MBP E-Newsletter: March 15/2024

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Statement from Agriculture Minister Ron Kostyshyn and Economic Development, Investment, Trade, and Natural Resources Minister Jamie Moses on ‘Product of USA’ Labelling Regulations

(Province of Manitoba media release, March 14, 2024) The long-standing, positive trade relationship between Canada and the United States has been beneficial to both countries, supports greater food security for Manitobans and has benefitted Manitoba producers and consumers. The recent release of the final ‘Product of USA’ voluntary labelling regulations for meat, poultry and egg products will affect this relationship, increasing barriers between Canada and the United States, and impacting our meat and livestock sector.

Our government is concerned that this final rule discounts our long-standing and positive trade relationship that benefits Manitoba producers and consumers. Manitoba will review the final rule and its impacts on Manitoba consumers, producers, and processors. We will work with our provincial and federal counterparts, along with industry stakeholders, to stand up for producers, and work towards supply chains that are open, barrier free, and continue to support a strong trade partnership between Canada and the United States.

For additional coverage see pages 3-6

Release

CCA Reacts to Voluntary Product of USA Labelling Ruling

March 11, 2024

Calgary - The Canadian Cattle Association (CCA) is disappointed that the U.S. Department of Agriculture (USDA) has published a final Product of USA labeling rule that adopts the most onerous standard in the world - namely that to qualify for the label meat must be derived from animals born, raised, slaughtered, and processed in the US - while failing to give meaningful consideration to other options that would have respected the high level of integration in our North American supply chains and food systems.

The integration of the North American live cattle and beef supply chain is unlike anywhere else in the world, contributing to both food security and local and regional food systems. The U.S. and Canada have the largest two-way trade in live cattle and beef in the world. U.S. small and medium sized processors and local and regional food systems rely on Canadian cattle to thrive and stay in business.

“It is crucial to address any issues that threaten or diminish cattle and beef trade between Canada and the U.S.,” said Nathan Phinney, President of CCA. “We are very concerned that the rule will lead to discrimination against live cattle imports and undermine the beneficial integration of the North American supply chain.”

CCA submitted extensive comments to USDA and expressed our concerns when the rule was proposed, suggesting an alternative that would be consistent with international practice, which USDA’s rule clearly is not.

The rule is set to come into effect January, 2026 and we will be monitoring closely for any segregation of cattle, which would impact beef producers on both sides of the border. CCA will be working with stakeholders on potential impacts; the voluntary measure could be determined by Canada and/or Mexico to contravene the WTO’s finding in the mandatory Country of Origin Labelling (mCOOL) case.

Canada and Mexico have retained the WTO’s 2015 authorization to retaliate against an origin labelling measure that would unfairly discriminate against imports of live cattle and pigs.

For further information, contact:

Carol Reynolds Communications Manager

Canadian Cattle Association 403-451-0931| reynoldsc@cattle.ca

The Canadian Cattle Association is the national voice for Canada’s beef cattle industry representing 60,000 beef farms and feedlots

www.cattle.ca

Statement on “Product of USA” Labelling

March 11, 2024

#6, 11010 - 46th Street SE Calgary, AB T2C 1G4

Tel 403-769-1519

nationalcattlefeeders.ca

Today, the United States Department of Agriculture (USDA) changed its voluntary “Product of the USA” labeling regulations. The new regulations limit claims so only products made from livestock born, raised, harvested, and processed in America can be labeled “Product of the USA.”

Though voluntary, this rule is broader than mandatory Country of Origin Labelling (COOL), which was repealed by congress in 2015. The updated regulations also include processed products and products for foodservice, which were not subject to mandatory COOL.

Canada and the U.S. enjoy the largest bilateral agricultural trading relationship in the world, creating jobs and economic opportunities in both countries. At a time when countries are combatting supply chain challenges, food inflation and food scarcity, this change to “Product of USA” labelling regulations introduces unnecessary costs and interrupts efficient supply chains.

Canadian and American meat and livestock sectors form a vital partnership, collaborating to stimulate economic growth and feed our communities with safe, high-quality products in a way that is resilient and mutually beneficial.

“Our meat and livestock industries share common interests, objectives and high standards. We respect similar animal health, food safety and environmental standards that allow us to produce high-quality products on a level playing field,” said Janice Tranberg, President of the National Cattle Feeders’ Association.

The integration of the Canadian and American meat and livestock supply chains has consistently delivered benefits to consumers and producers alike, fostering affordability, accessibility, and quality assurance. However, concerns have been raised about the potential for increased costs to consumers resulting from the revised labelling regulations.

In the face of these challenges, Tranberg emphasized the resilience and strength of the partnership between Canada and the United States. "Together, we are stronger and more resilient," she affirmed, highlighting the need for collaborative efforts to navigate the evolving landscape of global trade and agricultural practices.

Notes

Canada-U.S. trade in meat and livestock is mutually beneficial.

o Total trade in live cattle, hogs, beef and pork between the U.S. and Canada was over US$6.2 billion in 2021.

o The U.S. imports a significant number of live cattle and hogs from Canada every year, with the meat often being exported back to Canada as value-added products like steaks, patties and hams.

▪ In 2021, more than 638,000 head of cattle (excl. for breeding and dairy) were imported from Canada.

▪ Canada bought US$775M in beef from U.S. facilities.

▪ Plus, Canada purchased US$1.17B in pork.

▪ This includes further processed products, like US$227.3M in sausages, which contribute to even more growth to the U.S. agriculture sector.

o The U.S. also sends a significant – and growing – number of live cattle to Canada. In 2021, 377,571 head of U.S. cattle (excl. for breeding and dairy) were exported to Canada, an increase of 247% since 2017.

For more information

Gina Devlin Communications Manager National Cattle Feeders’ Association gdevlin@cattlefeeders.ca

Ministers MacAulay and Ng respond to "Product of USA" labelling regulations

(March 11, 2024 Agriculture and Agri-Food Canada Statement) Canada's Minister of Agriculture and Agri-Food, the Honourable Lawrence MacAulay, and Minister of Export Promotion, International Trade and Economic Development, the Honourable Mary Ng, released the following joint statement in response to the final rule released by the United States related to the "Product of USA" voluntary labelling regulations for meat, poultry and egg products.

"The meat and livestock sectors in Canada and the United States work closely together, supporting food security as well as local and regional food systems. Our indispensable relationship allows producers, processors and consumers on both sides of the border to benefit from efficient, stable and competitive markets, while ensuring a reliable supply of high-quality products.

Canada remains concerned about any measures that may cause disruptions to the highly integrated North American meat and livestock supply chains.

We are disappointed that the final rule does not appear to take into account the concerns we have continually brought forward related to our unique and important trading relationship. Canada intends to raise this during the agriculture ministers trilateral meeting with United States and Mexico scheduled to take place in Colorado later this month.

We are reviewing the final rule carefully and will closely monitor its impacts and implementation, including in light of the U.S.' international trade obligations, to ensure our meat sector can continue to enjoy predictable and unhindered access to the United States market."

Manitoba Introduces Amendments to the Drivers and Vehicles Act That Would Increase Road Safety

(March 13, 2024 Province of Manitoba News Releases) The Manitoba government is introducing amendments to the Drivers and Vehicles Act that would allow Manitoba Public Insurance to designate heavy trailers with a status that represents their condition and documents their history to increase road safety and consumer protection, Justice Minister Matt Wiebe, minister responsible for the Manitoba Public Insurance Corporation, announced.

“We’re taking action to keep unsafe heavy trailers off Manitoba roads and making sure that when Manitobans buy a used trailer, they’re aware of its condition,” said Wiebe. “This is about protecting consumers and making our roads and highways safer here in Manitoba.”

Current legislation only permits heavy trailers to receive a normal status when they are registered, even if they have been written off

in Manitoba or another jurisdiction. The proposed amendments would allow heavy trailers to be assigned the same status as motor vehicles, such as salvageable, irreparable or rebuilt, in addition to normal, the minister added.

Proposed amendments would only apply to heavy trailers with a gross vehicle weight rating over 4,500 kilograms, which pose the greatest risk on the roadway due to their size and represent over 75 per cent of all trailer claims in Manitoba, the minister noted. Under the current legislation, heavy trailers are also subject to the Periodic Mandatory Vehicle Inspection program, which requires them to receive mechanical safety inspections every 12 months.

To see Bill 19 – The Drivers and Vehicles Amendment Act, go to:

https://web2.gov.mb.ca/bills/43-1/b019e.php

2024 Manitoba Spring Road Restrictions (SRR) Program Update

Source: Manitoba Transportation and Infrastructure

2024 spring road restrictions began in some areas of the province on March 11 and others take effect March 17. See links below for complete details, including end dates for restrictions.

2024 Official Spring Road Restrictions Order No. 1 (PDF)

2024 Spring Road Restrictions – Order for Start and End Dates (PDF)

The purpose of Spring Road Restrictions is to protect Manitoba's surfaced pavements from

undue damage by reducing allowable axle weights during the spring thawing season. In consultation with those affected by these weight reductions, Transportation and Infrastructure periodically revises its policies and procedures to reflect the current transportation trends, industry needs and weather patterns. Up to date policies and procedures help industry improve trip planning while minimizing the impact of loads to the weak pavement structures when they are at their most vulnerable conditions.

General guidelines to Spring Road Restrictions are provided here. Please refer to The Highway Traffic Act for specific details.

Public Feedback Sought: The Shellmouth Dam Compensation Regulation, Amendment and Floodway Compensation Regulation, Amendment

The following information is from the Province of Manitoba with respect to proposed changes to the aforementioned regulations. Interested producers can provide comments via the EngageMB portal. See link below).

Amendments are proposed to the Shellmouth Dam Compensation Regulation to allow Emergency Management Organization (EMO) to implement recommendations from a 2021 Office of the Auditor General (OAG) report on the Shellmouth Dam Compensation Program (SDCP). The proposed amendments will overhaul how the program is initiated, administered and delivered to be faster and prevent delays that occur under the existing regulation. Minor amendment to the Floodway Compensation Regulation to

remove the requirement to use licensed insurance adjusters, allowing EMO to use qualified inspectors.

Minor amendment to the Floodway Compensation Regulation to remove the requirement to use licensed insurance adjusters, allowing EMO to use qualified inspectors.

For more information and to complete the online survey about the proposed amendments, go to:

https://engagemb.ca/the-shellmouth-damcompensation-regulation-amendment-andfloodway-compensation-regulationamendment

Call for applications for the next federal Environment and Climate Change Youth Council

(March 14, 2024 Environment and Climate Change Canada News Release) Meaningful engagement of youth in government decision-making is essential to effectively address the greatest challenges of our time. Conserving biodiversity, protecting the environment, preventing pollution, and taking climate change action are top priorities for many young people. When youth are meaningfully involved in decisionmaking, their important perspectives and innovative thinking benefits all Canadians.

The Honourable Steven Guilbeault, Minister of Environment and Climate Change, is inviting young people in Canada between the ages of 18 to 29 to show their interest in becoming a member of the Environment and Climate Change Youth Council by applying to the anticipatory recruitment process.

Since 2022, the Environment and Climate Change Youth Council has provided opportunities for youth in Canada to participate in meaningful discussions with the federal government on the key challenges of our time. Youth Council members are appointed by the Minister for two years to provide non-partisan advice to the Minister and Environment and Climate Change Canada to help shape Canada's environment and climate policies. Members gain skills and experience to build or advance their careers and expand their networks of youth and environmental and climate leaders.

The current call for applications is being done in anticipation of a second cohort of the Youth Council, which will consist of up to 12 youth in Canada. Its membership will aim to reflect the Canadian population with respect to regional representation; Indigenous identity; gender identity; linguistic, ethnic, and cultural diversity; and life experiences.

Interested Canadians and permanent residents are encouraged to apply between March 14 and April 26, 2024, through the link below.

Quick facts

• Youth Council members have a two-year mandate and meet at least every three months.

• In 2019, the Government of Canada announced Canada’s Youth Policy— created for youth, by youth. The policy reflects the values and priorities of young people in Canada and commits the government to create meaningful opportunities for youth voices to be heard and respected.

• In the 2021 State of Youth Report, youth reiterated environment and climate action as a key priority that is important to youth today.

• The Environment and Climate Change Youth Council was launched in 2022. The first cohort of 10 members was appointed for a two-year period and has provided non-partisan advice to the Minister and Environment and Climate Change Canada on issues including climate change and biodiversity.

Overview of the Youth Council

The Environment and Climate Change Youth Council is a group of young Canadians who are passionate about protecting the environment and taking climate action. In their communities and beyond, they have demonstrated leadership in these areas and are inspiring others to do the same.

continued on page 10

Call for applications for the next federal Environment and Climate Change Youth Council

Climate change is one of the most defining environmental challenges of this time. Young people are among those leading the charge toward a cleaner future. We need youth perspectives to ensure the country's transition to a prosperous and low-carbon future is sustainable and inclusive.

Role of the Youth Council

The Youth Council will advise on key environmental and climate issues to inform decisions by the Government of Canada. In its first year, the Youth Council will focus on:

• Ensuring Canada continues to enact the measures in the 2030 Emissions Reduction Plan;

• Net-zero emissions by 2050;

• Youth participation in international summits; and

• Nature-based solutions to fight climate change and biodiversity loss.

If you have any questions or would like to connect with the Environment and Climate Change Youth Council, please send an email to ECCCYouthCouncilConseildesjeunesECCC@ec.gc.ca.

Associated links

• Environment and Climate Change Youth Council

• How to Apply to the Youth Council

• Canada’s Youth Policy

• State of Youth Report

Select Excerpts From 2023 FCC Farmland Values Report

On March 12, 2024 FCC released its 2023 Farmland Values Report. It covers the period January 1 to December 31, 2023. The following are some excerpts from the report and accompanying FCC articles on it.

High Level Findings

• The average value of cultivated Canadian farmland increased by 11.5% in 2023. This is slightly less than the 12.8% increase recorded in 2022 but ahead of the 8.3% increase in 2021. This year’s increase is the second highest FCC has reported since 2014.

• The highest reported increase in average farmland values was in Saskatchewan at 15.7%, followed by Quebec at 13.3% with Manitoba rounding out the top three at 11.1%.

• The most significant increase in pastureland values occurred in Manitoba, with an average increase of 19.0%. Saskatchewan recorded an increase of 12.7%, followed by Alberta at 9.6% and BC at 7.4%.

• Land value increases occurred amidst elevated interest rates and farm input prices, strong farm income and regardless of moisture levels. The demand for farmland remained robust and the supply of farmland available for sale continued to be limited.

• Statistics Canada reports total field crop receipts recorded the strongest growth between 2022 and 2023 in Saskatchewan (6.1%) and Manitoba (4.4%). The largest appreciation reported between 2021 and 2022 was in Quebec and Ontario at 28.9% and 27.3%, respectively. These four provinces led the country in farmland value appreciation in 2023. This positive correlation between receipts and land value appreciation suggests liquidities

lead to stronger purchasing power and higher demand for land.

Manitoba Highlights

• Low supply and strong demand were present in most areas of the province in 2023. While some purchasers and sellers appeared to be waiting for interest rates to decrease, with land supply tight, parcels that came up for sale saw strong demand, leading to continued value increases.

• Parkland values increased 7.9% in 2023, close to the 7.5% reported in 2022. The region saw variable rainfall, which impacted yields.

• The Westman region experienced the second-highest growth rate in the province at 12.3% but remained the second-lowest value of land in terms of price per acre. The areas with multiple years of good production saw the biggest increase in land values. Strong demand and low supply remained in the Westman market.

• Central Plains-Pembina Valley retained the highest farmland values in Manitoba and in 2023, cultivated dryland values in the region had an average value increase of 10.5%. There was strong demand in most areas of the region as large operations continued expanding.

• The Eastman region reported the province’s lowest growth rate at 6.7% but still saw an increase due to strong demand and limited supply of land.

• Interlake led Manitoba’s dryland growth with an increase of 19.0%. There was strong demand and increased values throughout the region. Interlake values increased at a steeper rate in 2023 than in the previous two years.

• Pasture and forage yields were highly variable due to inconsistent rainfall in the spring. Despite this, pastureland in

continued on page 12

Select Excerpts From 2023 FCC Farmland Values Report

Manitoba showed an average increase of 19.0% in 2023.

• Parkland and Interlake experienced increases of 27.4% and 28.3%, respectively. Values generally increased with good demand. The average increase in values for pastureland in Westman grew at a slower pace, with a reported 6.4% increase. Per-acre values in this area remained higher than in the other two regions. See page 11 of the report for Value $/acre and the Value range for cultivated land and for pastureland.

• Demand for irrigated land was robust, and average values also continued to increase . The greatest average increase occurred in Manitoba at 18.1%, followed by Alberta at 11.7% With many parts of the prairies experiencing dry conditions throughout the 2023 growing season, producers continue to seek land that can be irrigated to alleviate drought and other water issues. Irrigation expansion in the prairies is influencing land values, which will be an important factor to monitor throughout 2024.

• Irrigated land values in Westman and Central Plains-Pembina Valley grew faster in 2023 than 2022, with a growth rate of 18.1% versus 3.8%. There were few irrigated land sales, likely because many people purchased dryland and converted it at their own cost and, therefore, did not wish to sell the newly irrigated land. Irrigated land is often tied to potato land sales, which saw increases in multiples areas. Strong demand for potatoes led to increased demand for land expansion. Sales that occurred were mostly private deals between landlord and renters. Demand remained high with very limited supply.

To see the report, go to https://www.fcc-fac.ca/en/knowledge/ economics/farmland-values-report

MANITOBA BEEF PRODUCERS

2024-25 SCHOLARSHIP INTAKE

Manitoba Beef Producers is pleased to make available six $1,000 scholarships annually for MBP members or their children attending a university, college, other post-secondary institution or pursuing trades training. Preference will be given to those students pursuing a field of study related to agriculture or to those acquiring a skilled trade or pursuing a career that would be beneficial to the rural economy.

This application intake process is for students who will be undertaking post-secondary studies or trades training in the 2024-25 academic year.

The scholarship criteria are as follows:

Eligibility:

• Must be an active Manitoba beef producer or the child of an active Manitoba beef producer. Note: This can also include active beef producers returning to school after a period of time in the workforce.

• Must be pursuing post-secondary studies or trades training in the 2024-25 academic year.

• Post-secondary programs or trades training must be a minimum of one academic year in duration.

Items You Are Required to Submit:

• The completed application form;

• Either a typed 600-word (maximum) essay OR a 5-7 minute maximum video submission discussing the topic “What the beef industry means to my family, my community and Manitoba.” Also, you need to identify in the essay or video the reasons you enjoy being involved in agriculture*;

• A copy of your transcript (either high school, or a recognized college, university or trade school);

• Proof of enrolment in a recognized institution (current transcript, or your acceptance letter, or a letter of intent indicating your intended institution and field of study for 2023-24);

• A list of your community involvement (e.g. 4-H, community clubs, volunteer work, etc.); and,

• The names of two references, including their addresses and telephone numbers.

*Note: Scholarship winners’ essays or video submissions will be published in Manitoba Beef Producers’ newspaper Cattle Country in fall 2024 or posted to MBP’s social media channels and website.

The completed application, supporting documents, references, required essay or video, etc. must be submitted to MBP by 4:30 p.m. on Friday, June 21, 2024 to the attention of:

Manitoba Beef Producers Scholarship Committee

220 – 530 Century Street

Winnipeg MB R3H 0Y4

E-mail: info@mbbeef.ca

Fax: (204) 774-3264

For more information, including steps on how to submit your video, please contact Manitoba Beef Producers at 1-800-772-0458 or email info@mbbeef.ca. A selection committee will review the submissions. Winners will be notified by September 12, 2024.