The Manitoba Cattle Producers Association says it has been caught in an uncomfortable place because of a new beef levy planned by the provincial government.
The province wants a $2 per head beef levy implemented to support increased cattle slaughter capacity in Manitoba. The levy will be mandatory and nonrefundable.
The MCPA fears it will result in producers applying for refunds from an existing checkoff that it relies on for money.
“Producers who want the MCPA to come out adamantly opposed to the government’s new levy have threatened to withdraw their MCPA levy if we don’t support their view,” said association executive director Keith Robertson, during a May 4 meeting with producers in Brandon.
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“Similarly, those that think the MCPA should be coming out in favour of the levy have also said they will withdraw their support if we don’t recognize their views.”
Meanwhile, other producers have indicated they cannot afford to pay two levies and will be forced to take their refundable one back from the MCPA, Robertson said.
The association was first notified of the province’s plans for the new beef levy at a meeting on March 16. According to Robertson, the government told everyone present to keep the information confidential until a public announcement was made.
“The government also informed those at the meeting that the levy was going ahead with or without our blessing,” he said.
The province made its plans public in late March. At that time, it also announced the creation of the Manitoba Cattle Enhancement Council to manage the funds collected from it and from matching contributions from the province. The council has been given a mandate to decide how much the nonrefundable levy should be, but the province is recommending $2 per head.
Manitoba agriculture minister Rosann Wowchuk said her government approached the MCPA about working together on ways to avoid losses to the association and to share administration of the two levies. She said the offer still stands, although she questions where the association truly stands on the issue of adding a new beef levy.
“Although they say they aren’t opposed to the levy, they’ve obviously come out opposed to it.
“When we talked to them, they said they can’t take a position on this, and then they’re implying that I held them hostage.”
