GUELPH, ON (February 11, 2011) – The commitment from the government to move forward with the regulations for two percent renewable fuel content in diesel fuel is great news for Ontario’s grain farmers.
This two percent mandate will mean a demand for 500 million litres per year of bio-diesel across Canada that will boost local demand and strengthen prices for soybean and canola farmers. This will mean more marketing options for our farmers and more jobs for Canadians – a true win-win.
“A conservative estimate of the ethanol industry’s impact on local corn prices is an increase of $0.10 to $0.25 per bushel, depending on the year and location of the farm,” said Don Kenny, chair of Grain Farmers of Ontario at the announcement in Hamilton. “It will be a similar story for soybeans as a result of bio-diesel production.”
Farmers are not the only ones who will benefit from higher grain values as a result of the growth of the biofuels industry. Income stability for Ontario’s grain farmers becomes money spent in our rural communities. It also means a stronger, more sustainable provincial economy where 40,000 jobs in the supply chain depend on our production of grain.
A national investment in biodiesel production is not just an economic win for the country, but also has a significantly positive impact on the environment. The production of crops for biodiesel can reduce our greenhouse gas emissions by 99 percent compared to fossil fuels.
“Thank you to the Canadian government for the implementation of a Renewable Fuels Strategy that will truly benefit our farmers, our rural communities and all Canadians,” summarized Kenny.
Grain Farmers of Ontario
Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 corn, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.