SPRING BAY—Members of the Manitoulin Cattleman’s Association (MCA) and Manitoulin Soil and Crop Improvement Association (MSCIA) have made it known they don’t agree at all with the proposed increase in the national check-off levy from $4 to $5.50.
“Under the National Beef Strategy discussions held earlier this year directors looked at providing a framework at how to best position the industry,” said Jason Reid, a director with the Beef Farmers of Ontario (BFO), at the MCA-MSCIA annual general meeting.
“Two major concerns have been raised, one being the proposed levy increase,” said Mr. Reid. He pointed out that under the Canadian Cattlemen’s Association, the proposal would require a two-third majority of delegates voting in favour of it at their annual general meeting. In time, the board will be asking all delegations to vote on this proposal.”
BFO has two major concerns with the national beef strategy and proposed levy increase, Mr. Reid told the meeting. “BFO needs assurance that the legal framework around collecting the national levy will be substantially unchanged, and that Ontario will retain the full right to direct the levy to address Ontario’s needs, as we currently can. The second concern is that BFO wants all agencies proposed to be funded in whole or in part by the national levy, currently CB, BCRC and CCA, to demonstrate through budget, plans and reports, that the funding is available and being used in part to address the different regional needs across the country.”
“This would mean a $1.50 (37 percent) increase for Ontario cattle producers,” said Jim Martin.
Mr. Reid explained, “Ontario would be paying $5.50 total check-off, which is currently $4. We want to be able to retain money back to something that the money would be better spent on, in these cases. And we want them to provide budget reasons why this increase is needed and where these extra funds are going to be spent.”
Under the Beef Cattle Marketing Act, a compulsory check-off of $4 per head of cattle sold by cattle farmers goes to BFO; of that $3 is retained by the BFO to fund programs and activities and maintain daily operations, while $1 is a mandatory national levy collected to fund research and marketing activities on behalf of the entire industry. This proposal would see Ontario’s mandatory national levy increase to $2.50.
Mr. Martin noted these funds go toward things like government lobbying, industry and program development, market reporting and analysis, research and communication, market development and promotions, and communications and county/district support.
“I have a hard time seeing why we have to pay another increase,” said Mr. Martin. “We had to pay an increase of $1 more last year than the previous year. I don’t understand or agree with having this increase.”
“In the BSE years there was a legacy fund available through the Alberta government of $80 million, but this funding runs out at the end of 2016,” explained Mr. Reid.
“Will our delegates be asked to vote on this proposal?” asked Floyd Orford.
“Not this year,” noted Mr. Reid, “but I expect it will be discussed this year. The Canadian Cattleman’s Association would like to see this increase next year. In a lot of other provinces they are saying they aren’t going to bring this up with their groups. But in Ontario we want input from our members.”
“All we need to do is vote no,” stated one person at the meeting.
It was pointed out in the west, for instance, similar groups can voluntarily not pay the increased check-off, and it could come down to Ontario paying the bill.
“In a round about way many other provinces could be paying more because Alberta isn’t,” said Mr. Reid.
“We should focus on the real problem: Alberta,” said one local cattle producer. “We have to pay more in the check-off because someone else isn’t.” In provinces like Alberta the check-off is voluntary, while in Ontario it is mandatory because farmers see the benefits derived from this.
Mr. Reid said “the CCA know Ontario’s position on this issue. There is not much we can do to change the Alberta system (not paying the check-off).”
“We don’t have to buy any Alberta stockers,” said Marca Williamson, secretary of the MCA.
