Farmscape News

Manitoba Reports Low Cull Breeding Swine Program Uptake

Jeff Clark - Manitoba Pork Council — Mon, 08 Sep 2008 00:00:00 GMT

Farmscape for September 8, 2008 (Episode 2954)

Manitoba Pork Council reports the province's breeding swine herd will be reduced by just over five percent as a result of the federal Cull Breeding Swine Program.

The federal Cull Breeding Swine Program provides pork producers who agreed to de-populate breeding barns and leave them empty of breeding stock for a minimum of three years 225 dollars per culled animal.

The application deadline passed September 1, producers have until November 1 to complete their culls and until January 15 to submit supporting documentation.

Manitoba Pork Council producer services specialist Jeff Clark says the program seems to have worked well for those who have made use of it.

Clip-Jeff Clark-Manitoba Pork Council
For the most part producers I've spoken with have been real happy with the program.

These are guys that are maybe close to retirement age, wanting to get out of the industry anyway, older barns, smaller herds and the program worked real well for them.

Some of the other producers maybe that have larger operations, higher debt loads, this program simply didn't pay out enough for them.

There's a lot of people that were sitting on the fence for awhile, maybe wanting to go on the program but the three year time frame was just too long to keep that barn empty of breeding animals.

If you look at what our sow inventory was January 1, our overall breeding stock was just over 370 thousand and, if we went with the intent of the program was to reduce the herd by about 10 percent, we've only got to about five and a half percent, which would be about 20 thousand animals.

So it hasn't been as strong an uptake as it has been in other parts of the country.

I think that speaks to the strong industry we have in the province here.

We have two strong packers, close proximity to our American business partners so the uptake hasn't been quite as strong here.

Currently the program is retroactive to August 1, 2007 but, Clark points out, efforts are underway to have the retroactive start of the program pushed back to April 1, 2007.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Pork Producers Call for Retroactive Extension of Federal Cull Breeding Program

Farmscape Staff - — Sat, 06 Sep 2008 00:00:00 GMT

Farmscape Article 2953 September 6, 2008

The Canadian Pork Council (CPC) is calling on the federal government to expand the breeding swine cull program to include more slaughtered animals retroactively.

The national program, officially launched in mid-April, offered Canadian hog producers who agreed to de-populate breeding barns, and leave them empty of breeding stock for a minimum of three years, $225 per animal culled.

The program was created to reduce the Canadian breeding herd in an effort to bring supply back in line with demand and improve prices, and also to allow producers who had decided to exit the industry to do so with a certain amount of equity.

Producers who had culled and marketed breeding animals between November 1, 2007 and the program’s official launch, as well as those planning to cull stock, were eligible to apply. However, those animals culled after the official launch could not enter the commercial food distribution chain and had to be directed to rendering, some other form of disposal or to use by food banks.

Program Results in Approximately Eight Percent Cull

In total, by the September 1 application deadline, about 550 producers across Canada had applied to cull approximately 120,000 animals under the program.

“The initial target was about 10 percent of the Canadian herd. That’s about 150,000 head of sows,” says CPC president Jurgen Preugschas. “We haven’t quite reached that. We’re very close to 120,000 sows.”

He says that, because many producers had already culled a portion or all of their sows prior to the program’s November 1 cut off, CPC has asked agriculture minister Gerry Ritz to extend the date to August 1 to allow those producers who had started culling animals earlier to be part of that program.

Preugschas says that while the minister’s response has been positive the matter must go before cabinet for final approval. CPC has not yet been told whether or not cabinet has or will approve the extension of the program.

S uch a change would be very significant for those producers who decided to exit the industry prior to the November 1 program start date.

Change Considered Critical for Producers Who Culled Early

“For 24 months we’ve been in a loss position and so people were suffering significantly and that’s why they started de-populating,” says Preugschas.

Producers in many different parts of the country actually started de-populating in July and August of 2007.

“They were maybe receiving $50 per sow. This would give them the $225 so you can figure out rather quickly that there are some significant dollars that would assist those people in reducing either their debt or having a little bit to re-invest.”

Two Changes Receive Approval

Two changes have been approved. One relates to the feed allowance provided to help offset the costs of maintaining hogs until they can be sent for slaughter, and the other to deadlines for submitting the necessary documentation to support the cull and trigger the payments.

CPC executive director Martin Rice recalls the allowance given for feed was initially 15 days but, in many situations, finding slaughter options outside of the normal distribution system and other situations arose where producers were not able to market the animals within the 15 days.

“The decision by Mr. Ritz is that the allowance is moved up to 30 days from 15, and that’s an additional $1 per day for those animals, and then in some special circumstances it will be up to 45 days.”

Rice estimates an operation that is removing or has removed 200 swine would qualify, under normal circumstances, for up to an additional $3,000.00 because of the 15 day extension and up to another $3,000.00 if special circumstances caused delays beyond 30 days as was the case in the Maritimes.

He notes that while some operations only culled 10 to 20 sows, those applying for the maximum 6,000 would be looking at several thousand dollars.

Application Deadline Passes

Although the September 1 application deadline passed earlier this week, producers have until November 1 to complete their culls. Originally producers were given 120 days from their approval date to submit the documentation necessary to trigger their payments but that has been changed.

“Because we have passed the point of the program’s opening or window for registrations and because we know we have enough money left we are now looking at a general deadline of January 15 for submitting the documentation,” says Rice.

Rice acknowledges “There have been a few farms that decided not to proceed with their cull because conditions have changed.”

However, he says, if the full 120,000 head applied for under the program end up being culled, it will represent about eight percent of the total national breeding herd, just short of the 10 percent reduction that had been targeted.

He says while Ontario producers applied to cull the largest number of animals, the percentage applied for was the highest in the Maritimes. He notes applications from Ontario, the Maritimes and Saskatchewan were above the original 10 percent target while applications from Quebec, Alberta and Manitoba came in under 10 percent.

Uptake Low in Manitoba

Manitoba Pork Council producer services specialist Jeff Clark estimates producers in Manitoba have applied to cull about 5.5 percent their breeding stock.

“It hasn’t been as strong an uptake as in other parts of the country,” he says.

He believes that speaks to the strong industry that exists in the province with two strong packers and close proximity to U.S. business partners.

Saskatchewan Cull Expected to be Above National Target

Saskatchewan Pork Development Board (Sask Pork) policy analyst Mark Ferguson observes, “There have been, we believe, just over 40 producers that took part in the cull breeding swine program in Saskatchewan. I think, in the end, just over 10 percent of Saskatchewan’s breeding herd will be culled under the program.”

Program Considered a Success

As for the overall success of the program, Preugschas observes, “The easy answer in terms of meeting targets it’s been, I think, highly successful.”

He concedes, “In terms of influencing price, it may be too early to tell at this point in time. You have to remember that once a cull takes place, it takes just about a year for that to work through the market.”

However, he stresses, “As hog producers in Canada we were pleased that the government did come up with that program and it has helped some producers who are choosing to exist to exit with dignity and that was important to us.”

Staff Farmscape.Ca

Cull Breeding Swine Program Feed Allowance Increased

Martin Rice - Canadian Pork Council — Fri, 05 Sep 2008 00:00:00 GMT

Farmscape for September 5, 2008 (Episode 2952)

Canadian pork producers are applauding changes to the Federal Cull Breeding Swine Program that will allow participants to recover more of their feed costs.

The Federal Cull Breeding swine Program offers producers who agree to de-populate breeding barns and leave them empty of breeding stock for a minimum of three years 225 dollars per culled animal.

Producers also qualify for a feed allowance to help offset the cost of feeding designated animals until they can be slaughtered.

Canadian Pork Council executive director Martin Rice notes federal agriculture minister Gerry Ritz has approved an increase in the feed allowance.

Clip-Martin Rice-Canadian Pork Council
With this program there's an amount of 225 dollars per animal and, on top of that, there was an allowance given for feed because it was seen that, once a producer had applied, that there would still be some time that they would have to take care of the animals.

Initially the allowance given for feed was 15 days but, with the reality of a program that had never run before, the finding of options to have animals slaughtered and taken care of outside of the normal distribution system, some of those opportunities had to be found first of all and other situations arose that producers were not able to market animals within the 15 days.

The decision by Mr. Ritz is that the allowance is moved up to 30 days from 15, and that's an additional dollar per day for those animals, and then in some special circumstances it will be up to 45 days.

Rice says about 550 producers across from Canada have applied to cull approximately 120 thousand sows or about eight percent of the national breeding herd, just short of the ten percent target.

The September 1 application deadline passed earlier this week, producers have until November 30 to complete their cull and until January 15, 2009 to submit their documentation.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

CPC Requests Retroactive Extension of Cull Breeding Swine Program

Jurgen Preugschas - Canadian Pork Council — Thu, 04 Sep 2008 00:00:00 GMT

Farmscape for September 4, 2008 (Episode 2951)

The Canadian Pork Council is urging the federal government to expand the Cull Breeding Swine program to included more slaughtered animals retroactively.

The federal Cull Breeding Swine program offered Canadian hog producers who agreed to depopulate breeding barns and leave them empty of breeding stock for a minimum of three years 225 dollars per animal culled.

The program, which targeted a ten percent reduction in sow numbers, provided an application window of April 14 to September 30, 2008 and included provisions for retroactive payments to producers who had culled animals after November 1, 2007.

CPC president Jurgen Preugschas says pork council is asking to have that retroactive date extended to August 1, 2007.

Clip-Jurgen Preugschas-Canadian Pork Council
The initial target was to target about 10 percent of the Canadian herd and that's about 150 thousand head of sows.

We haven't quite reached that.

We're very close to 120 thousand sows.

But what we did learn was that many producers had already culled a portion or all of their sows prior to the November 1 date.

Therefore we've requested of the agriculture minister if he could extend that date to August 1 to allow those producers who had already begun culling prior to be part of that program.

Preugschas says the initial response to the request from federal agriculture minister Gerry Ritz has been positive but the change still needs to be approved by cabinet.

He says, with applications to cull about 120 thousand head, the program came close to its 150 thousand head target.

However, he points out, in terms of influencing price, it's a little to early to tell because once a cull takes place it takes about a year to affect the market.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Reduced Quality Wheat Puts Downward Pressure on Feed Grain Prices

Bruce Burnett - Canadian Wheat Board — Wed, 03 Sep 2008 00:00:00 GMT

Farmscape for September 3, 2008 (Episode 2950)

The Canadian Wheat Board reports unfavorable weather during harvest is increasing the volume of crops being downgraded to feed putting downward pressure on feed grain prices.

With North American farmers now in the midst of harvest the feed grain situation in western Canada has been quite dynamic.

Canadian Wheat Board weather and market analysis director Bruce Burnett says feed wheat supplies on the prairies are usually determined more by the weather than anything else and heavy rains during the past weekend have caused some downgrading of wheat into the feed category which, combined with problems in other regions, is increasing feed wheat supplies.

Clip-Bruce Burnett-Canadian Wheat Board
This year, in terms of the lower quality of feed quality wheats, we're seeing quite an increase in supply of that type of wheat.

Certainly in parts of Europe and the former Soviet Union we've seen some difficulties during parts of their harvest that's caused some downgrading to feed.

As well the protein levels generally speaking have been fairly low in those regions which have also caused some of the wheat to fall into the feed category.

In the United States, although we haven't seen any harvest difficulties, certainly the soft red winter wheat crop has been quite a bit larger than normal and, because of the higher corn prices, some of that wheat has worked its way into the feed rations both domestically in the U.S. as well as offshore.

Burnett notes, overall, feed grain supplies on the prairies are still relatively tight.

He suggests, while feed barley prices will be supported by lower than normal barley production, that support will be offset somewhat by the increased availability of global feed wheat supplies.

He adds relatively high U.S. corn prices had supported prices during the summer but, as those values have dropped off prices have eased in the market place.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Pork Producers Call for Exemption to New WCB Requirements

Karl Kynoch - Manitoba Pork Council — Tue, 02 Sep 2008 00:00:00 GMT

Farmscape for September 2, 2008 (Episode 2949)

Manitoba pork producers are calling on government to allow farms to continue using private insurance rather than Workers Compensation.

Last week the Manitoba government announced it will expand the number of industries required to provide coverage for employees through the Workers Compensation Board effective January 1, 2009.

The change is expected to bring 7,500 additional employers and 30,000 more workers, including agricultural workers under the WCB umbrella.

Manitoba Pork Council chairman Karl Kynoch says the fear is that businesses will be required to replace private insurance packages that offer better coverage with Workers Compensation.

Clip-Karl Kynoch-Manitoba Pork Council
Right now some of the private insurance, they get more coverage for less money.

And for example some of them are covered for long term disability, some of the producers provide dental plans, plans for glasses and other medicare expenses.

There's a lot more coverage that they give so this is going to cost more for less coverage.

The other thing that workers have, right now in some of the private insurance, is they're not just covered when they're at work, they're also covered when they are off of work.

They could be gone playing hockey and they're covered.

But now with the Workers Compensation Board, if the producers are forced to take it, the employees are going to lose that because the Workers Composition Board only covers them while they're at work.

One thing that we would like to see is that the government would allow the producers who have private insurance, especially some of this private insurance that is either equal to or is even better than what the workers compensation board is offering and it's for less money, we would really like to see the government allow those producers to continue to use their private insurance and if the director's OK with it allow them to stay out of the Workers Compensation Board.

Kynoch applauds provisions which exempt family members from the new requirement.

He says for a lot of the small family-operated farms, if they're not bringing in labour, they will still have free choice of whether to go through private insurance.

For farmscape.Ca, I'm bruce Cochramne

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Manitoba Farmers Urged to Prepare for Mandatory Inclusion Under Workers Compensation

Farmscape Staff - — Sat, 30 Aug 2008 00:00:00 GMT

Farmscape Article 2948 August 30, 2008

Manitoba farmers who hire non-family members to work on the farm are being told to brace for increased expense, added paperwork and, in some cases, reduced coverage when mandatory participation in workers compensation is extended to a wider range of employers.

Effective January 1, 2009 the province will expand the number of industries required to provide coverage for their employees through the Workers Compensation Board (WCB).

The change is the result of a 2005 report, compiled by labour and management representatives of the Labour Management Review Committee (LMRC), who reviewed the Workers Compensation Act and recommended that coverage of work places be extended.

No Fault Coverage Benefits Employees and Employers

“The WCB insurance system is historic in Manitoba,” states Nancy Allan, Manitoba’s Labour and Immigration Minister and the minister responsible for the Workers Compensation Board. “It provides workers with benefits and salary replacement and, regardless of who is at fault it provides employers with immunity from law suites in the event a worker is injured. It’s no fault insurance.”

Allan estimates 7,500 additional employers and 30,000 more workers will come under the WCB umbrella.

“One of the largest industry sectors is the agricultural industry,” she says.

Although some farm workers are covered under workers compensation, Allan estimates there are about 4,600 employers that don’t have WCB coverage.

Many Agricultural Operations Access Coverage Through Private Insurance

Keystone Agricultural Producers (KAP) president Ian Wishart notes that while the program has been available to agricultural employers in Manitoba on an optional basis for some time, and while some farms have been picking it up, it’s difficult to get a really good number.

“We did survey some of our members and it would appear that, of those that had non-family members as employees, roughly 15 percent were using workers compensation. And then another relatively small percentage were using private industry programs that provided some coverage as well.”

Private Insurance Offers Superior Protection

Manitoba Pork Council chair Karl Kynoch acknowledges that some pork producers are providing protection for their employees through Workers Compensation but, he stresses, most agricultural employees are covered through private insurers.

“They get more coverage for less money,” he says.

For example, he notes, private insurers provide long term disability coverage, dental plans, plans for glasses and plans to cover other medical expenses.

“They’re not just covered when they’re at work. They’re also covered when they are off of work. They could be gone playing hockey and they’re covered,” he points out.

Kynoch fears employees will end up losing some of their benefits because the Workers Compensation Board only covers them while they’re at work.

Spin off Benefits of Compulsory WCB Coverage Possible

Wishart acknowledges the changes will certainly result in additional costs and extra paperwork. However on the positive side, he suspects the changes will help attract larger numbers of workers into agricultural careers.

He believes the changes to Workers Compensation combined with the new farm labour standards will mean agriculture will have much more in common now with non farm labour situations.

He explains it’s been a challenge for many farmers to find labour so programs like the WCB can play a role in encouraging people to look at working on a farm as an option.

“If we offer a reasonable package, that might attract more labour back to the farm.”

Family Members Exempt from the Requirements

Family members who are hired to work on the farm will be excluded from the new requirements.

Wishart notes, that exemption is consistent with the new Labour Standards code introduced in July, which also excludes family members who are employed on a farm.

“If you were an employee that wasn’t covered under this new Labour Standards Code, you’re probably not going to be required to be covered under workers compensation.”

Kynoch considers that to be fairly significant. “For a lot of the small farms, the family-operated farms, if they’re not bringing in labour, they will still have free choice whether to go through private insurance. That’s fairly positive for those farms.”

The definition of “family member” still needs to be clearly outlined. Wishart notes that the definition used in the Labour Standards Code identifies any blood relative as eligible to be classified as a family member. And that there is also a clause that extends the designation to anyone treated as family.

“It’s really important, I think, to get this particular piece of the regulation correct,” says Allan.

She notes the consensus definition recommended for the employment standards code by the employer and the employee stakeholders on the LMRC will probably be the guideline that will be used.

“We’re going to consult with the producers and the commodity groups to look at what the definition of family member means so we know who will be excluded.”

Pork Producers Call for Flexibility

Kynoch says pork producers would like to see government allow producers the option of maintaining the insurance they are using now, especially insurance that is either equal to or better than what the Workers Compensation Board is offering and for less money.

“We would really like to see the government allow those producers to continue to use their private insurance.”

Wishart encourages farmers that think they’re going to be part of this new requirement to make themselves familiar with the rules and regulations.

He also encourages greater participation in farm safety programs that will help reduce the risk of accidents. “At this time of year when we’re all very busy we all have to be aware of safety and we certainly want to minimize accidents on the farm.”

Staff Farmscape.Ca

Manitoba Expands Compulsory Coverage by WCB

Nancy Allan - Manitoba Minister of Labour and Immigration — Fri, 29 Aug 2008 00:00:00 GMT

Farmscape for August 29, 2008 (Episode 2947)

The Manitoba government has announced it will expand compulsory coverage by Workers Compensation to an addition 30 thousand workers.

Effective January 1, 2009 the Manitoba government will extend mandatory coverage of employees by the Workers Compensation Board to include a wide range of industries from advertising and marketing to veterinary services including farms and farm service industries.

The changes are the result of a public review of the Workers Compensation Act which recommended coverage of workplaces be extended.

Labour and Immigration Minister Nancy Allan, the minister responsible for the Workers Compensation Board, says WCB coverage provides advantages for all involved.

Clip-Nancy Allan-Manitoba Minister of Labour and Immigration

The WCB insurance system is historic here in Manitoba because it provides workers with benefits and salary replacement and it also provides employers immunity from legal suites so it really benefits both employers and workers.

So we will be extending coverage to about 30 thousand more workers and about 7,500 additional employers here in the province of Manitoba.

One of the largest industry sectors is the agricultural industry.

We do have some coverage in the ag sector but we have discovered that there are about 4,600 employers that don't have WCB coverage so that is an important industry sector for us because they are at risk of injuries in that sector.

Family members employed on the farm will be exempt from the requirement but will be eligible for WCB coverage on a voluntary basis.

Allan says the province plans to consult with agricultural producers and their commodity organizations to clarify the definition of family member so we know specifically who will be excluded.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Cull Program Cuts Saskatchewan Swine Herd by 10 Percent

Mark Ferguson - Sask Pork — Thu, 28 Aug 2008 00:00:00 GMT

Farmscape for August 28, 2008 (Episode 2946)

The Saskatchewan Pork Development Board reports just over 40 of the province's pork producers have participated in the federal Cull Breeding Swine Program.

Introduced in April, the cull breeding swine program was developed by the federal government to reduce Canada's breeding herd.

To avoid market disruptions meat from animals culled under program may not enter the commercial food distribution chain but it is allowed to be donated for use by food banks.

Saskatchewan Pork Development Board policy analyst Mark Ferguson says, once the final numbers have been crunched, the cost of processing donated animals will be close to the 440 thousand dollars budgeted by the province.

Clip-Mark Ferguson-Saskatchewan Pork Development Board
We've used five different provincially inspected abattoirs in the province.

We basically contacted all the provincially inspected plants and asked them they wanted to participate and if they did and if they had sufficient capacity to meet our needs we were able to utilize them.

The five different plants were Western Prime Meat Processors in Weyburn, Superior Meats in Swift Current, Prairieland Meat Packers in Avonlea, Larson's Abattoir at Leross and Drake Meats Processors at Drake.

We processed nearly 23 hundred sows under the food bank program and I think it's been just over 500 thousand pounds of pork delivered.

We're still tallying the final numbers but that's what we believe we've sent there.

I think it's been a success.

We've given the less fortunate people in Saskatchewan a good supply of protein and nutritious meat for the next year and I think we can all feel very good about that.

It's also shown that we a good partnership with the provincial government and with the food banks and hopefully that can carry forward into the future.

Ferguson says just over 40 of the province's pork producers have participated in the cull breeding swine program and, by the time it wraps up, will have reduced the province's total breeding herd by about ten percent.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council

Over 500 Thounsand Pounds of Pork Distributed to Saskatchewan Food Banks

Bill Hall - Food Banks of Saskatchewan — Wed, 27 Aug 2008 00:00:00 GMT

Farmscape for August 27, 2008 (Episode 2945)

The Food Banks of Saskatchewan expects pork diverted to the province's food banks as a result of the Federal Cull Breeding Swine Program to help feed Saskatchewan's needy well into next year.

Last April, in an effort to bring the supply of hogs back in balance with demand and improve prices, the federal government introduced a 50 million dollar program to compensate pork producers who agreed to reduce their breeding herds.

Although the meat from animals culled under the program was not allowed to enter the commercial food distribution chain, use by food banks was considered acceptable.

Food Banks of Saskatchewan executive director Bill Hall says, thanks to the support of the province's pork producers through the Saskatchewan Pork Development Board and with the help of a 440 thousand dollar grant from the provincial government to cover the cost of processing, Saskatchewan food banks will be able to provide their clients with high quality protein for the better part of a year.

Clip-Bill Hall-Food Banks of Saskatchewan
Approximately two thousand sows were diverted from the cull program and processed and that looks like about 500 thousand pounds of meat in ground and roasts and ribs and it will be going to our member food banks across the province as well as associated agencies.

We have 17 member food banks around the province.

The majority will be staying in the larger urban areas because that's where most of our clients live.

It'll be distributed by various trucking firms that we've contracted.

Certainly we think that if we manage this well this meat will last us at least until next April and it's a real bonus because most of the time we're struggling to just find good sources of protein for our clients.

Hall says it has been wonderful to see how Saskatchewan pork producers, Sask Pork, the province and the association of food banks have been able to partner together to help those in need.

He acknowledges this much needed meat donation has come with a high price to producers, many of whom have gone out of business as a result of the difficulties faced by their industry.

For Farmscape.Ca, I'm Bruce Cochrane.

*Farmscape is a presentation of Sask Pork and Manitoba Pork Council