AgriPost August 30 2019

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The AgriPost

August 30, 2019

Dairy Farm in Ruins Crop Producers Granted Extension to Repay Cash Advances The Pennwood Dairy northeast of Steinbach, Manitoba started the clean up immediately after a fire destroyed 800 cows and four barns that housed 1,000 cows. Photos by Matt Wiebe of Steinbach, MB

By Harry Siemens A horrific fire killed 800 dairy cows, destroyed not only the four barns housing those cows, but the income for the Pennwood Dairy farm family for at least a year if not two before milk production will be back on par. It took about 60 firefighters from surrounding municipalities to tame the blaze. Only 200 of the 1,000 animals in the buildings survived. While a small group of animal rights activists brought flowers and held up signs along a gravel road near the farm, northeast of Steinbach in memory of the animals, the dairy industry hurt for the humans involved that suffered this terrible loss. David Wiens, a fellow dairy producer and Chair of the Dairy Farmers of Manitoba, said how the entire dairy industry family hurt with the Penner family. “Well, I was shocked when I first heard the news. I mean it’s been a devastating loss to the industry, but particularly for the Penner family. I can’t imag-

ine how difficult that must be for them to experience something like that,” said Wiens. “They were one of the larger dairy farms representing 2.6 per cent of the total production in the province, so obviously it’ll have an impact on the overall milk production in the province. We will continue to meet all the markets, meet all the demands of the processors. Our first focus here is on the family first, but it has an impact on all the other dairy farmers in the province. That’s for sure.” Cleanup and rebuilding this dairy farm will take some doing and some time. Wiens said many things have to happen here, step by step. The family right now is focused on the fire. The Office of the Fire Commissioner is doing the investigation as it does after every fire. Next is cleaning up the carcasses and the entire yard site. “Then they have to start planning for a new facility. So, it’ll be months before they’re under construction. And then, of course, these

All four barns housing the dairy cows were completely destroyed.

barns are not put up overnight either. So yeah, I would fully expect that there’d be at least a year, probably closer to two years, before they’re actually in full production again.” He said in terms of income loss or production insurance, that is all handled through insurance companies. “I can’t speak for this particular farm, but for the most part, dairy farms would have insurance that also covers loss of income. Because this is very real that they’re no longer selling any milk and shipping any milk to the processing plants,” said Wiens. “That’s just going to take a while. But we certainly from all dairy farms in Manitoba, we look to support the family in whatever way we can. So, we will coordinate the milk pickups to the farm that the surviving cows went to. And of course, we’ll be working closely with them as they plan for the future.” When the people who seemed to have more concern for animals than for the intrusion they caused by protesting to the family and cleanup ef-

forts, Wiens had this response. “First of all, I think it’s much too soon to be putting out those kinds of accusatory statements about regulations or the family. And in fact, there’s been some things being said that are patently false,” he said. “For one, the latest revision in the fire code for dairy barns was in 2017. And so, that is an ongoing process where to experience; they continue to review the code and make changes as required. And right now, it’s important for the investigation to happen, to see exactly how and why it happened. I’m sure there are many questions. From all concerned and the families would have a lot of questions. But certainly, it’s much too soon to start making those kinds of comments or accusations.” Wiens finds it incredibly insensitive on the part of the demonstrators to even be going there. “They don’t seem to realize the loss that this farm family experienced. They looked after all of these cattle that died in the fire. So obviously that in itself is quite a difficult blow for them,” said Wiens.

Crop producers impacted by recent market disruptions may now be eligible for an additional six months to repay 2018 cash advances under the Advance Payments Program (APP). The Stay of Default, which covers advances on grains, oilseeds and pulses, will provide additional flexibility to repay advances for farmers that may be facing lower prices, reduced marketing opportunities or a decrease in farm cash income. The decision comes following recent changes made by the Government of Canada to strengthen the APP by increasing the maximum loan limit for all farmers to $1 million and the interest-free portion to $500,000 for canola. The six-month Stay of Default to March 31, 2020, will provide producers with more time to repay their 2018 outstanding advances. The Stay of Default was granted at the request of nine program administrators. The Government of Canada will also continue to pay interest on the interest-free portion of farmers’ outstanding advances until March 31, 2020, for those commodities. Producers who received a 2018 APP advance from any of the nine participating administrators could be eligible for the Stay of Default and are encouraged to contact their respective administrator for more details. Participating administrators include the Agri-Commodity Management Association, Canadian Canola Growers Association, Manitoba Corn Growers Association Inc., Manitoba Livestock Cash Advance Inc. and Western Cash Advance Program Inc. The Advance Payments Program is a financial loan guarantee program that provides producers easy access to credit through cash advances. There were over 21,000 producers who participated in the program in 2018, and the average advance was approximately $118,000. For the 2018 program year, 12,902 grains, oilseed and pulse producers took more than $1.68 billion in advances, representing a 3% increase in the number of grains, oilseed and pulse producers taking advances under the program, and a 6% increase in the value of advances taken in 2017. As of July 31, there has been close to 1,100 new producers who have joined the program in 2019 and there have been approximately 360 producers who have returned to the program after not participating in the last three years.


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