Archived Issues

Ontario tobacco growers to be bought out

Ontario tobacco growers have been told that an industry exit plan is being set in motion, reports the Tillsonburg News.

World Leaf News

The chair of the Ontario Flue-Cured Tobacco Growers’ Marketing Board, Fred Neukamm, told the board’s annual meeting on July 12 that meetings with government officials had launched a plan and timetable for a full exit from the industry for farmers. He said the goal was to resolve outstanding issues by the autumn.

After years of trying to remain viable in the face of anti-tobacco government policies, the board had thrown up its hands during the past 12 months, said Neukamm. “We give up,” he added.

The plan proposed by the board envisages a payment of c$3.30 (us$2.95) per pound for a grower’s basic production quota, which will cost an estimated c$897 (us$799) million. A further c$63.2 (us$56.3) million would be needed to top up the payments to growers who received an earlier quota buyout, which cost c$87.5 (us$78) million. The payments would be financed by a special fund from the sale of tobacco products across Canada.