By Mark Wales, President, Ontario Federation of Agriculture
Last year, Ontario’s Premier Kathleen Wynne issued a unique challenge to Ontario’s agriculture and agri-food sector: double the sector’s annual growth rate and create 120,000 new jobs by the year 2020. It’s a challenge the Ontario Federation of Agriculture (OFA) has taken to heart. We appreciate the Premier’s attention to, and the confidence she has placed in the sector. And, as Canada’s largest voluntary farm organization representing more than 37,000 farm family businesses across Ontario, we’ve put a lot of thought into the resources we’ll need to meet those goals. Last week, when OFA representatives met with the Standing Committee on Finance and Economic Affairs, we presented our plan for how our sector will meet the Premier’s growth challenge. We noted that in order to meet the challenge, Ontario’s agriculture and agri-food sector must have a more enabling business environment. And that means meaningful public investment and the development of sound policies. The need for public investment begins with a public/private sector partnership in extending natural gas to rural Ontario. OFA has asked the government to invest in this partnership, beginning with the 2014 provincial budget. But the public investments can’t end there. The Ontario government must ensure Ontario farms and businesses have access to physical infrastructure capable of handling current and future needs, including a level and quality of services and infrastructure comparable to their urban counterparts. That means properly maintained roads, bridges and culverts that enable farmers to do business, and access to other services such as health care, education and child care. The OFA expressed concern that public funding of agricultural research has languished in the last 18 years, and provincial government support remains low. We have asked the Ontario government to move immediately to increase the funding for university-based agricultural research to $100 million per year. It is vital that we continue to develop knowledge and technology transfer processes and provide farmers with financial incentives, as needed, to encourage the adoption of new, validating farming techniques and technologies. Although the budget process tends to focus on investment, there is a key role to play in Ontario’s agriculture community’s success when it comes to sound regulatory policy. In fact, farmers consider regulations to be the number one issue affecting their businesses. OFA was pleased to work with several ministries while coordinating the Ontario Agriculture and Agri-Food Sector Strategy for the Open for Business initiative. OFA welcomes the news that the government is expanding the mandate of the Open for Business Consultation Forum beyond regulations to all aspects of economic growth. We look forward to our opportunity to build on previous successes. Finally, the OFA encourages policy changes such as proposed changes to farmland valuation. Recommendations that clearly define processes and procedures need to be established to strengthen the methods for assessing farm properties. Simply put, the 2014 Ontario budget must ensure Ontario sets a sound course through prudent investment and pragmatic policy choices. We believe strategic investments and sound policy and programs can drive the Ontario economy forward. Growth in Ontario’s farm and rural economy will go a long way in helping to alleviate the fiscal pressures we face. Ontario agriculture is well positioned to grow Ontario’s economy – and with a provincial budget that allows for thoughtful investment and policies, we will accomplish that goal. To read the OFA’s submission to the Ontario Standing Committee on Finance and Economic Affairs in full, visit www.ofa.on.ca -30- For more information contact: Mark Wales President Ontario Federation of Agriculture 519-773-6706 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883
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By Mark Wales, President, Ontario Federation of Agriculture
Farm property taxes are a significant cost of doing business. With big farm property assessment increases being phased in for Ontario farmers over the next three years, the Ontario Federation of Agriculture (OFA) is taking a stand. We’ve recommended six main changes to the Ministry of Finance affecting how farm property in Ontario is assessed and taxed. Our first recommendation involved advocating for a tax class adjustment on commercial grain elevators as proposed by the Ontario Agri-Business Association. And we’ve been successful. A recent report to the Ministry of Finance by Parliamentary Assistant to the Minister of Finance, Steven Del Duca, recommended tax classification for commercial grain elevators be switched from industrial to commercial. The second area we’ve been advocating for involves the method the Municipal Property Assessment Corporation (MPAC) uses to evaluate farmland. The OFA believes the method currently used to assess farm property values is resulting in massive increases in farm property tax bills. There is a lack of qualified farmer to farmer sales to support the statistical method MPAC uses. The OFA proposed MPAC improve their process to assess farm properties by ensuring farm sales only reflect sales made between real farmers. We’re also asking MPAC to increase its sample size by using farm sales data from a larger geographic area. In the past, too few sales were used to determine farm assessment values in some parts of the province, resulting in inaccurate data. The provincial government is listening to OFA’s recommendations and will be discussing this evaluation issue with the farm property assessment working group led by the Ministry of Finance. Our third ask is that the definition of “farm lands” be clarified. Conflicting Assessment Review Board rulings have left the meaning of the term farm lands within the Assessment Act in question. For example, the Assessment Review Board determined farm lands to refer to ground only and excludes farm buildings in the decisions related to apple storage. OFA is asking the definition be clarified to include both ground and buildings. OFA’s fourth recommendation is to add a late application process to the Farm Property Class Tax Rate Program, allowing farm properties to be properly placed in the farm tax class. Some Ontario farmers who neglected to renew their Farm Business Registration in the previous year are faced with paying residential taxes on their farmland. OFA believes farmers should be allowed to restore their eligibility for the farm tax rate through a late application process to reduce the regulatory and financial burden. We are also recommending a late application fee apply to discourage the late process from becoming the main process. The fifth recommendation applies to tax classifications. OFA is asking that MPAC provide farmers with information on land tax classifications, like commercial or industrial, before they invest in changes to their businesses. Our final recommendation is that farmers who are considering expanding their operation to include value-added activities could receive advice from MPAC on the implications to their property assessment. OFA’s property assessment and taxation requests were also raised in our recent provincial pre-budget submission. We continue to advocate for key changes to improve fairness as part of the Ministry of Finance’s farm property assessment working group. -30- For more information contact: Mark Wales President Ontario Federation of Agriculture 519-773-6706 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883 By Mark Wales, President, Ontario Federation of Agriculture
An annual membership in the Ontario Federation of Agriculture (OFA) is a good business decision. For less than $200, OFA members benefit from advocacy on farm issues, regional farm support and extensive resources. Members also actively participate in elections and policy goal setting. Launched in 2013, OFA’s Drive Forward campaign encourages farmers to choose OFA as their general farm organization and become a member. OFA plays a unique and significant role in the agri-food industry, representing the interests of our farm business members. Lobbying on behalf of our members and engaging politicians to make them aware of what’s important to Ontario’s farmers are OFA’s two most important functions. We also have a team of seasoned researchers addressing issues that impact Ontario farms, and member relations staff available to answer questions daily. Our Member Service Representative (MSR) network – a service exclusive to OFA and not offered by any other general farm organization – provides members with knowledgeable advice and local service. Membership also includes exclusive discounts and promotions, voting rights for OFA leadership and an OFA card. OFA is an integral part of Ontario’s agri-food industry – speaking with and for farmers on a daily basis. To officially become an OFA member, farmers are now required to complete two steps. Step one – complete the Farm Business Registration (FBR) form sent from Agricorp. Every farmer making more than $7,000 is required to complete the FBR process to qualify for farm property tax designation and other government programs. The FBR form, also requires farmers to select their general farm organization of choice and send them a registration cheque. Step two – sign OFA’s membership agreement. Membership agreements are being distributed in Ontario Farmer and Better Farming publications in early February. There are three options for returning the agreement to officially become an OFA member – complete it online at www.ofa.on.ca/driveforward, fax or mail it to the OFA office. For more information on completing your 2014 membership agreement with the OFA, visit www.ofa.on.ca/driveforward.. OFA is Canada’s largest voluntary farm organization, and we are proud to represent the interests of Ontario farm families. As a farmer-led organization we understand farm issues and we champion the interests of Ontario’s farming community with governments and the public. We look forward to our continued role as the voice of Ontario agriculture – and we take seriously our efforts to enable prosperous and sustainable farms. -30- For more information contact: Mark Wales President Ontario Federation of Agriculture 519-773-6706 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883 By Mark Wales, President, Ontario Federation of Agriculture
Every year brings the opportunity to refresh and regroup on the key issues the Ontario Federation of Agriculture (OFA) zeros in on with politicians and policymakers. And in 2014, the OFA has identified three key issues to focus on with MPPs, issues that impact the way Ontario farmers carry out their business operations. On behalf of our more than 37,000 members, the OFA will be addressing these issues with politicians, and we encourage our members to also take the time to talk with local MPPs in their home ridings, before the legislature reconvenes in February. Natural gas is the first issue, and the need for greater access to natural gas throughout rural Ontario. The OFA will continue to push the province to invest in a long-term infrastructure project that provides low cost energy. At half the cost of electricity and one-third the cost of propane, natural gas would save rural Ontario farms, families and businesses more than $800 million per year in energy costs. In advance of the spring 2014 budget, OFA is asking the provincial government to commit to expanding natural gas infrastructure in Ontario. A long-term infrastructure project that provides low cost energy is a valuable investment in rural Ontario – one that will pay big dividends and help fuel growth. OFA’s second priority for 2014 is to continue to build on Open for Business successes. Regulations are the number one issue impacting farm businesses, and the OFA looks for continued improvements through the Open for Business initiative. We have already had the opportunity to work with several ministries on behalf of the Ontario agricultural sector to address problematic regulations and to improve the regulatory process. We rely on good regulation to protect our crops and land. And the OFA is continuing to advocate for upfront consultation when regulations are developed to avoid unintended consequences that we often see in the farm sector. We’re also advocating for well-trained enforcement officers who act consistently and with appropriate discretion. OFA’s third area of focus for 2014 is new ground for us – Ontario’s proposed Not-for-Profit Corporations Act. The OFA supports the intentions of this act to provide more transparency and accountability by not-for-profit corporations to their members. But we feel strongly that it encroaches on the rights that OFA members value. Specifically, the OFA is concerned with the proposed elimination of geographic-based elections. If directors were elected by all voting members at an annual meeting, as the act proposes, we would lose geographic representation and the ability of members to vote for a director in their area. This is an important issue for OFA members. OFA has some specific ideas for how to address this, and other unintended challenges with the act, and we will be bringing them forward to MPPs in the coming weeks. As we begin a new season, the OFA looks forward to continuing our work with government and policymakers, advocating on behalf of Ontario farmers for profitable and sustainable farms. -30- For more information contact: Mark Wales President Ontario Federation of Agriculture 519-773-6706 Neil Currie General Manager Ontario Federation of Agriculture 519-821-8883 |
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