An impassioned debate over money resulted in resolutions asking for a reinstatement of the non-refundable checkoff on cattle sold in Alberta.
The once mighty Alberta Beef Producers finds itself penny pinching year to year as it watches nearly $2 million of potential revenue rebated to ranchers and feedlots who ask for their money back.
Three dollars is checked off the sale price and sent to ABP every time an animal is sold in Alberta. The organization collected $10.8 million in the budget year of 2014, based on the number of cattle sold. This is up slightly from 2013.
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However ABP had to return $2.4 million to producers who asked for refunds.
As well, $1 per head is sent to the national Market Development and Promotion Agency to fund Canada Beef Inc. and the Beef Cattle Research Council. Last year, $3.7 million was submitted.
The $1 per head is mandatory, so those requesting a rebate receive $2 per animal sold.
“We want to get the checkoff non-refundable,” Rob Somerville said during the ABP annual meeting held in Calgary Dec. 1-3.
“We will have to go to government to do that. We don’t know exactly what they are going to say.”
The organization has refunded $9.4 million since the legislation was changed five years ago, according to the ABP annual report. Of that, $8 million was returned to feedlots.
The annual budget is now set at around $5 million, and ABP says it is struggling to meet its commitments. Part of its mandate is to fund marketing, promotion and beef research as well as send $1.5 million a year to the Canadian Cattlemen’s Association.
The organization was founded as the Alberta Cattle Commission in 1969 with a non-refundable checkoff that has been challenged over the years.
The province agreed to make all checkoffs refundable five years ago, and in the ensuing debate there was talk of raising the checkoff and requesting a $1 non-refundable provincial levy.
There is also talk that the national levy will be increasing.
“It is perhaps a good time to catch up on the deficiencies that we have, especially in the research community, and build some capacity,” said Lyndon Mansell of Innisfree.
“If we can’t afford $2 now, we sure the devil won’t five years from now when the next catastrophe hits us.”
Considerable resentment was also expressed at the meeting toward producers who request refunds, and resolutions were passed requesting a release of names of those who have received them.
The push for a refundable checkoff had been prompted by a lack of confidence in ABP, which some said had become too bureaucratic and unresponsive to grassroots opinions.
“I am ashamed of people in our industry that are pulling their check-off dollars back,” said John de Groot of Vauxhall. “They had their reason a few years ago to pull their checkoff back. They don’t need to anymore.”
Others at the meeting complained that it is unfair for producers to benefit from research and promotion projects but not pay for them.
“I believe it is time we identify the people who don’t contribute to our organization,” said Brian Thiessen, who runs a feedlot near Strathmore.
“We have a very good group of people that contribute and believe strongly in ABP. I think we almost disrespect the people that contribute fully to ABP as we give everyone the same benefit, whether or not they are contributing.”
Two other resolutions requested stricter requirements when claiming a rebate. There are two refund periods each year, and the resolutions said all supporting documents and other paperwork should be submitted within 60 days. There is now no deadline to provide proof of cattle sold.
barbara.duckworth@producer.com
