Alberta’s decision to set a different end date for the fat cattle set-aside program than the federal government will cost the province millions of dollars in federal aid money.
The federal government wants calves born in 2004 to be held back from slaughter until at least Jan. 1, 2006, to limit the number of cattle coming to market. Alberta announced that cattle under its program would be eligible for slaughter Oct. 1, 2005, to allow heavier calves to go on the program without being penalized.
With no agreement of an end date, the federal government will withhold part of its money to Alberta for the program.
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“The cost sharing will be reduced in Alberta because we are going with the Oct. 1, 2005, restriction date on slaughter. We may only be getting 80 percent of our cost sharing. That’s still under negotiation,” said Lloyd Andruchow, director of the rural services division of Alberta Agriculture.
Andruchow didn’t say how much less the federal government would give.
In September, Ottawa announced $385 million available for its 60 percent of the cost of the combination of fat cattle and calf set-aside programs. The provinces are responsible for the other 40 percent.
Producers agreeing to hold back 30 to 40 percent of their 2004 calves would be paid $200 per head. Producers will still be paid $200 despite the federal government’s withholding of funds. Andruchow said they don’t know how many calves will be enrolled in the program.
