Cowboy politics have hogtied Alberta’s pig, lamb and potato producers.
In an attempt to solve infighting within the province’s beef industry, Alberta agriculture minister George Groeneveld introduced legislation April 28 that would make several groups’ checkoffs refundable.
Alberta Pork chair Herman Simons said his group is disappointed with the process.
Hog producers were not consulted and instead were told they would be included in the new legislation.
Pork producers vote annually to keep the mandatory, non-refundable check off. Simons said few producers ask for a refund because they know the importance of a well funded organization.
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He said it’s difficult to anticipate what impact a refundable checkoff will have on the organization’s budget and ability to operate.
He’s convinced some producers will ask for a refund because their farms are in financial trouble and every penny counts.
“It will mean more challenges for us. We can’t count on the money up front.”
A 10 percent loss from check-off refunds would translate into a $300,000 budget reduction.
In the past two years, Alberta Pork’s budget has been reduced 25 to 30 percent because low prices forced producers to leave the industry.
Alberta Lamb chair Noreen Moore said her group is also disappointed with the government’s decision.
“We were not consulted at all,” she said. “It blindsided us, really.”
Last year, Alberta Lamb increased its checkoff to $1.50 a head from $1, only the second increase since the checkoff was implemented in 1972.
Its entire budget is $150,000, all from the checkoff. Moore said the industry seemed to be on a roll lately, with good secure funding, but “I’m afraid this is going to be a setback.”
A dispute has simmered for years over how cattle industry groups should share the $12 million Alberta beef checkoff, which until now has gone directly to Alberta Beef Producers.
However, other cattle groups that have small budgets have clamoured for a share of the checkoff.
Potato Growers of Alberta general manager Edzo Kok said the potato industry wasn’t consulted about the switch.
“The future of our organization could be threatened,” added Kok, who wants the government to cancel the proposed legislation.
About 120 potato growers pay a levy to fund the potato organization. With such a small number of producers, the loss of a handful would create significant problems in the industry.
Kok said the levy created a unified organization that in turn gave clout to producers when negotiating prices with potato processors.
“We don’t think they totally comprehend what they’ve done,” he said of the government’s actions.
“It’s a knee-jerk reaction to a beef issue.
“In the meantime the three associations have become a victim.”
When Groeneveld introduced the legislation, he said groups could expect eight to 10 percent of producers to ask for their checkoff back.
The figure was based on the experience of groups with refundable checkoffs.
Kok said that doesn’t take into account the amount of “slippage” or money that isn’t sent in.
Groeneveld said the government introduced Bill 43, the Marketing of Agricultural Products Amendment Act, because of dissatisfaction in the industry.
“We discerned quite a bit of dissatisfaction from the producers. Being a choice type government, for market choice, it was the natural thing for this government to do.”
Groeneveld said he doesn’t believe the changes will place commodity groups in a difficult financial situation.
“I really don’t think it will. Let’s be honest. It may make them think a little more creative. There has to be some more accountability there. Once people get their minds around it, I’m hoping they’re not going to lose any more than the eight to 10 percent than the other commodity groups lose.
“It throws the issue back to the association and how do we act from here. We’re not abandoning them as a government. We want to work with all these groups because we want to move these markets forward.”
