June 1, 2010
Canadian cattle producers hope for financial relief
Cattle producers in Alberta affected by last year's drought can expect to receive financial help.
Industry officials hope that federal and provincial agriculture ministers will offer payouts to ranchers in regions stricken by dry conditions for much of last year in 2009. Cattle producers had been lobbying governments to trigger an assistance program to help offset soaring feed costs.
In November 2009, industry officials first called on politicians to tap money under Agri-Recovery, a jointly funded programme designed to quickly respond to disasters such as adverse weather or disease.
Ted Ford, a committee chairman at Alberta Beef Producers and a cattle producer north of Edmonton, said the group had sought payments based on a per-head basis - as much as CAD180 million (US$172 million) to cover the estimated 1.5 million cattle in affected regions. That represented about one-third of the additional feed costs, he said. Ford, who met with Alberta Agriculture Minister Jack Hayden earlier this month, said that they will not receive that amount of payment, as he has been told.
"But providing the amount is reasonably substantial, there's going to be quite a few happy cattlemen in this province because the injection of cash is desperately needed,'' Ford said.
Ranchers had scrambled for feed all winter after last summer's drought razed crops and crippled hay and pasture land.
"Even right now we're facing no pasture… our grass isn't growing. We have very little if any carry-over from last year," said Rose Wymillionenga, who keeps 150 cows on her farm at Leslieville, near Rocky Mountain House. Hay that used to average about CAD35 (US$33.40) a bale now goes for upwards of CAD100 (US$95.60), and is now scarce in the market.
Spring rains have helped boost prospects for this year, but producers have been selling off cattle to try to manage feed costs.
While news that help may be coming is welcomed, ranchers are disappointed by the slow reaction by governments on the issue. "Our biggest complaint thus far is how slow it took to get to this point," said Ford.
"We think there needs to be some work on that. Other segments of agriculture don't have to go through that delay should they qualify for an AgriRecovery program - we hope we never do again,'' he said.
Federal Agriculture Minister Gerry Ritz, Alberta Agriculture Minister Jack Hayden and his Saskatchewan counterpart Bob Bjornerud are slated to make the announcement this morning in Lloydminster, on the Alberta-Saskatchewan border.
"It's in support of the livestock producers that were affected by the drought in Alberta and Saskatchewan," said Heather Holman, Alberta-based spokeswoman with Agriculture Canada.
Graham Schetzle, co-owner of Dryland Trading Corp., an auction market in Veteran, said that a major sell-off of cattle throughout the winter has now slowed. "There was a lot of legitimate fear because it was so dry and the feed stocks were pretty well empty," he said. "Without the moisture we had in the past five weeks, we would have been in a world of trouble for sure."
Alberta's cattle herd has been dropping steadily over the past few years, as multiple years of drought, rising costs and tough export markets have taken their toll on producers, he added.
