KITSCOTY, Alta. – Alberta’s largest cattle organization plans to dip into its $3 million nest egg in order to appease its critics, said the chair of the organization’s finance committee.
“The $3 million has become a matter of embarrassment,” said Karl Schneider of the Alberta Cattle Commission during its annual delegate meeting here last week.
“If it was a private business we would be proud of this surplus,” said Schneider, of Mannville, Alta.
The 25-year-old cattle commission is funded by a $1.50-per-head checkoff charged to producers each time an animal is sold at an auction or feedlot. In 1995, $5.7 million was raised through the levy.
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The checkoff was raised from 80 cents in 1987. During that time, Alberta’s cattle industry has grown to 4.8 million head from 3.37 million head in January 1987, and so has the money coming into the organization.
In 1995 there was $3.3 million in the fund, higher than the $3.1 million a year earlier. As well, the fund generated a further $150,000 in investment income this year. In the coming year, the organization hopes to spend more than $1 million to reduce the surplus.
“We’re not bankers,” said Blake Cherry, a member of the organization’s board of directors.
Some producers feel the commission should be collecting only enough money to pay for research, programs, promotions and running of the organization, not building up an enviable bank account.
The 1996 proposed budget recommends spending about $1 million of the surplus on promotion, research and market development.
“If we’re going to spend our way out of the surplus, then let’s spend it wisely,” said Cherry of Lloydminster, who is one of seven candidates in the region running for election.
Schneider said the organization will also look at a floating checkoff, which can be adjusted up or down depending on the need, during its upcoming annual general meeting at Edmonton in early December.
Bob Hiltz of Kitscoty, Sask., casts his ballot at an Alberta Cattle Commission delegate meeting. Issues were discussed in preparation for the annual general meeting in Edmonton Dec. 4-6.
