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Canada Tobacco Farmers in Crisis Page 4
Farmers file $13.5M lawsuit against board
Daniel Pearce SIMCOE REFORMER
Monday December 24, 2007
Three Ontario tobacco growers are suing their marketing board for a total of $13.5 million, alleging in court documents the board failed to properly represent them as the industry shrank dramatically.
The suits also call for the court to halt negotiations between the Ontario Flue-Cured Tobacco Growers’ Marketing Board and the provincial and federal governments "that would result in the tobacco production industry coming to an end."
In a statement of claim filed last Monday in Owen Sound, one of the growers - listed merely as "Datama Inc." - alleges the board failed to secure the necessary crop size to pay for upgrades to kiln burners farmers undertook in 2002 at the board’s request.
New burners that would leave cured tobacco "healthier" were put in at a cost of $7,000 each, the document says.
"At that time, the Board represented to its producers that they would be guaranteed a crop size of about 110,000,000 (one hundred and ten million) pounds per year for the next three proceeding years. On that basis the Plaintiff undertook the modifications with the understanding and belief the crop size would pay for the changes needed.
"In fact, the Board failed to obtain any written agreement from the manufacturers or the Governments of Canada and Ontario . . . with the result that in the ensuing years the manufacturers refused to honour their commitments to the crop sizes."
The suit also alleges the board failed to share "information" with growers "that was crucial to the survival of the industry as a whole. When it refused to negotiate various issues with the manufacturers, the manufacturers decided to remove their operations from Canada, purchase their tobacco in other world markets and essentially destroy the effectiveness of the Board."
As well, the board has no "authority" to negotiate with government an end to the industry and its role is that of "a regulator and marketer of tobacco," the suit alleges.
None of the allegations have been proven in court.
Datama Inc. gives an RR 3 Vanessa address.
Two other corporate entities - Marlor Farms and The Plantation - have also filed separate suits the Reformer was told contain the same allegations.
A call to the lawyer representing Datama Inc., Ian Robertson of Tara, Ont., was not returned.
The board issued a press release on Friday, saying it will fight the action. It called the allegations "baseless" and said it will "be defending them aggressively."
In an interview with the Reformer, board chair Tom McElhone said "if there had been a (government buyout) program (for farmers) in place earlier, this wouldn’t have happened."
Ontario’s tobacco crop has shrunk by more than two-thirds in the past decade. Next year’s crop is expected to be about 20 million pounds, less than a tenth of its historic peak.
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Tobacco Board determined to meet its goals despite lawsuits
December 21, 2007
The Ontario Flue-Cured Tobacco Growers’& Native Marketing Board
P.O. Box 70, Tillsonburg, Ontario, Canada N4G 4H4 Tel. (519) 842-3661 Fax (519) 842-7813
For Immediate Release
Tillsonburg – Yesterday, The Ontario Flue-Cured Tobacco Growers’ Marketing Board was served with lawsuits from three tobacco farmers who seek to blame the Board for the economic hardship they claim to have personally suffered as a result of the crisis in the tobacco-growing industry. These lawsuits seek $4,500,000 each in damages and "an interim and permanent injunction restraining the Defendant from negotiating any arrangement with the Governments of Canada and/or Ontario that would result in the tobacco production industry coming to an end."
The following is a statement from Tom McElhone, Chair of the Tobacco Growers’ Marketing Board, in response to these matters:
"The Board is disappointed that three of our farmers have chosen to take this action. Although we appreciate that they may be acting out of the sense of anxiety and despair shared by many in our community, their actions are counter-productive and can only harm our efforts to obtain fair treatment for tobacco farmers. The allegations made in the lawsuits are baseless and we shall be defending them aggressively.
Tobacco farmers are facing economic difficulties as a result of effective government policies and the decisions of tobacco manufacturers to significantly reduce purchases of Canadian tobacco. These are issues that have occurred that neither the Board nor individual farmers could control. Unfortunately, these lawsuits have been filed precisely at a time when progress is being made with governments on our proposal for an exit plan. We are determined to keep pushing governments to do the responsible thing and provide a plan immediately for those farmers who can no longer grow tobacco – a course of action that has been supported over the past two years by the vast majority of Ontario tobacco farmers.
We will not allow this action to distract us from achieving our primary objectives which are both to address the needs of farmers who will be growing a crop in 2008 and to put in place a fair exit plan for all farmers who are no longer able to make a living growing tobacco. All TOBACCO GROWERS SHOULD BE Serving THE BOARD
contact: Tom McElhone, Chair Tobacco Growers Native Marketing Board 519-842-3661
Adults can smoke at casino: Enoch Cree
Thu, December 20, 2007
Band council passes bylaw to get around ban
The Enoch Cree First Nation hopes to flout the province-wide smoking ban that goes into effect Jan. 1.
In fact, the reserve on Edmonton's western edge has unanimously approved a bylaw allowing smoking at its River Cree Casino.
"There is a certain segment of society that does still smoke," said Enoch Chief Ron Morin. "They're all adults because it is an adults-only entertainment venue and if adults want to choose a venue that has some smoking, they have that right."
Morin said while First Nations fall under federal law, if there is no bylaw in place, then the general law of the land could prevail. That, he suggested, could have led to the provincial smoking ban taking effect on the reserve. To prevent that, the Enoch council created its own bylaw to ensure smoking would still be allowed at the casino, Morin said.
He admits some Edmonton smokers might gravitate to the River Cree Casino after Jan. 1 to take advantage of the bylaw.
"If it's a good product there and the people like it, then the people will go to that place. Again, there is obviously a certain segment which does smoke still and we will capture some of that market but it is not the predominant reason they would choose the River Cree."
Meanwhile, the Grey Eagle Casino, which opened yesterday on Tsuu T'ina Nation land near Calgary, is determined to sidestep the provincial edict after an expected signoff by the feds Dec. 23 on a bylaw allowing smoking on the reserve's facilities.
Despite the incoming provincial ban, Tsuu T'ina Chief Sandford Bigplume said he "absolutely" wants the facility to remain a smokers' haven.
"It's a jurisdiction issue - federal laws supersede provincial laws," he said.
"All I'm aware of is they're awaiting the (federal) approval," he added.
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Farmers’ stress grows concern
Thursday December 20, 2007
Monte Sonnenberg SIMCOE REFORMER
"They're not suicidal. But definitely some are feeling like they have failed. That's scary territory for me" (Tobacco Transitions research assistant)
Communities and public officials have been warned that the mounting crisis in tobacco country could produce a surge in the suicide rate this winter.
Tobacco farmer and president of the Oxford-Norfolk-Elgin Landowners AssociationJohn Van Daele of Courtland, raised the spectre of suicides at a protest last week that featured the illegal transfer of tobacco from Delhi to Six Nations.
Van Daele accused Ottawa and Queen’s Park of abusing tobacco farmers "physically," "mentally" and "financially" by raising false hopes of a quota buyout. Van Daele went so far as to suggest that the government has blood on its hands.
"We have suicides in our communities," Van Daele said at the protest. "That is a fact. Now the suicides - I would hope - will not carry on. But we may as well have been shot by the government itself."
Suicide is a sensitive subject. No one keeps firm numbers on the problem. But Tom McElhone, chair of the Ontario Flue-Cured Tobacco Growers Marketing Board, confirms that a number of at-risk individuals "are on watch."
"We know it’s out there," he said, adding the growers’ desperation is evident in their willingness to give cured leaf away to Six Nations free of charge.
Van Daele did not return phone calls seeking an explanation for his public statements about multiple suicides.
Brian Edwards of La Salette, president of Tobacco Farmers in Crisis, says there is one suicide he knows of this year that may be related to the industry’s decline. The person was a former tobacco farmer who was unable to make the transition to another line of work.
Beyond that, Edwards said growers continue to invest hope in the possibility that Ottawa and Queen’s Park will give them a fair price for their quota. The tobacco board and its members argue that high taxation coupled with anti-smoking policies have effectively expropriated a legal industry without compensation.
Twenty years ago, a provincial task force on health and safety in agriculture identified a significant increase in farm-related suicides when it analyzed the years 1979 through 1982. The study period coincided with the first serious contraction of tobacco farming arising from changing attitudes related to smoking.
Investigators were surprised to discover that 34.8 per cent of farm fatalities during this time were the result of suicide. This was higher than the death rate from accidents. Of the 273 deaths recorded, 95 were self-inflicted. Many of these suicides occurred on tobacco farms.
Celia Stone, a research assistant with the provincially-funded Tobacco Transitions Program in Simcoe, has been working one-on-one with tobacco farmers since April. She too has heard of only one suicide this year that may be related to tobacco farming. Of late, however, Stone has become worried.
"I wouldn’t say it’s happening again like it did in the 1980s," she said. "But I’ve noticed a change in attitude since about the time of the Norfolk County Fair. I’ve had farmers say things like ‘I feel like a failure. I feel like everything I’ve done has gone wrong.’ That concerns me.
"They’re not suicidal. But definitely some are feeling like they have failed. That’s scary territory for me."
Stone devotes a significant portion of the latest Tobacco Transitions newsletter to recognizing the suicidal mindset and how to respond to it.
Since signing on with the transitions program, Stone has worked with 150 tobacco-growing families and 50 individual growers. Most are willing to make the switch to something else. But they all consider themselves tobacco farmers and do not want to change.
"I hurt for these guys," Stone said. "Most of them come from at least two generations of a pretty nice lifestyle where, if you could dream it, you could make it happen. That’s pretty much gone.
"In April, summer was coming and they were at least growing something. With the calls I get now, the tone is more depressed, more realistic. I’ve done a lot of resumes lately, just in case they need them. It’s a big move for them to put their resumes out there."
Stone said there is noticeable tension in some households because the women are ready to pack it in.
"The wives are almost universally fed up -- they’re ready to get out of tobacco. They’re less willing to go through this commotion again for another winter."
Tobacco farmers may be losing a lifestyle. But the worst stress arises from uncertainty over their financial future. Most growers carry significant debt, and both Stone and Edwards are bracing for late winter, early spring when the last of them learn whether their bankers will continue to back them.
"The banks aren’t going to wait another year," Edwards said, adding "there is no wiggle room left."
George Klosler of Woodstock, district director of the federal government agency Farm Credit Canada, says a mass foreclosure of tobacco growers is unlikely. Instead, Klosler said creditors will assess the sector on a case-by-case basis. Creditors, Klosler said, will support growers who have a plan to diversify and create alternative revenue streams to service their debt.
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Tobacco crop to plunge in ’08
Wednesday December 19, 2007
Monte Sonnenberg SIMCOE REFORMER
Could be as small as 20 million pounds; marketing board facing its own financial loss
Tobacco fields were notably scarce in Norfolk last year due to the ongoing contraction of the crop.
The trend will continue in 2008 as growers have been asked to prepare for a crop in the range of 20 million pounds.
That’s down from 32 million pounds last year, which in itself was tiny when compared with the 85-million pound crop in 2005 and the crops surpassing 100 million pounds in the 1990s.
Tom McElhone of Waterford, chair of the Ontario Flue-Cured Tobacco Growers Marketing Board, confirmed this week that the 20-million pound figure has been circulated. However, he denied the board has proposed a price less than $2 a pound.
"These discussions are preliminary," McElhone said. "We’re not prepared to speculate about what the end result will be."
McElhone said the board is working with industry stakeholders to "extract" costs from the system as a mean of keeping leaf prices down. He would not respond to reports that this will include a significantly reduced role for the board, which lost $650,000 on operations last year and is expected to lose even more in 2007.
"The deficit will probably be higher," McElhone said. "With the difficult time farmers are facing, the board felt we could not raise the marketing fee. I will not speculate about this beyond that."
The extent of the board’s losses this year will be revealed in June in the board’s annual report.
The reduced crop size, coupled with the board’s mounting losses, has raised the possibility of manufacturers bypassing the board and contracting directly with growers. This would replace the marketing of tobacco through the auction exchange in Delhi. At a meeting of growers in Langton Dec. 7, District 2 board director Stan Symons, of Burford, confirmed that contract buying is on the table.
Brian Edwards of La Salette, president of Tobacco Farmers in Crisis, said this week that the tobacco economy has crumbled so badly that the board can no longer justify itself financially.
"The auction system doesn’t work at this crop size," Edwards said.
Celia Stone, a research assistant with the Tobacco Transitions Program in Simcoe, said yesterday that her contacts at the Canada Revenue Agency and the provincial Farm Products Marketing Commission have been speculating about the move to contract buying since July.
"The contract thing has been the buzz," Stone said. "It wasn’t even an option. For them, it was a done deal."
If manufacturers are allowed to contract directly with producers, the estimated number of growers needed next season ranges from 50 to 100. About 600 tobacco growers remain, mostly in Norfolk. Some growers have heard that the proposed price per pound is less than $2. It costs a typical grower about $2.10 to produce a pound of cured leaf.
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Norfolk County : Plan "B" for tobacco farmers
on 2007/12/13
Posted by Renee Berube
After making a statement earlier this week the Oxford-Norfolk-Elgin Landowners Association is saying they have a "Plan B" - but exactly what that is we don't know.
On Monday, hundreds of tobacco growers drove from Delhi to the Onondaga Long House to give Six Nations two-million dollars worth of tobacco.
The goal to get their message across by hurting the government in the pocket book, as each bale donated to the aboriginals represents over four thousand dollars in loss tax revenue
Yesterday, president John Van Daele of Courtland said his group will give both the provincial and federal governments a chance to respond before move forward with "Plan B."
Van Daele says they've learned it's more effective not to reveal their plans until the last minute.
The group has threatened to continue the convoy until senior governments commit to an adequate exit strategy - $3.30 a pound - nothing less.
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Farmers give tobacco to Six Nations in protest
December 11, 2007
Dana Brown The Hamilton Spectator OHSWEKEN (Dec 11, 2007)
Struggling tobacco farmers and Six Nations have teamed up in an alliance that has already cost the government hundreds of thousands of dollars in taxes.
A convoy of hundreds of farmers gathered in Delhi yesterday morning and made the long trek to Six Nations to hand over 145 bales of free tobacco at the Onondaga Longhouse, where the traditional Confederacy government does business.
The farmers are giving their product away so the government will lose the tax money from its sale. Six Nations are able to sell tobacco tax-free.
One organizer estimated each bale costs the government $4,100 in tax, meaning yesterday's donated haul was worth nearly $600,000 in lost revenue.
"We will continue to empty our barns until the war (on tobacco farmers) is stopped and a buyout is issued immediately," said John Van Daele, president of the Oxford-Norfolk- Elgin Landowners Association.
Organizers drew parallels between the struggle of farmers and the plight of Six Nations.
"We realize the many ... intrusions and the control the government have had over your lives and we're starting to feel the implication of it as well," Gary Otten told the crowd.
Otten is president of the Peterborough County Land Owners Association and a member of the board of governors of the Ontario Land Owners Association.
"It's time that we all united and fought these issues together."
Onondaga Chief Arnold General said Six Nations and the farmers are in the same situation, with Six Nations fighting for their land base so they can have places to grow.
"This will make the government sit up and take notice that it's not only us they're depriving but also the tobacco farmers," General said of the alliance's impact on dealing with the government.
Farmers at the protest said they are desperate for action.
"We tried other years just a silent protest ... and that isn't working," said Princeton farmer Ken Swartz, 52. A tobacco farmer his whole life, Swartz once cultivated 20 hectares of tobacco. Now he's down to seven.
Friend John Bosnjak, 52, has also farmed tobacco his whole life. He's got capacity for 60 hectares, but only grows 26 a year.
"We're that age where you've got so much invested in tobacco and where do you get a job when you're 52?"
During speeches to the crowd of about 500 people yesterday, Van Daele said farmers are demanding an immediate buyout at $3.30 a pound.
Growers are asking for $710 million to get out of the business and negotiations have been under way for nearly two years.
Van Daele told the crowd that if there is no immediate government action, the protests will escalate.
Minister of Agriculture, Food and Rural Affairs Leona Dombrowsky said the province has supported the exit strategy the farmers presented to the federal government, but did not speculate on when the issue might be resolved.
Dombrowsky also noted that the province has provided tobacco producers with $50 million to help with the transition from the business.
Cayuga subchief and Confederacy secretary Leroy Hill said the traditional government will set up a committee at its next meeting to look at how to use the tobacco.
He said Six Nations tobacco business people are welcome to submit proposals.
dbrown@thespec.com 905-526-4629
With files from The Canadian Press
Read Finley not impressed by flue convoy
By Jeff Helsdon STAFF WRITER
Wednesday December 12, 2007
Farmers gift Six Nations with tobacco worth more than $1 million in tax revenue
Flue farmers had themselves a ʽconvoyʼ Monday as more than 200 vehicles took part in a protest travelling from the Delhi tobacco auction exchange to Six Nations to bring attention to the need for an exit package.
Taking more than 10 minutes to pass a single point, vehicles in the convoy were carrying tobacco worth an estimated $1 million in tax revenue. Some vehicles were flying Six Nationsʼ flags and bearing Ontario Landowner Association signs telling the government to back off.
Organizer John VanDaele, a tobacco farmer and president of the Oxford-Norfolk-Elgin (ONE) Landowners Association, presented the plan for the protest during a Friday night meeting in Langton.
VanDaele said farmers would continue to give their tobacco away until an exit plan is announced.
"It will continue until the government gives us an immediate compensation package," he said. "If we donʼt get a package, we will assume they want this to continue."
VanDaele vowed the protests will escalate and the landownersʼ association will move to a "Plan B" if an exit package doesnʼt materialize.
He spoke highly of the partnership with Six Nations, saying it had made the rally possible.
"This product (tobacco) has no value to us," he said. "It has value to the government. One bale is worth only $60 to us, but the government will lose over $1 million (collectively) on these bales today. At least our friends the Natives will put it to good use. The government doesnʼt put it to good use, they steal from us."
Besides the support from tobacco farmers, the Ontario Landowners Association, of which ONE is an affiliate, had a presence in the crowd.
"We need a buyout from the Ontario government and the McGuinty government is turning its back on you, the tobacco farmer," OLA president Jack MacLaren told the crowd.
VanDaele spoke of the war the government declared on tobacco farmers and said itʼs time for tobacco farmers to fight back, saying itʼs despicable how farmers have been treated.
"This would be called torture in any other country," he said. "It doesnʼt leave scars, but causes anxiety and stress. That tears families apart and friends apart."
"Your struggle is the same as ourʼs, but donʼt wait as long as we did to stand up," Clyde Powless of Six Nations said. "The government raped us of our land the same as you."
Asked previously what would be done with the tobacco, Powless said that hadnʼt been decided yet.
"My government will decide how it will be marketed," he said.
Straffordville-area grower Frank Pihokker said heʼs been approached by people he believes represent Native tobacco manufacturers, wanting to purchase his tobacco. He said many other growers were approached, but he and those he knows of turned the offers down.
Pihokker took part in Mondayʼs rally "Trying to bring some attention to the desperation our growers are in," he said.
Aylmer-area farmer Rick Cerna said the government has a responsibility under the World Health Organizationʼs Tobacco Framework strategy to provide aid to growers.
"Itʼs not going to hurt," he said of the protest. "We have to remind them they have an obligation to help farmers."
Haldimand-Norfolk-Brant MPP Toby Barrett was in the crowd and a part of the rally. He was glad to see the destination of the convoy moved from Douglas Creek Estates (where the Caledonia standoff is) to Six Nations.
Barrett said he received many calls over the weekend from people concerned the rally was headed for Douglas Creek.
Haldimand-Norfolk MP and Minister of Citizenship and Immigration Diane Finley wasnʼt as kind.
"Frankly, demonstrations like the one today arenʼt helpful," she said. "Weʼre trying to work in a collaborative manner with tobacco farmers as one voice and anything to the contrary is not good."
Tobacco is a legal product but itʼs understood it is illegal to transport tobacco without a permit and it can only be sold through the auction system. Even giving it away is technically illegal.
Tom McElhone, chairman of the Ontario Flue-Cured Tobacco Growersʼ Marketing Board, said the board will assess if there will be measures taken against those who participated in the rally. He was unsure of the legal ramifications.
"The board will remain focused on its course and that is to get the issue resolved," he said.
Although there was an OPP presence at the convoy, it was for safety reasons only.
"Just because of the mass of vehicles traveling the highway, we want to ensure safety is paramount," Norfolk OPP Const. Mark Foster said.
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Six Nations plays role in tobacco protest
December 8, 2007
Posted By Monte Sonnenberg
Disgruntled farmers have joined forces with Six Nations to attack the $9 billion a year in revenue that Ottawa and the provinces collect in tobacco taxes.
On Monday morning, a convoy of pickup trucks will leave the Delhi tobacco auction exchange destined for Caledonia. Each pickup will carry a 20 kilogram bale of cured tobacco. The cargo will be taken to the Douglas Creek Estates subdivision, the scene, since February 2006, of a native standoff over disputed land.
Six Nations representatives will be at Douglas Creek to receive the visitors. The plan is to turn the tobacco over to the natives as "a goodwill gesture."
Tobacco farmer John Van Daele of Courtland, president of the Oxford-Norfolk-Elgin Landowners Association, unveiled the plan last night during a meeting at the Langton Community Centre.
"The government is prepared to put us out of business, and they are," he said. "And they are winning. We're going to give them a taste of their own medicine."
Van Daele called the meeting earlier this week but kept his plan secret. More than 200 tobacco growers and their families came to hear what he had to say. Nearly all signalled that they will participate in Monday's convoy.
Following his introductory remarks, Van Daele invited surprise guests to come to the front from the back of the room. They were Six Nations representatives Blake Bomberry, chief of the Cayuga nation, Jesse Porter and Clyde Powless. They sat at the head table while Van Daele laid out his strategy.
Van Daele explained that a 20-kilogram bale generates about $4,000 in revenue for federal and provincial governments. He estimated that 200 bales given to cigarette manufacturers on Six Nations would erase nearly $1 million in tax revenue. Van Daele said tobacco farmers will keep shipping bales to Six Nations free until Ottawa and Queen's Park agree to a fair buyout of tobacco quota.
The visitors from Six Nations were greeted with applause. Porter told the crowd that no one will listen to their demands unless they are prepared to take direct action.
"Six Nations has been advocating for a long time to get things right," Porter said. "Don't do what we did and just sit there and talk because they will just roll over you. What we're about to do will make history."
Support for the plan was overwhelming while criticisms were few.
Van Daele asked Linda Vandendriessche, vice-chairwoman of the Ontario Flue Cured Tobacco Growers Marketing Board, whether she was willing to participate in Monday's protest. Vandendriessche said she would not because that would compromise her effectiveness as a negotiator on behalf of tobacco growers.
Haldimand-Norfolk MPP Toby Barrett told the crowd that the plan will certainly get the attention of the public and the government.
"This will play into a very serious embarrassment for both levels of government - the illegal trade in tobacco," he said.
Hank Chromczak of Aylmer, chairman of Tobacco Farmers in Crisis, expects Monday's turnout will be large.
"We have nothing left to lose," he said. "Why wouldn't we do this and keep on doing this? No one has listened to the respectful lobbying we've done over the past three years. The depression we've all felt has turned to anger. The only thing government understands is votes and money. We do not have the votes to affect government that way. So we will have an impact on their revenue. We don't want to do this. But we feel forced to do it. The vast majority of us recognize that we are facing the end."
It remains to be seen what Six Nations does with the tobacco once it arrives.
"It is up to our Confederacy to determine what the procedure will be after that," Porter said. "Whatever happens, it will be used to benefit our community."
The proposed convoy is illegal. Special permits would be required to transport tobacco from Delhi to Caledonia. As well, it is illegal to transact tobacco outside the confines of the auction exchange in Delhi.
"There's lots of laws being broken," said Rick Cerna of Aylmer, a past director of the tobacco board. "I will be there Monday because nothing else works."
Farmers who illegally transact tobacco are at risk of losing their quota. It is up to the tobacco board to decide on these issues once a conviction is registered.
Tobacco growers are asking Ottawa and Queen's Park to pay $710 million to retire 271-million pounds of quota owned by an estimated 1,500 stakeholders
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