Why didnt all tobacco farmers exit growing during the last round of buy-outs, specifically the Tobacco Adjustment Assistance Program (TAAP)?
TAAPs funding was woefully inadequate and compounded the crisis for the number of farmers wishing to exit. The Federal TAAP program spent $67 million between Quebec and Ontario in retiring tobacco quotas. Under a reverse auction system, desperate farmers were pitted against other farmers with no other option. Ontario received 700 irrevocable bids, with 252 being accepted with the funding that was available. In Quebec, 53 of 57 producers exited tobacco production. The provincial governments in Quebec and Ontario provided additional monies to producers who exited through the program. The monies were desperately needed by many farmers who were under severe financial distress. In Ontario, $50 million was spent, with $35 million for farmers and $15 million for the community. Although intended to alleviate the economic crisis facing tobacco farmers, it was little more than a temporary rescue, not a long-term solution. The compensation offered by the federal and Ontario governments represente
