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Ontario Apple Growers Newsletter - December 5, 2005

IN THIS ISSUE
OAG Annual General Meeting – January 16, 2006 | Annual District Meeting Election Results | National Replant Program |AAFC Support Announcement | Agricultural Election “Wish List” | Apple Production Insurance Plan | SR&ED Investment Tax Credit for Farm Producers | Promotion Update – Winter and Spring Activities | OAG Web Site | 2005 Revised Ontario Crop Estimate | December 1, 2005 Storage Holdings | Golden Apple Award Nominations | Interesting Web Site | OATI Web Classes | Fire Blight Management Workshops

OAG Annual General Meeting -- will be held in conjunction with the Ontario Fruit & Vegetable Growers’ Convention at the Quality Hotel Parkway Convention Centre, 327 Ontario Street, St. Catharines, Ontario.

The Ontario Apple Growers’ Annual General Meeting will take place on Monday, January 16th from 8:00 a.m. to 10:00 a.m.

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Annual District Meeting Election Results
The Annual District Meetings have been completed and the results of the elections are as follows:

District 1 Keith Wright, Peter Geerts – Directors
District 2 Rien Van Brenk, Chris Hedges – Directors
District 3 Brian Gilroy, Brad Johnston – Directors
District 4 Bob Bell, Art Moyer – Directors
District 5 Jim Rickard, Cathy McKay – Directors

Steve Koning, Steve Versteegh, Marshall Schuyler and Murray Porteous advised that they have enjoyed their terms in office but were willing to make room for new growers and new ideas. All four were involved with the Ontario Apple Growers’ Steering Committee and the inaugural OAG Board of Directors. Chairman Jim Rickard expressed his sincere appreciation for all their dedication and hard work on behalf of the Ontario apple industry.
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National Replant Program
The proposed “National Replant Program” for Tree Fruit and Grapes has now been released to both levels of government and are under review. We urge all apple growers to call and/or visit their local candidates for federal election and urge them to lend their support to this important initiative. A copy of the latest proposal summary is attached.

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AAFC Support Announcement
Most growers are now aware of the AAFC announcement for $755 million in support payments to the Canadian Grains & Oilseeds producers. There was no similar announcement for the rest of Canadian agricultural producers despite the fact that all sectors are suffering devastating losses due to the world over production, foreign subsidies and declining exchange rates. It is obvious that the Liberal government of Canada took the expedient route of providing support to the most number of producers (voters) and doing so just prior to an election call. Your Board along with other horticultural producer organizations has registered their disappointment with this one-sided decision.

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Agricultural Election “Wish List”
Growers are urged to contact the candidates in their ridings to discuss their agricultural platforms and make them aware of your concerns. The agricultural industry is vital to the future and prosperity of the rural community in Ontario. Issues of concern include:

1. Horticulture received no support from AAFC in the recent $755 million dollar announcement even though our producers have suffered from the same pressures as the Grains and Oilseeds sector.
2. The Tree Fruit and Grape Sectors have proposed a replant program which will make our industry stronger and reduce our demands for Ad Hoc Programming. We need our federal government to partner with our growers and invest in the future.
3. Government has promised adequate programming, under APF (CAIS and Production Insurance), but has not delivered. Horticulture has proposed a Self-Directed Production Insurance Program for producers who either have no Production Insurance or PI
programs that are poorly subscribed as they do not meet their needs.
4. The CAIS Program has not provided the promised support nor has it eliminated the
need for Ad Hoc programs.

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Apple Production Insurance Plan
Agricorp has finalized the 2006 Production Insurance
Plan and related premium rates. As expected, the hail rider has been moved to “High Risk”
and will result in an overall increase in premium rates of approximately 0.7%. Growers have
an option to purchase the “Enhanced Base Plan” which may provide an alternative to the hail
rider for some growers. The Enhanced Base Plan includes a write-off provision and salvage
benefits. This option may be of benefit for growers with single sites or sites in close proximity.
3
Apple growers who had production insurance in 2005 and enroll for 2006 will receive “Apple
Tree Plan” coverage at no cost. More details on these changes are attached to this newsletter.
The OAG Production Insurance Committee continues to work with Agricorp to secure
additional improvements for 2007 and beyond. Growers must apply by December 23, 2005.

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SR&ED Investment Tax Credits for Farm Producers
Canada’s farmers may now obtain tax incentives for investments through the SR&ED Program, a federal government program to
encourage investment in research and development in all economic sectors. The Canada Customs and Revenue Agency (CCRA), in co-operation with Agriculture and Agri-Food Canada (AAFC), has developed a process so that farm organizations can participate in the program. The new process provides for the distribution of investment tax credits to farm producers who contribute to SR&ED through their agricultural organizations. An information sheet is included with this newsletter.

Promotion Update – Winter and Spring Activities
Following is a list of upcoming promotions:

- Foodland Ontario Press Release in early January.
- Foodland Ontario Apple TV commercial – air time in February during Olympics.
- Ontario’s “Big Red” Promotion – promoting Macs, Red Delicious, Empire, and Idared
apples:
    - Radio advertisements (10 second tags and 30 second commercials) from January 28 to February 10.
    - Consumer contest – “Win 1 of 30 Apple® I-pod® Nanos”. 500,000 ballots will be placed in 3 and 4 lb bags of the featured varieties. POS material will also be placed in stores by Foodland Ontario Reps.
- Apple “Retail Display Contest” – February through March.
- Foodland Ontario’s Winter Recipe Booklet – some recipes will feature Ontario Apples.
- April is the “5 to 10 a Day - For Better Health” Apple Month.
- Spring Promotion - radio advertisements April through June.

The promotions project is funded in part through contributions by Canada and the Province of Ontario under the Canada-Ontario Research and Development (CORD) Program, an initiative of the federal-provincial-territorial Agricultural Policy Framework designed to position Canada’s agri-food sector as a world leader. The Agricultural Adaptation Council administers the CORD Program on behalf of the province.

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OAG Web Site – www.onapples.com
The new OAG web site is up and running. Please take an opportunity to visit the site and determine what improvements can be made and offer your suggestions to Kelly at 905-688-0990 ext. 241 or kciceran@onapples.com.

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Organic Apple Growers – The site will include a page dedicated to Organic Apples and Apple
Products. If you would like your farm name listed as an organic apple producer and/or wish to
have your products listed on our web site, please contact Kelly at kciceran@onapples.com or
905-688-0990 ext. 241.

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2005 Revised Apple Crop Estimate
Included with this newsletter is a copy of the latest Ontario apple crop estimate for 2005. The original estimate for 2005 indicated a slightly
smaller crop than 2004. This has been revised upwards to 10.2 million bushels from 9.8 million bushels. Industry estimates expect that the actual crop is closer to 12 million bushels. Not only is the estimating process of concern but this industry estimate is also used by government to determine their programming support. We must get real and we must present the “State of the Industry” as it is not only to governments but to our marketers and processors.

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December 1, 2005 Apple Storage Holdings
Unfortunately the December 1st storage holdings are not included with this newsletter. Not all storage operators have submitted their holdings to CFIA so the information is incomplete. This storage information is so valuable to the apple industry and it is a shame that storage operators don’t submit their information in a timely manner. Storage holding information from USApple gives Canadian growers
encouraging news in that the US storage holdings are down 7% from a year ago. US pricing levels remain somewhat higher than last year and are holding so far.

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Golden Apple Award Nominations
We are now accepting nominations for the 2005 Golden Apple Award sponsored by the Crompton Co./Cie. Nominees for the award may be commercial apple growers or a person who, while not a commercial grower, has made a significant contribution to the well-being of the Ontario apple industry.

If you wish to nominate someone please forward a nomination letter along with biography to
Kelly at kciceran@onapples.com or fax to 905-688-5915. Deadline for nominations is 4:00
p.m. on Thursday, January 12th, 2006.

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Interesting Web Site
An interesting web site was brought to our attention by Harold Schooley, Chair of the OAG Research Committee – www.virtualorchard.net. It includes an Apple-Crop Discussion Group. Growers can ask questions of other participants or just read the comments made by others. Numerous topics are covered and Harold advises that it is usually an active group with the participants including growers, extension people and researchers from across the United States and Canada.

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Ontario Agricultural Training Institute (OATI) Web Classes
OATI has developed four courses to be offered in a unique Web Classroom format. Attached are the details on the classes. These classes have been designed to work over dial-up connections.

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Fire Blight Management Workshops
A series of workshops on managing fire blight in Ontario will be held during the winter of 2006. The workshops are sponsored by Agriculture and Agri-Food’s Pest Management Centre and are meant to compliment a new fact sheet entitled, Integrated Management Strategy for Fire Blight in Canadian Apple and Pear Orchards, which will be available in January 2006. Workshop topics will include:

Location Date Time
Colasanti’s Restaurant, Ruthven Tuesday, January 24 1 P.M. to 4 P.M.
Best Western, London Wednesday, January 25 9 A.M. to Noon
Beaver Valley Comm. Ctr., Thornbury Tuesday, February 7 1 P.M. to 4 P.M.
Baseline Comm. Ctr., Bowmanville Wednesday, February 8 9 A.M. to Noon
OMAFRA Auditorium, Simcoe Thursday, February 9 1 P.M. to 4 P.M.

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To register please contact:
Bernie Solymár, EarthTramper Consulting Inc.
519-426-7124 or solymar@nornet.on.ca

Happy Holidays! - We wish you and your families a very Merry Christmas and Happy New Year!

Yours truly,

Adrian Huisman

Manager

Kelly Ciceran

R & D Coordinator

Enclosures

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