New Alberta program???

[ValueChainFX]

What are your thoughts on the new Alberta program for cattle?

Here is the link
http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/com7306?opendocument

[rusty1]

This one apears to be a little more thought out. Like the funds should be able to get into the right hands this time. May encourage the calve to come to market. I would have liked to see a plan for the cow calf sector if the calf prices had fallen off the rails to encourage more "retained ownership."

[rsomer]

The beef industry should be grateful for the additional government support shown the feedlot lot sector in this time of crisis. Premier Klein has been quoted as saying unless the border opens up by the end of August the industry will crash. It is August 23 and we have yet another program put in place because the market has ground to a halt. Ann Veneman, the U.S. secretary of agriculture announced August 8 that her country will now accept applications to import boneless meat from cattle under the age of 30 months but where’s the beef. It must still all be on the Canadian side of the border. The clock is ticking.

Once the fall run begins in a few weeks, cow calf producers can only hope to receive fair and equal treatment to the over $½ billion in support shown the feedlot sector, in Alberta 75% controlled by 100 companies each of which will have received millions in direct government support. Even with the generous support shown the Canadian feedlot sector most producers are predicting that when it is time for these same 100 feedlots to purchase our calves this fall prices are likely to be considerably less than 90 per cent of the weekly average U.S. price for feeder cattle, the level the feedlots have been supported at throughout this crisis. Will cows calf producers receive the same fair and equal treatment as the feedlot sector received from government or will the cow calf man be told to look to FIDP and NISA, maybe with some loans thrown in. For many producers hard hit by years of drought there is no reference margin left in FIDP and the NISA account has not had an opportunity to build, a result of the feedlot sector lobbying for years to keep government money out of the cattle business in Alberta. Loans have to be paid back, with what?

If I, as a cow calf producer, thought I was going to be supported at 90% of the U.S. price until the border opens to live cattle it would be a huge relief. I am not optimistic. I think there is reason for concern that the money will run out before it reaches the cow calf producer.

[ValueChainFX]

rsomer you're point is well founded. I really do believe Klein wants to help producers more directly, keep in mind he has to take the advice of his front line people and I think they are feeding him some "BULL" (a little pun intended). What kind of program do you think would work, it seems that no matter what program is introduced the crooks in the industry have it figured out and can get more than their share!

I find this frustrating, but we all know it's happening. Going deeper into the supply chain (retained ownership, as it has been put) seems a likely possibility. But the equation to calculate compensation becomes complex. I am just wondering what you as producers see as a method to ensure you are not getting the dirty end of the stick.... once again?

[pandiana]

Excerpted from the above link: "Are all cattle eligible?
No. The cattle must meet the following criteria to be deemed eligible:
must have been owned by the Applicant on May 20, 2003.
must be on feed in Alberta in a confined feeding operation as of May 20, 2003 on a high energy full feed ration intended to maximize weight gain to slaughter weight in the least practical amount of time (not backgrounders).
must be deemed to be slaughter/fat cattle as evidenced by a minimum net live weight (Heifers 1200 lbs, Steers 1250 lbs), or if sold direct to slaughter at lesser weights, must grade either Canada A or Canada Prime.
must be eligible for A or B grades as evidenced by age (no heiferettes, cows or bulls).
must not be branded as part of the Self Set-Aside or Market Bid components of the Alberta Fed Cattle Competitive Bid Program."

I fail to see how any of these programs will help the cow calf producer unless, possibly, you can afford to retain ownership through slaughter. So far, as rsomer pointed out, they only benefit has been to feedlots and packing plants.

[charliep]

Any thoughts on what should done for/in support of the cow calf sector?

Things that I think might happen:

1) More retained calves at the cow calf level.

2) Some more certainty as we approach the winter on finished cattle prices. Opening of the US border for muscle cuts and perhaps shortly the road finished animals under 30 months will help establish some stability on finished cattle. What the new price relationship with the US/basis with futures I am not sure (others thoughts).

3) A thunder cloud I hightlight is uncertainty over feed grains. A possibility (1 in 10 I would estimate) is that feed barley is mid west corn plus transportation costs. Cost of gain would be high relative to the US.

4) Calf price/backgrounder price is the residual.

[rsomer]

I have pasted the following clip from Animalnet, August 20. If the CCA has any influence this is what we might expect to see happening.

The Canadian Cattlemen's Association (CCA) held its 2003 Semi
Annual Meeting August 15 and 16 in Moose Jaw, Saskatchewan... The Board set policy direction related to disaster relief. Resolutions were passed recommending that compensation include interest free cash advances
for all cattle producers, and that the owners of all cattle on feed as of
May 20 (the date BSE was announced) and who have not already received
deficiency payments for those cattle receive a cash settlement and the
deficiency payment program be ended.

[pandiana]

I am not sure how to interpret this clip, rsomer. It doesn't make sense to me.

[ValueChainFX]

What kind of program would you like to see? That you think is good for everyone?

[cakadu]

Not good that the US has just announced that the shipments won't be moving before September 1st. In fact, permits won't be granted until after the labour day weekend.