Posted on 02/04/2009, 10:12 am, by The AgriPost
Signs outside the offices of the Ontario Flue Cured Tobacco Board show the opinions of farmers and industry workers. The uncertainty heading into spring has farmers wondering about the future of the crop.

Signs outside the offices of the Ontario Flue Cured Tobacco Board show the opinions of farmers and industry workers. The uncertainty heading into spring has farmers wondering about the future of the crop.

When the tobacco auction concludes this month in Tillsonburg, Ontario, it will have marked the end of an era. After more than 50 years of selling tobacco by auction, the process will come to an end.

“It means that we will move to a contract system,” said a buyer for an international company, who asked that his name not be used. He went on to say. “The Canadian system was unique and provided quality assurances like no where else in the world.”

It is expected that tobacco will be produced under contract for specific firms and shipped in large bales, rather than the 40 lbs. lots it was sold under the current system.   “When the move came to the U.S., they found all kinds of things in the bales,” said the buyer who has spent more than two decades buying Canadian tobacco.  “Canadian tobacco is good quality and it was recognized around the world.”

He said that the Canadian tobacco was often used to upgrade lower quality products through blending, and while there might be some opportunities for that in the future it is not likely.

Farmers in the Southwest Ontario tobacco belt remain tight lipped about their future. They hope to continue to produce the crop but are uncertain of its future. They refuse to talk about the industry while in negotiations with both levels of government about a buyout package that would allow them to exit the industry.

Many farms still feel the result of the purchase of high price land for an industry at its peak more than a decade ago. Taxation and a change in attitude toward smoking have meant the acreage is worth a fraction of what it was but the cost of the land remains and it is not easy to find a new crop.

The land in the area is sandy and holds little nutrient value which makes it unsuitable for most crops.

On the floor of the auction workers are also uncertain of their future.

“Most of us started here right out of high school,” said one employee who also requested not to be identified, “We work in the auction in the Winter and on the farms in the Summer and now its all gone. We won’t even have enough weeks for Employment Insurance this year.”

At one time Delhi was home to an Agriculture Canada Station that specialized in tobacco research. That has since closed.

The area wonders what will come of its economy that relied on tobacco and has nothing else on the horizon.