A $30 million cash advance for British Columbia cattle producers who are burdened with economic losses caused by BSE has received a mixed reaction.
B.C. agriculture minister John van Dongen announced Sept. 21 that the province is offering cash advances of $100 per breeding cow through the Canadian Agriculture Income Stabilization program. The program pays $50 for other ruminants such as sheep and goats.
“This initiative, of itself, will not correct the impacts of the U.S. border closure, but it will provide our producers with a much needed cash flow while they consider their options as we move forward,” van Dongen said at a news conference.
Read Also
Calf hormone implants can give environmental, financial wins
Hormone implants can lead to bigger calves — reducing greenhouse gas intensity, land use intensity and giving the beef farmer more profit, Manitoba-based model suggests.
The federal and provincial governments will share the costs, with the province contributing $12 million.
The payments will be recovered from producers when they make their 2004 CAIS claim.
All producers who registered their breeding herds with the province as of Dec. 31 for previous BSE aid packages will receive letters explaining the latest program.
“It will be up to the individual ranchers to tell us whether they want that advance now or not,” van Dongen said.
The B.C. Cattlemen’s Association said the announcement is good news but added that only half of the province’s producers have joined CAIS and without more information and an extended deadline, some may be left out.
BCCA manager David Borth said producers have struggled to find information about how to join CAIS and what it might provide. As well, CAIS information arrived in a cascade of other BSE relief programs last year, leaving people confused about their eligibility.
“We are pressing for B.C. to take a lead role in making sure everyone is signed up,” Borth said.
The cash advance is part of a four-pronged national program announced by federal agriculture minister Andy Mitchell on Sept. 10.
B.C. is still discussing its approach to cattle set-aside programs, BSE surveillance and slaughter plant expansion.
Strategies such as the $338 million delayed marketing programs for feeder calves and fattened animals generated mixed feelings in B.C.
The province will likely participate in the set aside for calves but not slaughter cattle.
Bill Freding, president of the B.C. Cattle Feeders Association, said his organization does not want a set-aside program for slaughter cattle and isn’t sure a calf program is useful.
“This whole deal is deferring a problem,” he said. “Right now there isn’t a big surplus of cattle. Packing plants are having to stretch a little bit to get their kills. All we would be doing is putting it off until January.”
He said holding calves could disrupt markets later.
“The packers are going to be well aware of what was set aside and what is coming out. It’s putting a cap on the futures market.”
As well, he is concerned about possible trade retaliation from R-CALF when the border opens. If producers have received government money, the activist American cattle group could make a case for countervail or anti-dumping, he added.
“Paying them to hold them until the border opens is pretty good grounds for a trade suit.”
B.C. finishes 20,000 head in a normal year, but this year pens are nearly empty.
Freding said there are only about 2,000 cattle weighing more than 1,000 pounds on feed.
The fall calf run generally starts in earnest at the beginning of October. There could be a rush to hit the markets because the best prices may be paid at the beginning of the run rather than later in the season.
While some are on offer at auction, Freding said most calves right now are being sold to packing companies. However, he is sure that B.C. feedlots should be able to compete once the run starts.
“I would think most B.C. feedlots will fill up once the calf run starts. There are going to be a lot of calves that we don’t have trucks for to get to Alberta so the local feedlots will be able to handle them.”
