Cattle Country - September 2025 by ManitobaBeefProducers

Minister MacDonald Announces Initial List of Livestock Tax Deferral Regions for 2025

On August 18 the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, announced the initial list of regions that will qualify for the Livestock Tax Deferral in 2025.

The Livestock Tax Deferral provision allows livestock producers in prescribed areas, who are forced to sell all or part of their breeding herd due to drought, excess moisture or flooding, to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of reacquiring breeding animals, thus reducing the tax burden associated with the original sale.

Buffer zones have been applied to capture impacted producers who are outside the boundaries of the prescribed regions but may be experiencing similar conditions. Weather, climate and production data from across Canada will continue to be monitored throughout the remainder of the season and regions will be added to the list when they meet the criteria.

Livestock Tax Deferral serves as an important instrument for farmers to mitigate the financial burden of drought, excess moisture or flooding. The Government of Canada will continue to work to ensure farmers receive timely information to support their herd management decisions.

Prescribed Regions in Manitoba

Consolidated Census Subdivisions Based on the 2021 Statistics Canada Census

• Alonsa1

• Alexander1

• Armstrong

• Bifrost-Riverton

• Coldwell1

• Division No. 1, Unorganized1

• Division No. 18, Unorganized, East Part

• Division No. 18, Unorganized, West Part1

• Division No. 19, Unorganized

• Division No. 20, Unorganized, South Part

• Division No. 21, Unorganized

• Division No. 23, Unorganized1

• Ethelbert1

• Fisher

• Gimli

• Grahamdale

• Grandview1

• Hillsburg-Roblin-Shell River1

• Lakeshore1

• Minitonas-Bowsman

Background Information

How the provision works: To defer income, the breeding herd must have been reduced by at least 15%.

Where the breeding herd has been reduced by at least 15%, but less than 30%, 30% of income from net sales can be deferred.

• Mountain (North)

• Mountain (South) 1

• Mossey River1

• Rockwood1

• St. Clements1

• St. Andrews1

• St. Laurent

• Swan Valley West

• West Interlake

• Woodlands1

1 Buffered Designated Regions

Where the breeding herd has been reduced by 30% or more, 90% of income from net sales can be deferred.

In a year in which a region has been prescribed, income from the sale of breeding livestock can be deferred to the next tax year when the income inclusion may be at least partially offset by the cost of reacquiring the breeding livestock.

109 youth and 122 head of cattle gathered in Neepawa over the August long weekend for the 18th annual Manitoba Youth Beef Roundup. Please see story on page 11. (Photo courtesy: Prairie Pistol Designs)

An Update on MBP Advocacy Work on the Drought Situation in Manitoba

As I sit down in mid-August to write this column there has been some much-needed rain in different parts of the province, arguably too much for those folks still trying to put up hay and get started combining. However, it does not make up for the fact that 2024 has been a tough production year in many areas when it comes impaired pasture, forage, and crop growth. Limited hay yields have led to concerns about local feed availability as second cuts were certainly not expected in most areas. Water availability and water quality has been another major concern, with some water sources low or drying up altogether.

MBP has been closely monitoring the situation and engaging with the Ministers of Agriculture and Natural Resources and their departmental staff, as well as Manitoba Agricultural Services Corporation (MASC), which is responsible for Agrilnsurance. MBP had advocated for damaged crops to be made available to alternate feed use, and an announcement on this was made on July 23 by the provincial and federal governments.

MBP asked the province to provide access for haying and grazing on Wildlife Management Areas and other available Crown lands. Some parcels were made available for these uses.

MBP requested that the intake period be reopened for producers seeking cost-shared funding for water source development through the Sustainable Agriculture Manitoba. In late August this was done, and MBP has asked the province that it be made available to producers

MATTHEW ATKINSON President’s Column

affected by drought province-wide, not just producers living in the initial list of designated regions under the Livestock Tax Deferral (LTD) provision. See program details in this edition.

MBP asked for financial support for water quality testing and feed testing, as both are critical to animal health, especially when using new or less familiar feed types. MBP also requested cost-shared funding for water aeration systems to help with water quality challenges. And MBP asked the province to provide financial assistance for water hauling.

MBP has had discussions with the province about whether it will consider initiating the Agri-Recovery assessment process to determine the possibility of AgriRecovery initiatives being triggered due to the dry conditions. It is not certain if this will happen, but it is important to broach that with governments.

On a longer-term basis, MBP would like changes to pasture and forage insurance offerings to make them more responsive and attractive to local producers and to increase uptake. Analysis is being done about the potential use in Manitoba of a moisture deficiency or weather-based approach to insurance offerings, such as those being used by the insurance providers in

Alberta and Saskatchewan, respectively. MBP’s board of directors is seeking the province’s and MASC’s support to move forward with program changes. MBP believes that if Manitoba producers had more effective offerings for pasture and forage insurance that involved a reduced level of administrative burden, there may be a reduced need to rely on ad hoc programming asks like AgriRecovery.

MBP had asked that the Livestock Tax Deferral (LTD) Provision be triggered as quickly as possible and that first list came out on August 18 and there are more details in this edition of Cattle Country. MBP will provide feedback to the federal government about drought-affected regions which did not make the first list of designated regions. If you think your rural municipality should be on this list, please let us know to help build the case.

MBP has also continued the broader industry advocacy efforts related to the LTD, such as having it apply to all categories and classes of cattle, not just breeding stock. Including all classes of livestock would support breeding animal retention to maintain and grow the beef cattle herd in Manitoba. MBP restated the industry’s request for the ability to defer income to span over more than one year to allow for more flexibility in producers’ re-stocking decisions.

MBP will continue to speak with government officials about these types of needs. We hope to see you out at a district meeting in October or early November!

 Page 1

Initial List of Livestock Tax Deferral Regions Announced

In the case of consecutive years of drought, excess moisture or flooding, farmers may defer this income to the first year in which the region is no longer prescribed. What are the criteria to prescribe drought, excess moisture or flood regions?

Regions are prescribed on the advice of the Minister of Agriculture and Agri-Food to the Minister of Finance.

Beginning in 2024, the Government of Canada streamlined the process to identify prescribed regions earlier in the growing season, and also instituted a buffer zone to adjacent regions to capture impacted farmers on the edges of affected regions.

A preliminary list of prescribed drought, excess moisture or flood regions is now completed in the spring, for those regions where it appears that conditions indicate a potential forage shortage. This first list is based on preliminary weather and climate data gathered and analyzed under the Canadian Drought Monitor. AAFC continues to monitor weather, climate and production data throughout the growing season and will add regions to the list when they meet the eligibility criteria of forage yields being less than 50% of the long-term average due to drought, excess moisture or flooding.

A final list of prescribed drought, excess moisture or flood regions, including previously announced regions, is usually made in December when finalized forage yield information is available. However, once a region is prescribed, it is deemed eligible for the taxation year.

Also new for 2024 and moving forward, regions that are adjacent to regions that qualify based on weather, climate and production data will also be prescribed.

DISTRIC T 1 TYLER FEWINGS

Boissevain-Morton, Brenda-Waskada, Grassland, Deloraine-Winchester, and Two Borders

DISTRIC T 2

MARK SCHRAM

Argyle, Cartwright-Roblin, KillarneyTurtle Mountain, Lorne, Louise, Pembina, and Prairie Lakes

DISTRIC T 3

ANDRE STEPPLER

Cartier, Du erin, Grey, MacDonald, Portage la Prairie, Rhineland, Roland, Stanley, Thompson, Montcalm, Morris, and Ritchot

DISTRIC T 4 BYRON FALK De Salaberry, Emerson-Franklin, Hanover, La Broquerie, Piney and Stuartburn, Montcalm, Morris, Ritchot, Spring eld, Ste. Anne, Taché, R.M. of Piney and Reynolds

2ND VICE-PRESIDENT

This will ensure that farms within those adjacent regions that may also be experiencing drought, excess moisture or flooding can benefit from the Livestock Tax Deferral provision.

“As we continue to see the very real and challenging effects of climate change, Canada’s new government is committed to supporting our livestock producers. By offering a tax deferral option to those in affected areas, we are helping folks manage uncertainty, make informed business decisions, and safeguard their livelihoods.”

- The Honourable Heath MacDonald, Minister of Agriculture and Agri-Food

Quick facts

To defer income under the Livestock Tax Deferral provision, the breeding herd must have been reduced by at least 15%.

In the case of consecutive years of drought, excess moisture or flooding, producers may defer sales income to the first year in which the region is no longer prescribed.

Subsequent regions will be added to the list when they meet the eligibility criteria of forage shortfalls of 50% or more caused by drought, excess moisture or flooding.

DISTRIC T 5 STEVEN MANNS Cornwallis, Elton, Norfolk-Treherne, North Norfolk, Oakland-Wawanesa, Glenboro-South Cypress, and Victoria

DISTRIC T 6 BRIAN ENGLISH Pipestone, Riverdale, Sifton, Souris-Glenwood, Wallace-Woodworth, and Whitehead

DISTRIC T 7 T YLER FULTON

Producers have access to a comprehensive suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farm and are beyond their capacity to manage. BRM programs, including AgriStability, AgriInsurance and AgriInvest, are the first line of defense for producers facing disasters and farmers are encouraged to make use of these programs to protect their farming operation.

For the 2025 program year, the compensation rate for AgriStability will be increased from 80% to 90% and the maximum payment limit will be increased from $3 million to $6 million.

Associated Links

DISTRIC T 9

TREVOR SUND

Alexander, Brokenhead, East St. Paul, Lac Du Bonnet, Rockwood, Rosser, St. Andrews, St. Clements, St. Francois Xavier, West St. Paul, Whitemouth, Woodlands, LGD of Pinawa, Reynolds, Spring eld, Ste. Anne, and Taché

DISTRIC T 10

MIKE DUGUID

SECRETARY Armstrong, Bifrost-Riverton, Fisher, and Gimli

Ellice-Archie, Hamiota, Prairie-View, Riding Mountain West, Rossburn, Russell-Binscarth, and Yellowhead

DISTRIC T 8 MATTHEW ATKINSON

Clanwilliam-Erickson, Glenella-Lansdowne, Harrison-Park, Minto-Odanah, Oakview, North Cypress-Langford, Rosedale, and West Lake-Gladstone

DISTRIC T 11

ARVID NOTT VEIT

Coldwell, Grahamdale, St. Laurent, and West Interlake

DISTRIC T 12

MARK GOOD TREASURER Alonsa, Lakeshore, McCreary, and Ste. Rose

GOUDIE Dauphin, Ethelbert, Gilbert Plains, Grandview, Roblin and Mossey River

Maureen Cousins POLI C Y AN A LY S T Designed by onPoint

Work Continues on Drought File, Livestock Inspection and More

Greetings friends,

It’s nice to see some rain in August. I know some folks got more rain at the start of August than they have had all summer. Although it doesn’t help the growth of hay or feed crops in the driest areas, it could add some extended grazing time to the end of the summer and into the fall.

MBP has advocated for different types of support for affected producers, such as freight assistance or water source development. Frankly, in the

CARSON CALLUM General Manager’s Column

MBP has advocated for different types of support for affected producers, such as freight assistance or water source development. Frankly, in the current economic climate, belt tightening is happening at all levels of government, but it doesn’t mean that governments can’t look at ways to support producers in the devastatingly dry areas.

current economic climate, belt tightening is happening at all levels of government, but it doesn’t mean that governments can’t look at ways to support producers in the devastatingly dry areas. I am pleased with the Manitoba Agriculture extension activities to help ensure producers are feed testing and water testing, especially if they are using alternative sources. It will be interesting to learn how much in the way of drought damaged crops is being converted to alternate use as livestock feed.

MBP continues to focus on livestock inspection implementation since given direction on this at our February 2025 Annual General Meeting. A working group comprised of representatives from MBP, the Manitoba Livestock Marketing Association, the feedlot sector and Manitoba Agriculture has been struck and is meeting regularly to advance work on this important file.

Among matters that need to be addressed to move inspection forward, there needs to be some changes to Manitoba’s legislative and regulatory environment to facilitate matters such as livestock inspectors being able to detain cattle or to direct the dealer to hold the sales proceeds until ownership of inspected cattle is verified.

The working group is also interested in pursuing the use of electronic record keeping related to inspection processes from the outset of an expanded inspection system, rather than relying on a paper-based system or a hybrid system. Using electronic record keeping would help streamline the flow of information into a central repository, ensuring it gets to where it is needed in a timely fashion. This could provide multiple benefits, including providing opportunities to report information needed to fulfill federal reporting requirements related to traceability and movement reporting, both current and planned. I am very pleased by all of the collaboration we have seen with this group to make an inspection service for Manitoba, by Manitoba. If anyone ever has questions about our efforts, please give me a call at the office.

On the communications file, I encourage all to watch for the newly refreshed Great Tastes of Manitoba appearing on YouTube beginning September 5 and every Friday thereafter. MBP will be participating in Discover Agriculture on the Farm September 14 at the Farm and Food Discovery Centre (FFDC). MBP is also going to be taking part in the Amazing Ag Adventure September 23-26 at the FFDC, put on by Agriculture in the Classroom Manitoba. Finally, I want to call out exciting news that was recently announced. Manitoba will be hosting the Canadian Beef Industry Conference (CBIC) in Winnipeg, August 17-20, 2026 with more details to follow in the months ahead. This will be a great opportunity to display Manitoba as a leader in the cattle industry to colleagues across the country.

WILD PIGS

It’s been a busy year on many fronts with work on files such as trade, drought, and animal health issues to name a few. There will be lots to update you on at our district meetings this fall. The schedule will be posted soon, so I hope you keep an eye on our website and social media to ensure you make it to your closest meeting. We look forward to seeing many of you there.

Happy harvest,

Carson

pigs pose a threat to rural Manitoba. They contaminate water sources, damage natural habitats

Special Intake for Cost-Shared Funding for Livestock Water Supply

Effective August 21, 2025 the Manitoba government opened up a special intake for livestock water supply development via the Sustainable Agriculture Manitoba program. The high-level program details that follow are from the Manitoba Agriculture website.

Please note that Manitoba Beef Producers continues to engage with the provincial government on various elements of this program to help ensure it is most responsive to cattle producers’ needs.

For full details as posted by the department on August 21, including a link to the application form and a frequently asked questions document, see: https:// www.gov.mb.ca/scap/climatechange/sustainableagr/ livestock-water-supply.html

BMP 4700: 2025 Special Intake – Livestock Water Supply

Applications will be accepted on a first-come, first-served basis until available funding is allocated. Program guidelines are new for this intake. Please review carefully to ensure eligibility before applying.

The 2025 Special Intake: Livestock Water Supply intake supports livestock producers in accessing new or expanding existing water supplies during prolonged periods of dry conditions.

Intake Information

The intake for this program is currently open; funding requests will be accepted on a first-come, first-served basis from August 21, 2025, until available funding has been allocated.

Eligible Applicants

This intake is exclusively for livestock producers in specific areas impacted by dry conditions.

To be eligible, livestock producers must:

• Manage agricultural land used to produce agricultural products. Hobby farms are not eligible.

• Own land where the project will be executed or have permission from the landowner to execute the project.

The land location(s) for the project must be within a Municipality, Northern Affairs Community or First Nation within a Designated Region as identified by AAFC’s 2025 Livestock Tax Deferral Provision. A list of Designated Regions is available on AAFC’s website. If you are unsure of your eligibility, please contact us at agriculture@gov.mb.ca or 1-800-811-4411.

Beneficial Management Practice (BMP) Summary

Establish new or expand existing water supply for agricultural use by installing infrastructure.

• Wells: drilling new or deepening/extending existing, plus test hole drilling, screening, casing, well caps, etc.

• Dugouts: constructing new or rehabilitating existing dugouts.

• Associated components and actions: purchase and installation of pipe, plumbing and electrical, trenching, earthworks, etc.

• Permanent pipeline development: pipelines below the frost line OR shallow/above ground pipelines (pipelines above the frost line) that can be winterized, pipe, plumbing materials, trenching, earthworks, etc.

Eligible Expenses

The following type of expenses are eligible for funding:

• Incremental Personal Labour

• Incremental Personal Equipment Use

• Subcontracted Services

• Professional Fees

• Capital Assets and Equipment

• Equipment Rental

• Materials and Supplies

Review the Program Guide for complete details on eligible and ineligible expenses.

Project Timeline

All projects shall start April 1, 2025, or later. Project activities and all reports must be completed by December 12, 2025.

Cost Share Funding

BMP 4700 has a cost share ratio of 50 per cent government, 50 per cent applicant, and a BMP funding cap of $15,000 per applicant.

Producers that were previously approved for Sustainable Agriculture Manitoba - BMP 4700 are eligible for up to an additional $15,000 under the 2025 Special Intake - Livestock Water Supply for new projects.

• Have a Manitoba Premises Identification number.

• Have a valid Statement of Completion for an Environmental Farm Plan at time of project claim.

Bobolinks, Burrowing Owls and... Beef Cattle?

Although it may be unexpected, the land used to raise beef cattle in Canada contributes the majority of critical habitat that wildlife needs to nest and raise their young (74%) and to find food (55%) when all of Canada’s crop and pastureland is considered.

Homes on the Range takes you into the wide-open landscapes of Canada to explore the surprising role of beef farmers and ranchers in protecting the vital habitats their cattle share with wildlife. Hear from ranchers, conservationists, and wildlife biologists from across the country (including Manitoba) as they reveal how cattle don’t just coexist with wildlife — they help them thrive. When it comes to habitat for many species in Canada, home truly is on the range.

This documentary was produced by Public and Stakeholder Engagement (PSE) which is funded by the Canadian Beef Cattle Check-Off and administered as a division of the Canadian Cattle Association (CCA) in partnership with Canada Beef. The PSE team works with national and provincial beef organizations to address consumer questions and communicate the environmental and societal benefits of raising beef cattle in Canada. To find out more about PSE initiatives, visit http://www.raisingcdnbeef.ca

Watch: (English with subtitles) https://youtu.be/ru0aYrw4K34

Influencing the Influencers: Social Media Content Creators See Ranching Through a New Lens

CONTRIBUTED BY: PUBLIC AND STAKEHOLDER ENGAGEMENT, CANADIAN CATTLE ASSOCIATION

In an ideal world, every Canadian would have the chance to visit a ranch and see the care Canadian beef producers offer their livestock and land. Of course, the logistics of making that happen are not realistic, but that’s where social media influencers come in. By inviting a few sought out content creators with big followings in key demographics, one ranch tour can reach so many more people.

The Public and Stakeholder Engagement team hosted the second annual Influencer Ranching Experience in July during the Calgary Stampede. Public and Stakeholder Engagement is funded by national checkoff dollars and is jointly delivered by Canada Beef and the Canadian Cattle Association. The program seeks to build and maintain public trust in the way beef cattle are raised in Canada. The annual Ranching Experience brings together a group of social media content creators to a southern Alberta ranch to learn about the benefits of raising Canadian beef.

The day began at Lammle’s Western Wear, where influencers were given a shopping budget to get “suited and booted” for the day. Then, the group boarded a private bus to head out to the East Longview Hall, where Chop Steakhouse catered a delectable prime rib beef dip lunch.

As the creators enjoyed their meal, they also took

in Public and Stakeholder Engagement’s newest short documentary, Homes on the Range. Set to be released this fall, the film highlights the important role of beef producers in preserving critical wildlife habitat on Canadian grasslands.

After lunch and a show, the influencers headed out to Robertson Ranch near Longview, Alberta. At the yard, Alex and Carol Robertson and their twin daughters Morgan and Taryn guided the group through a series of stations that let the influencers try their hand at being a rancher. Stations featured roping lessons from professional roper Steele DePaoli, leading Highland heifers, grooming the ranch horses, and hearing the history of the ranch.

With the ice broken and excitement high, the group set out for one of the Robertsons’ picturesque pastures in the foothills of the Rocky Mountains. On the way, creators watched Morgan work her border collie on some cattle and took in the scenery.

At the end of the road, the group heard from representatives from the Nature Conservancy of Canada and Ducks Unlimited Canada, reinforcing the critical role of ranchers in preserving grasslands as one of the world’s most endangered ecosystems. To really seal the deal, influencers spotted a fawn and a cow elk with her calf, letting them see biodiversity in action.

After many questions from curious creators and a break for some wildflower beauty shots, the group headed back to Calgary for an exclusive dining experience at Chop Steakhouse. Here, the influencers enjoyed a beef-centric supper featuring three different cuts of steak on a sample “butcher’s board”. With a side of good conversation, the creators were ready to tuck in for the night in a hotel room provided for them.

In return for the experience, influencers posted a series of Instagram stories throughout the day, as well as a summary reel highlighting their learnings from the day. With all the glitz and glamour of the day, you might expect the influencers to focus their content on western fashion or gourmet dining. But instead, the content from the day highlighted the creators’ heartfelt appreciation for all that ranchers do to care for the animals and ecosystems in their care.

While the influencers appreciated the shopping, hotel, and meals as an incentive to provide their services, it was learning about the people and stories behind the beef on their plates that stuck with them. “I will remember the people,” said one influencer. “I really had zero experience with ranching, so I learned an awful lot. I think I will remember how peaceful it felt out on their ranch and how important ranching is to maintaining those grasslands.”

As influencers share what they learned with their audiences, their followers get to step into their boots as if they went on the tour themselves. Creators varied from foodies to lifestyle bloggers but were all selected for their followings in key urban centres.

Before and after the event, influencers were asked to complete a brief survey to gauge their perceptions of Canadian beef cattle farmers and ranchers. Prior to visiting the ranch, 70% of the creators rated Canada’s beef industry as “good” stewards of the land and water, with the remaining responding “unsure” or “acceptable”. After the tour, 100% of responses rated this category as “excellent”.

Of course, personal experiences like the ranch visit have immense power to shape these perceptions. Fortunately, the broader population is experiencing the same shift in mindset. In July, the Public and Stakeholder Engagement program ran its annual key performance indicator questions as part of an omnibus survey of Canadians. This survey found that 74% of Canadians felt positively that “beef is an environmentally friendly food choice”, representing a 6% increase over 2024 and a 14% jump past the 2022 result. While not tied to any particular initiative, these results demonstrate the influence of sharing positive messages about beef cattle. Thanks to the power of influencers, the stories from the Ranching Experience reach and impact consumers across the country. Check out some of the content from the day on Public and Stakeholder Engagement’s @ raisingcdnbeef Instagram.

The influencers tour group after getting "suited and booted" at Lammie's (Photo courtesy PSE)

Are You a Competitive Supplier of

PROVIDED BY: CANFAX RESEARCH SERVICES

The last five years have seen a rapidly shifting landscape with inflated input costs and surging cattle prices. It can be easy to coast, allowing cost structures to rise to the level of cash coming into the operation. But now is the time to set yourself up for the next phase of the cattle cycle. High prices cure high prices; they won’t stick around forever.

How are you investing into your business to be more competitive when prices turn? Are you a competitive supplier of weaned calves? Do you know if you are a high or low-cost producer?

Individual benchmarking allows for incremental improvement from year to year. Comparison to a provincial average tells a producer if they are competitive in the marketplace. Comparison to similar management systems allows producers to identify ways they can improve their competitiveness. The Canadian Cowcalf Cost of Production Network (COP Network) was designed to give producers benchmarks that represent a variety of production and management systems, showcasing incremental steps that can be taken to improve competitiveness. The aggregated results give an indication of what to aim for.

It should be noted that benchmarks are NOT based on who is the most productive. Benchmarks ARE based on who is the most profitable. Benchmarks come from the top third not the average.

Profit Drivers

What costs are you covering?

The 5% Rule says that profits are driven by:

1. Marketing - output price (revenue)

2. Productivity - pounds produced/sold

costs. Covering opportunity costs represents a return to land, labour and capital, giving producers the signal to expand the herd. In comparison, in 2023, 95% of farms covered short-term costs, 91% covered medium-term costs, and about 50% covered long-term costs.

Figure 1. Canada Average Cost in 2024

Profit Drivers

The 5% Rule says that profits are driven by:

1. Summary of 2024 Costs and Profitability ($/cow)

Profit Drivers

1. Marketing - output price (revenue)

2. Productivity - pounds produced/sold

The 5% Rule says that profits are driven by:

3. Input costs -

Marketing - output price (revenue)

Overall, average short -term profits were up from $668/cow in 2023 to $91 9/cow in 2024, medium -term profits up from $465/cow to $675/cow, and long-term profits were up from -$25/cow to $163/cow. (Table 1). While these figures reflect a positive trend in profitability for 202 4, there is significant variability between operations. The top third benchmark farms had short-, medium-, and long-term profits that were 33%, 58% and 306% higher than the average. Some operations have experienced much higher profitability, while others saw less favorable results. Table 1. Summary of 2024 Costs and Profitability

3. Input costs - cash, depreciation and opportunity

Input costs - cash, depreciation and opportunity

When the 64 benchmarks are divided into three equally sized groups based on medium-term profit (see Figure 2) it becomes clear that controlling costs is a major profit driver representing the key difference between the groups. Total costs dropped 21% from the low- to medium-profit group and by another 23% from the medium - to high-profit group supporting a significant 223% and 47% increase in medium-term profit, respectively. Meanwhile, the t otal revenue had modest gains of 7% and 1%, making a smaller contribution. This highlights the critical role that controlling costs plays in maximizing profits, which is something producers have more control over than output prices.

In 2024, with revenue (+16%) growing faster than total costs (+5%), profitability improved across Canada (Figure 1). All benchmark farms covered short-term (cash) costs, and a vast majority (95%) managed to cover medium-term (cash and depreciation) costs (Table 1). Covering depreciation is critical to long-term survival of an operation as it ensures that assets can be replaced. As machinery and repair costs move higher, producers calculating depreciation based on book value can be caught off-guard as replacement costs move higher. About 59% of farms were able to cover long-term (cash, depreciation, and opportunity) costs. Covering opportunity costs represents a return to land, labour and capital, giving producers the signal to expand the herd. In comparison, in 2023, 95% of farms covered short-term costs, 91% covered medium-term costs, and about 50% covered long-term costs.

*Total revenue including calves, cull cows and bulls, breeding stock, and productivity from opens and death loss

When the 64 benchmarks are divided into three equally sized groups based on medium-term profit (see Figure 2) it becomes clear that controlling costs is a major profit driver representing the key difference between the groups. Total costs dropped 21% from the low- to medium-profit group and by another 23 from the medium - to high-profit group supporting a significant 223% and 47% increase in medium-term profit, respectively. Meanwhile, the t otal revenue had modest gains of 7% and 1%, making a smaller contribution. This highlights the critical role that controlling costs plays in maximizing profits, which something producers have more control over than output prices.

When the 64 benchmarks are divided into three equally sized groups based on medium Figure 2) it becomes clear that controlling costs is a major profit driver representing between the groups. Total costs dropped 21% from the low- to medium-profit group from the medium - to high-profit group supporting a significant 223% and 47% increase profit, respectively. Meanwhile, the t otal revenue had modest gains of 7% and contribution. This highlights the critical role that controlling costs plays in maximizing something producers have more control over than output prices.

Overall, average short-term profits were up from $668/cow in 2023 to $919/cow in 2024, medium-term profits up from $465/cow to $675/cow, and long-term profits were up from -$25/cow to $163/cow. (Table 1). While these figures reflect a positive trend in profitability for 2024, there is significant variability between operations. The top third benchmark farms had short-, medium-, and long-term profits that were 33%, 58% and 306% higher than the average. Some operations have experienced much higher profitability, while others saw less favorable results.

Profit Drivers

The 5% Rule says that profits are driven by:

1. Marketing - output price (revenue)

2. Productivity - pounds produced/sold

3. Input costs - cash, depreciation and opportunity

Controlling Costs

Figure 2. Medium-term profit, total cost and total revenue of low, medium and high

Figure 2. Medium-term profit, total cost and total revenue of low, medium and high profit groups

Cow Cost vs. Revenue

When the 64 benchmarks are divided into three equally sized groups based on medium-term profit (see Figure 2) it becomes clear that controlling costs is a major profit driver representing the key difference between the groups. Total costs dropped 21% from the low- to medium-profit group and by another 23% from the medium- to high-profit group supporting a significant 223% and 47% increase in medium-term profit, respectively. Meanwhile, the total revenue had modest gains of 7% and 1%, making a smaller contribution. This highlights the critical role that controlling costs plays in maximizing profits, which is something producers have more control over than output prices.

Controlling Costs

Overall, total production costs per cow have an upward sloping supply curve (Figure 3), with both low-cost and high-cost production systems represented.

Controlling Costs

Overall, total production costs per cow have an upward sloping supply curve (Figure 3), with both low-cost and high-cost production systems represented.

Controlling Costs

In 2024, the average total cost (Table 1) rose to $1,850 per cow, up 5% from 2023. The increase was more pronounced in the East, where costs increased from 2023 by 7%, compared to a 4% increase in the West since 2023 The larger cost hike in the East is primarily due to inflationary pressures offsetting the effects of the 2023 drought in the West, as well as increased demand from Western producers purchasing winter feed from the East in 2023 Breaking down the

inflationary pressures offsetting the effects of the 2023 drought in the West, as well as increased demand from Western producers purchasing winter feed from the East in 2023.

Breaking down the total costs, 59% ($1,094) were cash costs, 13% ($244) depreciation, and 28% ($512) were opportunity costs. These are consistent with the previous year, which had 61% cash costs, 11% deprecia tion, and 28% opportunity costs.

Overall, total production costs per cow upward sloping supply curve (Figure cost and high-cost production systems represented.

In 2024, the average total cost 0 per cow, up 5% from 202 The increase was more pronounced in the East, where costs increased , compared to a 4% increase in the The larger cost hike in the East is primarily due to inflationary pressures offsetting the effects of the 2023 drought in the West, as well as increased demand from Western producers purchasing winter feed from the East in 2023

Continuous Improvement

The difference, when comparing the costs for the top third farms to the bottom two-thirds (Figure 4), has widened 10 percentage points from 2021 to 2023 from

20-30% for cash and 38-48% for depreciation costs. This represents the top third making continuous improve ments in their operations. This widening gap shows how those who are most competitive cement their position during profitable times.

Overall, total production costs per cow an upward sloping supply curve cost and high production systems represented. In 2024, the average total cost rose to $1,850 up 5% from 202 The increase was more pronounced in the East, where costs increased by , compared to a 4% increase in the West since 2023 The larger cost hike in the East is primarily due to inflationary pressures offsetting the effects of the 2023 drought in the West, as well as increased demand from

Total costs for top-performing farms are 24% to 32% lower than those of the bottom tier, driven by consistent double-digit reductions in cash costs, depreciation, and opportunity costs across all years. It is worth noting that the top third group does not focus on just cash costs but is controlling every aspect of their cost structure.

In contrast, weaned calf prices show only modest variation between top and bottom farms, with differ

Breaking down the total costs, were cash costs, 13% ($244) depreciation, and 28% ($512) were opportunity costs. These are consistent with the previous year, which had 61% cash costs, 11% depreciation, and 28% opportunity costs.

Weaned Calves? 2024 BENCHMARK RESULTS

Commented [JB4]: For clarity, you may want descriptor for the x-axis so that readers understand codes represent individual benchmark farms provinces.

Continuous Improvement

ences ranging from 2% to 6%, underscoring the limited influence producers have over market prices. As cattle prices have increased in recent years, the total revenue gap has narrowed—from 16% in 2021 to just 4% in 2024 - suggesting that when prices are high, all cow-calf producers benefit. But when the price cycle turns, it should not be forgotten that these top-performing operations not only control costs but also received more revenue. It is never too late, nor too early to start working on developing reputation cattle.

The difference, when comparing the costs for the top third farms to the bottom two -thirds (Figure 4), has widened ten percentage points from 2021 to 2023 from 20-30% for cash and 38 -48% for depreciation costs. This represents the top third making continuous improvements in their operations. This widening gap shows how those who are most competitive cement their position during profitable times.

The difference, when comparing the costs for the top third farms to the bottom two -thirds (Figure 4), has widened ten percentage points from 2021 to 2023 from 20-30% for cash and 38-48% for depreciation costs. This represents the top third making continuous improvements in their operations. This widening gap shows how those who are most competitive cement their position during profitable times.

Difference (Top vs. Bottom) 2021 2022

Figure 4. Percent Difference Between Top Third and Bottom Two-Third, based on Medium-Term Profits

Percent Difference Between Top Third and Bottom Two-Third, based on

% Difference (Top vs. Bottom)

Total costs for top-performing farms are 24% to 32% lower than those of the bottom tier, driven by consistent double -digit reductions in cash costs, depreciation, and opportunity costs across all years. It is worth noting that the top third group does not focus on just cash costs but is controlling every aspect of their cost structure.

profitability.

Preparing for the next phase of the cattle cycle

At the top of the price cycle, producers have an opportunity to strategically set themselves up for the future. Reinvesting profits into operational improvements, genetic advancement, or resource efficiency can serve as a proactive hedge against the cyclical nature of the cattle market.

In contrast, weaned calf prices show only modest variation between top and bottom farms, with differences ranging from 2% to 6%, underscoring the limited influence producers have over market prices. As cattle prices have increased in recent years, the total revenue gap has narrowed from 16% in 2021 to just 4% in 2024 - suggesting that when prices are high, all cow-calf producers benefit. But when the price cycle turns, it should not be forgotten that these top -performing operations not only control costs but also received more revenue. It is never too late, nor too early to start working on developing reputation cattle.

In contrast, weaned calf prices show only modest variation between top and bottom farms, with differences ranging from 2% to 6%, underscoring the limited influence producers have over market prices. As cattle prices have increased in recent years, the total revenue gap has narrowed from 16% in 2021 to just 4% in 2024 - suggesting that when prices are high, all cow-calf producers benefit. But when the price cycle turns, it should not be forgotten that these top-performing operations not only control costs but also received more revenue. It is never too late, nor too early to start working on developing reput ation cattle.

While the shrinking cattle supply has shifted market leverage toward cow-calf producers, enhancing profit potential, it has simultaneously increased exposure to market volatility, with large price ranges. Cost control combined with building reputation cattle can buffer operations against price volatility and enhance resilience in subsequent phases of the cattle cycle. Thoughtful planning during this phase is essential to ensure sustainability and competitiveness as the industry transitions into the next cycle.

Preparing for the next phase of the cattle cycle

Key Takeaways:

1. Manage your costs

2. Market quality, reputation cattle

Figure 4 Percent Difference Between

3. Reinvest profits

Preparing for the next phase of the cattle cycle

At the top of the price cycle, producers have an opportunity to strategically set themselves up for future. Reinvesting profits into operational improvements, genetic advancement, or resource efficiency can serve as a proactive hedge against the cyclical nature of the cattle market.

At the top of the price cycle, producers have an opportunity to strategically set themselves future. Reinvesting profits into operational improvements, genetic advancement, or resource can serve as a proactive hedge against the cyclical nature of the cattle market.

While the shrinking cattle supply has shifted market leverage toward cow-calf producers, enhancing profit potential, it has simultaneously increased exposure to market volatility with large price ranges . Cost control combined with building reputation cattle can buffer operations against price volatility and enhance resilience in subsequent phases of the cattle cycle. Thoughtful planning during this phase is essential to ensure sustainability and competitiveness as the industry transitions into the next cycle.

What is the COP Network?

The Canadian Cow-calf Cost of Production Network (COP Network) uses standardized data collection which allows for comparison both within and between provinces, and internationally. Since launching in 2021, the COP Network has collected data from over 235 producers contributing to 64 cow-calf benchmark farms that represent various production systems. Each benchmark is based on data from 3-7 producers. Data collection occurs every 5 years with annual indexing of input and output prices, as well as crop and forage yields, in subsequent years. Individual benchmark farm summaries, can be found at: https://canfax.ca/resources/cost-of-production/cop-results.html

Disclaimer / Copyright Notice: Canfax Research Services (CRS) tries to provide

Key Takeaway’s: Manage your costs

producers, enhancing

Figure 3. Total costs ($/cow) on benchmark farms in 202 4

[JB4]

Benchmark Farms

Source: Canfax Research Services, COP Network

Figure 4.

Manitoba Favourite Debuts New YouTube Series

After 35 years on the air, Great Tastes is changing the channel — and pressing play on a new digital chapter. Beginning September 5, 2025 Manitoba’s most watched, locally produced broadcast television series will launch an all new YouTube series.

According to series producer Donalee Jones, the revival of Great Tastes is in response to public demand. “We have surveyed Manitobans and this is what they are asking for,” Jones explains. The series producer believes it has potential to resonate with both nostalgic viewers and a new audience. She emphasized a generational gap in awareness, stating, “Many younger Manitobans who expressed interest in watching Great Tastes were unaware it exists.”

“We understand this is a big change for our loyal audience,” Jones adds. “However, YouTube viewing has become considerably more accessible in the last five years. It’s no longer solely about short-form videos; streaming long-form content on YouTube and other platforms is now widespread, thanks to the popularity of Smart TVs.”

This shift presents an opportunity to inspire more Manitobans to cook with local ingredients and connect with Manitoba’s farmers and ranchers.

The digital format also offers greater flexibility for both producers and viewers. No longer tied to a Saturday night time slot, audiences can watch Great Tastes any day of the week, with new videos released every Friday. With content now produced year-round, producers can respond to trends more quickly and deliver timely, engaging stories all year long.

The YouTube series will also introduce a dynamic cast of local hosts — a mix of professional chefs and passionate home cooks — who will share their favourite recipes, cooking tips, and plenty of personality. From taste test challenges to candid behind-the-scenes moments, this new format invites viewers into a more relaxed, interactive kitchen experience.

The new cast includes:

Chef Gordon Bailey – Renowned restaurateur and respected culinary instructor

Chef Anna Hymers – Red Seal chef and research technician at RRC Polytech’s Prairie Research Kitchen

Chef George Hudson – Sous chef at Oxbow Natural Wine Bar and Restaurant

Laura Cook – Home cook and food blogger from rural Manitoba

Together, they bring a wide range of expertise and perspectives — all rooted in a shared passion for local ingredients and Manitoba’s unique food culture. The hosts are also all excited about the opportunity to visit Manitoba farms and agricultural communities and share those experiences with the Great Tastes audience.

The series is produced by Frank Digital with funding provided by the Government of Canada and Manitoba Agriculture through the Sustainable Canadian Agricultural Partnership. It’s the only collaboration of its kind in Canada and brings together Manitoba’s farmers and ranchers through their non-profit industry associations: Manitoba Beef Producers, Hello Canola, Manitoba Chicken, Manitoba Crop Alliance, Manitoba

Pork, Manitoba Pulse & Soybean Growers, Manitoba Turkey Producers.

Great Tastes will be releasing new content on their YouTube channel, @GreatTastesTV, every Friday, starting September 5th. Follow @GreatTastesMB on Facebook and Instagram for exclusive behind-thescenes content, recipes, farm facts and much more. content at www.greattastesmb.ca

Fans who would prefer to watch the series on broadcast can find Great Tastes on The Rural Channel, RogersTV and WCGTV. All three broadcasters will be sharing old and new episodes of the series multiple times per week.

Chef Gordon Bailey, Laura Cook, Chef Anna Hymers, and Chef George Hudson (Photo courtesy FRANK Digital)

Manitoba Youth Beef Roundup 2025

Manitoba Youth Beef Round-Up media release

The 18 th Annual Manitoba Youth Beef Round-Up was held August 1-3, 2025, at Stride Exhibition Place in Neepawa, Manitoba. This may be the best Manitoba Youth Beef Roundup ever held with a record number of enthusiastic Junior cattle producers and largest number of cattle to date. Sadly, we had to turn some juniors away and some cattle as we were packed full.

Over 109 youth and 122 head of cattle gathered for an educational and fun weekend. This event draws youth aged 6 – 25 from Saskatchewan and Manitoba.

Committee members consist of: Co-Chairs Lois McRae, Jake Rawluk & Laura Horner; Dalyse Robertson, Ken & Kerri Hinsburg, Blair McRae, Rilla Hunter, Albert and Michelle Rimke, Megan Kemp, Lana Kraus, Mary-Jane Orr, Kara Thompson, Bobbi Jo Foster, Jolie Bootsman, Sadie McCauley and Gracie Falconer-Bertholet.

The success of this event is attributed to not only the teamwork of the committee members but also the hands-on assistance of parent volunteers, jumping in whenever and wherever necessary. Our judges for the weekend were Denver Bolton and Nolan Glover, Wawota along with Bevin Hamilton, Lakeland College.

Intermediate members ended off the day.

Saturday began bright and early with judging workshops facilitated by our three cattle judges.

Senior members were then required to judge heifers, steers, sheep, and filling out a judging card for each and providing oral reasons for the cattle, and sheep. Intermediates provided oral reasons for the heifer & sheep class and written reasons for the others. Juniors provided written reasons for all and oral reasons for the heifer class.

Over 109 youth and 122 head of cattle gathered for an educational and fun weekend. This event draws youth aged 6 – 25 from Saskatchewan and Manitoba.

Friday events kicked off with the ever-popular Ag Challenge. Members are grouped into teams of all ages and 12 stations with life skills: changing a grease gun, artificial insemination, hot wire fence making, cattle parts of the animal, and relays.

Educational workshops for Juniors and Pee Wee members on Showmanship and Grooming. Senior members were instructed on marketing your product on the

Pee-wee members and new juniors were involved in a unique Cattle Camp where they learned how to judge in a more appropriate setting, as well as making & tying rope halters parts of the meat cuts and boning legs. After lunch, members participated in Team Grooming, Team Judging, and Sales Talk.

The evening concluded with group members competing in the cook-off, where each group was provided with a steak and was required to prepare a meal for two discerning judges’ evaluation. Our judges were treated to feasts worthy of kings & queens! Steak Judges were Joan Airey and Ron McDonald from Manitoba Charolais, Gordon and Diane Peters, Liz from Neepawa Vet Clinic and Alice Rooke, Mazer Implements represented by Dave and Manitoba Beef Producers represented by Andre Steppler.

Sunday is show day. It begins with showmanship and is followed by the conformation show, a parade of 4-H Champions, and the Supreme Show. The weekend concludes with awards and supper. A large crowd attended the weekend events. It was great to see eight past Roundup participants that now their children are involved in the Roundup show.

An auction of unique items was held with funds from the Auction going towards the Scholarship Fund. Special thanks to our donators and buyers for supporting this program to the amount of $6190.

Special thanks to all our sponsors and volunteers who make this event possible. These skills are preparing our livestock youth with lifelong skills and friendships in the beef industry.

See you all next year at Manitoba Youth Beef Roundup 2026.

View photos and results at www.mbyouthbeefroundup.weebly.com

October 15 - District 4

Director: Byron Falk New Horizon Senior Centre (Grunthal)

October 16 - District 10

Director: Mike Duguid Arborg-Bifrost Community Centre (Arborg)

October 21 - District 2

Director: Mark Schram Floyd & Ethel Cudmore Hall (Crystal City)

October 23 - District 8 Director: Matthew Atkinson Neepawa Legion

October 27 - District 12

Director: Mark Good Ste. Rose du Lac Community Hall

October 28 - District 14

Swan River Elks Hall

November 3 - District 6

Oak Lake Community Hall

November 4 - All Districts VIRTUAL MEETING - 7:00 pm 4:30 pm start time

Director: Dale Cazakoff

Director: Brian English

Internet (Janelle Gulka) and how to take cattle photos (Laura Horner). Leadership workshop presented by Mary Jane-Orr and Jolie Bootsman for the Senior and

StockTalk Q&A Feature Brought to you by Manitoba Agriculture

Kristen BouchardTeasdale Livestock Specialist-Beef Manitoba Agriculture

Kristen.BouchardTeasdale@gov.mb.ca

Should She Stay or Should She Go?

Her name was Snowball, and she was my barnyard nemesis. Snowball didn’t care for kids, and so my sister and I learned to be aware of her location in a pen at all times. Each winter, I reminded Dad that he may want to consider sending her to auction in the fall. He would agree, but the beautiful calf she brought home from pasture would inevitably cause temporary amnesia (on his part, not mine) and Snowball would keep her place in the herd for another year. Snowball became a permanent fixture on the farm, and my sister and I became good at vaulting fences. I’m told that I exaggerate, but that’s a debate for another time.

Roughly 15 per cent of breeding cows are replaced annually on most beef farms. In years where farms are experiencing dry conditions and tight winter feed supplies, the number of cows sent to market after weaning tends to be higher. There are several factors to consider when compiling the list of cows you intend to cull each year. Keeping good records is helpful when it comes time to make tough decisions and to hold yourself accountable to assessments made earlier in the year. In addition to temperament, here are some points to keep in mind:

Reproductive Efficiency – The primary goal of a beef cattle operation is for each cow/heifer to give birth to a healthy calf every 365 days and raise it to weaning. It comes as no surprise that failure to meet this requirement is the number one reason for culling cows. Open cows and heifers consume feed without providing income from calf sales. This is especially taxing on a farm’s bottom line in years of drought when feed supplies are tight and costs are high. Pregnancy checking can be used to provide producers with the information needed to identify open animals and cull them early, reducing the herd’s overall feed requirements. Cows/heifers that calve outside of, or late within, a desired calving interval should also be considered as potential culls. Cows calving late one year due to a reproductive problem are significantly more likely to be open the next. Similarly, cows who fail to wean a calf due to abortion or a difficult birth should be contemplated.

Age –The productive lifetime of a beef cow is variable and dependent on factors such as breed composition and environment. In general, a cow’s prime productive years range between 4-8 years of age. It is during this period that she is most likely to re-breed easily and produce a high-quality calf. Research indicates that after 10 years of age, a cow’s reproductive performance tends to decline and she is more likely to come back from pasture open, wean a lighter calf, and experience health problems. Older cows also require a higher plane of nutrition. Winter feeding recommendations often suggest older cows be grouped with replacement heifers to ensure they receive

additional energy and nutrients. When it comes to the old favorites in the herd, thought must also be given to what is best for the animal’s well-being. Cows need to be in adequate condition to make the haul when leaving the farm for market and from market to the processing plant. Holding onto her for “one more year” may make this journey substantially harder.

Udder Conformation – A sound udder should be firmly attached with a strong, level floor and four properly formed teats that are proportionate to the cow’s size. Newborn calves will have a difficult time nursing from large funnel-shaped teats, especially if they are hanging low to the ground. This can pose a challenge to producers during the spring calving rush, as these calves often require extra attention to ensure they receive adequate colostrum. Low udders are also at greater risk of injury and mastitis infections. Cows suffering from mastitis or those with blind quarters resulting from a previous infection may have compromised milk production which could lead to reduced calf growth. Pendulous udders may also contribute to increased calf sickness as calves intake mud and debris from suckling dirty teats.

Feet and Legs – Cows need to be able to travel long distances across pasture to graze and reach water. Poor foot and leg structure can lead to ongoing problems like lameness, which affects a cow’s ability to graze, maintain condition, and rebreed. Watch for hooves that are cracked or misshapen. Healthy feet should have two symmetrical claws that both point forward. The pastern should have a slope between 45 and 47 degrees to provide proper cushion and support when walking and standing. Rear leg structure also matters. Cattle that are post-legged or sickle-hocked often have limited mobility and are more likely to go lame due to extra strain on the joints, tendons, and ligaments around the hock.

Health – There are several health issues in beef cattle that can justify culling from the herd. Common reasons include cancer eye, vaginal or uterine prolapse, mastitis, lameness caused by foot rot or arthritis, bad teeth, and mouth abscesses. Some cows also struggle to maintain body condition, especially as they age or due to one of the issues above. In any case, it’s a good idea to consult with your veterinarian to determine the best approach for managing these cows. Always ensure cull animals are fit for transport and handled as humanely as possible.

To my Dad’s credit, he’s adopted a much stricter approach when it comes to cow temperament and mothering ability. I’ve heard from several producers that this kind of mindset often comes with age and experience. For those facing tough culling decisions this fall due to dry conditions, my heart goes out to you. Take care all and have a safe fall run.

Beef cattle producers can calculate the value of pregnancy detection for their farms with the Beef Cattle Research Council’s online Economics of Pregnancy Testing Calculator. Pregnancy Detection - BeefResearch.ca

Share Your Voice

In the next issue of Cattle Country, a Manitoba Agriculture forage or livestock specialist will answer a selected question. Send your questions to Elizabeth. Nernberg@gov.mb.ca.

StockTalk for Cattle Country is brought to you by Manitoba Agriculture. We encourage you to email your questions to our department’s forage and livestock team. We are here to help make your cattle operation successful. Contact us today.

Andrea Bertholet Killarney 204-851-6087 Andrea.Bertholet@gov.mb.ca

Kristen Bouchard-Teasdale Beausejour 431-337-1688 Kristen.BouchardTeasdale@gov.mb.ca

Shawn Cabak Portage 204-239-3353 Shawn.Cabak@gov.mb.ca

Pam Iwanchysko Dauphin 204-648-3965 Pamela.Iwanchysko@gov.mb.ca

Cindy Jack Arborg 204-768-0534 Cindy.Jack@gov.mb.ca

Juanita Kopp Beausejour 204-825-4302 Juanita.Kopp@gov.mb.ca

Elizabeth Nernberg Roblin 204-247-0087 Elizabeth.Nernberg@gov.mb.ca

President: Brooke Canart 204-851-2531

Secretary: Sandra Brigden 403-638-7741 sandra.mbsimmental@gmail.com

Oct. 31st Manitoba Ag Ex Simmental Show Brandon, Manitoba

Nov 1st Cherry Creek Farms Online Bull & Female Sale FarmGateTimedAuctions.ca Nov 7th Rainbow River Simmentals Online Sale FarmGateTimedAuctions.ca

Nov. 20th Pembina Triangle Simmental Assoc. 44th Annual Sale Cypress River, Mb

Nov 27th Associate Invitational Simmental Sale FarmGateTimedAuctions.ca

Dec. 2nd Keystone Konnection 46th Annual Sale Brandon, Mb

Dec 4th Maple Lake Stock Farms Fall Bred Heifer Sale Hartney, Mb

Dec 7th Northern Light Bred Heifer & 2 Year Old Bull Sale Rossburn, Mb

Dec 9th Cream of the Crop Simmental Sale FarmGateTimedAuctions.ca

Dec 10th Premium Picks Simmental Sale Kenton, Mb

Dec 12th OPT Bred For Success 2nd Annual Female Event Darlingford, Mb

Dec 13th Transcon’s Season Wrap Up Bull & Female Sale Neepawa, Mb

Dec 14th Bonchuk Farms Female Production Sale McAuley, Mb Thank you to all

Auction Mart Industry in Manitoba is on Solid Footing

The auction market industry in Manitoba is on solid footing! Despite all of the media coverage dealing with the closure of the Brandon Stockyards, cattle producers in Manitoba are not turning away from auctions when it comes time to market their cattle.

In fact, the majority of the well-run auction markets in Manitoba reported an increase in the cattle marketed by their facilities last fall and this spring. Over the past year some of the larger backgrounding operations sold large volumes of cattle at the local auctions. The auction market provided “true price discovery” in a transparent marketing atmosphere, where producers could pick up a cheque after their cattle were sold. When it comes to marketing their cattle, many producers have spent years developing personal relationships with markets and buyers. Manitoba is blessed to have one of the strongest buyer’s rows in Western Canada. Buyers from all of the major cattle buying companies attend the Manitoba auctions. These buyers supply the major feeding companies across Canada and the northern Untied States. Manitoba’s geographical location gives the buyers an advantage to ship those cattle anywhere. The hog plants in Brandon and Neepawa provide a constant supply of back haul trucks willing to haul cattle at a competitive rate.

This year with the huge price huge slides, it was so important to know the accurate weight of the cattle when determining the final selling price. The “slide” is used to adjust the price if the cattle are lighter or heavier than the agreed delivery weight. This past year we saw price slides on calves from 40 to 60 and on yearlings from 20 to 30. When selling direct or on the electronic platform you don’t know your final weight until after the price has been determined. Having an accurate weight posted in front of the buyers has paid big premiums for sellers compared to the estimates on the other platforms.

Many of the successful auctions have changed their sale process to deal with managing shrink and stress on the cattle delivered to their sale barns. Show List sales have the selling weight determined on delivery, with the cattle put back on feed and water. The producers maintain their identity as the owner, and important information such as health protocols, vaccinations, and genetic information can be given to the buyers prior to the sale.

The pre-sort sales co-mingle different owners, based on weight and quality. Selling weight is also pre-determined at delivery before the sale. Cattle are placed on feed and water. This system works well as long as the cattle are sorted tight and the groups get the proper care both pre- and post-sale.

Contrary to the media reports, cattle producers in Western Canada are not leaving the local auctions and flocking to the electronic platforms. According to Canfax, the number of cattle sold on the Canadian electronic sales was down last year. Total sales of commercial cattle sold represented only 14% of the total cattle sold by auction. The electronic sales are another option for marketing. It is extremely important to have a well-known and respected broker list your cattle. Producers who list their own cattle do not always get the top prices unless they have established a good reputation. The electronic market works very well in the purebred and breeding stock sector. It also works for producers who can put together uniform load lots to sell. Many producers use the electronic platform to pre-price their cattle as a form of risk management. It should be noted that there are no contracts between the buyers and sellers signed on those forward delivery sales, with the companies operating the sales. Any major price swings can open the door for sellers or buyers to try to renege on the deal. Dispute resolution is not clearly defined.

Not every auction market is the same; some are operated better than others. Biggest doesn’t always mean best. If your local market is not addressing your needs as a seller, there is another one not that far away. Communication and establishing a relationship with your market or buyer is very important.

Now to the topic of the Brandon Stockyards. At one time, the Brandon Stockyards was the place to sell cattle

RICK WRIGHT

The Bottom Line

in Manitoba. The numbers in the past couple of years dwindled from a high of over 100,000 head in the mid 1990s to approximately 25,000 last year. The writing was on the wall a few years ago for the Brandon location. There were a number of reasons that contributed to the closure: Location, facilities, labour issues, growing competition and a loss of confidence from the sellers, combined with a shrinking cow herd, were all factors.

The Brandon Stockyards is located in a valley close to downtown Brandon. With the Corral Centre Mall and the increased traffic on 18th Street, it had become very difficult for producers to deliver the cattle, and for semi-trucks to get in and out of the location. In many cases, it was just more convenient to deliver the cattle to a rural location. The land in that area is very saleable and could be worth more to develop than maintain as a stockyard. Similar facility sales happened in Regina and Edmonton in the past. Constant complaints from city residents regarding the traffic, noise and smell had to be dealt with on a regular basis. There was always the threat of vandalism and break ins at the market due to the location.

The facilities were really starting to show their age and wear and tear from the busier days of the past. It was obvious that other than some paint, the maintenance and repair budget was limited. It was going to take a major investment in the facilities to bring them back to what was needed and the number of cattle coming to the market did not support the investment.

One of the biggest issues in the cattle industry is finding good, experienced employees, and the stockyards industry is no different. It is a Canada-wide problem. The Brandon location was the only stockyards in Canada where the workers in the back were unionized. This put Brandon at a big disadvantage when it came to hiring seasonal workers and scheduling workers to fit shifts. The union came with the workers who migrated to the stockyards after the Burns and Pool Packers plants closed. Management is key to the success of the auction market business. It is a hands-on job dealing with buyers and sellers and coordinating sales. It takes dedicated, knowledgeable staff, who producers trust to market their cattle. Heartland Brandon has had some great managers and employees over the years. The many “Award of Excellence” plaques displayed at the market are a testament to the dedication and hard work of those past and some present employees. Over the past 18 months, the ownership did little to ensure that there was a good full-time management/sales team in place in Brandon. Producers started to lose confidence in the market, and cattle numbers dwindled. Buyers started

to go to other auctions on Tuesdays and the saga of the Brandon market’s demise was quickly being written.

With the dwindling cow herd, the other markets in Manitoba were forced to work harder to maintain or increase their market share of the cattle. Many listened to the buyers’ and producers’ concerns about selling at the auctions. Many made changes; Ste. Rose was the first. They started the Show List sales in Manitoba, a very popular move with both producers and buyers. Numbers increased and so did the number of buyers at the sale. Killarney and Gladstone soon followed with the same results. Grunthal and Ashern also have moved to more special sales including some show list sales. Many of auction markets and dealers have become listing agents for the electronic sales, adding another option for their customers while keeping the professional relationship between the auction and their customers intact.

Some of Brandon’s biggest competition came from within the company. Heartland owns Virden’s market as well as Brandon’s. The changing of sale dates to accommodate the Virden schedule was not well received by the buyers or the producers.

The closure of the Brandon Stockyards should be viewed as a business decision. When I managed the Brandon market, we needed 600 cattle per sale to make the weekly expenses. In more recent years, the producers were not willing to support the sale barn under the existing conditions and ownership made limited effort to regain the business.

When I thought about the content for this article, the first headline that popped into my head was, “Brandon Stockyard Closes – Did anyone care?”

For me personally, it was a sad day when the closure was confirmed. I spent many years as the manager with some great staff and a very loyal customer base. What was once the “place to sell cattle” in Manitoba is now just a memory. I always said we have more auctions in Manitoba than we have cattle to sell. I never thought that Brandon would be the next one to go, following Lundar, Manitou, Strathclair, Minitonas, Dauphin, Pipestone and Pilot Mound. I often think of many of the people I worked with at the Brandon market who spent more time at the market than at home during the busy seasons -- Keith Cleaver, Drillon Beaton, Bert Lesage, Ed Bartlett, Gayle Glaseman, Hugh Moffat, Ivan Waldner, Brad Williams, Jeff Cunningham, Ian McKay to name a few, and I know I missed many employees who took pride in working at the Brandon Stockyards. On the buyer’s row, I’m sure that Don Ransom, Cliff Penno, Pete & Jim Quintaine, Ken Drake, Darrel McDowell, Don McDonald, Jim Martin and Joe Freidman, all had fond memories of the old stockyards.

Until next time, Rick

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Manitoba Beef Producers.

University of Manitoba Research is Modernizing Meat Inspection to Benefit the Beef Industry

BY PETER FROHLICH, NATIONAL CENTRE FOR LIVESTOCK AND THE ENVIRONMENT, UNIVERSITY OF MANITOBA

University of Manitoba (UM) researchers, led by Dr. Argenis Rodas-González, Associate Professor in the Department of Animal Science, have received funding from the Beef Cattle Research Council to test technology that will enable remote meat inspection in prairie abattoirs.

This two-year study will design a remote inspection procedure based on two-way live-stream video communication technology, confirm its effectiveness, and train operators to ensure that Canadian abattoirs comply with all safety regulations. The UM team has partnered with the Canadian Food Inspection Agency, Manitoba Agriculture and Government of Alberta to carry out this project.

Responsibilities of a meat inspector

In Canada, meat inspection is carried out by an onsite inspector either from the Canadian Food Inspection Agency or from a provincial health service. In Manitoba and Alberta, there are 53 provincial abattoirs that require qualified personnel to inspect animals prior to, during and after processing. At the start of processing, the inspector’s role is to check live animals for signs of disease or distress and to ensure they are fit for human consumption. Following processing, inspectors examine the carcass and internal organs (including the liver, lungs and heart) for signs of disease, infection, or contamination. The inspector then decides if the meat is approved for human consumption, is held for additional inspection, is directed to animal feed, or is condemned (incinerated or sent to landfill). The inspector also enforces health regulations inside the plant, oversees animal welfare, verifies processing standards, and ensures that a high-quality, safe product is supplied to the consumer.

However, abattoirs in Canada, especially those in remote locations, can experience staff shortages. Qualified personnel may not be willing to move to these areas and/or travel long distances for work, especially during harsh winter conditions.

Remote meat inspection at a glace

Remote meat inspection capability in Canadian abattoirs is achievable as successful video-assisted procedures are already being used in human medicine, automotive, mining, oil and gas, and in the clinical veterinary sectors. Additionally, researchers in Europe and Canada have also been using or testing these types of technologies within the livestock industry. For example, researchers at the University of Saskatchewan have found that monitoring carcass lesions by using cameras with artificial intelligence mounted on the processing line can be used as a diagnostic tool for assessing herd welfare during pre-harvest handling of the animals.

Building on this knowledge, researchers at the UM will use smart glasses and a hands-free device with a camera that can be operated using voice control to perform the remote inspections. The smart glasses have a screen display and will be used to provide hands-free access to communication, information or augmented reality features. Augmented reality is an interactive experience that combines the real world and computer-generated 3D content.

Developing and testing remote meat inspection

During phase one of the project, a graduate student will be trained to use the camera-equipped wireless headset and capture specific images of live animals, carcasses and organs and submit them electronically, in real-time, to a remote meat inspector. At the same time, the remote inspector (in the office in front of a computer) will learn how to employ an augmented reality overlay, directly showing their hands or other objects superimposed over the image the student’s screen displays. This will allow the remote inspector to highlight any areas of concern. During phase two, the research team will conduct mock meat inspections to standardize the procedure. During phase three, comparative testing between an on-site meat inspector and a remote meat inspector will take place in several Manitoba and Alberta abattoirs to optimize and confirm that the procedure works effectively.

Benefits for the beef industry

Adoption of remote meat inspection by the beef industry will serve as a tool to aid the modernization of Canadian abattoirs. As a result of this technology, meat inspectors will be able to work more efficiently and inspect more plants during the day. Less travel-related expenses will be incurred by plants and adverse weather will not be a barrier to adequate inspections. Rural abattoirs will be able to operate more regularly with fewer delays, thereby increasing cattle flow to the plants and improving service for local farmers. Modernizing and empowering small and medium abattoirs will increase supply chain resilience and provide a more secure meat supply. This study will help federal and provincial meat inspection legislation adopt new technologies to improve efficiencies and help to ensure the sustainability of the livestock sector.

RESEARCH TEAM:

University of Manitoba

Dr. Argenis Rodas-González, Dr. Gabriel Dallago, Dr. Marcos Cordeiro

Department of Animal Science

Dr. Claudia Narvaez-Bravo

Department of Food and Human Nutritional Sciences Government Collaborators

Dr. Noel Ritson-Bennett

Canadian Food Inspection Agency

Dr. Navjot Virdi

Manitoba Agriculture

Dr. Mark Hicks

Alberta Ministry of Agriculture and Irrigation

Prevention of Lead Poisoning is Important

BY: DR. TANYA ANDERSON, DVM

Lead poisoning is one of the most common toxi coses in Western Canadian cattle. Most lead exposure and poisoning in cattle occurs as a result of grazing on pastures contaminated with lead which has a naturally sweet and salty taste. Nursing calves in particular are at risk due to their natural curiosity and a tendency to lick or chew on foreign objects. Their milk diet also enhances lead absorption.

Due to the loss of pasture from demand for increased grain production, more marginal land is being utilized and that includes land that is difficult to convert to crops due to debris from old farm sites, derelict vehicles and junk piles. In some areas, chronic flooding has partially unearthed old burial sites and created an exposure risk in fields that had been previously grazed without issue.

Common sources of lead poisoning include batter ies, boiled linseed oil, used motor oil, oil filters, old li noleum, roofing felt, asphalt shingles, lead-based paints, ceramic glazes, some crop sprays (especially desiccants), old plumbing, machinery grease and caulking com pounds. Since 1992, paints for indoor use are virtually lead-free. However, there is a significant risk to animals that have access to old outbuildings that were painted prior to 1950 when lead paint was in use. Lead remains even in the ashes of those buildings if burnt. Lead is a very stable metal and will remain in the soil indefinitely — proper disposal and management of dumpsites is im portant to avoid inadvertent toxin exposure. Drinking water can also be contaminated if it is from old lead pipes or soldered tanks, particularly if the water is soft.

Typical signs of lead poisoning include depres sion, weakness, a drunken gait, stumbling, blindness, head-pressing (pushing up against walls, trees, fences), teeth-grinding, salivation, convulsions and twitching with hypersensitivity to sounds and noises. If exposure to low levels of lead occurs over time as in areas of heavy industrial pollution, bloat, diarrhea, constipation or “ain’t doin well” signs may develop. The signs are variable between animals, and some may die without showing any signs.

In my experience, lead poisoning is a top differen tial diagnosis for any calf that dies on pasture for which the usual findings of pneumonia, navel, scours or acute gastrointestinal disorders are not found. I am certainly more concerned if more deaths have occurred in a short period of time as this can indicate exposure to a single source. In all cases of lead poisoning that I had diagnosed, clients have been adamant that there is no source of lead. Cattle can and do find old dump sites in the middle of dense bush and “inaccessible” areas.

I recall an incident where a client had lost three cows on a new pasture in a 10 day period. Carcass decay had prevented necropsy on the first two cases, but daily pasture checks found another cow with neurological symptoms. Necropsy revealed tiny pieces of shingles in the reticulum, the second stomach which functions as a sorter during digestion. I mention this because it is impossible to get that “flushed” out of the GI tract. Exposure to acids in the rumen gradually changes the lead into poisonous salts that are absorbed into the bloodstream. Lead caught in the reticulum will take weeks to months to eliminate. Treatment is seldom effective since disease progression is too advanced and treatment is complicated, costly and time consuming. It is reserved only for valuable animals.

Manitoba. At this time, research is ongoing to assess and never leave batteries in barns, pastures or even on

It is also important to note that lead poisoning is a public health issue. Contaminated milk and meat that enters the food chain is a potential source of exposure to humans. Lead poisoning is considered a reportable disease in some provinces though not currently in

Movement Matters

The movement record function in the Canadian Livestock Tracking System (CLTS) is available for use ahead of regulatory amendments. CCIA has added features to the CLTS movement reporting model to ease the administrative burden of our clients. We encourage clients to participate by reporting livestock movements in the CLTS and sharing feedback on this feature.

The regulatory amendments will focus on the identification and registration of premises where livestock are kept or collected, the identification of livestock, and the domestic movement reporting of livestock. Using the movement record in the CLTS strengthens traceability and supports communication between producers, transporters and destinations. This leads to faster identification and notification of stakeholders during a disease outbreak. Log in and check it

Sunday Dinner Meets Monday Lunch

BY: ANNA BORYS, MBP FOOD EXPERT

This month’s inspiration was supposed to be all about our garden’s bounty: squeaky yellow beans, crisp cucumbers, new potatoes, the sweetest tomatoes and carrots you’ve ever tasted — basically, the summer vegetable dream. I even had a whole plan to write about a classic homemade meatloaf, complete with a sweet and zesty ketchup glaze, garlicky mashed garden potatoes, and butter-drenched dill beans. But if you’re reading this, you most likely already have a family favourite meatloaf recipe. So, my inspiration had to take a slight detour.

The real “aha” moment came the next morning, as I sliced into that same meatloaf to layer onto a couple slices of Manitoba rye for my work lunch. That’s when it hit me: some meals are made for leftovers. Or maybe leftovers are the whole point?

Take roast beef, for example. To be honest, it’s never been my favourite “Sunday dinner.” But roast beef leftovers? Now we’re talking. Cold roast beef sandwiches have earned their stripes for good reason. One thing that could be as classic as a roast beef dinner is the leftover roast beef sandwich the next day. They might be the reason I even agree to make roast beef in the first place.

With back-to-school season looming and weekday lunches returning to full swing, maybe you’re looking for sandwich inspiration. While roast beef sandwiches are nothing new, let me make a strong case for the peppercorn-crusted eye of round roast. It’s the perfect cut for slicing ultra-thin — deli-style — straight from the fridge.

For a recent weekday wrap, I slathered a tortilla with a blend of creamy Dijonnaise and a horseradish that could wake the dead (I highly recommend the fiery kind — go bold or go bland). The peppercorn crust already brings a bit of heat, but if you can handle it, go all in. Add a handful of grated cheddar, crunchy cucumber slices, and crisp romaine lettuce, then roll it all up and toss a few dill pickles on the side for good measure.

Boom — Monday lunch is handled, and it started with Sunday’s dinner.

So next time you’re planning your meals, think beyond the roast itself. You’re not just cooking dinner— you’re building sandwiches, wraps, maybe even a future lunch you’ll actually look forward to.

Enjoy!

Peppercorn Crusted Roast Beef

Ingredients:

1 ½ tsp Honey

⅓ Cup Parsley, finely chopped

1 tsp Garlic, minced

¼ Cup Prepared Horseradish

1 tsp Kosher Salt

1 tsp Dijon Mustard

1 Tbsp Canola Oil

786 g Eye of Round Roast

¼ Cup Black Peppercorns, coarse ground

Extra Salt for seasoning

METHOD:

1. Preheat oven to 375F.

2. In a food processor, blend together all ingredients except eye of round and peppercorns until they create a pesto-like texture.

3. Make sure the eye of round is still tied. If it’s not, tie the roast with butcher’s twine to create a tight and evenly sized roast. Pat the roast dry with paper towel.

4. Lightly salt the roast on all sides.

5. Rub the horseradish pesto mixture on all sides until evenly coated. You may only require a portion of the mixture, depending on the size of your roast.

6. Spread the crushed/coarse peppercorns on a plate and roll the roast all over to ensure even coating. Place the roast on a roasting rack over top a sheet pan to allow airflow underneath the roast.

7. Roast for 45:00 minutes, or until internal temperature reads 125F (for rare). Time will vary depending on size of roast. Pull roast from oven and allow to rest for at least 15 minutes before slicing.

Note: This cut is fairly lean, so there won’t be a lot of drippings. However, roasting potatoes, carrots and onions underneath the roast is never a bad idea.

Photo credit: Anna Borys