MBP E-Newsletter: Jan. 27/2023

E-Newsletter dsfsfa

Reminder: Agricultural Crown Land Lease Auctions to be Held Online Feb. 6-10

The Manitoba government’s agricultural Crown land lease and permit auctions will be held online Feb. 6 to 10, Agriculture Minister Derek Johnson announced January 9.

Leases and permits are available to farmers and ranchers to provide additional land base for agricultural activities. The Agricultural Crown Lands Leasing Program supports the sustainable expansion of livestock in Manitoba, contributes to ecological goods and services, and supports mitigation and adaptation to climate change.

A number of agricultural Crown land parcels will be available to rent for haying, grazing or cropping. The official listing of agricultural Crown lands available for rent

can be found at: http://resd.ca/leases_and_permits/LPproperties.aspx# agLeasePermit.

The online auctions will be hosted by Garton’s Auction Service with further information to follow at https://gartonsauction.com/.

For more information about the upcoming auctions, visit www.manitoba.ca/agriculture/land-management/crownland or contact a Manitoba Agriculture Services Corporation (MASC) service centre. For more information on MASC locations visit: https://masc.mb.ca/masc.nsf/locations.html

An update from MBP January 27, 2023 mbbeef.ca

44 TH ANNUAL GENERAL MEETING AGENDA

Thursday, February 2, 2023

Note: times listed are a general guideline and may vary by a few minutes.

9:00AM Registration Begins and Trade Show Opens

10:00AM – 12:00PM Industry Knowledge Session: Research Round-up

• Dr Greg Penner, University of Saskatchewan

• Dr Pascal Badiou, Ducks Unlimited Canada

• R ay Bittner, Livestock Predation Prevention Project update

12:00PM – 12:55PM

Lunch for registered AGM delegates

1:00PM – 1:10PM MBP General Manager Carson Callum calls meeting to order

1:10PM – 1:30PM

Greetings from Elected Officials

• Hon . Derek Johnson, Minister of Agriculture

• Hon Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

• Hon Wab Kinew, Leader of the Official Opposition

• Dougald Lamont, Leader of the Manitoba Liberal Party

1:30PM – 2:10PM

Business Portion of the Annual General Meeting

• Approval of Agenda

• Report from the President

• Report from the General Manager

• Report from the Finance Chair

- Review of MBP’s audited financial statement

- Appointment of MBP auditor for the upcoming fiscal year

• I ntroduction and ratification of MBP board of directors

2:10PM – 3:00PM

3:00PM – 3:30PM

3:30PM – 4:00PM

4:00PM – 4:15PM

Resolutions Debate (Part 1)

Coffee Break and Opportunity to Visit Trade Show

Resolutions Debate (Part 2 if required)

O ther Presentations if Time Permits

• Squeal on Pigs update – Dr Wayne Lees

• Cleanfarms – Serena Klippenstein

4:15PM – 5:15PM

5:30PM

Keynote Speaker – Tim Hague Sr , past winner of The Amazing Race Canada

Cocktail Hour

6:30PM

MBP President’s Dinner

• Opening Remarks from the MBP President

• Dinner and desser t

• Presentation of Manitoba’s Environmental Stewardship Award (TESA)

• Recognition of non-returning MBP director Melissa Atchison

• A look at STARS – Shock Trauma Air Rescue Service

8:30PM Entertainment – Comedians Tim Gray and Dana Smith

Friday, February 3, 2023

8:00AM – 8:30AM Coffee service and trade show opens

8:30AM – 9:55AM

Panel Discussion: Tackling Various Types of Risk Facing the Beef Sector

• Emergency preparedness/biosecurity/natural disasters, etc .

–Dora Frolich and Grant Palmer, Manitoba Agriculture

• How we coped when faced with a natural disaster

–David Haywood-Farmer, beef producer

• Manitoba Livestock Cash Advance Program

–Gabi Sponagel-Ridder, Program Support Officer

• Business risk management tools

–Ben Hamm, Manitoba Agriculture

9:55AM – 10:25AM

10:25AM – 11:25AM

Coffee Break and Opportunity to Visit Trade Show

Reports from National Beef Organizations

• Canadian Roundtable for Sustainable Beef

–Andrea White, Director, Marketing and Stakeholder Relations

• Canadian Cattle Association Public and Stakeholder Engagement

–Lynsay Beavers, Stakeholder Engagement Specialist

• Canadian Beef Check-off Agency

–Melinda German, General Manager

11:25AM – 12:05PM Market Update – Canfax – Jamie Kerr, Market Analyst

12:05PM MBP President’s Closing Remarks

12:45PM – 2:30PM Risk Management Workshop

• Ben Hamm of Manitoba Agriculture will walk producers through a series of risk management and cost of production tools that may be useful to their operations

*Note: This workshop is free for producers, but lunch is not included

44 TH ANNUAL GENERAL MEETING PROPOSED RESOLUTIONS FOR DEBATE

GENERAL RULES OF DEBATE FOR THE RESOLUTIONS SESSION

1 Only the ‘Resolved’ portion of resolution will be read

2 MBP members in good standing are entitled to move, second, debate and vote on resolutions

3 The administration bylaw dealing with “members in good standing” is as follows: 1(b) Every person who is determined by the Board of Directors to be actively engaged in the raising of cattle in Manitoba, and who pays all fees to the Association in the manner and in the amount imposed on sellers of cattle pursuant to regulations made by the Board of Directors from time to time.

4 All delegates moving and/or speaking to resolutions will identify themselves to the Chair, i e their name and their district number

5 I n presenting a resolution, the mover will have the privilege to speak first to the resolution

6 Amendments or substitute motions must be moved and seconded before being spoken to

7 Speakers on resolutions will be limited to two speeches of two minutes each The second speech will be recognized only after everyone wishing to speak has spoken once

8 The mover of a resolution may speak again to close the debate

9 The Chair will read the resolution before voting occurs if it has been amended

10 All remarks will be directed to the Chair Remarks include debate, amendments, requests for information, parliamentary inquiries and points of order Remarks should be germane to the pending question

11 Voting cards will be used for the votes

12 All tie votes are lost votes

THE RESOLUTIONS

Five resolutions came forward from Manitoba Beef Producers’ (MBP) fall 2022 district meetings which were held in odd-numbered districts where director elections were required

As well, a late resolution has been brought forward from the MBP board of directors for consideration

MBP’s board of directors also accepted in writing suggested late resolutions for consideration for potential debate at the AGM until 9 a m Friday, January 27, 2023 These late resolutions will be considered for debate at the end of the regular resolutions session, time permitting

All resolutions for debate were posted on MBP’s website at www mbbeef ca to help ensure Manitoba’s beef producers are aware of them in advance of the AGM Note: Some late resolutions arising may not appear in this AGM program as it had to go to print several days prior to the AGM

The following resolutions have been deemed in order by MBP’s Resolutions Committee and organized into categories based on similar topics for debate Resolutions are proposed to be debated in the order listed below

As a reminder, voting on MBP resolutions is restricted to producers who are members in accordance with MBP’s bylaws. As per the Section 1(1) (b) of the bylaws, membership refers to “Every person who is determined by the Board of Directors to be actively engaged in the raising of cattle in Manitoba, and who pays all fees to the Association in the manner and in the amount imposed on sellers of cattle pursuant to regulations made by the Board of Directors from time to time.”

What does this mean? It means that if you have requested a refund in the last 12 months you have not paid all fees to the association as set out by the regulations and are not considered a member in good standing.

44 TH ANNUAL GENERAL MEETING PROPOSED RESOLUTIONS FOR DEBATE

CATEGORY: PRODUCTION MANAGEMENT

1: Whereas wildlife such as deer and elk cause irreparable damage to stockpiled feed during the winter months

Be it resolved to recommend that Manitoba Beef Producers lobby the provincial government to provide financial assistance for a fencing program to reduce the risk of wildlife eating stockpiled feed.

District 9

2: Whereas predation issues continue to be a major concern for producers in Manitoba

Be it resolved to recommend that Manitoba Beef Producers lobby the provincial government to investigate reinstating resources specific to addressing predation related to problem predators, including a rapid response process.

District 11

3: Whereas labour challenges, including the availability of skilled labour, continue to be a major issue in the agriculture sector

Be it resolved to recommend that Manitoba Beef Producers lobby the provincial and federal governments to streamline and/or simplify programs to secure timely access to agricultural workers for Canada.

District 7

4: Whereas some beef producers have been experiencing issues getting timely access to Manitoba Agricultural Services Corporation’s (MASC) staff to answer program questions, to process claims, etc due to MASC office consolidations in recent years

Be it resolved to recommend that Manitoba Beef Producers lobby Manitoba Agricultural Services Corporation and the Government of Manitoba to consider reopening some previously closed MASC service centres in order to improve customer service levels to agricultural producers.

District 7

CATEGORY: MISCELLANEOUS

5: Whereas during August 2022 Keystone Agricultural Producers (KAP) announced its intention to expand its membership base by applying a 1% levy on cattle producers’ initial $26,225 50 in sales, resulting in the deduction of a $262 50 KAP membership fee plus $13 12 GST ($275 62); and

Whereas Manitoba cattle producers already provide financial support for both national and provincial organizations; and

Whereas producers providing KAP with a written “Notice of Objection” as described under Section (26) of The Agricultural Producers Organization Funding Act will be exempted from having the KAP membership levy deducted from their sales for a two-year period (any KAP membership levy collected during the two-year exemption period must be refunded)

Be it resolved to recommend that Manitoba Beef Producers utilize its publication Cattle Country to publish a copy of Section (26) of The Agricultural Producers Organization Funding Act, accompanied by a brief explanation reminding producers that by providing Keystone Agricultural Producers with a written notice of objection they will become exempt from have the KAP membership levy deducted from their sales for a period of two years.

Be it further resolved to recommend that Manitoba Beef Producers shall make available to its membership a standard fill-in-the-blanks form that could be used by producers wishing to notify KAP of their objection to having KAP membership fees deducted from their sale.

District 5

44 TH ANNUAL GENERAL MEETING PROPOSED RESOLUTIONS FOR DEBATE

LATE RESOLUTION FROM THE JANUARY 11, 2023 MBP BOARD OF DIRECTORS MEETING

L1: Whereas Veterinary Service Districts (VSDs) were developed to provide rural areas of Manitoba with access to consistent and affordable veterinary care, including supporting animal hospitals which provide services essential to many livestock producers; and

Whereas the cost of operating these animal hospitals (such as property taxes, insurance, utilities, repairs to and upgrading of the hospitals and equipment, etc ) continues to rise, yet provincial government funding for VSDs to help operate and maintain these clinics has remained static for several years; and

Whereas there has been difficulty in securing veterinary staff to operate these essential rural animal hospitals, which leads to challenges for producers needing to access services locally

Be it resolved to recommend that Manitoba Beef Producers lobby the provincial government to revisit the funding needs of the Veterinary Service Districts to ensure that the government’s annual contribution to them is more reflective of the actual cost of delivering the needed rural veterinary services that are so important to the livestock sector and others.

OUR SPONSORS

BANQUET SPONSORS

Ducks Unlimited Canada

Masterfeeds

BEEF SPONSOR

True North Foods

COCKTAIL SPONSOR

Covers & Co

COFFEE SPONSORS

Manitoba Charolais Association

Manitoba Livestock Marketing Association

KEYNOTE SPONSOR

Sunrise Credit Union

LUNCH SPONSOR

Manitoba Habitat Heritage Corporation

PANEL SPONSOR

Farm Credit Canada

MEDIA SPONSORS

CKDM

Golden West Broadcasting Ltd

Manitoba Co-operator

Print Studio One

The Carillon

DELEGATE BAG SPONSOR

Save-On-Foods

DIAMOND SPONSORS

• GRASSFED: “True North Foods is partnered with A&W Canada to supply Canadian grassfed beef for A&W’s grassfed burger program.

• SERVICES: Whether you are a specialty producer looking to get your product to a speci c market or distributor, or if you are producing commodity livestock for sale, we can partner with you. From our multi-species capabilities to our ability to handle smaller volumes, we o er excellent capabilities for producers in the Canadian Prairies to maximize their pro tability.

BRONZE SPONSORS

Dairy Farmers of Manitoba

Gladstone Auction Mart

SILVER SPONSORS

Boehringer Ingelheim Animal Health

Manitoba Veterinary Medical Association

GOLD SPONSORS

Alert Agri-Distributors & P Quintaine & Son

Association of Manitoba Community Pastures

Cleanfarms

Clearview Co-op

Elanco

Enns Brothers

Grand Valley Fortifiers (GVF)

Imperial Seed

Interlake Forage Seeds Ltd

K ane Veterinary

Manitoba Forage and Grassland Association

OUR SPONSORS

Klinic Community Health

Paddock Drilling

Steinbach Credit Union

Manitoba Simmental Association

MASC

NDEco Canada

New Rosedale Feedmill

NorthStar Genetics

PrecisionCam/Allen Leigh Security

Shafer Commodities

TD Agriculture Services

Trouw Nutrition

Zuidervaart Agri-Import

PLATINUM SPONSORS

Manitoba Government Announces $200-Million Carbon Tax Relief Fund

(January 26, 2023 Province of Manitoba News Release) As part of the Manitoba government’s ongoing effort to help Manitobans make ends meet, Premier Heather Stefanson unveiled a $200-million Carbon Tax Relief Fund aimed at helping 700,000 Manitobans cope with the negative impacts of rising winter costs, from food to fuel.

The 2023 Carbon Tax Relief Fund will provide help for all Manitobans including seniors, singles and couples with or without children who lived in the province on Dec. 31, 2021, and whose family net income that year was less than $175,000.

“Last fall, we pledged to continue to help Manitobans as help was needed,” said Stefanson. “Given the cost shock Manitobans are facing this winter from the federal carbon tax and other related increases, we believe Manitobans need our support again now.”

The premier reiterated the Manitoba government’s calls for the federal government to put an immediate halt on the carbon tax and its harmful increases.

The Carbon Tax Relief Fund will provide $225 per single person and $375 per couple. For couples, the lower income earner will receive the payment.

“Our initial affordability package focused on helping families with children address back-toschool costs and seniors with fixed or low incomes address inflation-related challenges,” said the premier. “Our new Carbon Tax Relief Fund will broaden access to support almost every Manitoban who has to drive to work, take their kids to activities or go out to buy groceries.”

Statistics Canada’s Consumer Price Index reached a near 40-year high in June 2022 in Manitoba, peaking at 9.4 per cent growth year over year. In December 2022, the rate of growth was eight per cent, the highest among all provinces.

“Food and transportation costs have risen dramatically in the last few months, putting pressure on family finances,” said Stefanson. “But every family’s circumstances are different, and they will know how to best spend this money to help them make ends meet.”

The premier noted that the 2023 Carbon Tax Relief Fund is part of an $850-million package that will be detailed in the coming days meant to:

• address financial pressures within the health-care system;

• support Manitoba municipalities with targeted project funding; and

• help communities and industries to continue to recover.

The funding commitment, the premier added, also builds on an initial 2022 program that provided approximately 145,000 families with children and a household income of less than $175,000 with a cheque for $250 for the first child and $200 for each additional child, and more than 52,000 seniors with less than $40,000 in family income a cheque for $300.

In addition, the first phase of the affordability package provided Manitobans receiving Employment and Income Assistance (EIA) a long-overdue increase to the basic needs rate, the premier said. EIA general assistance clients without dependent children began receiving an extra $50 per adult each month, and all EIA

continued on page 10

Manitoba Government Announces $200-Million Carbon Tax Relief Fund

disability clients began receiving an additional $25 per household each month.

Stefanson noted historic tax relief measures were also part of Budget 2022 with a $2,020 Tax Rollback Guarantee, which has now been exceeded to $2,400 or $4,800 for a two-income family. Some of these initiatives include:

• indexing personal tax brackets and the basic personal amount;

• reducing the PST from eight per cent to seven per cent;

• exempting the costs of home insurance, personal services and preparing income tax returns and wills from PST;

• reducing vehicle registration fees;

• eliminating probate fees; and

• phasing out the education property tax.

“Our government is committed to helping Manitobans make ends meet as they continue to face rising prices due to inflation and the largely hidden, federally imposed carbon tax,” said Stefanson. “We truly hope this new Carbon Tax Relief Fund will help ease the strain many families are facing this winter.”

To find out more about the 2023 Carbon Tax Relief Fund, visit: https://manitoba.ca/HelpingMB.

Reminder: 2022 Spring Flood and Mandatory Documents Required for Farm Claims Under the Disaster Financial Assistance (DFA) Program

Manitoba Emergency Measures Organization (EMO) continues to evaluate farm applications under the Spring 2022 Disaster Financial Assistance (DFA) program.

To process DFA claims, EMO requires certain documents from applicants to ensure the integrity of our program and to ensure that funds are being spent appropriately. Manitoba also shares the costs of disasters with the Government of Canada, and Manitoba must demonstrate to the federal government that we have verified that assistance payments are only made for eligible items. We thank you in advance for your cooperation in providing these important documents.

EMO has prepared a video on the mandatory documents and DFA for Farms. It is available at:

https://www.gov.mb.ca/emo/dfa/videofarmdfa .mp4

If you have not already, please provide the following in support of your DFA claim as soon as possible so that we can proceed to evaluate your claim and provide assistance:

• The most recent property tax bill for your property to confirm the property value and property ownership of all affected parcels of land and structures.

• For claims with damage to rented land where repairs are delegated by the landowner to the tenant, the Land Owner's Authorization must be completed and signed by the landowner.

• A copy of the insurance declaration form, completed by your insurance broker

• A signed, original copy of the Financial Assistance Application. The names on this document must match the names on the property tax bill.

• Tax information (send copies of all that apply to you):

o For a farm that is a sole proprietorship, a complete copy of the most recent T1 General income tax return or notarized proof of income and Statements of Income and Expense.

o For a farm that is a partnership, a complete copy of your partnership agreement and a complete copy of the most recent T1 General income tax return.

o For a farm that is a limited company, a complete copy of your articles of incorporation, a complete copy of the most recent general income tax return and statements of income and expenses.

• Veterinary Certificate completed and signed for verification of livestock loss. You can email the required documents to dfa@gov.mb.ca; please ensure you quote your DFA claim number in the email.

Manitoba EMO – DFA

Toll Free: 1-888-267-8298

Fax: (204) 945-4929

1525 - 405 Broadway

Winnipeg MB R3C 3L6

https://www.gov.mb.ca/emo/dfa/farm.html

Effects of the 2021 Drought on Livestock Production in Manitoba

In 2021, Manitoba experienced widespread drought conditions throughout most of its agricultural regions. Twenty-two rural municipalities declared State of Agricultural Disaster in 2021 and nine municipalities, three towns, and two cities declared State of Drought Emergency. While the drought affected the entire agriculture sector and associated industries, it has hit the livestock industry and hay producers across the province particularly hard

This report highlights the effects of the 2021 drought on cattle numbers, hay production, winter feed prices, cattle prices, and cattle and calf farm cash receipts. The report also provides an overview of the forage insurance payout and the financial assistance the federal and provincial government provided to livestock producers under the AgriRecovery program

Drought Effect on Cattle Inventory Goes Beyond 2021

The number of cattle on-farms in July of 2021 was the lowest since 1969. Since the peak in 2005 at 1.73 million head, the cattle number has declined by 42.1 per cent (3.2 per cent cumulative decile per year) to reach 1.0 million in 2022. The long-term downward trend in cattle number in Manitoba is driven by many factors, including business restructuring and consolidation, declining profit margins, aging producers, disease outbreaks, and the effects of extreme weather events. The bovine spongiform encephalopathy (BSE) outbreak in May 2003 led to border closures to Canadian cattle and meat exports causing cattle inventories to temporarily increase to an all-time high in July 20051 . This has also resulted in severely depressed prices for older animals where producers received as little as 10 per cent of the pre-BSE price for culls2 . In addition, the restructuring of the beef sector in Western Canada since the late 1970s led to a closure of several beef slaughter facilities in Manitoba between 1979 and 1990 as beef processing plants moved to Alberta3 . While it is not possible to entirely isolate the effects of drought on cattle inventories from other factors, drought has had significant negative impacts on cattle numbers and operations. The droughts in the late 1930s, 1960s, and 1980s have all led to a large decline in cattle numbers in the short- and medium-terms. More producers are also leaving the industry due to retirement, and younger cattle farmers are not entering the business at the same pace as the exits Figure 1 shows the trends in the number of cattle on-farm since 1930s.

1 After a complete ban for over three months, trade with the U.S. resumed for beef harvested from Canadian cattle under the age of thirty months in the fall of 2003 and for live cattle less than thirty months of age in July 2005. However, cull cows and bulls had been banned from entering the U.S. until November 20071

2 raec_1460.tex (umanitoba.ca)

3 Manitoba no closer to new beef-processing capacity - Manitoba Co-operator (manitobacooperator.ca)

As shown in Table 1, the total number of cattle in Manitoba declined by 1.4 per cent (15,000 head) in 2021 followed by another 6.9 per cent (75,000 head) decline in 2022. While the decline in 2021 was within the range of the normal year-over-year cattle inventory fluctuations, the selloff in 2022 was the highest in the last fifteen years. Producers mostly sold cattle on feeder and stocker operations where the number of cattle in this class dropped by 8.6 per cent in 2021 compared to 2020 followed by another 7.3 per cent in 2022.

Source: Statistics Canada, Table 32-10-0130-01

Looking deeper into the data, the number of replacement heifers on beef and dairy operations decreased by 10.5 per cent and 9.6 per cent in 2021 compared to the previous year’s inventory numbers, respectively. The number of bulls (one year and older) on feeder and stocker operations also declined by 14.8 per cent. When feed costs are so high, feeder and stocker operations will be impacted much more than the other types of cattle operations. When farmers are forced to sell cattle due to drought, it can take three or more years to rebuild their herd size.

The total number of cattle and calf marketed and their marketing weights follow a similar long-term trend with cattle inventories. Compared to 2020, the total number of cattle and calf marketed was down by 2.4 per cent in 2021 from 451.2 thousands to 440.5 thousands. The total marketing weight declined by 1.6 per cent from 4.239 million hundredweights to 4.174 million hundredweights (Figure 2) Compared to 2007, total cattle and calf inventory was down by 28.2 per cent while cattle and calf marketed by 27.6 per cent, and marketing weights by 27.7 per cent. Overall, the 2021 drought did not have significant affect on the cattle and calf marketed and marketing weights.

Figure 1. Trends in the Number of Cattle On-farms (July 1st) in Manitoba, 1931-2022.

Table 1. Changes in Cattle Number on Different Types of Cattle Operations.

Drought Led to a Large Decline in Hay Production

Drought has a negative effect on forage production, as it affects hay yield and the number of cuttings producers can make during the growing season. The dry and hot weather conditions in 2021 strained hay and pasture growth, causing substantial reductions in forage and feed crop yield and production. Based on Statistics Canada data, between 2020 and 2021, total tame hay production in Manitoba declined by 39.5 per cent while area under hay production declined by only 7.8 per cent during the same period. Hay productivity per acre declined by 34.3 per cent from 1.14 tonnes in 2020 to 0.82 tonnes in 2021. While hay production is decreasing since 2018, the 2021 drought had led to a much steeper decline. The average hay production per acre for the five years before 2018 was 1.71 tonnes per acre whereas it is 1.21 tonnes per acre for the year 2018-2021, a decline of 29.2 per cent.

Manitoba Agricultural Service Corporation (MASC) also provides yield per acre data for certain types of insured forages. The yield decline ranged between 29 per cent to over 50 per cent. The yields of silage corn and greenfeed, which accounted for 16 per cent and 10 per cent of the insured forage acres in 2021, declined by 29 and 51 per cent, respectively. The yield decline was also significant as compared to the previous five-year average.

Figure 2. Number of Cattle on Farms, Number of Marketing, and Marketing Weights, 1986-2021.

Figure 3. Trends in Hay Acres and Production.

Table 2. Effects of the 2021 drought on different types of forage production

Source: Manitoba Agricultural Service Corporation

Statistics Canada estimates total hay production losses in 2021 at 541 thousand tonnes. Since most of the hay produced in Manitoba is for own use and there are high variations in hay quality, it is challenging to come up with an average hay price, making it difficult to estimate the economic losses due to the drop in hay production volume. But, the economic loss from tame hay production due to the 2021 drought was very significant. Assuming the average value of alfalfa grass-hay (the common type of hay produced in Manitoba) was between $100 to $120/tonnes4 and multiplying it with the total hay production losses, the total economic loss from tame hay production due to the 2021 drought could range between $54 million and $65 million.

Drought Caused a Significant Increase in Winter Feed Prices

As a result of the poor pasture conditions and low hay production, cattle producers depleted their feedstock during the summer and fall seasons and headed into the winter with a very low level of feed supply. This low supply of feed resulted in high feed prices (particularly winter feed) in 2021. Thus, cattle producers that were forced to purchase supplemental feed for their herds were faced with much higher feed costs than usual. The trends in total winter feed cost per cow is shown in Figure 4 The total winter feed cost increased by 58 per cent from $461 per cow in 2020 to $728 per cow in 2021. Forage feed increased by 70.5 per cent from $355 per cow in 2020 to $604 per cow in 2021. Grain and grain concentrates costs also increased by 70 per cent from $27 to $45 per cow. The drought in 2018 and 2019 also led to a similar increase in winter feed costs. The total winter feed cost per cow increased by 26 per cent and 42 per cent in 2018 and 2019, respectively

Figure 4. Winter Feed Cost Per Cow, 2010-2022.

4 In 2021, MASC insurance price for the select alfalfa hay (top quality hay) was $187/tonnes, select grass hay ($134/tonnes), basic high quality hay ($94/tonnes), and low quality hay ($56/tonnes). It is challenging to determine average hay price as there is high variation in the quality of hay.

As forage-based feed usually accounts for more than three-quarters of total winter feed costs, having sufficient forage feed stock is important for cattle producers. In 2021, forage costs accounted for 83 per cent of the total feed cost per cow (Figure 5).

No Significant Change in Cattle and Calf Prices

In 2021, producers were not forced to cull large numbers of breeding animals, helping to prevent excess supply and price decline. The average cattle prices have increased by 4.2 per cent in 2021 compared to the previous year while average calf price deceased by 0.7 per cent.

Cattle and calf farm cash receipt also showed similar trend with prices. While farm cash receipt from cattle production increased by 4.3 per cent, calf farm cash receipt decreased by 17.3 per cent. The drop in the number of calf marketed (12.7 per cent) mostly contributed to the decline in calf farm cash receipt. Calf farm cash receipt accounted for 12.7 per cent of the $629 million total cattle and calf farm cash receipt in 2021. Although the drought did not have significant effect on cattle and calf farm cash receipt, it is more likely that it negatively impacted producers’ net income s because of the high feed costs. The total net income from crops and livestock production dropped by 36 per cent in 2021 compared to the previous year.

Figure 5. Share of Different Winter Feed on Cow-Calf Operation in Manitoba, 2021.

Large Increase in Forage Insurance Payouts

MASC provides different forage insurance and disaster management programs to livestock producers including forage insurance5 , forage establishment insurance, silage corn insurance, forage seed insurance, pasture insurance, and pasture days insurance6 Producers pay roughly 40 per cent of the premium for these insurance programs. In 2021/2022, there were a total of 660.5 thousand acres insured under different forage types (including forage seeds and silage corn), an increase of 2.7 per cent from the previous fiscal year (Table 3). Select and basic hay accounted for 51.4 per cent of (338.2 thousand acres) the total insured forage acres. Silage corn accounted for 16.4 per cent of total forage acres in 2021/2022.

Figure 6. Trends in Cattle and Calf Prices.

Table 3. Insured Acres under Different Types of Forage Crops

5 Several forage insurance options are available to livestock producers.

6 MASC - Forage Insurance

Source: Manitoba Agricultural Service Corporation

Manitoba Agriculture, Foresight and Analysis, 2022-10-19

As show in Table 4, the 2021 drought led to a large increase in forage insurance payouts The total payout for the different insurance programs increased by more than three and half fold from $12.0 million in 2020/2021 to $57.2 million in 2021/2022. Select hay insurance payout increased by 306 per cent, basic hay by 262 per cent, and silage corn by 764 per cent. Hay insurance (basic and select) accounted for 47.6 per cent of the total forage insurance cost in 2021/2021 fiscal year. The silage corn insurance and hay disaster benefit accounted for 17.6 per cent and 15.6 per cent of the total forage insurance payout in 2021/2021 fiscal year. Hay disaster benefit is a top up feature enabled when large areas of Manitoba experience low forage production to compensate for the increased cost of hay and transportation. Hay disaster benefit was triggered in three of five recent years in 2018/2019 ($3.2 million), 2019/2020 ($5.2 million), and 2021/2022 ($9.8 million). Table 4 provides the summary of the different insurance programs over the last five fiscal year.

AgriRecovery Program

AgriRecovery is a disaster relief framework under the Canadian Agricultural Partnership that allows the federal, provincial and territorial governments to provide a coordinated and rapid response to large disasters affecting many producers. AgriRecovery works together with the core business risk management (BRM) programs such as AgriInsurance and helps producers recover extraordinary costs beyond what is available through the core BRM programs. Extraordinary costs are costs that producers would not incur under normal circumstances, but are necessary to mitigate the impacts of the disaster, and/or resume farming operations as quickly as possible following a disaster.

In 2021, the federal government and provincial governments announced three different AgriRecovery assistance programs to help livestock producers affected by low moisture conditions in 2021. These programs are the Livestock Feed and Transportation Drought Assistance, the Livestock Transportation Assistance, and the Herd Management Drought Assistance programs7 . The Livestock Feed and Transportation Assistance program helps livestock producers purchase and test feed for livestock to maintain their breeding herds, including transporting purchased feed from distant locations. Assistance will also be provided to cover extraordinary expenses associated with above-normal costs for accessing additional crop or pasture acres, hauling water, harvesting extra acres, or hauling self-produced feed from distant locations. The Livestock Transportation Assistance program helps livestock producers offset freight

7 Description of the different AgriRecovery assistance programs, eligibility criteria, and eligible activities and expenses can be accessed here: AgriRecovery Drought Assistance for Farmers (gov.mb.ca).

Table 4. Indemnities of Forage Insurance Programs ($ thousands)

expenses associated with moving their breeding herd to an alternate feeding location due to shortages of feed. The Herd Management Drought Assistance8 program supports producers to offset the cost of replacing breeding animals when culling is above normal due to shortages of feed caused by drought. The document in the footnote link provides a description of the different programs, eligibility criteria, and eligible activities and expenses.

The cost of the AgriRecovery program due to the 2021 drought was one of the highest in Manitoba, compared to previous years. After consulting with industry stakeholders and assessing the extent of the drought, the federal government and provincial governments announced their commitment of up to $155 million to support livestock producers affected by the drought to buy and transport feed, transport livestock, and rebuild herds. Overall, 2,773 livestock producers have applied to the AgriRecovery drought assistance program Producers who only reported beef cattle accounted for 83 per cent of the total applicants, followed by those who only reported dairy (3 per cent), and sheep (2 per cent). About 10 per cent applicants reported owning more than one types of livestock.

Summary

Drought conditions in 2021 led to a large decline in hay production and a significant increase in winter feed prices, forcing producers to market more animals than under normal conditions. While estimating the total economic loss associated with the 2021 drought is challenging due to limited data, there is no doubt the 2021 drought had significant negative impacts on the livestock industry. Weatherrelated production risks such as the 2021 drought underline the importance of business risk management programs for livestock producers, particularly as it relates forage insurance. Programs designed under the AgriRecovery framework have also played a very important role in helping cattle producers to overcome the extraordinary costs associated with the drought.

8 The applications for the heard management program are being processed and assistance related to this program is not included in this analysis.