Manitoba has come up with cash to help struggling cattle producers faced with high feed costs, a drop in livestock prices and a high Canadian dollar.
“This is an industry that only recently was able to begin to recover from the impact of the BSE crisis and now cattle producers are being hit again,” said Manitoba agriculture minister Rosann Wowchuk.
Of the $14.7 million to support cattle producers, the province is contributing $7.35 million in support while an equal amount has been allocated under Manitoba’s share of the federal government’s Community Development Trust, a new program to assist communities and workers suffering economic hardship caused by the current volatility in global financial and commodities markets.
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Under the new assistance program, Manitoba cattle producers will receive a direct payment of up to three percent of historical net sales.
The payment, to be administered by the Manitoba Agricultural Services Corp., will be provided to all ruminant producers and will be in proportion to the size of a producer’s livestock operation, with a maximum payment of $90,000.
Manitoba Cattle Producers Association president Martin Unrau welcomed the announcement, but noted that it is lower than the amount paid out by other provinces.
“If you had a hundred cows and sold a hundred calves for $50,000, you’ll probably get around $1,500,” said Unrau.
“It won’t buy a whole lot of hay. It won’t buy a whole lot of diesel fuel, either,” he said, adding that he recently filled up the bulk tank on his farm at a cost of 95 cents per litre.
He noted that a program offered by Ontario pays out 12 percent, and Alberta’s margin enhancement offer to the tune of $165 million is also more generous.
“Saskatchewan has done a loans program, and quite honestly we don’t really want that,” said Unrau.
