By Mark Wales, President, Ontario Federation of Agriculture (OFA)
“Ontario agriculture is big business.” It’s a statement the Ontario Federation of Agriculture (OFA) makes often to impart the importance of agriculture to Ontario’s economy. Now, the OFA has solid, current numbers to back it up. In June 2013, the OFA commissioned an update of a study by renowned economist Dr. John Groenewegen of Guelph-based JRG Consulting Group. The study, titled Economic Contribution of the Ontario Farm Sector, uses the most current data about Ontario farming from Statistics Canada – and the numbers are more impressive than ever. They reveal that agriculture truly is a driving force behind provincial job creation, a stable tax base and thriving rural communities. As well, agriculture is a major contributor to Ontario’s food and beverage processing sector. Ontario’s Premier and Minister of Agriculture and Food, Kathleen Wynne has recently issued a challenge to double growth and jobs in Ontario’s agri-food sector. According to this study, Ontario agriculture is well on its way. Agriculture supports nearly 158,000 jobs with $8.1 billion in wages and salaries. More than 75,000 of these jobs are attributed directly to primary agriculture and to suppliers where farm operators purchase goods and services such as feed, equipment and fuel. The remaining 82,000 jobs are produced in the overall provincial economy as suppliers restock supplies and workers spend their earnings on consumer goods and services. With that strength in sustained full-time employment comes a stable tax base. Recent data shows the farm sector generates tax revenues at all three levels of government, with the provincial government collecting $1.4 billion and the municipal level collecting $400 million. The next time OFA members meet with their MPPs, they can also inform them that the farm sector is a significant driving force behind the province’s rural economy, accounting for 10% of the jobs in rural Ontario. The tax dollars generated by Ontario’s farm sector help to create and maintain the government services and infrastructure necessary to support thriving rural communities such as hospitals, schools and transportation. Ontario’s farm sector is proud to provide the foundation for another job-creator – Ontario’s food and beverage processing sector. Processors buy more than 70% of Ontario farm products. They also directly employ more than 91,000 workers across Ontario and support an additional 193,000 secondary jobs in various areas of the economy. OFA encourages our members to proudly boast the sound economic benefits of Ontario agriculture to our provincial and municipal decision-makers. Ontario farmers have a good news story to tell with impressive economic numbers. With meaningful investment in agriculture and rural Ontario, there are additional possibilities for securing profitable and sustainable farms. A detailed copy of the study is available upon request from the OFA at 519-821-8883. -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 To obtain a copy of the study please contact the OFA at 519-821-8883
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Guelph, ON (November 15, 2013) – Yesterday’s announcement of the Heinz plant closure in Leamington, Ontario was a shock to Ontario agriculture. The decision to shut down this 104 year-old institution will directly impact the 740 employees, dozens of farmers and thousands of seasonal workers in the surrounding tomato industry.
“This devastating news comes at a time when the Premier has challenged the Ontario agri-food industry to create tremendous new growth opportunities,” says Mark Wales, Ontario Federation of Agriculture president. “It’s vital the Ontario agri-food industry work with government to develop a strategy for domestic food processing so Ontario agriculture and food production continues to thrive, drive economic activity and meet Premier Wynne’s challenge to increase growth.” The planned closure of the plant by June 2014 leaves little time for impacted producers whose livelihood depends on more than 5,500 acres of processing tomatoes grown within 100 km of the Leamington plant. Heinz previously reported that approximately 98% of tomatoes used in Heinz ketchup in Canada are grown in the Leamington area, feeding this second-largest Heinz facility worldwide. The Ontario Federation of Agriculture (OFA) knows an immediate transition plan will be required for these primary producers. The OFA will reach out to other producer organizations to explore new opportunities to keep this land in agricultural production and safeguard the economic stability of this important rural community. According to a recent Ontario agri-food economic study, Ontario’s food processing sector purchases the majority of their products from Ontario farmers. The Economic Contribution of the Ontario Farm Sector by JRG Consulting Group reported Ontario’s food and beverage processing sector, including the Heinz plant, generates $21.3 billion towards the province’s annual GDP. The Ontario Federation of Agriculture (OFA) is the largest general farm organization in Ontario. As a dynamic farmer-led organization based in Guelph, the OFA works to represent and champion the interests of Ontario farmers through government relations, farm policy recommendations, lobby efforts, community representation, media relations and more. OFA is the leading advocate for Ontario’s farmers and is Ontario’s voice of the farmer. 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 Guelph, ON (November 15, 2013) – Ontario’s farm sector continues to contribute billions to the province’s GDP according to a recent study released this week. The Economic Contribution of the Ontario Farm Sector by JRG Consulting Group reported that Ontario agriculture contributes $13.7 billion to the annual GDP, confirming this sector as a driving force behind job creation, a stable tax base and thriving rural economies. The study, commissioned by the Ontario Federation of Agriculture (OFA), also identified Ontario’s food and beverage processing sector as a major contributor to the province’s overall economy.
“This study confirms that our sector is perfectly positioned to capture the growth opportunities Premier Wynne has laid out for the province,” says Mark Wales, OFA president. “A prosperous farm sector translates into employment opportunities for thousands of Ontarians across the province and in our rural communities.” Using the most current data about Ontario farming from Statistics Canada, the 2013 economic study is an update of an earlier report commissioned by the OFA by economist Dr. John Groenewegen of JRG Consulting Group. On the job front, nearly 158,000 jobs with $8.1 billion in wages and salaries are supported by Ontario’s farm sector. More than 75,000 of these jobs are attributed directly to primary agriculture and suppliers of farm operator purchases of goods and services. When it comes to a stable tax base, the Ontario farm sector generates tax revenues at all three levels of government – the provincial government collects $1.4 billion and $400 million is collected at a municipal level. Our rural communities are fueled by the farm sector, accounting for 12.3% of rural Ontario’s GDP and 10.3% of total employment in rural Ontario. With 14% of Ontario’s population living in rural areas, tax dollars generated by the farm sector help create and maintain government services and infrastructure needed to support healthy rural communities that are able to support local hospitals, schools and transportation. The study confirmed the farm sector is the foundation for the province’s food and beverage processing sector. More than 70% of Ontario farm products are purchased by processors within the province. In 2012, Ontario’s food and beverage processing sector spent $21.7 billion to contribute $21.3 billion to the province’s GDP. This sector accounted for 3.2% of the total provincial GDP of $675 billion, and represents a significant job source for more than 90,000 Ontarians. A full report of the study is available upon request from the OFA at 519-821-8883. The Ontario Federation of Agriculture (OFA) is the largest general farm organization in Ontario. As a dynamic farmer-led organization based in Guelph, the OFA works to represent and champion the interests of Ontario farmers through government relations, farm policy recommendations, lobby efforts, community representation, media relations and more. OFA is the leading advocate for Ontario’s farmers and is Ontario’s voice of the farmer. 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 (OFA) What happens when you invite individuals representing every farm and food processor in Ontario to pick the top five regulations that are impacting business? That’s the question the Ontario Federation of Agriculture (OFA) asked when the provincial government selected us to lead consultations for the agriculture and agri-food sector in 2010. The Open for Business initiative was undertaken by the Government of Ontario to establish a collaborative relationship between government and key business stakeholders to drive economic activity. As the leading advocate for Ontario farmers, the OFA took the reins in this initiative and spearheaded consultations with the farm and agri-food sector. The initial process is complete. And, it worked so well that the Open for Business consultations identified the need for an ongoing forum to present regulatory changes needed to make our farm businesses run smoother. Nearly two years after the first initiative, the Open for Business representatives continue to meet, bringing relevant ministries together to discuss problematic regulations. So far, the group has managed to arrange positive discussions with government ministries representing agriculture and food, transportation, environment, labour, finance, industry, economic development, energy and natural resources. Thanks to the collaboration between this committee and government, we’ve seen some significant wins. The group worked with the Ministry of Environment (MOE) and Ontario Ministry of Agriculture and Food (OMAF) to see improvements for Ontario’s greenhouse sector. Discussions around how produce farms should treat water used to wash vegetables have never occurred at this level before, and the conversations represent a stronger relationship between Ontario’s farm sector and the Ministry of Environment. Relationships with the Ministry of Finance have also improved, that will lead to lower input costs for Ontario grain farmers. The OFA thanks Steven Del Duca, parliamentary assistant to the Minister of Finance for leading the review of farm property assessment issues. His pending report to the Minister of Finance will recommend a change in farm property classification of commercial grain elevators (located off-farm), which have historically been assessed as industrial rather than commercial properties. The assessment is expected to change in January 2014, and will reduce grain drying costs – and consequently, farm inputs – for Ontario grain farmers. Ontario’s growing aquaculture sector looks forward to a win related to licencing aquaculture operations. This sector presented its concerns through the Open for Business consultation process, triggering meetings with OMAF, OFA and the Ministry of Natural Resources. Discussions focused on extending aquaculture licences from five to 20 years. OFA is pleased with the progress the Open for Business consultations have made in discussing and addressing red tape issues that will support successful farming and agri-businesses in Ontario. We continue to meet up to four times a year with related ministry staff to raise issues and identify items requiring follow-up from specific ministries. The OFA will continue to facilitate these discussions for as long as there is a need - to ensure prosperous and sustainable farms. 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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