PUBLISHED BY BY MANITOBA MANITOBABEEF BEEFPRODUCERS PRODUCERS
FEBRUARY JULY 2021 2022
Calving season is underway at farms across Manitoba, including Lazy J Ranch, where 45 calves (and counting) have joined the herd. Photo credit: Sarah Ramsey
Forage insurance and managing drought risk BY RON FRIESEN
“In years like this it really comes in handy for sure,” road allowances and ditches. Still others try to carry a Van Deynze says. “It is production based and produc- full year of extra hay into the next year, providing old Like most Manitoba beef producers, Ray Bittner tion was hard to come by in a lot of Manitoba this year. stock to fall back on. Some vary the size of their herds had a really tough year in 2021 because of a crippling It was a very useful tool for a lot of our customers. It is during the winter to accommodate the amount of hay Laura Plett, of Sawmill Creek Livestock near Stead, enjoys some family time with son Dustin between filming segments on her property for the upcoming Season 32 of Great drought ravaged crops and Donalee pasturesJones) throughout something that I think will help farmers get through a on hand. Also, forage is typically a low input crop and Tastes ofwhich Manitoba. (Photo credit: producers tend to see insurance premiums as an expense very challenging year.” the province. they’d rather not incur. For Bittner, forage insurance helped keep his But unlike many producers, Bittner had a backstop All of which creates a struggle for MASC to increase operation afloat during last year’s drought crisis. that helped to keep his operation going: forage insurance. the enrolment for forage insurance, says Van Deynze. Unfortunately, he is a minority among cattle producers. “2021 was a big claim year for myself and many of “There are some options they make use of that seem Figures from Statistics Canada show that Manitoba my neighbours in the North Interlake which had rainfall to work for some producers,” he says. “It’s a mixture of had 1.35 million acres of forages in 2021. Of that, 1,453 amounts of 30-40% of normal during the growing seaa number of things but at the end of the day, from our forage producers insured 340,000 acres only 25 per son,” Bittner wrote in a recent e-mail to Cattle Country. perspective, we would sureinlike see more cent of the total, according to MASC. “I personally a great was detected an to Alberta cow producers and intermeans good news for both trad- Lowe. BY RON FRIESEN would have reduced my herdThat participate in the insurance programs we have.” That’s better than in 2020, when 1,298 clients deal if I had not been in forage insurance ers in 2021. But beef and ranchers who proThe industry has asked Ottawa to en- national borders immediately slammed who export forage acrescourage for a 21Canada’s percenttrading coverage cover a beef wideexports. range of options, through insurance andhas thefinally AgriRecovery pro- insured It tookforage 18 years, but Canada partners toThose recog-programs shut to Canadian duce it, industry officials286,000 say. including insurance, forage rate. But stillability a pittance compared to annual crops gramdeclared I am continuing been BSE-free. on with the same herd size the OIE’s ruling and accept Canadianbasic hay Since 50 per cent of beefestablishment in Canada is “Theand difference will itbeis the to nize insurance, pasture insurance, forage seedfound insurance, which MASC regularly insures to the tune of 90 per cent looking to the future.for Animal access markets that we otherwise weren’t beef without restrictions, he said. The forward World Organization exported, producers suddenly themgreenfeed insurance, and others, says Van Deynze. of seeded acres. “AgriInsurance is a program Health (OIE) has recognized Canada that as a more In a May 27 statement, federal Agricul- selves with collapsed market prices and aniable producto because we didn’t have that status,” The the question now whether year’s disaster will If forage insurance is soture helpful to beef producers,Bibeau said ers should enroll in,” continues. “Producers country with negligible riskBittner of bovine spon- said Minister Marie-Claude mals theyiscould not last sell because the market Tyler Fulton, Manitoba Beef Producers encourage more beef producers to sign up for forage as Bittner says it is, why is the take-up rate so low? shouldencephalopathy not look at it as(BSE), a gamble will president. occasionally giform givingthat it the government will do so. could not absorb them. insurance. is optimistic, noting the Part ofCattlemen’s the reason,Asaccording “Canada to Van Deynze, is that those compensate theirthe premium costs. Producers most preferredthem statusforunder OIE’s syswill inform tradingVan Deynze The result was cataclysmic fornumber the inBob Lowe, Canadian of insured forage acres increased by nearly 20 per cent forage growers can mitigate their risk in a number of should look at it as when there is president, said some Asian partners of Canada’s BSE negligible risk sta- dustry. CCA estimates direct economic tem for evaluating BSE risk.a very bad year comes, sociation (CCA) between 2021. ways, of which insurance onlyand one. MASC forage a backstop that will keepinthem business.”countries still limit The announcement Mayinremoves willAundertake immediate work2020 to and losses between 2003 and 2006 alone ranged Canadian beef imports is tus “Hopefully, participation will to Some grow review a few years ago found that producers often own David Van Deynze hears that a lot. As chief prodthe final trade barrier against Canadian to cattle under 30 months of age, citing BSE support expanded global market access for between $4.9 billion andcontinue $5.5 billion. after a challenging year. We think for the most part or operate more forage acres than they actually need for uct officer with the Manitoba Agricultural Services beef exports. concerns. Now they no longer have reason Canada’s high-quality cattle, beef and beef 26,000 beef producers left the industry be-it so it’s status forMore 2022,” he says. insuresaid. them all. works quite well, Corporation, Van Deynze regularly has clients telling themselves, providing little incentive Negligible risk status means import- to do so. products,to ” Bibeau tween 2006 andquo 2011. than 2.2 milHe adds MASC will know better after 31, Some producers have access to roughage sloughs and him they consider AgriInsurance the first line of defense ing countries no longer have any grounds converted “Assuming that the world is based It has been a long and difficult jour- lion acres of pasture lands were March which is the enrollment deadline for the 2022 crop year. cattails that they can access for feed in really dry years. among business risk management (BRM) programs for for restricting beef from Canada because of on science-based trade, there’s no reason ney for Canadian beef producers since that to crops, creating a major negative environOthers mitigate risk” by other acres, such as a case of BSE mental and ecological impact. Page 2 farmers hurt by natural disasters such as drought. BSE. to have those restrictions anymore, saidaccessing black day in May 2003 when Page 2
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Canada achieves BSE negligible risk status