EDMONTON — A dwindling cow herd and a refundable checkoff have created a dire financial situation for Alberta Beef Producers, once the envy of farm groups across the country.
For the first time in history, the provincial cattle organization has not been able to pay for its share to the Canadian Cattlemen’s Association, the national cattle agency and it was forced to dip into a reserve fund to meet its budget.
John Buckley, finance chair said the $5 million budget would need to be trimmed more if money raised from the checkoff continues to decline.
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“We are in a very tenuous situation with our funding,” said Buckley during the group’s summer meeting.
At the end of the 2013 budget year, the organization about $538,000 less revenue than expenses. At the end of 2014, it has recorded a $754,000 shortfall.
“The tools we used in the past to predict how many marketings we received have not been reliable for the last couple years. We are in a declining revenue situation and we don’t have the assured level of funding we once had. It is a huge challenge,” said Buckley.
From April 31 2013 to March 31 2014 were 3.7 million cattle were marketed in Alberta, up from 3.4 million in the previous period.
In Alberta, a $3 checkoff is charged each time an animal is sold. Of that, $2 is refundable and $1 is paid to a national beef promotion and research agency and is non-refundable.
Four years ago the checkoff was made refundable, which enables producers to apply to have some or all of the refundable portion returned.
In 2013, Alberta Beef Producers received 923 refund requests worth about $2.4 million.
The agency kept $4.6 million, but it is retained in a special account until the following year.
“We will have very serious decisions to make to get the best value for our producers,” said Buckley.
Greg Bowie, ABP chair said the splintered nature of the cattle industry in which various groups represent different interests, has also divided industry money, which prevents the industry from investing in research projects or taking on national beef and cattle advocacy.
