Bill Campbell wants to know what will happen if the border stays closed this summer to exports of Canadian cattle to the United States.
The producer from Minto, Man., shares the hope that the border will reopen, but says government and the livestock community must think about contingency plans if it doesn’t.
“If this thing is not solved by summer, we’ve got big problems,” Campbell said during a general council meeting of Manitoba’s Keystone Agricultural Producers in Brandon last week.
Cattle exports to the U.S. stalled last year after BSE was discovered in Canada. There is a lot of speculation that the border will reopen in June, although there has been no guarantee from the U.S. government.
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Campbell said while producers in his area of southwestern Manitoba have not yet been forced into bankruptcy, some are seeking bankruptcy advice. Older producers who want to retire from farming are unwilling to sell under current cattle prices.
“I don’t think we can lose our hope at this point, but we have producers with serious financial difficulties and hope doesn’t carry much weight with the banks.”
Canadian Federation of Agriculture president Bob Friesen said discussions with government about contingency plans continue.
The CFA is pushing for government support to help farmers restructure their long-term debt at low interest rates.
Cash advances and loan guarantees are also under discussion, said Friesen, noting the government would need to set aside no more than $300 million to guarantee $1 billion worth of loans.
“That’s another way to allow farmers to take a step back and make smart marketing decisions.”
Over the past year, the CFA has been among the farm organizations lobbying for direct compensation to livestock producers. Provincial and federal governments announced a number of different programs last year and last month Ottawa announced a $995 million farm aid package, with $680 million targeted specifically to cattle producers.
“If the border does not open soon, there will need to be further compensation,” Friesen said.
Lingering in the background during the past several months has been the question of whether Canada might be forced to trim the size of its cattle herd. The general consensus is that government would need to compensate producers for such a reduction.
“I’m hoping we’re not going to have to deal with that issue because we’re all hoping the border will be open by summer,” said KAP vice-president Ian Wishart, whose diversified farm operation near Portage la Prairie includes cattle.
Wishart said BSE’s effects will be felt for a long time, even if the border does reopen this summer. All aspects of the Canadian cattle industry have been affected, from producers through to the packing industry.
