Exiting the Industry

[farmers_son]

Alberta Ag Minister George Groeneveld stated last June 5 that producers who were unable or unwilling to meet the conditions mandated upon them by the shiny new Alberta Livestock and Meat Strategy may need to exit the industry. I am wondering if you or people you know are planning on exiting the cattle industry. I was at a meeting today and I was the only primary producer there who was not planning on selling all the cows.

[per]

I have a decade or two left in me. I like the challenge.

[grassfarmer]

No, I'm not going anywhere farmers_son despite what ABP may wish for! There certainly have been many exiting the industry - Monday's machinery sale in Rimbey had over 20 bale processors listed for sale so that's maybe a clue(Some were advertised as having fed only 20 or 40 cow herds so I don't know what those guys were thinking)
However let us be clear on one thing - those who have left up to now have not left because of the costs inflicted by the ALMS despite what f_s and the ABP would like to claim. They have left because of the market conditions brought about,among other things, by a pig headed stubborness to look at only one marketplace(the US) a policy supported by f_s and ABP. The ABPs support of the retention of the packer monopoly and their refusal to support calls to BSE test for market access have likely contributed greatly also.

[perfecho]

I do agree many have left due to the on going saga of losses. Ffrom a business prospectus, I question it often. (Happen to like cows and the lifestyle.) However, the statement of "However let us be clear on one thing - those who have left up to now have not left because of the costs inflicted by the ALMS ....".. it may not be the cost, but most definitely I know of a number that are shutting it down because of the hassle. Age verifying, making sure a RFID tag is in place, premise ID, CAIS...etc. Just not worth the hassle.
I do agree, that due to food safety issues, we will have to RFID, etc. I don't think we, the producer, will see profits from such.
But, if we have to age verify, why do retailers not have to let consumers know if they are eating a 10 yr old steak or ground beef from a 20 mos. feeder? Only seems natural if ALMS was truly for the producer.....not the processors.

[kato]

We have three neighbours getting out at the moment, and it's nothing to do with anything happening in Alberta. That's another couple of hundred cows gone. They're just tired of it all.

I wonder, with the way the grain market has gone in the last while if they will have any regrets?

[DogPatch]

I don't really understand the whole grain growing manicism. With all the equipment, land and labor requirements, plus the uncertainty of the weather and the ups and downs of the product, I don't see the attraction of it. Then they might same the same thing about livestock?

[Kathy]

The marketing strategy is the exit strategy, in a sense. Put up a shit load of conditions to scare off producers and bluff a bunch of them out.

If the ALMS goes ahead as presently written up in the Animal Health ACT, the mandatory requirement for premise IDs, will see land sales and land values go down (who knows how far). The fact that the land is presently used to raise cattle or other livestock is no longer guaranteed. Your Premise ID is not transferable. New buyers will have to obtain their own "unique identification number" for these lands. It is conceivable that "environmental assessments" of the land will be required. IF they find any problems with chemicals, heavy metals, or any number of "disease causing agents" .... the Minister of Agriculture will refuse the new land owner permission to raise livestock on that land. Decontamination and clean-up might be, or might not be possible. As land is thus removed from production of livestock...., and possible grain also, a new landscape will emerge. One where due to lack of "clean" land bases, the value of animals raised on "uncontaminate, disease free" farms might actually significantly go up. Heck, who knows.... The whole thing is a mess with the Minister granting himself omnipotent powers through regulations. Remind me, who does our government work for?

[grassfarmer]

Kathy, what would the Governments pay off from such a land clearance policy be? Every good conspiracy theory needs a motive.