Proposed Amendment to O. Regulation 340/01 (Designation – Ontario Ginseng Growers’ Association) regarding licence fees
O. Reg. 340/01
Regulation - LGIC
Bill or Act:
Farm Products Marketing Act
Summary of Decision:
The amendment to O. Regulation 340/01 was made by the Lieutenant Governor in Council and was filed with the Registrar of Regulations on November 16, 2010. The annual fee payable to the OGGA by ginseng producers will be increased to $75/acre in 2011. The amendment will come into force effective January 1, 2011.
September 10, 2010
Summary of Proposal:
The Ontario Ginseng Growers’ Association (OGGA) has requested an increase in the fee used to fund their organization. The OGGA is designated by section 2 of Regulation 340/01 as the “representative association of producers of ginseng within Ontario for the carrying out of a program for stimulating, increasing and improving the producing and marketing locally within Ontario of ginseng by advertising, education, research and other means.” This designation is made under subsection 12(3) of the Farm Products Marketing Act, which authorizes the Lieutenant Governor in Council to make regulations to designate associations such as the OGGA and to require producers to pay a licence fees to the association.
This designation was granted in 2001 based on a vote of ginseng growers. The OGGA was formed in order to collect a mandatory fee from ginseng growers so that the OGGA could act on behalf of all ginseng growers to advocate for ginseng-related research, promotion and education.
Section 3 of Regulation 340/01 currently requires every producer who grows one quarter of an acre or more of ginseng for commercial production to pay the association a prorateable licence fee of $50 per acre or portion of an acre of ginseng under production. The current $50 fee has been unchanged since 2001.
On July 22, 2010, the OGGA approached the Ontario Farm Products Marketing Commission (“Commission”) about increasing the licence fee from $50/acre to $75/acre. The request was made for a number of reasons. The grower base is shrinking and the number of acres in production is also declining. There are significant export opportunities for Ontario ginseng, however, effective promotional efforts are costly to the OGGA. Although there has been no fee increase since 2001, OGGA operating costs have risen.
Through a consultation process, the OGGA: informed growers of the proposed fee increase; distributed background material to support this action; surveyed growers; and, hosted a public grower meeting to discuss this issue. There are 142 growers. Of these, 18 returned the survey and 16 attended the grower meeting. The Commission has received no adverse reaction from growers to this request from the OGGA.
Farm Products Marketing Commission
1 Stone Road West, 5th Floor Guelph, Ontario N1G 4Y2
January 1, 2011