Available Reports 2004 Annual Report 2003 Annual Report 2002 Annual Report 2001 Annual Report 2000 Annual Report 1999 Annual Report 1998 Annual Report 1997 Annual Report

Annual Report 2003

Chairman's Report

It was a very good year and a very busy year with a lot of changes. The first and foremost had to be the merger of office facilities and staff with the Ginseng Growers Association. The hiring of Denton and Melodie took place in the new year, and the office was up and running by April. This decision was made to reduce the cost of administration. It was felt that with the decline in the processing industry, we no longer could justify the structure of the past. Although we are sharing staff, we are set up on a standard business day which makes it easier for growers to access the office.

In September we sat down to a day of strategic planning. It is one of those things that had been put off for some time but with some prodding from Denton the day was put together with John Butcher being the facilitator. During the day we looked at our industry's accomplishments and failures, where we have been and where we should be going. Now a plan of action has been formulated to take us ahead.

On the political side, the replacement for NISA is likely going to be implemented in the new year. Horticulture is not faring well as there is nothing to replace the SDRM portion of our NISA under the new program. Once the program operates for a period of time and we have a better understanding of the implications we have been given assurance there are provisions allowed for change. Ideally we would get something to replace SDRM before Ontario signs but this seems unlikely at this late date.

Nutrient management is becoming a non issue as an immediate concern. The date for implementation has been pushed back for seven years. It's wait and see as to what the new government will do with it.

Brokers and boxes seem to sum up the fresh strategy. Continuing on a frame work started last year, the board facilitated conference calls with brokers and some growers. The objective was to keep product moving and stabilize prices. Although prices were lower this year than last taking volume into account the market was stable. The 28 pound box was tried more extensively this year. There were some problems with the production run but the box itself was sturdy and attractive and functional. The reviews from the market were positive to indifferent.

We had high hopes for I.P.M. and Food Safety this year. The up-take was poor by growers with only fifteen growers doing both. Eleven growers participated in Food Safety and IPM and four for only Food Safety. Being the second year for IPM, the scouting had more experience and the Food Safety was quite thorough. Most growers found the two programs of value.

This September AIMS was dissolved. They are winding up their reports. A new direction will have to be taken for this work to continue.

No positive news in the processing of asparagus in Ontario. Washington State has lost two major processors to Peru. The question is will this product or what part of it will come to the fresh market. Acreage is reported being ploughed out, but no hard numbers are available. In Washington the loss of processing can be attributed to a high minimum wage, around $7.00 US (the highest in the US) coupled with low priced product from Peru. A substantial plough out may have a positive affect for Ontario in the long term.

In conclusion, I hope Denton and Melodie are finding their positions with the Asparagus Growers challenging but enjoyable. I look forward to working with them in 2004. Like always our industry will have challenges in 2004 and we will work together to face them head on.

District Reports

District 1

The 2003 crop started for most District 1 growers around the first week of May. The cool temperatures for the first couple of weeks kept production levels lower than normal. We did not have that big flush of spear growth early in the season.

This slow start allowed some growers that were experiencing labour shortages to keep up with harvest. In the end, most growers reported average to above average yields.

Growers in District 1 with processing contracts supplied approximately 80% of their contract. The balance of their contract could have been filled if the shipping dates were made earlier in the season.

The fresh market container of choice for most District 1 growers is the 20 lb. box. The 28 pound box may be an advantage for export sales, but for domestic sales we would still prefer to use the 20 lb. container.

The committee men and directors to the Board will remain the same as last year.

On behalf of District 1 growers, I would like to thank Claudia and John for hosting the meetings this past year.

Respectfully submitted,
Keith Wright, Chair District 1

District 2

Mother Nature played a significant role in this season's crop. Daytime temperatures were warm but not too warm and night times were cool but not frosty. The beetle population was not overwhelming, so spraying was minimal. With seasonal temperatures, a sustained product glut was not seen and prices did not fluctuate wildly as seen in other years. All in all a favourable season.

Thanks go to Ed for his time and leadership, to Denton for his expertise and guidance, and to Melodie for her hard work and patience.

Best of luck to all in the 2004 season.

Respectfully submitted,
Frank Chanda, Chair District 2

District 3

The asparagus harvest of 2003 in District 3 was one of the best on record. Weather conditions produced steady growth, without "flushes", and resulted in high quality spears. Wholesale prices were lower than in previous years, but increased volumes provided higher net returns to growers.

It is evident that Guelph Millennium outperformed Jersey hybrids this season, not only in yield but also in spear quality. It will be interesting to watch Millennium in the coming years to see if it continues to yield well under varying spring weather conditions.

On behalf of growers in the district, I would like to thank Chairman Ed DeHooghe for his hard work and leadership in moving the office from Strathroy to Simcoe. The joint hiring of a general manager with the Ginseng Board required a large time commitment, and Ed's efforts are greatly appreciated.

I would also like to welcome our new general manager, Denton Hoffman and office assistant Melodie Blum. We are fortunate to have Denton working on behalf of the Board, with his strong industry experience and track record. Melodie has been great to work with and I look forward to her happy voice answering phone calls from District 3 for many years to come.

Respectfully submitted,
Morris Gervais, Chair District 3

District 4

The 2003 season was a week late for us based on all previous seasons. We felt that our harvest would extend to the end of June again based on our history. However, Mother Nature gave us the best weather I have every enjoyed.

Daily production was very high, quality was excellent, and my experienced workers did an excellent job. The demand was very strong at the retail level and there was never any pressure at the Food Terminal to cause the chains to believe they were paying anything but a fair price.

The information highway in our industry continues to improve. Fear and distrust appear to be on the decline in the marketing arena. Price discounting as the only marketing tool needs to decline even more in Toronto. The Ontario Asparagus Industry needs to have its producers become value makers not value takers.

The 2003 season was really stressful as usual but one our most successful. The success of 2003 was a team effort by our producers, shippers, and the retail industry.

With thanks,
Brian Beatty, Chair District 4

District 5

District 5 enjoyed one of the best seasons in recent memory. No frost and no extreme heat made for good yields of excellent quality asparagus. Our district held two meetings, one in the early spring and one in mid-October. Unfortunately, both meetings were poorly attended. Several growers tried the new 28 lb. plastic containers with very favourable results.

I would encourage the Board to continue to hold our conference call with the brokers as this seems to be an effective tool to keep our crop moving.

I would like to congratulate Denton and Melodie on stepping into a new position and doing such a great job.

I would like to thank Chairman, Ed for all his time and work.

Respectfully submitted,
Wayne Welsh, Chair District 5

Asparagus Research-Report - University of Guelph

D. Wolyn and P. Banks

The asparagus breeding program moved from Cambridge to the Simcoe Research Station in 2002. The perennial nature of the crop complicated the transition and slowed the breeding process. Trials of new hybrids that were never harvested or harvested only one full season were lost at Cambridge. Most parental breeding stocks were moved to Simcoe.

Despite the disruption of activities, new trials were established at Simcoe in 2002 and short harvests will commence in 2004. New hybrids were also planted in 2003 and more will be planted in 2004. The breeding program is now re-established and in a position to produce positive results in the future.

Data from three trials are reported below, two from Cambridge and one from Simcoe (Tables 1, 2 and 3). The results from Cambridge were used to select the most promising hybrids for further replicated testing and grower strip trials. These hybrids represent the next group of potential cultivars for release. New hybrids have improved yields and rust resistance compared to Millennium. Many are competitive with Jersey Giant for rust resistance.

The breeding program has 75 females and 35 supermales, newly selected for vigor, spear quality and rust resistance. These will be crossed to produce new hybrids and offer further promise for the long-term success of the breeding program.

Table 1. P 18, Cambridge, 2wk harvest 2001, 6wk harvest 2002

Hybrid	Cum Mkt Yld	Yield: % of Millennium	% Mkt Yld	Spear Wt. (g)	Rust (1-9) 1 = Resistant
G158 x G305	2986	142	64	25	4
G240 x G305	2687	127	62	25	5
G242 x G751	3086	147	55	26	5
Millennium	2106	100	57	23	7
J. Giant	1730	82	48	24	5

Table 2. A99, Cambridge, 2wk harvest 2001, 6wk harvest 2002

Hybrid	Cum Mkt Yld	Yield: % of Millennium	% Mkt Yld	Spear Wt. (g)	Rust (1-9) 1 = Resistant
G24 x G751	2615	206	63	27	6
G178 x G759	2342	184	59	29	3
Millennium	1270	100	51	24	7
Giant	1231	97	57	25	5

Table 3. A02, Simcoe, Planted 2002, visual evaluation 2003

Hybrid	Visual Vigor Rating	Rust (1-9) 1=Resistant
G24 xG783	6	3
G24 x G789	6	3
G232 x G751	7	3
G250 x G755	7	3
G496 x G753	7	3
Millennium	5.4	7
Giant	5.8	4.1

Seed Production Report

An aging and diminishing inventory of seed triggered a need to produce seed this year.

The herbicides were applied to subdue weed growth. As the season went on, the late germinating grasses took over under the mature asparagus canopy.

Insect pressure was modest in the first half of the season. Hot weather in August brought on a heavy presence of beetles in late August and into September.

The enclose required extra security with nails as the Velcro strips are deteriorating in adhesive ability.

The unavailability of pollination bee hives at the onset of flowering reduced flower set and total yield of seed.

The harvest occurred at the traditional time frame of the season (Sept 22nd to Oct 3rd).

The seed de-pulper was not available for the initial section of harvest and this seed languished for a week before being de-pulped. The germination results are in and some of this year's seed is not high enough in germination to be a saleable product. Overall, the percent germination is down from previous years.

Mouse-bait feeding stations are operational to minimize damage to rolled up netting.

In 2004, we must endeavour to start the pollination process earlier for greater seed set and we must de-pulp seed on the day we harvest.

Respectfully submitted,
Randy Baker

Acreage Measurement Program

The acreage measurement program maintains an acreage inventory for the purpose of assessing annual license fees. Measurements are completed by Paul Van den Borre using a GPS technology. With the new database, growers will be measured a minimum of every 3 years.

The chart gives a cost comparison on an annual basis of the acreage measurement program:

Summary of Acreage Measurement
	2001	2002	2003
Total Producers Measured	44	39	49
Total Acres Measured	1,069	1,249	730.8
Average Acres Measured per Grower	24.3	32.0	14.9
Total Cost of Measurer	$3,208	$4,960	$3,210
Average Cost per Measurement	$73	$127	$66
Average Cost per Acre	$3.00	$3.97	$4.39

Acres Ploughed Out
2003	170
2002	93
2001	123
2000	141
1999	220
1998	314
1997	176

2003 Producer Groupings By Size of Total Acreage

The following chart shows the grower population by size of planting. This year we have 101 growers, which is 10 less than last year.

Size of Acreage	# of Producers	Percentage of Producers
2 to 5 acres	25	25%
5 to 10 acres	17	17%
10 to 20 acres	22	22%
20 to 50 acres	29	28%
50 to 100 acres	7	7%
100 acres +	1	1%
Total	101	1000/0

2003 Acreage Report by District (10 years)

Year	Dist No. 1	Dist No. 2	Dist No. 3	Dist No. 4	Dist No. 5	Total
1994	398	1,112	278	92	323	2,203
1995	391	1,121	209	92	330	2,143
1996	452	1,255	216	85	344	2,352
1997	424	1,352	230	90	346	2,442
1998	403	1,264	222	83	290	2,262
1999	452	1,212	213	74	235	2,186
2000	419	4,273	231	106	230	2,259
2001	431	1,325	215	94	226	2,291
2002	377	1,571	221	98	250	2,517
2003	328	1,607	178	117	213	2,443

From the years 1993 to 1995, the acreage had declined an average of 110 acres per year. In 1996 and 1997, the increased level of new plantings and seed sales has generated an increase in acreage. From 1998 to 1999, the acreage declined by 76 acres which were old, low yielding patches. In 2001, the acreage increased by 32 acres from 2000. Last year the acreage increased dramatically by 226 acres. This year has seen dramatic plough outs of 170 acres. Most ploughouts were in District 2 but they made substantial plantings 2 years ago that came on line this year for harvest. District 3 had the next highest ploughouts and no replacement plantings to replace production.

2003 Age-Acreage Report

Description	Dist 1	Dist 2	Dist 3	Dist 4	Dist 5	Total
Number of Producers	16	51	11	9	14	101
Percent of Producers	16	50	11	9	14	100
Acres Planted 2003	0	310	0	1	36	347
Acres Planted 2002	0	201	6	6	18	231
Acres Planted 2001	26	159	8	3	32	228
Acres Planted 2000	14	137	17	1	18	187
Acres Planted 1999	67	57	17	4	21	164
Acres Planted 1998	82	112	13	0	33	240
Acres Planted 1997	35	184	7	0	9	235
Acres Planted 1996	37	120	24	16	6	203
Acres Planted 1995	12	61	4	26	17	120
Acres Planted 1994	5	74	15	3	11	108
Acres> 10 years	51	406	68	39	42	606
Non Bearing Acres	0	511	7	7	54	579
Bearing Acreage	327	1,607	178	117	213	2443
Total Acreage	327	2,118	185	124	267	3022
Percent of Total	11%	70%	6%	4%	9%	100%
Avg. Age-Years
Avg. Acres/Grower	20.4	41.5	16.8	13.8	19.1	22.3

Avg. Acres/Grower-2002	22.7	Avg. Age/Acre-2002	6.6
Avg. Acres/Grower-2001	21.4	Avg. Age/Acre-2001	7.5
Avg. Acres/Grower-2000	21.1	Avg. Age/Acre-2000	8.6

2003 Processing Deliveries

	Pounds Contracted	Pounds Delivered	% of Contract Delivery	% of Total Deliveries	Number of Growers
Thamesville	100,035	81,016	81%	53.5%	4
Langton	61,360	70,507	115%	46.5%	10
Total	161,395	151,523	94%	100%	4

The above chart shows the processing figures for the 2003 processing season. The processing price was $1.78 per pound for 5 ½ #1 asparagus. Some #2 product was also sent at .89 per pound. This was done in 4 truckloads between May 14 and May 28.

Of course, the volume was down considerably. Good quality was the comment from the processor. We will meet with the processor early in the new year to discuss next season's price and volume.

(Audited)
ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
FINANCIAL STATEMENTS
SEPTEMBER 30, 2003

Doug L. Murphy
CHARTERED ACCOUNTANT
49 PHEASANT TRAIL
CHARTERED ACCOUNTANT R.R. #3.
KOMOKA, ONTARIO
NOL 1RO
PHONE (519) 657-0767
FAX (519) 657-0060

AUDITORS' REPORT

To the Members of the
Ontario Asparagus Growers' Marketing Board:

I have audited the balance sheet of the Ontario Asparagus Growers' Marketing Board General Account, as at September 30, 2003 and the statements of surplus, revenues and expenditures and changes in cash flow for the year then ended. These financial statements are the responsibility of the Board's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statement are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Board as at September 30, 2003 and the results of its operations and the changes in its cash flow for the year then ended in accordance with Canadian generally accepted accounting principals employed by marketing boards as outlined in note 1.

London, Ontario
Chartered Accountant.
November 19, 2003

Statement 1

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT BALANCE SHEET
AS AT SEPTEMBER 30, 2003
(with comparative amounts for 2002)

ASSETS

Current:	2003	2002
Bank	$ 124,776	$ 12,556
Term deposits		78,477
Term deposits-restricted (note 3)	31,774	31,774
Accounts receivable	31,295	4,128
Government grant receivable	157,665	135,801
Inventory . products for resale	692	923
Prepaid expense	1,361	5,282
	347,563	268,941
Fixed assets (note 1)	1	1
	$ 347,564	$ 268,942

LIABILITIES AND GROWERS' EQUITY

Current:	2003	2002
Accounts payable and accrued liabilities	$ 31,460	$ 55,154
Growers' equity:
Surplus (statement 2)	$ 316,104	$ 213,788
	$ 347,564	$ 268,942

Statement 2

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
(Incorporated under the laws of Ontario)

STATEMENT OF GROWERS' SURPLUS
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Balance, beginning of year Bank	$ 213,788	$ 190,973
Add: Excess of revenue over expenditures for year	113,147	22,815
	326,935	213,788
Deduct: Rebate declared and paid during year	10,831
Balance, end of year	$ 316,104	$ 213,788

Statement 3

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

STATEMENT OF REVENUES AND EXPENDITURES
FOR THE YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Revenues:
License fees - net of discounts	$ 87,844	$ 83,257
Processing asparagus pool - schedule “A”	562	10,710
Net revenue on seed sales - schedule “C”	3,830	6,760
Net revenue - University of Guelph seed - schedule “D”	165,974	95,914
Net revenue on product sales - schedule “E”	(264)	1,004
Net revenue (loss) on agronomist - schedule “G”	(7,645)	(16,108)
Interest income	2,795	3,958
	253,096	185,495
Expenditures:
Wages and benefits	33,519	42,632
Promotion (schedule F)	23,669	269483
Directors' fees	18,635	24,507
Directors' travel	15,616	15,930
Office	12,054	8,418
Annual meeting	7,110	11,124
Rent	69750	69450
Legal and audit	49902	6,671
Office travel	39453	388
Acreage measurement	3,210	4,960
Telephone	3,107	3,069
Memberships	2,965	2,550
Consulting fee	223	360
Postage and delivery	1,505	1,591
Rebate - committee offices	1,040	966
Equipment rental	712	799
Equipment net proceeds of purchases and disposals	(55)
Bad debts (recovery)	(366)	5,782
	139,949	162,680
Excess (deficiency) of revenues over expenditures	$ 113,147	$ 22,815

Statement 4

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD
(Incorporated under the laws of Ontario)

STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Cash provided by (used in) operating activities:
Excess of revenue over expenditures	$ 113,147	$ 22,815
Add (deduct) charges to (credits to) operations not requiring a current cash payment - Net change in non-cash working capital balances related to operations -
Accounts receivable	(27,167)	459
Inventory	231	(288)
Grant receivable	(21,864)	(75,862)
Prepaids	3,921	1,873
Accounts payable and accrued liabilities	(23,694)	7,918
Cash provided by operating activities	44,574	(43,085)
Cash provided by (used in) financing activities: Rebate declared and paid during year	(10,831)
Cash provided in financing activities	(10,831)
Net increase (decrease) in cash during year	33,743	(43,085)
Cash position at beginning of year	122,807	165,892
Cash position at end of year	$ 156,550	$ 122,807
Represented by:
Cash	$ 124,776	$ 12,556
Term deposits		78,477
Term deposits - restricted	31,774	31,774
	$ 156,550	$ 122,807

Schedule "A"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF PROCESSING ASPARAGUS POOL
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Revenue:
Gross processing sales	$ 270,606	$ 483,846
Net revenue on processing lug rentals - Schedule "B"	6,319	10,495
	276,925	494,341
Expenditures:
Station fees	7,081	8,797
Director per diem and travel	29910	3,282
Memberships	1,200	769
Staff	1,063	2,131
Scheduling & shipping	330	960
Postage	324	520
Inspection fee	200	382
Telephone	193	167
Office	175	175
Office rent	150	150
	13,626	17,333
Available for distribution	263,299	477,008
Paid to growers	262,737	466,298
Excess of revenue over disbursements for year to general account revenue	$ 562	$ 10,710

Schedule "B"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF PROCESSING LUG RENTALS
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Gross revenue:
Processing lug rentals	$ 6,319	$ 10,495
Expenditures:	NIL	NIL
Excess of revenue over disbursements for year to general account revenue	$ 6,319	$ 10,495

Schedule "C"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF JERSEY SEED SALES
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Gross revenue:
Sales – net of discounts	$ 39,298	$ 56,768
Expenditures:
Seed purchases	35,245	49,784
Office staff	223	224
	35,468	50,008
Excess of revenue over disbursements for year to general account revenue	$ 3,830	$ 6,760

Schedule "D"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF UNIVERSITY OF GUELPH SEED
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Gross revenue:
Sales – net of discounts	$ 210,044	$ 117,710
Government Grant	55,301	$38,619
	265,345	156,329
Expenditures:
Promotion	24,555	879
Guelph seed royalties	22,203	14,077
Seed development	20,000
Seed production cost	13,561	5,923
Asparagus research fund contributions	7,000	35,000
Equipment purchases	5,079
Directors’ fees	2,045	950
Seed plot maintenance	1,313	1,313
Brokerage fees	974	293
Insurance	810	810
Freight delivery	790	24
Telephone	444
Office staff	401	804
Directors’ travel	196	342
	99,371	60,415
Excess of revenue over disbursements for year to general account revenue	$ 165,974	$ 95,914

Schedule "E"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF PRODUCT SALES
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	Elastic Bands		Bags		Total
	2003	2002	2003	2002	2003	2002
Revenue	$ 20,400	$ 23,138	$ 400	$ 1,100	$ 20,800	$ 24,238
Cost of Sales:
Inventory-beginning of year	111	323	811	312	922	635
Purchases and other	19,867	24,361		1,448	19,867	25,809
Rebate to growers	14,320	13,253			14,320	13,253
Government grant received	(13,353)	(15,541)			(13,353)	(15,541)
	20,945	22,396	811	1,760	21,756	24,156
Deduct:
Inventory end of year	567	111	125	811	692	922
	20,378	22,285	686	949	21,064	23,234
Excess of revenue over disbursements for year to general account revenue	$ 22	$ 853	$ (286)	$ 151	$ (264)	$ 1,044

Schedule "F"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF PRODUCT PROMOTION
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Gross revenue:
Grant income	$ 54,478	$ 56,707
Recipe Brochure sales		56
	54,478	56,763
Expenditures:
Media	39,563	49,475
Promotional items/trade shows	25,117	17,433
Development value added product	10,000	10,000
Directors’ fees	2,245	2,310
Directors’ travel	667	3,872
Telephone	444
Office Staff	111	156
	78,147	83,246
Excess of revenue over disbursements for year to general account revenue	$ (23,669)	$ (26,483)

Schedule "G"

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD GENERAL ACCOUNT

SCHEDULE OF AGRONOMIST EXPENSE
YEAR ENDED SEPTEMBER 30, 2003
(with comparative amounts for 2002)

	2003	2002
Gross revenue:
Grant income	$ 28,268	$ 37,584
AIMS growers membership fee	4,914
	33,182	37,584
Expenditures:
AIMS agronomy contract	21,644	27,110
Wages	13,570	16,923
Office	4,018	4,067
Travel	1,151	5,592
Telephone	444
	40,827	53,692
Excess of revenue over disbursements for year to general account revenue	$ (7,645)	$ (16,108)

ONTARIO ASPARAGUS GROWERS' MARKETING BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2003

1. Significant accounting policies

The Board employs a modified fund accounting method whereby its fixed assets and rental assets are not capitalized on the balance sheet and depreciated over their useful lives. Instead, the Board charges current year expenditures with the fixed asset purchases net of the applicable government grants and credits revenues with the proceeds from the sale of fixed assets. Fund accounting is concerned with the measurement of cash flow rather than the measure of period net incomes. The Board otherwise applies generally accepted accounting principles in the financial statements. During the year, the Ontario Asparagus Growers' Marketing Board expensed net of grants $2,590 ($NIL in 2002) of fixed asset and lugs and realized $NIL ($NIL in 2002) on the sale of lugs and $1,121 ($Nil in 2002) on the sale of fixed assets during the year.

(a) Scope

These financial statements are representative of the Board's General Account and do not include the assets, liabilities and operations of the area committees.

(b) Fixed assets and Processing lugs available for rental

Fixed assets and processing lugs are recorded on the balance sheet at a nominal value of $1. When these assets are purchased their cost is reflected in the statement of revenues and expenditures. Any sale proceeds are credited to revenue in the year of sale.

(c) Inventory

Inventory of product for resale is valued at the lower of cost and net realizable value. Seed inventory is valued at NIL and recognized when sold.

(d) Government grants

Government grants are recognized as receivable in the year the approved expenditure is made.

2. Lease commitments

The board rents its office premises in accordance with a lease agreement shared with the Ontario Ginseng Growers Association for $450 per mouth on a net basis until February 28, 2005.

3. Restricted term deposits

During the year the Ontario Asparagus Growers' Marketing Board sold $Nil ($NIL in 2002) of lugs that were previously expensed. Over the years the sale of lugs has accumulated to $31,774 ($31,774 in 2002) of which the Board has allocated to be used for future lug purchases.