It doesn’t happen very often. On September 7th I got to question another Minister of Agriculture at the Grain Farmers of Ontario (GFO) meeting in Guelph. I say another because I’ve had many opportunities to do that over a 25-year career writing this column. There is no better way than to stare the minister in the face and ask a public question about something you believe in. It’s never a fair fight because I always lose. However, through the years I’ve tried to cut through the political answers. This was no different.
So I asked the Minister of Agriculture for Ontario, Carol Mitchell whether Ontario would move toward a 10% ethanol blended gasoline to follow the American example. In fact depending on whom you believe the EPA will make a decision regarding E15 within the next few months. Minister Mitchell gave me an unqualified maybe to the 10% blends, or I think she said, “Never say never”. In retrospect I don’t think she said yes but she told me unequivocally she didn’t say no either. So where does that put us?
It probably puts us not in the best spot. We’ll see. I think the ethanol file has some real traction these days especially in the light of the BP oil disaster in the Gulf. Our American friends have been piling onto this by pushing ethanol as a clean nonpolluting fuel compared to the disaster in the Gulf. Yes, if the December corn futures contract moves toward $5.25 tomorrow all bets are off. We will begin to hear about the food versus fuel debate again. So I felt that I should push the debate a little bit more in Ontario with that question. It’s quite obvious that Minister Mitchell doesn’t buy into that new landscape for ethanol.
To her credit, without the support of Ontario Premier Dalton McGuinty I believe there would either be no Ontario ethanol sector or it would be much smaller. The Ontario government pumped over $500 million into getting the Ontario ethanol sector up and going and that’s nothing to sneeze at. Maybe Minister Mitchell feels she cannot go back looking for more, especially at a time when corn prices are increasing.
I am sure that the Grain Farmers of Ontario are pushing for an increased ethanol blend in Ontario gasoline. It’s one of many issues that they have on their plate. The meeting earlier this month was their first annual meeting as an organization, which brought together the producers of corn and wheat and soybeans in Ontario. The scope for such an organization is wide and sometimes that can be difficult. Needless to say, I believe that there is no sense in looking through the rear view mirror with regard to old loyalties and the way we used to do things here in Ontario. The new organization will need to have all their ducks in a row to push their agenda.
It certainly will be a challenge. I say that because it’s pretty obvious to me the new organization is much larger and has many divergent voices. With three crops to take care of, it’s just that much more complex.  The resolutions, which passed this afternoon, were among many others that did not pass. Much of the disagreements on the resolutions were regional in nature, southwestern Ontario versus Eastern Ontario versus Central Ontario. Even in Ontario regional agricultural “cultures” exist and this organization will have to work through that.
One such example was a difference in opinion regarding the fully funded risk management program (RMP) proposed by some Eastern Ontario producers. Looking across the Ottawa River the Quebec government delivers 100% funding of their provincial program and then fights with the federal government to get it. The Eastern Ontario farmers proposed the same thing and those in attendance roundly defeated it. Essentially though, those who voted against it wanted the same thing, just in a different way. It’s just a matter of semantics, language and timing.  Things happen like that sometimes, I’m sure the Grain Farmers of Ontario will continue to work through it.
Of course this all happened in front of the much-hyped September USDA report. In the September report USDA cut 2010/11 corn yields 2.5 bu/acre sending corn markets up. In fact all grains are in bullish territory, a good thing for grain farmers and the GFO. So too would 10% ethanol blends in Ontario. Minister Mitchell, just my advice. Take it for what it’s worth.