The Alberta government has announced its third financial aid pro- gram aimed at helping beleaguered feedlot owners boost cattle prices to a more normal level.
Unlike previous aid programs for those affected by bovine spongiform encephalopathy, the Alberta Fed Cattle Competitive Market Adjustment Program has no end date and no financial cap to stop panic selling of cattle.
“Putting dollars on programs do nothing, absolutely nothing, for market discovery,” said Alberta Agriculture minister Shirley McClellan, who added attaching dollars and dates to previous BSE support programs created panic in producers wanting to take advantage of the government programs.
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By not announcing a program dollar value or a specific calendar end date, the provincial government hopes calm will return to the market because owners of the cattle know there is no rush to sell.
“Clearly the bottom line is we want to start normalizing the market. The best way we can do that is not influence people’s buying and selling decisions,” said John Knapp, director of the rural service division of Alberta Agriculture.
The new program started Aug. 25 and will end with the announcement of the border opening to live cattle.
Jeff Warrack, past-president of the Alberta Cattle Feeders Association, said it is crucial to avoid a price cap or end date. Alberta’s previously announced $65 million competitive bid program ran out of money in two weeks and the $460 million federal and provincial BSE recovery program ended after two months.
“It seems like subtle changes not announcing a set amount or this is going to end on a certain date, but psychologically, for the people who are selling these animals and suffering the financial loss, I think they’re important ones,” said Warrack.
“We’re not in the driver’s seat here by any means, but I think now we know we have the support of the government here to try and begin managing our operations in a more normal fashion.”
Under the new program fat cattle can be purchased and either slaughtered or held in a feedlot. Officials are hoping that expanding the list of who can buy cattle will drive prices up.
The two previous programs already covered 82 percent of the 650,000 Alberta cattle on feed as of May 20.
McClellan said she’s not sure how many of the remaining 100,000 cattle that were on feed May 20 will be covered under the new program.
