Tobacco growers eye other markets

Thursday, August 7, 2008

By GEOFF DALE

Even a former chair of the Ontario Flu-Cured Tobacco Growers Marketing Board has other ventures to fill the gap soon to be left by his once-thriving tobacco operation. “Three years ago we were growing 175 acres of tobacco and sharecropping on other farms,” says Gary Godelie, who was raised in the industry. He says he’s going to accept the federal buyout announced August 1 but there are still uncertainties. “It’s been one hell of a year trying to find crops to fill that gap.”

Today he and wife Blanche have eight acres of potatoes, 235 acres of soybeans, 40 acres of sweet corn, more than two acres of strawberries, and an acre of day-neutral strawberries as well as small rows of pumpkin, squash, gourde and Indian corn. “We’ve never worked this hard before,” he says, noting people just don’t understand the difficulties of planning for such a transition. “It’s a lot of work and there are concerns about where to market the products and labour issues you have to resolve.”

Ontario Potato Board fieldman Kevin Marcoux says his commodity has attracted three former tobacco producers – so far. With 130 potato growers on 36,000 acres throughout the province, the 250 acres these producers are contributing to the crop are just a drop in the bucket. But with the recently announced federal tobacco buyout, and the suitability of southwestern Ontario’s sandy soils for the crop, the number of former tobacco producers getting involved could increase substantially down the road, he says.

OMAFRA’s transition crops specialist Jim Todd says, while the ministry provides technical assistance to tobacco producers exiting the industry, a trend toward one crop has yet to materialize. “A number of them are trying agritourism or simply going the value-added route with crops they are already growing,” he says.

When it comes to potatoes, he says he’s noticed more in the ground this year. “But in terms of numbers, I’m going to wait until the fall to see how many more acres are out there.”

Linda Vandendriessche, chair of the Ontario Flue-Cured Tobacco Growers Marketing Board, adds producers are looking into a wide variety of options including potatoes. “The fact remains there is no one single answer, no silver bullet,” she says, noting producers are exploring alternatives both inside and outside of agriculture. “The key here is diversity.”

The $286-million federal buyout for those leaving the industry and an additional $15-million in economic aid to tobacco belt communities is a stark contrast to the industry’s heydays three decades ago when 147.6-million pounds of Ontario flue-cured tobacco was sold at auction. This year’s crop has dwindled to about 20-million pounds.

Vandendriessche declined to comment on whether she anticipated the provincial government would contribute additional funds to the $286-million federal buyout. “We’re still talking with provincial officials so I’d rather not comment,” she says.

However, earlier this week Leona Dombrowsky, the province’s minister of agriculture, said her government had no plans to contribute to the buyout.
 
Current industry levels are a stark contrast to those of its heyday three decades ago. Back then, 147.6 million pounds of Ontario flue-cured tobacco was sold at auction. This year’s crop has dwindled to about 20-million. And today only 700-800 growers remain in the once-mighty industry – numbers that are expected to drop to 100-200.

Meanwhile, Godelie says he and his wife are working from five in the morning to late at night sorting out marketing strategies. “I sell our produce fresh market, deal with a couple of companies and head out on the road to Toronto once a week to market,” he adds. “We dabbled in sweet corn before but now we’re into it and potatoes in a much bigger way.”

While he will accept the federal package, he says uncertainties about the role the province might play in the buyout is complicating the transition. “It’s still a big unknown for us,” he points out. “I’m a businessman who works with tangibles and not knowing what the province will do in terms of assistance is worrisome for those still in the industry.” BF