kelly has held similar positions
in the past. Major focus will be put on market development.
We look forward to positive results from the funding provided
to the apple industries. >>BACK
TO TOP
Acreage Fee Update
Outstanding acreage fees are now down to less than
$20,000 representing 18 outstanding accounts. The OAG is continuing
in their efforts to collect the remaining balance. In some
cases, the outstanding fees will be deducted by buyers as
required under the OAG regulations. In other cases, the accounts
will be turned over to a collection agency. This is obviously
a last resort and something we do not want to do but the mandate
is to collect all acreage fees.
I ask the growers with outstanding
accounts to consider the benefits provided by the OAG - Production
Insurance improvements, SDRM, promotion initiatives, research,
CAIS Program, CAIS Program Top-ups, P.I. premium rebates,
the recent AAFC announcement of financial support for all
producers, lobbying efforts for enhancements to safety nets
programming, $1.5 million in R & D funding, storage holdings,
and industry statistics (apple census & GPS mapping).
Yes you can hold out and reap the benefits without paying
or you can become part of the program and reap even more benefits
through active participation. The acreage fee is $20 per acre
- relate this to the cost of applying RETAIN at $200 per acre
and Agrimek at $100 acre. Which returns growers the greatest
returns per dollar invested? >>BACK
TO TOP
Acreage Measurements
The OAG has hired Peter Fiss to randomly measure
25 growers each year. Most of the measurements have been completed
for 2005. In most cases, the acreage corresponded to what
the grower had reported, while in others, it was either higher
or lower. Appropriate adjustments will be made to the grower
accounts. >>BACK
TO TOP
GPS Mapping of Commercial
Apple Orchards
The OAG has entered into contract with AgriCorp to
GPS Map all commercial apple orchards in Ontario. This will
include all members of the OAG. The purpose of this important
project is to develop an accurate inventory of Ontario's apple
production. The information to be obtained will include: variety,
tree numbers, spacing, root stock, year planted, and acreage.
This information will replace the normal tree census which
was to be conducted this season. OMAF will still conduct a
tree census of those growers with less than 10 acres and then
combine this information with that of AgriCorp. Together,
this will represent about 18,000 acres.
Each grower included in the mapping project
will be able to access his/her information by internet. As
well, each grower will receive a copy of the map(s) for their
farm(s). We look forward to your cooperation. This is your
industry and the better the information is, the better the
decision making will be in the future.
This is a joint project with AgriCorp. AgriCorp
will be providing part of the funding as they require this
information for Production Insurance purposes. The balance
of the funding has been requested from the Canada-Ontario
Research & Development Program. >>BACK
TO TOP
Environmental Program
Launched in Ontario
The Hon. Andy Mitchell announced more than $57 million
in funding for EFP for Ontario. While the Environmental Farm
Plan helps identify concerns, this new program will provide
up to $30,000 for individual farmers to take remedial steps
on their farms. This new program will be administered by the
Ontario Soil and Crop Improvement Association. Phone 1-519-826-4214
for more information or visit the web site: www.ontariosoilcrop.org
>>BACK
TO TOP
Apple Orchard for
Rent
For Rent - 32 acres of apple orchard for rent in
the Collingwood area. Established orchard with various varieties
- call Sam Triumbari at 416-835-0684 or 1-866-834-3313. >>BACK
TO TOP
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