Thank you, Mr. Chairman.
It's nice to be here this morning to address the situation.
We represent tobacco farmers. Our name is Tobacco Farmers in Crisis. We've been lobbying for an exit program for tobacco farmers to exit tobacco production, and that means that if we can, we would like to put a program in place that allows the tobacco quota system to be exited totally--100%. In the present situation, we are no longer viable.
We have 272 million pounds of quota. The present crop size being talked about is in the range of 32 million to 38 million pounds. That means that under the quota system we will be operating under, we're looking to operate with 10% to 12% of our quota base. That is no longer viable.
We have 1,559 individuals who own these quotas. There are 1,068 individual master quotas and 1,559 individuals who own them.
For two and a half years we have been presenting to the various levels of government that this exit is needed, and it is needed immediately.
Last Thursday we conducted a mass meeting of our members and asked their opinions. We sprung on them a membership expression of opinion, with no advance notice. We wanted to know exactly what they thought. They were asked whether, if a buyout were open over a period of time, they would exit immediately, and 66% indicated that they would exit immediately. Asked whether they could be viable at 10% to 12% of their basic production quota, 98% indicated no. If they were unable to grow in a scenario of 10% to 12%, would they feel that the board would be representing their best interests in negotiating a 2007 crop? Sixty-five percent indicated no. On whether the board should keep the buyout as a priority before the 2007 crop is negotiated, 91% indicated yes.
We are in a crisis. There's no doubt about it. Tobacco companies themselves have indicated that they need approximately 150 to 200 growers into the future. How do you operate with 1,068 quota holders? It won't work. We are supposedly a supply management commodity, but unfortunately we don't have border controls. We went after a national agency. That didn't happen. So unfortunately we have a quota system that at the present time is no longer sustainable.
The financial institutions loaned the farmers money in good faith. A number of growers have letters demanding payment, because this is no longer payable. In 2001 and 2002 a burner conversion to eliminate nitrosamines, a carcinogen, was undertaken. We were given stable crop sizes for the future of 108 million pounds, 108 million pounds, and 109 million pounds for the years 2002, 2003, and 2004. It cost a lot of money to retrofit our operations. A lot of farmers looked at the situation of having a stable crop future and they modernized. They believed in the principle that if you became bigger and more modern, you would be more viable and you would be able to make money. That dream is gone.
We are under severe financial and emotional stress. At this point in time, there's been a quota moratorium in place for a year waiting for a buyout program. Unfortunately, we don't have that program today. Our tobacco board is in discussions with the minister, presently. For a year we've been looking at a $3.30 buyout program for the basic production quota. The minister has said, unfortunately, that the program is too expensive for the Department of Agriculture and Agri-Food, and we agree with him.
This is not an agricultural tobacco issue. It is government health policy to deter adult and youth smoking. It's government taxation policy that we're going to deter adult and youth smoking. This is not a disaster that has taken place because of Mother Nature; this is social engineering. We've decided that tobacco use is no longer acceptable, that we're going to deter it, we're going to denormalize it. Five years ago, the federal tobacco control strategy was put in place, $450 million. The aim of that policy was deter adult and youth smoking. On top of that, our provincial governments have decided also that they're going to eliminate, at some time in the future, tobacco smoking.
An agricultural policy framework doesn't fit our commodity. We're falling through the cracks. Our charter of rights doesn't protect us. What has happened is that we've lost our ability to make a choice. We're here to ask our government to give us a choice to leave, to leave with dignity, to allow us to pay our debts, and not take from our other agricultural commodities one penny. Finance this program through tobacco itself. Tobacco pays for its own bioprogram. Our other agricultural farmers and commodities are having a tough enough time themselves. We need a program that identifies to a situation that hasn't happened in Canada before: we have decided that we're going to eliminate tobacco production.
Canada signed the framework convention on tobacco control treaty. There are two articles in that treaty, articles 17 and 22, that state that there will be a viable alternative to tobacco provided to tobacco farmers, tobacco workers, and individual sellers. Right now, there isn't a tobacco-specific program available to us.
We've had examples of tobacco exit programs in other countries. We've looked at the United States. We've looked at Australia. There are programs in Europe taking place where farmers will be getting out of tobacco production. The framework convention on tobacco control treaty through the World Health Organization is to deter and stop tobacco consumption.
At this point in time, we are faced with growing another crop. We have what is called the tobacco advisory committee, which is run by the Ontario government through the Farm Products Marketing Commission, and we have a federal observer who observes the negotiations. The mandate of that committee is to make sure that if a crop is offered, of any size, that it's grown, and right now it's unviable for the number of growers who are left trying to produce.
We need help and we need it soon. The financial institutions, as I have said, are demanding payment. We were fortunate enough to be at this committee one other time, in the fall, when Quebec was with us, our producers from Quebec who exited in the previous program. They are having a tough time after tobacco, trying to survive growing alternative crops.
In Ontario, our farm sizes are not large. They are from 50 to 100 to 150 acres in size. To grow an alternative crop is difficult. What are we going to do? Are we going to move into other commodities that are struggling themselves? There's no magic bullet. There's no magic crop. Alternative fuels and energy may be another source, but right now those are not available.
We need special consideration given to our commodity, unfortunately.
We will be answering questions that of course the committee will have, and I thank you for the time to present here today.