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Thursday, December 4, 2008

Guest Editorial

Targeted Advance won't work for us

Lynne Henry

I have read about the Targeted Advance Payment, and have looked into the possibility of a payout. I called the local ag office in Ste. Rose and was given a toll free number to call.

This payout is an advance payout if you are going to be eligible for an AgriStability payment. The press release put out by the provincial government states, “Approximately 850 eligible producers will have access to more than $7 million in funding. The average advance would be in the range of $8,400”
I am finding this announcement extremely frustrating, as it is advising the public that producers are receiving large amounts of money. However, we have been trying to tell our elected officials that the majority of cattle producers do not have anything but negative margins, and as a result there are no payouts.

Please ask yourself this question: how can a cattle producer have a payout with the cattle industry given the state it has been since BSE?

I have truly been trying to follow what your department is asking of producers—to be in AgriStability as this is the program now available. I have encouraged other producers to do the same. But my husband and I went to our accountant and were advised on their predictions, that we would not be entitled to a payout as we have a negative margin - again. So to date, the AgriStability program has not met the needs of us or many of our cattle producing neighbours. I asked a large accounting firm how many of the cattle producers they provide services to, do they expect will have positive margins. The response was less than 5%. Now can you honestly tell me this AgriStability program is providing the assistance needed for cattle producers?

Two hundred and forty individuals gathered together at the Westlake Community Centre on September 11, 2008 to hopefully hear there was some hope for their livelihoods.
Ranchers gathered as there was this huge sense of disaster hanging over them and they were hoping to be heard. There was a great response from our elected officials. This truly is what these desperate ranchers needed to hear. They needed our elected officials to see and believe them. There was a power point presentation showing many of the ranchers flooded properties. We left with the feeling that night that we’d been heard.

It is obvious that AgriStability is the direction our government is going. Ranchers left the meeting and those who were not in Agristabiltiy were in contact with their accountants.

This is where the difficulties begin. With the way Agristability is set up, a ranch needs to show a profit. I can assure you that those in the cattle industry have not had fluctuations in their income since BSE. Years of losing money means many have negative margins.

Ranchers are going year after year now using up their equity trying to continue to ranch. I do not want to be negative, but this is how it is.

Does our present government really want to assist ranchers or is this the way to get rid of the majority of us? I really do not want to believe that is the case. However, when I see this announcement about the Targeted Advance Payment, leading everyone to believe there is assistance available when it does not exist for the majority, it is very difficult to not be negative.

Ranchers are resilient people. But if our government cannot figure out a way to assist all ranchers during these most difficult times, disaster is looming for the entire industry.

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