A federal program aimed at reducing Canada’s hog inventory will soon remove another 38,000 sows, 77,000 weanlings and 150,000 market hogs from Canadian pig barns.
The Hog Farm Transition Program (HFTP) pays producers to empty their barns and mothball their production facilities for at least three years.
To qualify for payments, registered producers must submit bids outlining how much money they would require to get out of the industry.
Under the program, a total of $75 million will be distributed in four tenders.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Results of the third tender, worth $25 million, were released last week by the Canadian Pork Council, which is administering HFTP funds.
According to council spokesperson Gary Stordy, 403 bids were received in the third tender and 145 were accepted before the money was allocated.
The weighted average of the 145 successful bids was $925.42 per animal unit equivalent (AUE).
The lowest successful bid was $584 per AUE while the highest successful bid was $999.86 per AUE.
Approximately $60 million has now been divided among 335 successful bidders.
In return, producers have agreed to reduce the Canadian hog inventory by more than 670,000 animals.
That number includes 105,000 sows, 227,000 weanling pigs below 30 kilograms and 339,000 feeder hogs between 31 kg and market weight.
Another $14 million will be allocated in the program’s final tender, which will take place March 10.
Producers who plan to participate and have not yet registered must submit their registration forms by Feb. 17.
