Plebiscite will be held later this year on a joint plan agreed upon by the two largest cattle groups in the province
A refundable checkoff or a non-refundable checkoff? Members of Alberta Beef Producers and Alberta Cattle Feeders Association have been wrestling with the question seemingly until the cows came home.
The matter will be settled through a plebiscite to be voted upon later this year by members of both groups, with the terms yet to be established by the Alberta Farm Products Marketing Council.
ABP and ACFA organized a series of meetings to explain a plan to reinstate a non-refundable checkoff. The last of those meetings takes place this week.
Read Also
VIDEO: British company Antler Bio brings epigenetics to dairy farms
British company Antler Bio is bringing epigenetics to dairy farms using blood tests help tie how management is meeting the genetic potential of the animals.
The two groups have agreed to an arrangement to divide the $2 provincial checkoff, should it become non-refundable, among the two groups and the Alberta Beef Industry Development Fund (ABIDF).
“We are coming together to solve industry challenges together,” said ACFA chair Ryan Kasko during Lethbridge meeting.
A non-refundable checkoff will provide stable funding to both groups. Last year $2.5 million of the $10.3 million ABP collected through the checkoff was refunded, much of it to cattle feeders.
Many of them, as well as some ABP members, said a refundable checkoff makes the system more accountable to producers.
Kasko said the arrangement agreed upon by the two groups is designed to remedy that while also stabilizing funds.
“We plan to hold ABP more accountable,” he said.
ABP chair Charlie Christie said co-operation between the two entities is vital in defending the industry and in lobbying government.
“The power of it is, I think, far greater than the funding,” he said about the agreement. “We’ve got to ask for a leap of faith. Have some faith in your industry.”
Both men said the proposed plan isn’t perfect but it is a start to greater co-operation and will be periodically reviewed.
Several people at the meeting suggested the agreement should go further and propose a merger of the ABP and ACFA into one organization that would have a more powerful and consistent voice.
Bill Newton, a member of ABP and the Western Stock Growers Association, said he is against the proposal for a non-refundable checkoff, which is a “tweaking” of the current system in order to retain money previously refunded to cattle feeders who requested it.
Newton said he is reluctant to commit checkoff money when the interests of all cattle producers may not be represented. As an example, he said the ABP was strongly opposed to the establishment of the Alberta Livestock and Meat Agency, back when the checkoff was non-refundable.
Later, ALMA came to be accepted and praised for its research initiatives.
Newton also said ABP or its predecessor, the Alberta Cattle Commission, took a negative stand on grazing leases, contrary to the interests of WSGA members who at the time could not have their checkoff refunded.
Cattle feeder Leighton Kolk said stable funding and cooperation is necessary to address the global risks faced by the industry.
ABP zone director Sheila Hillmer agreed.
“If we wait for perfect, I guarantee you we won’t have what we have today,” she said, in reference to cattle industry strength.
Cattle feeder Rick Paskal said the dairy industry is a prime example of an organization that speaks with one powerful voice when addressing government or consumers.
About 18,000 Alberta cattle producers will be eligible to vote on the plebiscite. However, some at the Lethbridge meeting expressed concern about voter turnout and whether the government would recognize the vote outcome should turnout be low.
Kasko said the question to be asked and the voting process will be set by the marketing council and next steps after the vote lie in government hands. He acknowledged that voter turnout is a worry, as is the outcome.
“If we’re unsuccessful I have no idea what will happen,” he said.
