The new corn salvage benefit includes extended deadlines, increased loan limits, and a cost-share program to help with DON testing costs.
March 19, 2019 By Top Crop Manager
The Government of Canada and the Government of Ontario will introduce a new tiered corn salvage benefit beginning in 2019 in support of requests from farmers who dealt with deoxynivalenol (DON) in their corn crop last year due to wet weather.
The new tiered salvage benefit will more accurately reflect the additional costs associated with harvesting and handling corn affected by DON and help producers trying to find a market for it. The support, provided under the Canadian Agricultural Partnership, will begin in the 2019 crop year for eligible corn farmers, and the salvage benefit is expanded to include organic corn producers.
“We understand that this continues to be a significant issue for Ontario corn farmers and the sector at-large,” said Marie-Claude Bibeau, federal Minister of Agriculture and Agri-Food. “Through the Canadian Agricultural Partnership we are helping farmers access the tools and support that they need to overcome difficult situations and manage future risk, while also looking towards long-term solutions to ensure the continued growth and prosperity of the agriculture sector.”
This new corn salvage benefit builds on previous government responses to DON-impacted Ontario farmers, including:
- Establishing a partnership with the Grain Farmers of Ontario on proposed research into such areas as developing best management practices for in-season mitigation of DON and for effectively managing the storage of high-DON corn.
- The provincial government extending its Commodity Loan Guarantee Program loan repayment deadline, giving producers affected by DON additional time to market their corn. The Ontario government also increased the maximum guaranteed loan limit, on a pilot basis, from $120 million to $200 million for the 2019 and 2020 program years.
- Launching a cost-share program through the Canadian Agricultural Partnership to provide special assistance to farmers experiencing revenue loss over testing for DON.
Agricorp, the province’s production insurance provider, will also administer the corn salvage benefit. In addition to the supports to help manage the impacts of DON, the Ontario government also hosted two roundtable sessions with industry representatives to work on connecting farmers with mental health supports and to provide solutions t o help the sector find alternate markets for high-DON corn.