Drought assistance

[corine]

Well Alberta finally announced what they are going to do. Pretty much a joke if you ask me, no relation at all with the realities faced by livestock producers. Bet a lot of cows will hit the auctions in the next few weeks.

[cowman]

7000 at VJV this week. Still what can the government do? $324 million looks pretty good to the guys in Sask. who will get nothing.
When you consider the Alberta govt. put $450 million extra into health care and probably the teachers raises will cost at least that, then maybe the $324 million doesn't look so good. The devastation of this drought on the cattle industry in particular, but on agriculture as a whole, won't really be felt until next year when farmers suddenly have nothing to sell. Even with the poor prices there will be money this year as we sell the factory(the mother cow). Sort of like the county when they privatized everything a year ago. Lots of money to spend as they blew the money they got from selling all the equipment.
When farmers have nothing to sell they don't have any money to buy either. That is when the reality of this drought will really come home to the small rural towns. A few more businesses will go and a few more people. Nobody wins in a drought.

[pandiana]

If there are 59,000 farms in Alberta this would allow about $55.00 / farm from the $3.24 million. Even if only 1/2 applied, this would give $108.00 per farm!

Based on acreage allowance those farmers who live dry grass country where stocking rates are 50:1 will reap a considerable benefit compared to those that have a stocking rate of 1:1. It make no sense at all for cattle producers to be paid on the basis of land. Many producers buy a portion or all of their feed, including dairies and those that feed their own calves in dry lots. They have many more cattle per acre than range cattle and are suffering every bit or more because not only are forages goint to be too costly, in many areas they will be unavailable. I am extremely disappointed that they subsidy was not based on the number of head of cattle.

[ValueChainFX]

No matter what the subsidy is the real challenge we have at the moment is that like cowman stated in the above thread most of the guys that have sold their "Factory" cows may never bounce back. The choices they make today may have a devestation on the rest of their farm lives.

But then what choices do they have. We obviously can not depend on the Government as a fall back in these times.

What suggestions are out their ... Well what ever they are we all know that there are some tight years ahead.

[cowman]

pandiana: I think you are probably right but the political fallout could be deadly! Don't forget the ag minister comes from New Brigden and the farmers and ranchers out there own huge amounts of land. And without a doubt it is really bad out there and has been for quite a few years. Not a lot of cows left in that area.
Now how about these guys who have these huge grazing leases out in the special areas. I read of one guy who had a township and only forty cows! Probably gets way more money from surface leases(a LOT more money!) than he pays in grazing fees. Now at 23,000 acres X $4= $92,000! Not too bad of a deal! I guess he'll be voting for Shirley next election!
Maybe a better way to do it would have been some freight assistance on hay. Load up some rail cars in Ontario and send them west(if there's enough hay in Ont.). Or maybe a subsidy on a per cow basis for every one you sold. The fact of the matter is a whole lot more cows have got to go down the road and any subsidy needs to be directed in such a way that it allows the producer to keep a nucleus or gets out so someone else can survive. The rancher with that township has no need to sell his forty cows...he could feed them cake with the kind of money he's going to get!
We must never lose sight of the fact that the horse business must come first! Every acreage owner has a couple of nags and they'd rather see the kids go without shoes than see their horses anything but fat and shiny! And when you have an income of $250,000/year what do you care if a bale costs $7 or more? I have a wealthy neighbor who told me it cost her $1500 to keep 2 horses last year. She never rides them but has the farrier out twice a year to trim their feet and the vet out to check their health! She says she just enjoys watching them and they keep the grass down! And hey, why not, its her nickel!