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Ont. eager to get out of hogs

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Published: February 11, 2010

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A national program aimed at reducing Canada’s hog inventory is proving most popular among pork producers in Ontario.

According to data provided by the Canadian Pork Council, nearly 48 percent of hog producers who have qualified for payments under the Hog Farm Transition Program (HFTP) are based in Ontario.

The $75 million program, unveiled last year, pays producers to sell their hog inventory and mothball production facilities for a minimum of three years.

Producers who want to take part in the program must submit bids indicating how much money they would require to get out of pig production.

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So far, more than $61 million has been distributed among 338 hog producers across Canada.

Of those, 161 producers are from Ontario, 59 are from Manitoba, 41 are from Alberta and 12 are from Saskatchewan.

The remainder are from Quebec (36), Atlantic Canada (19) and British Columbia (10).

Producers from Ontario and Manitoba also commanded the largest cumulative payments under the program.

So far, Ontario producers have qualified for roughly $22 million, while Manitoba producers have qualified for roughly $14 million.

Together, producers from the two provinces will take about 62,000 sows out of production, along with 135,000 weanlings and 181,000 feeders between 30 kilograms and market weight.

In Saskatchewan, only 12 producers have qualified for HFTP payments but those who qualified are relatively large producers.

If they empty their facilities as planned, Saskatchewan’s 12 qualified producers will take more than 8,000 animal unit equivalents (AUEs) out of production and share $7.2 million. That’s an average of 672 AUEs and $600,000 per producer.

By comparison, the 41 producers who qualified in Alberta will take about 7,700 AUEs out of production and will share roughly $6.7 million.

That’s an average of about 188 AUEs and $163,000 per producer.

Under the program, producers who qualify for payments must empty their barns within a specified time. Producers retain the proceeds from their herd liquidations.

When production barns are emptied, the facilities are inspected to ensure compliance. Cheques are then issued by the Canadian Pork Council, which administers the HFTP.

Producers who receive HFTP payments must honour all debt obligations related to hog production.

Gary Stordy, public relations manager with the CPC, said producers who want to take part in the program still have a chance to qualify for depopulation payments.

About $14 million is still available and will be allocated during the final tender, which takes place March 10.

Producers must submit their registration forms by Feb. 17.

About the author

Brian Cross

Brian Cross

Saskatoon newsroom

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