Organic certifier OPAM has been brought back from the brink of a months-long funding crunch, now that the Manitoba government has stepped in with a written pledge of financial support.
Bill Agnew, president of the Organic Producers Association of Manitoba board, said the organization was relieved after news that a letter from the deputy minister’s office had been received.
“It’s not a cheque, but it’s a letter of support. That’s what we’ve been waiting for,” said Agnew, who operates Redneck Organics near Hartney, Man.
Glen Ekert, an OPAM board member, said the organization has had to scramble to restructure and seek interim operating loans after the province held back its contribution, which amounts to about 40 percent of the group’s $500,000 budget.
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Agnew said that the organization had been working hard to address the provincial government’s concerns, and the letter reflects that OPAM has turned the corner.
“I think it’s fairly clear that we’re going to have to have higher fees. We should have had them eight, 10 years ago,” said Agnew.
Government officials had been urging OPAM to pass on more of the operating costs to the producers that it certifies in order to reduce the group’s dependency on grant money.
“They’ve made it very clear to us that this financial assistance is not going to continue forever,” he said. “And in all honesty, I’m more in favour of the idea of us standing on our own feet.”
OPAM’s financial crisis arose despite public statements by provincial cabinet ministers over the past year in support of organic agriculture, and the introduction of a new transition program to subsidize the costs for farmers who want to switch from conventional production.
Ekert said that the province’s reluctance to provide funding was likely because of a slump in the number of farmers certified by the body, which has fallen to around 175 in recent years.
At the same time, the group’s annual budget had risen from $250,000 two years ago to in excess of $500,000. Now, the co-op’s budget has been pared down to $400,000, he added.
A misunderstanding was to blame, said Ekert.
The province had offered OPAM cash to help it implement the “horrendous” process of meeting the new Canadian organic standard introduced in 2006, but it did not intend to continuously fund 40 percent of the group’s operating budget.
“So the government was helping OPAM iron out the kinks because it knew that it wasn’t just helping OPAM, it was helping out everybody in organics,” said Ekert.
The government’s reluctance to see its funding go to staff wages forced a restructuring of the certifier’s office in Virden, Man., and four staff volunteered to accept reduced hours to prevent layoffs.
At the group’s annual fall seminar in November, Ekert said that members would have to provide input in the restructuring process. They need to say whether they would agree to shoulder higher costs to maintain business as usual, or if some aspects of OPAM’s service should be scaled back.
