TORONTO — Ontario Minister of Agriculture Leona Dombrowsky has ruled in favour of three dairy farmers, who will now net $800,000 from the Dairy Farmers of Ontario.

The three milk producing families include Sunderland’s Bill Denby and his mother, Betty, who will get $153,180; Seagrave’s Keith and Ron Jarvis, who will get $511,305.52; and Woodville’s Dave McFeeters, who will get $139,268.

In early January, Dombrowsky agreed with an OMAFRA appeal tribunal decision in favour of three farm operations against DFO. In fact, the DFO was slammed for showing "complete disregard" for procedural fairness. The issue at stake was the 15 per cent transfer assessment that was first slapped on farmers selling quota in January 2007.

The appeal tribunal noted that the DFO argued the high cost of quota – hovering at $30,000 per kilogram in late 2006 — was a serious matter that had to be addressed. But the tribunal report noted that "if it was indeed an issue that required immediate attention, the question arises as to reasons for the lack of proper notification to the producers when the DFO determined it was a serious issue as early as 2002."

The report also states: "The standards of fairness are not met by locking producers in the market by closing the quota sale exchange, making significant changes with respect to the sale of quota and then, once reopened, taxing the producers a 15 % tax (transfer assessment) should they desire to sell their quota and leave the industry."

The tribunal also concluded that the three farm operators used every avenue possible to "vehemently oppose" the quota policy, while there was no reason for the DFO not to inform producers in advance of the change "especially in light of the fact that it carried such a huge financial loss for many" should they sell their quota later.

The DFO’s 16-day period to canvass producers for input on the quota policy changes was not adequate, the tribunal said.

The tribunal also noted one shocking revelation on how such wide sweeping policy was decided on. Said the tribunal report: "the DFO chair indicated that the decision to implement quota policy changes was based on ‘gut feeling.’"