CALGARY – The Canadian Cattlemen’s Association has voted to support elimination of the Crow benefit.
During a directors’ meeting following the CCA convention in Kamloops, organization members agreed their industry must steer away from subsidies. They fear American retaliation, such as a countervail duty or restrictions on the number of cattle they can ship south, said Sid Wilkinson of Ridgeville, Man., chair of the safety nets committee.
Citing frustration with the grain sector for not resolving distortions caused by the Western Grain Transportation Act, Wilkinson said his industry wants to wash its hands of subsidies.
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“We need a squeaky clean image,” he said.
Other countries watching
The cattlemen’s association maintains the WGTA subsidy impedes diversification in the West and raises questions by other countries about fair trade.
Last year, Canada exported 42 percent of its calf crop to the United States, mostly as slaughter animals. Due to complaints from cattle producers in northwestern states, threats of U.S. counter measures seem real.
Cattle industry left out
Although the American grain sector receives subsidies, the cattle industry does not, he said.
During the convention, Clay Daulton, foreign trade chair of the U.S.-based National Cattlemen’s Association, said better statistics are needed to see what is really going on with cross-border trade.
He said there is a perception in his country that Canadians receive more subsidies, but that view may not be correct.
“I think we’ll find we all have dirty dishwater,” he said.
The CCA directors also resolved to abandon participation in the Value Added Income Stabilization Account, saying the money should go into an industry development fund rather than propping up sagging incomes. Money would be spent on research and developing export markets.
