Photo: Government of Alberta

By David Opinko

Agriculture support

Premier announces support for cattle operations facing COVID created backlogs

May 7, 2020 | 4:23 PM

Premier Jason Kenney hopes to mitigate some of the financial losses faced by those raising cattle.

He announced what he hopes will be a $42-million shared investment into the Fed Cattle Set Aside Program.

“The Government of Alberta is standing with our agriculture workers, our farmers, and ranchers who do so much for us. That’s one of the many sectors of our economy that’s been deeply affected by the broader economic crisis created by COVID-19.”

As many as 400,000 cattle are backlogged in feedlots right now.

“It will allow producers to hold on to cattle on a maintenance feed ratio for up to nine weeks, ultimately allowing the supply of cattle to more evenly match demand and reduced processing capacity.”

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The Government of Alberta has contributed $17-million, but officials here are waiting on the federal government on a proposed $26-million allocation.

The program gives per-head payments to the holder of the cattle until the inventory is cleared.

“Producers will be compensated for extraordinary costs related to feeding market-ready cattle being held back right now,” says Kenney.

Agriculture Minister Devin Dreeshen adds that many producers are concerned about what the backlogs could mean for them going forward.

“It’s our intention that, if there aren’t any additional disruptions in our beef processing facilities, the backlogs of some hundreds of thousands of cattle that are backlogging up right now and are reducing cattle prices – and sometimes having no prices available across the province – we are hoping that this Set Aside Program will help to smooth out those wild price fluctuations within the cattle industry.”

Dreeshen says he and the province are working with the federal government on additional supports for the agriculture sector as well. Those sectors include the beekeeping, pork and potato industries, as well as the horse racing industry.