Millions invested in drainage

Ken Kellar
Local Journalism Initiative Reporter

Tile drainage projects are reshaping the future of agriculture in the Rainy River District.

That’s one of the messages that the Rainy River Future Development Corporation (RRFDC) gave as part of their presentation to the Rainy River District Municipal Association (RRDMA) on January 16.

The presentation, held as part of the RRDMA’s annual general meeting on Saturday via Zoom, was given by RRFDC executive director Geoff Gillon, who highlighted some of the accomplishments of the past year along with detailing some of what the organization has done in response to the COVID-19 pandemic.

One of the larger projects the RRFDC has overseen lately is providing funding for tile drainage projects. These projects allow area farmers to install a drainage system in their fields that help to increase yields in feed or cash crops. Gillon noted that to date six projects have been completed or are currently active, with a few ongoing and one project awaiting Northern Ontario Heritage Fund Corporation (NOHFC) approval. The tile drainage provides farmers with almost immediate benefits, according to Gillon, as the effects are significant enough that landowners can put the field into production the following year. Having tile drainage installed also benefits local municipalities as it increases the value of the land, thus leading to higher municipal tax rates and income.

“Approximately 11,618 acres of land will be tiled by this fall,” Gillon said.

“Those acres will be all active by 2022. The lion’s share of the tiling has been in Dawson, but there has been quite a bit of tiling across the district, right from Alberton through to Dawson.”

Gillon said he estimates the grand total cost for that area of tiling in the district comes to roughly $15,103,400 at $1,300 an acre by the time the projects are complete. Of that total, Gillon said he estimates the NOHFC will have covered more than $5-million of the cost, which means that local producers across the district will have invested more than $9-million in improving their land for agricultural purposes, in addition to any other investments they have made in buildings, storage bins, machinery or employees.

“That’s a significant investment,” Gillon said.

“I think if any of the municipalities had a $15-million project that was a building and a facility we would all be really excited. So I want to reiterate that this has been a huge investment by our area producers. It’s completely transformed the district. All you need to do is go west of Emo to Rainy River in July and see the canola, etc., to know that the agricultural base of the community has been changed.”

There have also been several land clearing projects, which Gillon explained are particularly beneficial to the local economy, both in the short and long terms.

“Land clearing was a good project for the district in the fact that the funds went directly to area contractors who hired employees and maintained their equipment,” he said.

“It allowed cattle producers to increase their herds and some actually had the proper ground to grow cash crops on their land.”

Gillon noted that as the pandemic came into full swing in March and the RRFDC began to see the impact it would have on local businesses, the organization stepped in to offer loans to help offset the cost of the shutdown.

“Last March when the COVID pandemic arrived on Canadian shores, the board of directors of the RRFDC immediately initiated loans up to $20,000 with any payments or interest suspended until September,” Gillon said.

“Those have now been moved back to March 31, 2021. On May 13, two months later, FedNor gave us a first traunch of $882,373 through the Regional Relief and Recover Fund (RRRF). those funds were dispensed… within two weeks, and that being said, because of the urgency FedNor gave us an additional $229,806 in August, which was immediately given to businesses through loans.”

FedNor provided an additional $306,841 through the RRRF in October, and to date 49 COVID loans have been approved by the RRFDC, with 21 of those coming from the Investment Fund and the remaining 24 from the RRRF. The loans themselves are now available up to $40,000 and Gillon explained that a grant component of $10,000 is included in that total, as long as the loan is paid in full by December 31, 2022. The RRFDC is anticipating more money through FedNor in the coming months as the impacts of the COVID-19 pandemic continue to be felt.