E-Newsletter dsfsfa An update from MBP August 6, 2021
STATEMENT
mbbeef.ca
Manitoba Beef Producers update on advocacy work with governments in relation to the 2021 drought Manitoba Beef Producers (MBP) continues its droughtrelated advocacy efforts with the federal and provincial governments, particularly as it relates to AgriRecovery and other initiatives to help address producers’ immediate and longer-term issues arising from this disaster. The federal government has committed $100 million through the AgriRecovery Framework to assist producers dealing with extraordinary costs due to drought and wildfire conditions. Federal Agriculture and Agri-Food Minister Marie-Claude Bibeau has stated that the government is ready to seek further funding for provincial government requests that exceed this amount. While this announcement is an important first step, MBP strongly believes additional support will be required and asks for swift action on this. The timely development and delivery of support programs will be critical in helping to address some of the serious challenges arising from the drought. Discussions between the beef industry and governments will continue as to what those support programs will entail in each province. The following is an overview of some of the specific asks MBP has been making of governments with respect to AgriRecovery, as well as other programs or services needed to help Manitoba beef producers grappling with the effects of the drought. Key among these is the need to address producers’ cash flow challenges. A critical component of any AgriRecovery initiative will be helping producers deal with extraordinary costs which are not addressed within the existing business risk management programs. MBP is seeking a per head payment program that would allow individual producers to make management decisions in the weeks and months
ahead which are best suited to their particular operation’s situation and available resources. Unfortunately, some Manitoba producers have already been forced to extensively downsize their herds or to completely liquidate them due to uncertain feed and water resources. They will sustain a significant loss of equity by having to sell into a cull cow market instead of a bred cow market. Some of these producers will wish to re-enter in the future and an effective strategy is needed to help facilitate this. It is expected they will incur extraordinary costs to re-enter as there will be competition for breeding stock which will drive those prices higher than the prices the producers received when forced to sell off due to the drought conditions. The beef industry is analyzing the mechanics of a herd recovery plan to provide the financial assistance required to support producers, such as expanding the eligibility of the per head payment, or using existing mechanisms already established. MBP is seeking further discussions with governments around how such a potential re-entry tool could be fashioned. New infrastructure is an added cost some producers are bearing, such as providing fencing on Crown lands never grazed before, or on private lands where damaged crops may become available for grazing. MBP is asking that consideration be given in an AgriRecovery initiative to providing assistance for unanticipated infrastructure requirements such as fencing or watering needs. Some producers have had to haul water, because the ability to access water simply has not been available on their operations. MBP has asked that consideration be given under AgriRecovery to helping to share the costs of hauling water. continued on pages 3-4