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Fact Sheet
Tobacco Transition Program
January 2009
- The Tobacco Transition Program is part of a $301 million initiative announced on July 31, 2008 by the Federal Government, with $286 million dollars available for farmers who wish to transition out of the industry.
- The Tobacco Transition Program will provide federal funding of $1.05 per pound of Basic Production Quota (BPQ) to participating producers.
- The Tobacco Transition funds are the result of a settlement between the Government of Canada and tobacco manufacturers. This is tobacco money for tobacco farmers.
- $15 million is also being provided for community development to help communities transition to a non-tobacco based economy.
- Two key conditions must be met prior to approval of this program. These conditions include commitment from the province to eliminate production controls and implement a new licensing system for flue-cured tobacco grown within Ontario.
- AAFC has worked diligently with the province and the Ontario Flue-Cured Tobacco Growers' Marketing Board (OFCTGMB) to ensure that these conditions will be met. There has been significant progress on these conditions and it is expected that continued collaboration will be successful.
- When these conditions are met, funding will be available for producers who wish to transition out of the industry. Producers participating in the program will not be able to re-enter tobacco production.
- There is adequate funding available under the program to allow all producers to exit the industry. The Government of Canada is working with the OFCTGMB and funds should begin to flow by March 31, 2009.
- Each producer will need to examine his or her own situation and make a choice as to whether or not to participate in the program. Producers who do not participate in the program and remain in tobacco production will not receive funding and will require a license to produce tobacco.
- Once the details of the program are set, officials from the federal government and the OFCTGMB will convene a briefing for producers. The purpose of this session will be to provide producers with the program information necessary to help them make informed choices about participation.
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