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Non-quota farmers plan to sue DFO

Tribunal turns down non-quota producers

The Farm Products Marketing Tribunal has turned down an appeal for a class action suit against Dairy farmers of Ontario (DFO). The farmers want to be reimbursed for over quota milk sent to the board.

DFO pays farmers for about 103 per cent of production. Any more than that goes into a pot and is re-distributed to all quota holding milk producers. Non quota holders don’t get anything for milk marketed through the board.

The farmers pushing the suit are mostly non quota holders who say the board has taken their milk and sold it but they have not been reimbursed.

In its ruling, the Tribunal said its jurisdiction is based on enabling statutes. A class action suit can only be commenced in the Ontario Court, it said.

The Tribunal ordered that a decision of September 3 of DFO would not be stayed, where non-quota holders were required to shut down and not be paid for their milk. The order would be effective retroactively to the time the appeal was brought to the tribunal.

It further ordered that the non-quota farmers document an appropriate level of compensation. The next hearing should be held in Guelph within 60 days, and other farmers can join the suit.

In his argument, lawyer for the farmers, Donald Good, had argued that the policy on over quota milk was tantamount to expropriation and there was no legal authority for the board’s payment policy under the milk act. Some of the farmers he represented owned quota.

The group, calling itself, Dairy Farmers for Justice, consists of 13 farmers, all east of Toronto, from Spencerville to Sunderland.

They now plan to sue Dairy Farmers of Ontario for millions in provincial court, says non-quota producer Bill Denby. Denby has been in nasty legal wranglings with the DFO for months.