Sign up for the farmnewsNOW newsletter
(Alice McFarlane/farmnewsNOW Staff)

Cattle groups look for support from government

Mar 26, 2020 | 10:30 AM

The Canadian Cattlemen’s Association (CCA) is calling on Ottawa to provide a comprehensive aid package to livestock producers during the COVID-19 pandemic.

The Saskatchewan Cattlemen’s Association (SCA) played a role in putting the proposal together.

SCA CEO Ryder Lee said producers need immediate support after prices dropped drastically in early March.

“In the list of recommendations, some are kind of long-standing things, and we’re taking the opportunity to remind governments of that. But also some are germane to what’s going on right now,” Lee said. “Probably the most important and the first recommendation is the cattle industry and food production system be kept going as critical infrastructure.”

Lee said there is an immediate need for financial support for livestock producers in order to keep their operations financially viable.

“There’s a lot of people that got caught with backgrounders and yearlings when things started to ramp up and the market went sideways,” he said. “Normal market fluctuations happen but this was right off the map for a bit. It sounds like things may be coming back in the US and hopefully they’re going to bounce back in Canada as well.”

Some current programs address these issues but Lee said they could be improved. He didn’t have a specific dollar figure in mind for support.

“We’re trying to talk about this across Canada so cattle producers are treated equitably across the country. Also watching south of the border and making sure that anything that happens down there, we’re keeping in mind as well. So I don’t have a number for you just offhand but that work is ongoing.”

CCA is looking closely at business risk management programs like AgriRecovery, AgriInvest, and AgriStability. Lee said anything that exists now would work faster than starting a new program from scratch. But there are limitations to these programs.

“The cap on AgriStability effects feeders. There’s a reference margin limit in there that really hammers cow-calf producers. There’s been talk of increasing the trigger and that’s a request.” he said.

Lee said one of their requests was to bring in a stay of default on the cash advance program to allow people some more time to pay the program back.

“That was part of Monday’s announcement by the feds. So some of this already is coming into play and we’re glad to have been able to bring it to the attention of the ministers and glad to see some of it falling into place,” he said.

Lee said there are other issues they would like addressed including the fed cattle set aside program that was in effect during the BSE crisis.

“We learned some things during BSE when markets were closed and things weren’t flowing like they could. We learned some things some processing plants weren’t operating,” he said. “We’d like to have a conversation around what we would do with cattle that are ready to be processed, and all of a sudden, the processing isn’t there, or the market isn’t there. It’s really about being ready.”

Lee said other issues concern some financial flexibility for producers who are concerned about their line of credit limits.

“I think there’s been moves by some banks and the announcement concerning Farm Credit Canada. These things are starting to happen. We want to have our eye on these things now.” he said.

alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF

View Comments