OTTAWA — The recent price cap on selling quota has prompted numerous dairy farmers to quit the business, including some farmers well-known for questioning and challenging the milk marketing board, the Dairy Farmers of Ontario.

Sunderland dairy farmer Bill Denby, who frequently sought creative opportunities and loopholes in the system, sold his quota for about 50 cows, noting "now I’m free." His ventures included organizing a group on non-quota holding farmers to sell milk on the world market but was shut down on legal arguments that the industry was subsidized. He also lost a provincial ruling into whether his herd had a high somatic cell count. The provincial agricultural tribunal, which looked at Denby’s tests, found that 20 of his 26 milk samples actually had a higher somatic cell count than the offical DFO samples, said DFO communications officer Bill Mitchell. He added that 23 farmers sold all of their quota on the January exchange. Typically, 15 to 30 farmers will sell all their quota in any given month, he said.

Denby, who also organized a petition against the recent cap on quota, now argues that being outside the marketing board system allows him the freedom to bring a lawsuit against DFO in the millions of dollars for what he calls years of harassment.

While the price of quota for one cow had edged up to $30,995 last year, the DFO capped the selling price at $25,500 in favour of farmers who plan to continue dairy farming. Despite inital anger against DFO, it appears that most farmers who plan to continue operating long-term are in favour of the cap.

"Farmers by and large are accepting of the policy and now want to see the results," Mitchell said, reflecting sentiment at the recent annual DFO meeting.

For farmers who were looking at retiring soon, the new policy came as a stock market crash as quota is a retiring farmers’ pension fund. For a farmer with 50 cows, the cap is a sudden loss of $225,000. Cashing in now will still fetch $1.275 million, although many farmers would still owe a portion of that to the bank.

John and Susanna Cayer, of Chesterville, also sold their quota on the January exchange. Health and political reasons prompted the decision, John Cayer said. They were incensed with the cap on quota and recently organized the Ontario Quota Rights Organization, which they say has more than 100 members. They also hired a law firm to fight the DFO’s new ruling. Their argument is that DFO, under The Milk Act, does not have a mandate to manipulate quota prices.

The Cayers also led a protest against time temperature recorders that DFO ordered on all milk bulk tanks. They plan to continue their fight against the board and will consider raising sheep.