National Cattle Feeders’ Statement on Business Risk Management Changes
March 21, 2021 | Statements
National Cattle Feeders Association (NCFA) thanks Minister Bibeau and the Federal, Provincial and Territorial Agriculture Ministers for their commitment to updating the current Business Risk Management (BRM) programs, in particular changes to Agri-Stability. NCFA is pleased to see the removal of the reference margin limit (RML) retroactive to 2020 and an extension of the deadline to June 20, 2021. These changes will have a positive impact on the Canadian beef industry in particular cow calf producers.
While we were disappointed the increase of the compensation rate to 80% was not agreed upon, NCFA is encouraged by Minister Bibeau’s offer to keep this discussion on the table and encourage Provincial Ministers to consider this change which would provide the most direct assistance to our fed cattle industry.
As we move forward to future BRM reforms, NCFA encourages a change to the current $3 million cap on AgriStability. The current cap has not changed in approximately 20 years yet feedlots are larger, inflation has grown by almost 50%, and production costs have increased by 70%. NCFA will continue to advocate for a change as it severely limits support for cattle feeders.
NCFA stands ready to provide ongoing support to all levels of government towards more responsive, transparent and equitable targets.