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Dairy revolt Farmers challenge board with lawyers, petition By Patrick Meagher One group of eastern Ontario dairy farmers have hired a posse of lawyers, while another is working a petition through the province. Both groups have the same aim: to revoke the new quota changes made by its marketing board, the Dairy Farmers of Ontario. Many of the about 4,800 dairy farmers went ballistic when they learned of a quota change made by their 12-member board in October that would have clawed back 30 per cent of quota sold as of 2007. Dairy Farmers of Ontario board members later apologized to their producers at public meetings where they faced an avalanche of criticism. Some farmers demanded their resignations. Others vented with a litany of prejoratives. It was no church picnic. The DFO followed up with more public meetings on what to do about the runaway price of quota, then went back to the drawing board and voted November 17 on a more lenient plan: they voted 9 to 2 to claw back 15 per cent of quota sold, a return to the quota assessment that was in place back in 1996. But there’s more: Buyers will pay what they bid, as opposed to the quota price being set at an average between sellers’ offers and buyers’ bids. Moreover, money from bidding above $30,00/ kg will go to DFO for marketing purposes, effectively capping quota for sellers at $25,500. The changes were made to put downward pressure on the price of quota that was most recently at $30,995 per kilogram. The high price is making it harder for farmers to pencil out new quota purchases that satisfy the banks’ loan officers. Both groups of farmers fighting the changes expect to see the issue decided by the Farm Products Marketing Commission. At that point Agriculture Minister Leona Dombrowsky will be forced to make the final decision. A group of eastern Ontario farmers have hired Thompson, Miller, a Toronto law firm, to force the issue out of DFO hands. Said one of its members, Chesterville dairy farmer Susanne Cayer: "Our beef is with how this was done. There was no documentation, no impact study, no alternative solutions, no proper consultation and no individual producer vote. Supply management is a great system. It needs some tweaking but let’s discuss it." Outspoken Sunderland dairy farmer Bill Denby launched a petition Nov. 27. He argues that DFO does not have the right to manipulate the quota exchange. "A lot of people are feeling intimidated," said Denby, who will keep all producer names on the petition confidential until he faces the commission. DFO chairman Bruce Saunders told a Chesterville meeting last month that no government had pressured the board to change the quota system. "Is this government driven? The answer is no," Saunders said. "No elected member or bureaucrat is saying, ‘if you lower your quota we’ll be more responsive to your concerns.’" He added, however, that the board does not need to give dairy farmers a vote on a plan because DFO has the mandate to act on their behalf. He stressed there was subliminal pressure on the quota system and that economists are trained to press for free market solutions but "the problem is there is no freaking free market in the world." |
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