Ag in Ontario’s budget

Apr 16, 2019

The provincial budget dropped OMAFRA spending

By Diego Flammini
Staff Writer
Farms.com

To help restore fiscal balance by 2023-24, the Conservative government cut funding for some ministries – including OMAFRA – in Friday’s budget.

OMAFRA’s spending allotment drops from $1.06 billion in 2018-2019 to about $839 million in 2019-2020, the budget says.

The cut in the provincial ag budget is displeasing, said Keith Currie, president of the Ontario Federation of Agriculture.

“We are concerned with the OMAFRA budget cutbacks and will be reviewing these details carefully once spending estimates are available,” he said in a statement Friday.

The provincial budget also touched on the government’s accomplishments since taking office in June, including setting up an advisory group to help ensure the ag sector can be competitive without regulatory interferences.

The Conservatives also assisted farmers managing DON in their corn, made changes to the Ontario Feeder Cattle Loan Guarantee Program and updated the Ontario Wildlife Damage Compensation Program, the budget said.

In addition, the government’s budget included plans for the ag industry.

The Conservatives are proposing changes to the Farm Products Payments Act that would “modernize Ontario’s financial protection programs to achieve less prescriptive administration, cost savings and reduce regulatory burden for farm businesses,” the budget says.

To reduce administrative burdens, the government will hold stakeholder discussions to streamline the certification processes of more than 20 OMAFRA-delivered programs.

Ontario’s government also has plans for risk management programs.

Officials are “exploring options to expand the Risk Management Program in the future to better support farmers and producers in managing risks that are beyond their control,” the budget document says.

The government committed to helping Ontario horse breeders.

The Ontario Lottery and Gaming Corporation will provide up to $105 million per year to horsepeople and racetracks in the province. The government will provide another $10 million per year to support breeding and industry development.

And Doug Ford’s government wants underserved Ontarians to have access to reliable broadband.

The budget lays out a plan to invest $315 million over five years. Doing so “allows communities and businesses to fully participate in the digital economy,” the document says.

Farms.com has reached out to members of Ontario’s ag community for comments on the provincial budget.

The Canadian Press/Frank Gunn photo

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.