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.” Read more!

Hello, Minister Ritz?

If you could speak to the Federal Agriculture Minister about the state of Manitoba’s cattle industry,what exactly would you say?

“I’m very concerned about the livestock industry - both hogs and beef. I think we are to the point that we are going to hit the wall.

As cattle producers we attend conferences and workshops to learn how to be more efficient, but at the same time, cattle prices keep dropping lower and lower. How long before we run out of ways to be more efficient?

How do you feel you are helping the industry stay alive? I recently attended an auction sale and three semi loads of cows went to slaughter. It criminal to see that happening when there are should be young farmers there buying those cows.

The federal government is not looking at the trade issues that are blocking our border market into the U.S. (COOL).

We lost all the small packing plants, especially in Winnipeg. Free trade, in my opinion, is no longer helping us in the livestock industry and I think it’s time the federal government steps up to the plate.

I just met with my accountant and while we are cutting our costs, the price we are getting for our calves is also going down, so we are getting nothing from the AgriStability program.

Instead of wasting your time trying to dismantle the wheat board, you should be working harder to maintain it because as cattle producers, we are in a free market system. Come join us and see what it’s all about. I wish them luck.

So Mr. Ritz, I think it’s about time the Federal government starts working with the provincial governments to help our industry. Otherwise, who is going to be left tomorrow? It’s criminal on the part of government to stand by and watch an industry go down the tubes.

We can’t take this much longer.”

- Leo Fuhr, Langenburg, SK Read more!

Hello? Minister Ritz

If you could speak to the Federal Agriculture Minister about the state of Manitoba’s cattle industry, what exactly would you say?

“I am deeply concerned for the future of the cattle industry, Mr. Ritz, and for the future of our young people in agriculture.

We are nearing retirement and our children want to be fifth generation farmers. We want to see our children remain in the cattle business but it is very difficult for parents to encourage this and transfer the farm over to them when there is a feeling of no hope for the future right now.

We don’t want a handout. We want the government to help us fix the industry.
This has gone for five years now and has become progressively worse. The programs that are supposed to help us are absolutely useless. We were given a CAIS payment and then it was taken back.

Our children love to show cattle, especially our son. He wants to continue on but as a parent, I need to know. Is there a future for him in the cattle business?”
- Beverley Abey, Brandon, Manitoba.

“As an industry we are losing our young people. Guys in their 40s are getting out and if things don’t improve in agriculture, there isn’t going to be anybody to take our place. If you look at the age of producers now, many are in their 50s & 60s. All will be gone in next 10 years. So I’m wondering, what is the vision for agriculture in the next 20 years? Right now the question is, how do we survive until the next year. How do you make plans when Canola is $16 in the summer and $10 now?”
- Cow calf & grain producer, Ian Grossart, Brandon

“Cattle producers are in desperate need of support in order to have a future.
And if there isn’t some help for these young kids who want to raise cattle, then there won’t be family farms in this country in the future. Where are we going to get food to feed Canadians?

Our cost of production has gone up drastically over the last few years and the price we receive for our product is dropping every time we turn around.

I think that family farms are very important to the rural communities and they are suffering because the livestock industry in Manitoba is suffering so bad.

Also, the government has to get behind our youth by supporting junior events and shows that bring young people together and teach them new skills.

Our son bought some land and wants to farm but he’s working in the oil fields in Saskatchewan. Even with family support, young people can’t farm today.”
- Purebred Angus breeder, Lois McRae, Brandon

“Take a long hard look at the cattle industry, it’s brutal right now. There are too many people going out of business. And grain isn’t much better. None of the programs seem to work for us. There are so many cows being sold right now it’s terrible.”
- Cattle and grain farmer, Calvin Pizzey, Foxwarren.

“My name is Anthony Lewis. I came from Wales to farm in Canada. I bought my first farm in Sundown, Manitoba in 1996. I have since expanded and moved to the Neepawa area and then in 2003, BSE hit and put a halt to the industry.

In 2004, I received a cheque from CAIS for $4,800 and then in 2006 the government told us they wanted the money back. Why has the government designed a program that gives farmers money and then takes it back?

I am also concerned about the cost of inputs, especially fertilizer. We cannot afford to properly manage our land at the current price.

And when the prices are high the media reports that farmers are making lots of money but then when prices go down, not much is said. There is no effort put forward by the government to educate city people about the importance of farming to this country. The general public doesn’t even realize there is a problem with agriculture.

It would be nice for you to meet with the cattlemen’s association and get this sorted out. I’m sure if you agreed to come to an open meeting here in Manitoba to meet with farmers, there would be a lot of us there.”
- Cow-calf producer, Anthony Lewis, Arden Manitoba.
Read more!