Appeal denied; marketing board had authority to eliminate tobacco production quotas and implement licensing system.
The appellant, a tobacco farming corporation, appealed a decision of the Ontario Flue-Cured Tobacco Growers' Marketing Board denying the use of its previous farm licence numbers and a refund for licence fees paid in 2009 and 2010.
The appellant argued that the Board did not have the authority to remove its basic production quota (BPQ) and that the new licensing system improperly limited production.
The Tribunal found that the Board had the absolute authority to remove the BPQ and transition to a licensing system under the Farm Products Marketing Act and its regulations.
The Tribunal also found that the new licensing system did not improperly limit production, as growers could produce as much tobacco as they could secure contracts for.
The appeal was denied, as the Tribunal could not reinstate a quota system that no longer existed.
Gubbels Farms Ltd. v. The Ontario Flue-Cured Tobacco Growers’ Marketing Board, 2011 ONAFRAAT 5