A different kind of auction sale will be held this week at the tobacco auction exchange in Delhi.
No
tobacco will be tendered. Instead, it will be the tools, equipment and
furnishings that were used in recent decades to bring the golden leaf to
market.
The sale is a visible reminder that the Ontario
Flue-Cured Tobacco Growers Marketing Board, as previously constituted,
is no more. The board, as a marketer of tobacco, passed into history
this spring. An interim board was installed June 1 whose major
responsibility is getting a fair dollar for its assets.
Once the
forklifts, pallet carts, roller tables, oak desks and office chairs are
sold this Wednesday, the board will set its sights on its real estate.
"We
plan to advertise for a request-for-proposals for the possible sale or
lease of the Delhi Exchange," president Fred Neukamm of Aylmer said.
The
assets of the tobacco board belong to former quota holders. A report
tabled at last week's meeting estimates the board's net worth at $2.7
million.
This spring, the federal government bought out 271
million pounds of tobacco quota. At $1.05 a pound, the payout amounted
to $285 million. Now that the money has been paid, the board has been
dissolved as a marketing agency.
Once the board's assets are
sold, former quota holders will be entitled to a share of the proceeds
based on the total amount of their poundage. They will also have the
option of pooling their share into a collective undertaking in some
other area such as green energy.
Neukamm said the tobacco belt
has great potential as a producer of biomass for the production of clean
electricity. Ontario Power Generation is exploring the feasibility of
converting the coal-fired generation station in Nanticoke to biomass.
The
new tobacco board consists of five members. They were appointed this
spring by the Ontario Farm Products Marketing Commission. The board has
an interim operating budget of $220,000. The funds are derived from a
penny-per-pound charge on the 22-million pound crop being grown this
year by licencees under contract to manufacturers.
The interim
board plans to hold a membership vote this fall on its future direction.
It remains to be seen whether the 118 licensees are interested in
having a trade group like the tobacco board represent their interests.
There were strong indications that former quota holders don't want their
interests entangled with those who continue to grow tobacco.