Ontario's beef farmers want province to reconsider cap on RMP

Tuesday, January 21, 2014

by MATT MCINTOSH

2014 will be a year of both challenges and opportunities for Ontario’s beef industry, according to Beef Farmers of Ontario.

In a presentation at the Beef Industry Convention in London earlier this month, Dan Darling, president of Beef Farmers of Ontario’s board of directors, highlighted a number of issues facing the province’s beef farmers.

Topping his list was the provincial Risk Management Program, or more specifically, the $100 million dollar funding cap imposed by the government of Ontario. The program covers commodities ranging from grains and oilseeds to beef and pork and is designed to help insulate farmers from things like volatile market prices and rising production costs.

“BFO had to accept a $100 million dollar cap for the 2013 season due to government’s budgetary concerns,” said Darling. “It’s unfortunate. The cap has made the program more predictable for the government, and less predictable for the producers it was designed for.”

The Risk Management Program was originally a fully funded provincial program, says LeaAnne Wuermli, communications manager for Beef Farmers of Ontario. “Since the cap was announced, we have been working with the Ontario Agricultural Sustainability Coalition to talk with the government and expand the amount of money available.”

At this point in time, she says, there are no results, meaning the cap will still be in place for 2014.

Canada’s recent trade agreement with the European Union (the Comprehensive Economic Trade Agreement, or CETA) was also cited as a potential challenge to the beef industry. Darling said the agreement opens “duty free access” to 64,950 tons of Canadian beef for export to Europe, which is valued at approximately $600 million.

However, he also said that it is too early to tell exactly how the agreement will impact Ontario, and that there are outstanding issues that need to be ironed out.

“There are, for instance, issues with the way beef is processed here that need to be resolved before the European market will open itself to Ontario products,” says Wuermli. “Of course, we realize the potential value of CETA, and are looking to resolve those technical requirements.”

Darling also requested that producers consider supporting a motion to increase Beef Farmers of Ontario’s “mandatory check-off” fee by one dollar.

 “An increase of one dollar per head is necessary to maintain our services and programs,” he said.

Wuermli explains that the check-off fee, which is currently at $3.00, is charged every time an animal is sold. Beef Farmers of Ontario has requested a dollar increase due in part to a lower number of cattle being produced. BF