GUELPH – The provincial government is attempting to provide some relief for cattle farmers facing challenges in the current market.
“Our government is committed to strengthening the agriculture and food sector, particularly during times of increased market challenges,” Minister of Agriculture, Food and Agribusiness Rob Flack stated in a news release, listing actions being taken by the province in cooperation with the Government of Canada.
Those actions include an accelerated payment timeline for the province’s Risk Management Program, and increased interim payments through the AgriStability program to help farmers with cashflow.
The Risk Management Program, which has been around since 2011, acts like insurance, with farmers enrolling and paying premiums, Beef Farmers of Ontario (BFO) director of communications LeaAnne Wurmli explained in an email to the Advertiser.
“If market prices that farmers receive for their animals are below the cost of raising the animal, a payment is triggered,” she said.
The government is moving up the 2024 Q1 and Q2 payment for beef farmers to the end of August to provide cashflow earlier.
AgriStabiliy, which is jointly funded by the federal and provincial governments, is another risk-management program farmers can access.
It was announced on June 28 that farmers with cattle feedlots enrolled in the program can apply for an interim payment to get up to 75 per cent of their estimated final payment.
This is an increase from the 50% payment the program previously allowed.
The Ontario government and BFO are also monitoring loans under the Feeder Cattle Loan Guarantee Program, which provides competitive loan rates to farmers for cattle purchases, and will look to provide flexibility on repayment deadlines if necessary.
“Since the temporary closure at Cargill is impacting the number of animals that can be marketed, some producers in the program may not be able to repay their loans if their animals haven’t left their farms,” Wurmli explained.
Close to 1,000 workers represented by the United Food and Commercial Workers union from Cargill’s Dunlop Drive beef-processing facility have been on strike since May 27.
The BFO has stated the plant is responsible for processing 75% of Ontario’s cattle, and beef farmers have expressed concerns about the impacts of a prolonged shutdown.
The Ontario Ministry of Agriculture, Food and Agribusiness has developed resources related to marketing and feeding animals during a market disruption.
They can be found at ontario.ca/page/information-and-resources-beef-producers-during-market-disruptions.
For more details on the Risk Management Program and the AgriStability program visit agricorp.com.
In an email to the Advertiser, a spokesperson for Cargill said the company has asked for a meeting with the union’s bargaining committee, and the two parties were to meet on July 2.
“Our focus is to discuss proposals that will allow us to end this labor disruption and welcome our employees back to work soon after,” the email stated.
