Alberta’s new environmental rules are more industry friendly than
proposed regulations in Ontario and will give Alberta cattle producers
at least a short-term advantage over Ontario competitors, says a study
produced by the George Morris Centre in Guelph, Ont.
“I definitely think Alberta’s new rules are aimed at giving the
industry more predictable rules for expansion while in Ontario, they
are more aimed at constricting growth,” said George Morris researcher
Holly Mayer of Calgary, one of the report’s authors.
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“It is possible that Ontario farmers wanting to expand might see the
opportunities better in the West.”
In both provinces, new environmental rules will add costs to new or
expanding intensive livestock operations. In Ontario, existing
operations also must adhere to proposed new rules.
Alberta’s law and regulations took effect in early 2002, while
Ontario’s proposals remain before the legislature, to be passed
sometime this year.
They are aimed at responding to public concerns about water, soil and
air contamination from expanding or intensive livestock operations.
In Ontario, where manure-contaminated water killed seven people and
made hundreds more sick in Walkerton, the proposed legislation will
impose tough standards for manure storage, handling and transportation,
strengthen manure application regulations and regulate farms according
to their size and potential for pollution.
In Alberta, the emphasis is on helping potential investors know what
they must do to win approval to establish a new farm or expand an
existing one. Current operations are not affected unless they expand.
“Overall, the new legislation should facilitate growth in the hog
industry in particular,” said the report.
“It is anticipated that plans for the construction of hog production
facilities, which have been put on hold due to uncertainty in gaining
regulatory approval, will now move ahead.”
The report said expansion will end up being cheaper in Alberta than in
Ontario.
The analysis of environmental legislation in the two provinces suggests
it will make life more predictable for livestock investors and reduce
public concerns about manure-related pollution.
But it also suggests that an unintended side effect could be a
concentration of the industry and expansion of existing operations.
Smaller livestock farms may decide they cannot afford the cost of new
environmental controls.
“The irony is that if the regulations significantly increase capital
costs, it may be necessary for farmers to expand output to generate
sufficient revenue to recover the additional costs,” the report said.
And particularly in Ontario, where the new rules apply to all
producers, it could drive existing small producers out of the business.
“The proposed Ontario legislation could result in fewer and larger
livestock operations.”
