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Ontario Election 2014 - Grain Farmers of Ontario: an Ontario resource poised for growth

Overview

Ontario grain farms are an Ontario resource and are poised for growth.

Unlike the manufacturing sectors our grain farmers in Ontario cannot lift up their land and transport it to India or China. This is not a business that can be outsourced - the world needs and wants our unique products and our harvest capacity. Our growth means growth for Ontario and jobs in Ontario. That said, governments cannot take this for granted. Ontario farmers compete in a global economy and the environment government creates around that, needs to take that into consideration.

We need to be competitive to achieve growth and build on our strengths.

It will take a value chain effort, stakeholder commitment and government investments to achieve a sustainable growth in the sector.

To generate growth in the grain sector public and private industry must work together in partnership.

We have identified five key areas for smart growth:

  1. Adequate funding for business risk management program

  2. Investment in a specialized soybean refining facility in Southwestern Ontario

  3. Support for the Processor Retention and Investment Attraction Program (PRIAP)

  4. Sustainable solution to pollinator health and a commitment to a National science based approach

  5. Continued public research investments in longer-term issues facing Ontario farmers so that we may remain competitive with our larger acreage competitors.

These investments will provide the support for towards a goal to achieve 60,000 jobs and $9 billion in revenues in the sector.

Opportunities for partnership

A) Raise the cap for Business Risk Management Program

Business risk management tools are essential for farmers who want to invest in their operations.

The RMP program imposed cap of $100 million dollars, impairs the RMP program from providing price stability in the farm business. This puts at risk investments that generate jobs and growth for the grains and oilseed sector.

As the upward cycle for commodities softens, these risk management tools become increasingly more important. Adequate funding is required for the Ontario Risk Management program for it to effectively produce the intended results.

A commitment to raise the cap $25 million for the next three years will restore the RMP program.

B) Specialized Soybean Refining Facility in Southwestern Ontario

Canada’s first commercial scale specialized soybean oil refinery is planned for development in Sarnia, Ontario. The Canadian Oilseed Innovation Centre (COIC) will make significant economic impacts for the local economy.

Locally grown specialty food grade oil is in sharp demand. This new facility will ‘custom manufacture’ specialized oil that fits demand and produce prototype manufacturing to establish new markets for designer soybean oil.

An investment of $10.89 million in Southwestern Ontario’s Specialized Soybean Refining Plant will result in 78 indirect and direct full time equivalent (FTE) jobs and annual revenues of $26.5 million. The construction of the facility will generate 187 FTE jobs.

C) Three Year Commitment to the Processor Retention and Investment Attraction Program

The Processor Retention and Investment Attraction program proposed by the Alliance of Food Processors will provide capital support for domestic development of Ontario’s current processor base and will attract new investment commitments to the industry and ultimately provide a healthy processing sector grains and oilseed farmers can depend on.

A commitment for a $120 million, three-year processor retention and investment attraction program.

D) Sustainable solution to pollinator health and a commitment to a National science based approach

Grain Farmers in Ontario, are adapting their planting practices to reduce dust exposure during the planting of corn and soybeans including installation of after-market deflectors, using new seed-flow lubricants and instituting safer planting practices to reduce risk to honey bee populations. A recent report from the Conference Board of Canada estimates the impact of a ban on neonicotinoids would be $700 million to the corn and soybean growers.

Government must maintain a commitment to science based decision making on neonicotinoids and continue to support the honey bee industry in achieving its opportunities for growth.

E) Support for basic research

Public research dollars need to be invested and tailored to Ontario farming to maintain our competiveness with our larger acre competitors in the US and other parts of the world. Ontario farmers will continue to access and use the research results of the private industry, these research dollars are primarily focused on larger-acre issues.

Continued public research is needed for longer-term issues facing Ontario farmers so that we may remain competitive with our larger acreage competitors.

BACKGROUND

Grain Farmers of Ontario represents more than 28 thousands corn, soybean and wheat farmers across Ontario

Over 28 thousand grain farmers from across Ontario make up the membership of Grain Farmers of Ontario. Our farmer members grow and market corn, soybeans and wheat.

The Grains and Oilseed sector is positioned to grow from $6 billion in GDP & 50,000 Jobs

Today, the grains business contributes Over 50 thousand jobs and $6 billion to the Ontario economy annually. Ontario’s agribusiness sector is currently experiencing a time of innovation and investment.

Over the last 30 years, grain and oilseed farms have seen yield improvements and yields are set to steadily increase.  Looking at our historical trend and innovations coming on-line we anticipate that we can double our gross output by 2050.  The grains and oilseed sector is part of the  Ontario food and beverage processing industry is anticipating growth potential by 2020 of 185,000 plus jobs and over $70 billion in revenues and we want to be a part of that growth.  With the right approach and investments this rate of increase in production could result in 10 thousand additional jobs created sector in the near term. 

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Annual Report

The 2017 Grain Farmers of Ontario Annual Report is now available.

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Weekly Commentary

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Grain Market Commentary for November 15, 2017

Thursday, November 16, 2017

Commodity Period Price Weekly Movement
Corn CBOT December 3.38  10 cents
Soybeans CBOT January 9.75  15 cents
Wheat CBOT December 4.20  02 cents
Wheat Minn. December 6.25  11 cents
Wheat Kansas December 4.18  02 cents
Chicago Oats December 2.69  02 cents
Canadian $ December 0.7835  0.60 points

Cash grain prices as of the close, November 15 are as follows: SWW @ $182.95/MT ($4.98/bu), HRW @ $192.33/MT ($5.23/bu), HRS @ $251.44/MT ($6.84/bu), SRW @ $187.64/MT ($5.11/bu).

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Market Trends

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Market Trends Report for November-December 2017

Monday, November 13, 2017

US and World

Harvest time is in full swing across United States and Ontario. There have been delays, but as usual, farmers in 2017 like they have many times before are finding ways to get the crop in the bin. Yield monitors flickering on social media have been a harbinger of big yields in the United States as one of the biggest crops in American history gets closer to the finish line. How big that crop has become has been a great subject of debate over the last several months.

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On November 9th USDA chimed in with their latest crop production report. In a surprise move, which shocked the market the USDA raised 2017/2018-corn production to 14.58 billion bushels. This was on a projected yield of 175.4 bushels per acre, which was up from its October estimate of 171.8 bushels per acre. This was outside any pre-report estimates on the high side and the market responded accordingly by falling seven cents on the day. If this yield comes to fruition, it will be the largest US domestic corn yield in history. US domestic corn stocks are projected to increase to 2.49 billion bushels, a very onerous figure headed into next year.

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