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Ontario Apple Growers Newsletter - March 10, 2005

IN THIS ISSUE
Change To Grading Standard To Be Used For 2005 Hail Counts | Farmers Exempt from Fees for Water Taking Permits
Greenbelt Protection Act | Queen's Park Rally | Production Insurance and CAIS Linkage | CAIS Top-Ups | CAIS Deposits
SDRM Claim Forms | New Pesticide Registered for Apples - Acramite | OAG Met with Farm Products Marketing Commission
Juice Apple Advisory Committee - Report | Fresh Apple Advisory Committee - Report | Storage Holdings | Apple Tree Census
Acreage Fee Update | Southern Hemisphere Crop Estimate | OAG Logo Contest | Bees for Pollination | Of Interest

Change To Grading Standard To Be Used For 2005 Hail Counts
As a result of the apple review being conducted jointly by the OAG and AGRICORP, the grading standard used to determine the fresh/juice designations for hail rider claims has been changed from the Canadian Grade for Fancy to the Canadian Grade for Extra Fancy effective for the 2005 crop year. For hail count purposes, an apple is designated for juice if hail injury causes one or more of the following to occur:

• Skin is broken by hail
• Discolouration caused by hail
• An individual hail mark exceeding 1/8 of an inch in diameter
• The aggregate area of hail marks exceeding 1/4 of an inch in diameter.

Please note that an orchard must have a minimum of 10% damage to be eligible for a hail rider claim. The deadline to apply for 2005 Apple Production Insurance was December 20, 2004. Customers already enrolled in the 2005 apple plan can purchase hail rider coverage up to underwriting and have until June 10, 2005 to cancel their hail rider coverage.

AGRICORP continues to work with the OAG on other initiatives for the future. If you have any questions or would like further information regarding the apple plan, please call the AGRICORP Customer Action Centre toll free at 1-888-247-4999.     >>BACK TO TOP

Farmer's Exempt from Fees for Water taking Permits
I am pleased to confirm that the Ontario government is exempting farmers from the new administrative fees for permits to take water applications. This was announced by environment Minister Leona Dombrowski and Agriculture and Food Minister Steve Peters on March 8.

Most Ontario farmers do not require a permit at all - only those that draw more than 50,000 L of water a day need a permit to take water; however, they will not have to pay an administration fee. The fee exemption applies to water taking for irrigation and frost protection for agriculture purposes including fruit and grape production. The Board extends it's appreciation to the government for this timely announcement.    >>BACK TO TOP

Greenbelt Protection Act
The Greenbelt Legislation has been passed by the Ontario Liberal government. This action was taken despite grower protests. The OAG strongly advocated that the issue of farmer viability should be entrenched in the legislation prior to finalizing the act. I'm sorry to report that this did not happen.

Our presentations have included recommendations on:

• A "Buy Ontario" policy within Government
• Monitoring the price of farm land before and after Greenbelt
• Fair taxation of value added on-farm operations
• Consideration for the lost rights to retirement severances
• Strengthening of Right-to-Farm and Trespass Legislation
• Harmonization of pesticides registrations with the U.S.

Your farm organizations will continue to work in concert with each other to ensure our collective voice is heard on this issue.    >>BACK TO TOP

Queen's Park Rally
Thousands of Ontario farmers attended a rally at Queen's Park on March 2, 2005 to emphasis the crisis in farm income in Ontario and the rest of Canada. Depressed commodity prices, world over-supply, burdensome government regulations, massive subsidies in competing jurisdictions, inefficient and ineffective government support programming were all sighted as obstacles.

Apple growers as well as other horticultural crop producers are not immune and are seeing sharp reductions in their returns as well. Despite a reduced crop in Ontario, the world oversupply of apples coupled with narrowing exchange rates are cutting deep into producer returns.     >>BACK TO TOP

Production Insurance/CAIS Linkage
There is a lot of confusion about the CAIS program and how it is being delivered. Whenever you introduce a new program, there will be growing pains. There are certainly a lot of growing pains with this one. In previous newsletters, I reported the likelihood of crop insurance premium rebates in cases where crop insurance claims reduced CAIS claims.    

First, I can advise that this is still going to happen. But, if you have already received a CAIS payment for 2003, it did not include the crop insurance premium rebate. They are still working on the computer programs to deliver this. Be patient - if you have a rebate coming, it will be made as quickly as possible. In the meantime, cash your CAIS payment cheque.     >>BACK TO TOP

CAIS Top-Up Payments
Growers who receive a CAIS payment for 2003 and/or 2004 are eligible to receive additional top-up payments. For 2003, this will be 24% of a producer's CAIS claim. The total top-up payments for 2003 will provide $44 million. $46 million will be distributed for 2004. The percentage for 2004 has not yet been determined.     >>BACK TO TOP

CAIS Grower Deposit Requirements
Agriculture and Agri-Food Minister Andy Mitchell agrees with producers that they should not have to put funds on deposit annually in order to be eligible for the CAIS program. Minister Mitchell stated that he is committed to working in partnership with his provincial colleagues to review alternatives to the deposit requirement.     >>BACK TO TOP

Self-Directed Risk Management (SDRM) Claim Forms
If your CAIS application is complete for 2003, and you were in the SDRM Program in 2002, you likely have already received your SDRM application form. These must be completed and returned along with your 4% payment by March 31, 2005. If you were in SDRM in 2002 but have not provided all the information for CAIS, you were not sent the SDRM application. You must first satisfy the CAIS requirements.

Successful participants will soon be receiving a SDRM claim form. These are fairly straightforward and I recommend you withdraw your SDRM account balance a.s.a.p. as there will be no interest paid on this amount and you will be required to pay taxes on the government share in the year this amount is entered into your SDRM account at AgriCorp.     >>BACK TO TOP

New Pesticide Registered for Apples
Acramite is now received a temporary registration on apples and grapes. This is a new family of products. Acramite will provide an alternative to the currently registered products - Kelthane or Pyramite.     >>BACK TO TOP

OAG Meets with FPMC
The directors of the OAG met with the Farm Products Marketing Commission on February 10 th and provided an update on the activities of the OAG, their financial position and relationships with their grower and industry members. Highlights of the OAG presentation included:

• Much has been accomplished in a relatively short time
• Communications with grower members is well established
• The vast majority of fees have been collected and plans are in place to accomplish 100% compliance
• Strategic Planning - Schedule is in Place for March 13 and 14
• Relationships with the Apple Packers have been positive with a number of joint generic promotion projects approved, and labeling issues are being dealt with
• Relationships with the Apple Juice Processors is positive with both sides making attempts to work together for the good of the industry (no juice apples were imported by Ontario processors at harvest time)
• Ministerial Exemption Process Being Revamped
• National Replant Program Being Developed
• Storage Holding Information Being Improved
• Apple Tree Census to be Conducted     >>BACK TO TOP

Juice Apple Advisory Committee Upate
The Juice Apple Advisory Committee met on February 25, 2005. Highlights include:

• Ontario processors did not import juice apples during the 2004 harvest
• Quality of Ontario juice apples was much improved
• New apple products are being explored to provide additional value added
• Ministerial Exemptions - Working together to find common ground
• The percentage of the crop diverted to juice is declining as growers improve variety mix and cultural practices to target the fresh market
• Concentrate is being used to supplement fresh apples where necessary but priority is being given to domestic fresh apples
• Significant inventories of juice apples from packing lines are available at this time but these should be utilized
• Some cold storage peeler apples being rejected due to low pressures. Recommend that suppliers obtain handheld pressure testers to avoid shipments of apples that will likely be rejected.
• Concern over Spy apples as buyers switching to Idareds
• Buyers will be required to deduct outstanding acreage fees     >>BACK TO TOP

Fresh Apple Advisory Committee
The Fresh Apple Advisory Committee met on February 25, 2005. Highlights include:

• Market slow domestically as well as for export
• Lower prices for U.S. apples coupled with exchange rates are having a dramatic effect on pricing for Ontario apples
• Taiwan has banned U.S. apples due to codling moth finds. This effectively puts 3.6 million extra bushels of U.S. apples on the market
• China continues to capture more of the Pacific Rim market replacing North American apples
• Washington growers receive net returns of $35 - $45 per bin for Red Delicious
• Gala is poised to become the next Red Delicious in over supply
• The Empire promotion in late January and early February was considered very successful with incremental sales increases for Ontario apples
• There is a need to update the Cost of Production figures for apples for government programming
• Apple tree census will be conducted in 2005 and will include new expanding varieties i.e. Galas, Honeycrisp, etc.
• MacDonald's to promote Ontario apple slices
• Quality at retail a concern but 1 MCP has provided improvements
• Storage holding information to be improved
• Ministerial Exemptions system to be revamped to streamline the system and reduce friction
• Packing Charges - Most major packers publish their terms of purchase. Growers are encouraged to request this information prior to delivery
• Packers state that they encourage growers to watch their apples being packed to avoid later disputes
• Buyers will be required to deduct outstanding acreage fees.     >>BACK TO TOP

Storage Holdings
There is concern that the storage holding information is incomplete. Why? - All storage operators are not reporting. The OAG is cooperating with CFIA, AAFC, and the apple packers and marketers to develop a complete list of all storage operators to ensure they are reporting as required. This information is of utmost importance to the movement and price determination of Ontario apples. Please do your part in complying with the information requests.     >>BACK TO TOP

Apple Tree Census - 2005
OMAF will be conducting their apple tree census this summer. The 1999 tree census is out of date. We encourage growers to provide their tree census information in a timely and accurate manner. Good production and marketing decisions rely on accurate production information. The OAG will assist OMAF in this project.     >>BACK TO TOP

Acreage Fee Update
The OAG very much appreciates the cooperation from its grower members who have voluntarily reported and paid their acreage fees. Unfortunately too much time and energy is being wasted on collecting the balance. The following update is provided:

1. As of March 1 st , 92% of all acreage fees had been collected ($29,000 still outstanding).
2. Interest fees are being charged on outstanding accounts @ 1 ½% per month.
3. Buyers will be ordered to deduct acreage fees from the remaining growers.
4. 25 growers (5 in each district) will be measured this spring to determine the accuracy of the acreage that was reported.
5. For 2005, acreage fees will be invoiced June 1 st and payable by June 30th
6. Acreage applies to all acres planted on January 1, 2005.     >>BACK TO TOP

2005 Southern Hemisphere Fresh Apple Crop Estimates

Ontario Apple Growers Logo Contest
Have an artistic flare or know someone who does? Why not try your hand at designing a new logo for the Ontario Apple Growers. Prize - $250 (if the Board of Directors chooses your design). Please submit your artwork to Kelly Ciceran by April 4, 2005.    >>BACK TO TOP

Bees for Pollination
Spring pollination hives available for the Collingwood, Meaford, Thornbury area. Minimum 10 hives - $55 per hive. Book early. Call Lazy J Ranch Honey Products at 1-866-314-3529 or email lazyj@bmts.com .

Pollination services available from MT Honey and Pollination, 1133 South Pelham Road, Welland. Please call 905-892-1615. There is a 10% discount for first time clients - call for pricing.     >>BACK TO TOP

Of Interest

• Food purchases accounted for just 13¢ of every consumer dollar spent on goods and services in 2003 down from 32¢ in 1950. Restaurant meals and take-out food accounted for 41% of all food spending, up from just 21% in 1960.
• FOB prices for Red Delicious dropped from $14 Can$ in 2003 to $12.00 in 2004 - Galas dropped from $35 Can$ in 2003 to $20.00 in 2004)
• USDA January 2005 Apple Crop Estimate - Attached
• From the Packer - US apple sales set a brisk pace - Highlights:
• Storage holdings as of Dec. 1 were up 26% from 2003
• Shipments increased 18% from 2003
• Prices in U.S. $'s - Tray packed Red Delicious, 100's, $10 ($14-$15 - 2003), Galas, 72's to 80's, $16.50 to $18.50 ($26-$28 - 2003). The exchange rate in December '03 was $1.35 ($1.20 - '04)     >>BACK TO TOP

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