The Ontario government is creating an industry-led pilot loan guarantee program to assist the province’s ginseng farmers in sustaining and growing their businesses. 

“The ginseng industry is an important part of the agri-foods sector in Ontario, and the development of this programming is the result of months of discussions with our ginseng farmers about how we can help them given their unique growing cycle,” said Lisa Thompson, Ontario Minister of Agriculture, Food and Rural Affairs. “The new Ginseng Storage Loan Guarantee Pilot Program will help stabilize and strengthen ginseng operations, ensure their long-term economic viability and growth, and provide a boost for the communities where they grow this world-renowned crop.” 

Three counties are home to about 150 growers who account for most of the ginseng production in Ontario:  Norfolk (65%), Brant County (24%) and Oxford County (5%).

The $130 million, three-year commitment to back the Ginseng Storage Loan Guarantee Pilot Program enables participating farmers to borrow up to $1 million against the value of their stored crops with the government guaranteeing up to 25 per cent of any loan portion that cannot be repaid. 

It’s been a challenging period in which the ginseng sector has seen its cash receipts decrease from $271.5 million in 2015 to $131.9 in 2020. This support comes following a difficult time where ginseng producers have been impacted by unfavourable weather conditions, trade barriers, COVID-19 and other factors that presented a unique set of challenges. 

 “Ontario Ginseng Growers Association members are the world’s leader in the production of the most desirable, premium-quality North American ginseng,” says Glen Gilvesy, chair Ontario Ginseng Growers’ Association. “But over the past few years our producers have been hit by significant challenges in our primary market in China along with challenges from COVID-19. In the face of these challenges, the new Ginseng Storage Loan Guarantee Pilot Program will go a long way toward providing support to addressing these hurdles. We want to thank the provincial government for its responsiveness to our concerns. Minister Thompson has worked hard with the Ontario Ginseng Growers Association to design a program that will assist our members.” 

Source:  Ontario Ministry of Agriculture, Food and Rural Affairs March 11, 2022 news release