Saskatchewan Cattlemen’s Association says it must prepare for lower revenues once sales fall off following a red hot run
REGINA — The Saskatchewan beef checkoff is set to rise 75 percent in 2025 from $2 to $3.50 per head.
Producers attending the Saskatchewan Cattlemen’s Association annual general meeting voted in favour of the hike as of April 1, 2025, although some worried more producers would request refunds because of all the escalating costs they are facing.
However, they also heard that the SCA, which administers the checkoff, is cutting its 2024 budget by 15 percent in anticipation of lower marketings in future.
Chief executive officer Grant McLellan said the organization is looking at increased revenue right now as more cows and heifers go to market.
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“What we expect is in the out years, those will be reducing,” he said, noting the fiscal year runs to July 31.
“I certainly don’t want to create any expectation that those numbers are going to be consistent in the out years.”
He said the SCA has to stabilize operations in anticipation of less money and be ready to move forward when that turns around.
McLellan said it must be transparent and accountable to producers.
Producers currently pay a checkoff of $4.50 per head, with $2.50 of that a non-refundable national checkoff. The increase to a total of $6.00 will put Saskatchewan in the middle of the pack when it comes to other provinces and leave Alberta as the lowest at $4.50.
Saskatchewan doubled its checkoff in 2012 after the SCA leadership at that time warned of red ink. Producers pay 53 cents from that $2 to support the Canadian Cattle Association, 48 cents goes toward operations and five cents to a contingency fund.
Former Saskatchewan CCA director Pat Hayes said the contingency fund is in place but couldn’t support the organization over the long term.
CCA general manager Ryder Lee said the situation is difficult to predict because no one knows what marketing levels will be and when change might happen.
The resolution to increase the levy came from District 1 in the province’s southeast. Darren Ippolito said the SCA has to have funds to do its work for grassroots producers.
“I don’t have to tell anybody in this room about how wonderful this market has been, so personally I feel that if we can’t take this on this year in record prices, when can we take it on?” he said.
Calvin Knoss of Rockglen proposed an increase of only 75 cents, suggesting that would make it more palatable to producers facing so many cost hikes.
He said the Bank of Canada shows that a 2012 dollar would require $1.31 today. On a $2 checkoff that is 62 cents.
“I’ve always supported check-offs,” he said.
“I just think we need a reasonable number.”
Board member Chad Ross spoke against the amendment, noting SCA has cut sponsorships and reorganized staff.
He said as soon as producers start to retain females, marketings will drop significantly.
“I don’t know how much they’re going to go down, but they could go down as much as 30 percent,” he said.
“So what we did as an executive is we went to our staff and we said, ‘OK, if marketings slow down by 30 percent and then we take into account 12 years of inflation … what do we need to stay status quo?’ Our staff tells us that we need to be at $1.50.”
Ross said producers also contribute $50,000 to the National Cattle Feeders Association from the provincial checkoff and fund Verified Beef Plus and other worthwhile programs.
The amendment was defeated but followed by a motion to table. Former SCA chair Rick Toney said it would be valuable to get more input from producers around the province and suggested the proposal be taken to district meetings.
However, the fall district meetings have been poorly attended in recent years.
Toney said livestock marketers have also asked for an increase to their share of the provincial checkoff from five cents to 12 cents.
The tabling motion was defeated and the original resolution was passed. It requires approval from the Agri-Food Council before the increase can be implemented.
Lee said the vote indicates continued support for the work of both the provincial and national organizations.
The only other resolution to come forward was from District 4 in the southwest asking SCA to investigate opportunities in virtual fencing, including funding research or possibly having a stake in it. It was defeated.
The membership re-elected Philip Lynn to the CCA board and chose Karla Hicks from Mortlach to replace the outgoing Duane Thompson. Judson Christopherson was acclaimed as the provincial representative to the Canadian Cattle Youth Council.
