Ontario Finance Minister Dwight Duncan and his staff will be working their way through some difficult scenarios as they prepare to deliver the next provincial budget.

The minister launched his pre-budget consultations recently in London.

He said the Ontario government "has taken a prudent and balanced approach while maintaining the ability to respond quickly to changing circumstances."

When we look back over the past five or six weeks, we see many examples of the "changing circumstances" that demand rapid action by not only government leaders but by business professionals - and that includes farmers.

As we look at what's been going on in the world's financial markets, to say that Ontario has been left in a precarious fiscal position would be an understatement. Because the financial planning of our provincial government has a major impact on the financial planning of our farmers, we must work closely with Minister Duncan and his department leading up to the next budget.

History has shown the Ontario Federation of Agriculture that government investment in agriculture provides positive dividends for both agriculture and the general population.

While the province is being fiscally prudent, farmers have to follow similar plans. These precarious times are serving to decrease the returns farmers get for their products, and at the same time our inputs costs for just about everything we use - fuel, feed and fertilizer - have escalated.

That's why OFA will be calling on Minister Duncan and his finance department to ensure the continuation of safety net programs - we want to build on the success of the Risk Management Program pilot program by extending its benefits through 2010 and beyond.

Farmers need to be able to make long-term plans if they are to be successful. We also encourage the government to extend similar programs to other commodities.

Agriculture also needs improved forage insurance coverage, providing protection where harvesting is impeded by frequent rainfall resulting in poor quality forage or unharvested crops.

There is a need for relief through the federal-provincial AgriStability program for situations from the current crop year.

OFA is also calling on the province for additional research and technology transfer funding; compensation for costs realized through the Clean Water Act; recognition of the ecological goods and services provided by agriculture; and special programming for young farmers.

There are also a number of non-budget items OFA will be calling on the Ontario government to implement to improve circumstances for the province's farmers:
. Permission for Ontario fruit wine sales at local farmers' markets;
. Return of the spring bear hunt to facilitate better control of crop damage on farms and enhance tourism dollars in Northern Ontario;
. Broaden the definition of farming operations to include value retention activities in the farm property tax classification;
. Enhance food processing capacity in Ontario by applying the farm property tax rate to value-added facilities. The current tax classifications penalize farmers for adding value to their product;
. Apply the farm tax rate to on-farm energy production facilities;
. Eliminate red tape regulations to allow beginning farmers to get a farm business registration number in their first year of farming.

These policies do not require any cash outlay from the government, but will yield great benefits to our rural economy. The OFA strongly encourages Minister Duncan to move right away to capitalize on such programs.

Geri Kamenz is the president of the Ontario Federation of Agriculture.