Cow-calf producers receive payment under AgriRecovery program

by Karen Emilson

Flooded-out Interlake and Westlake cow-calf producers were the recipients of good news last week when it was announced that a per head payment is now available for producers in need under the AgriRecovery program.

Agriculture and Agri-Food Minister, Gerry Ritz made the announcement along with Manitoba Agriculture, Food and Rural Inidiatives Minister, Rosann Wowchuk on March, 5 in Winnipeg.

The announcement came after concerted lobbying efforts by the Manitoba Cattle Producers Association. President Joe Bouchard was at the announcement.

“This is something we’ve been working closely on a one-on-one basis with both the federal and provincial governments to deliver since the beginning,” said Bouchard following the press conference. “It shows the leadership and commitment of our two Agriculture Minsters and their departments and I want to thank them for their commitment to Manitoba’s cattle industry.”

Last summer the areas around Arborg, Gypsumville, Fisher Branch, Ashern and Eddystone received 385 to 474 mm of precipitation between June and the beginning of September 2008, the highest amount recorded since 1951. Wet conditions hampered haying efforts so many cash-strapped producers went into the winter feeding season without enough feed. Others sold off part of their herds when it appeared no funding announcement would be forthcoming. Approximately 850 producers were affected.

“Last fall when we were asking for money for feed under AgriRecovery and to get the tax act changed so that flooding would be included as a reason for tax deferral, we were told we were crazy and we would never get it done,” he said. “But on Thursday we proved them wrong.”

Bouchard also explained that the Municipalities declaring their areas disasters helped support the MCPA’s position and strengthened their case. Despite the fact the affected municipalities in the southwest did not declare their areas disasters, the Board was able to convince government that producers who sold their livestock because of drought in that area should also be included in the 2008 tax deferral.

“This help will give producers the ability to sustain and rebuild their operations,” Bouchard said. “This will go a long way to help these farm families and their communities and will provide a template for future disasters experienced by the agriculture industry.”

Details of the programs, which will be cost shared 60/40 between the provincial and federal governments include:

• The Manitoba Livestock Feed Assistance Program will provide $70 per head of breeding stock to cattle producers living in the municipalities that declared in writing their areas as disaster zones.

• The Manitoba Forage Restoration Program will provide $40 per acre for reseeding of pasture and restoration of forage lands within those same municipalities.
Program details and application forms will be available through the Manitoba Agricultural Services Corporation (MASC) and on the provincial website.
Additionally, Minister Ritz announced that the government is also offering tax deferrals to allow eligible producers in designated areas to defer a portion of the income from the sale of breeding livestock for one year as they replenish breeding stock in the following year. This change to the Income Tax Act gives producers across Canada the option of tax deferrals for flooding that match the tax deferrals they have traditionally had in times of drought.

Selkirk-Interlake Member of Parliament, James Bezan participated in the announcement.
“This announcement will put dollars in the hands of cattle producers so they can buy the feed they need and retain their herd,” he said. “And for those that did liquidate or downsize we now have the tax deferral. I have persistently advocated for this tax measure to be available to producers who have had to liquidate their herds due to flooding, as has been available to producers in drought situations. My argument has been that it is only fair because the reasons for liquidating in both situations are the same – a lack of feed. And the reason it was so important to declare areas a disaster zone last summer, is that they had to be to fit underneath the requirements of the tax deferral. It is great that we were able to make that happen and that it is retroactive to 2008.”

Bezan said the tax deferral option will make a huge difference for farmers.
“Unfortunately the producers in the Interlake and Westlake didn’t have assurances of the tax deferral option when making their decisions last fall,” he said. “But from here on in, if faced with this scenario in the future, producers can sell out with plans of buying back in with confidence they won’t be penalized tax wise.”