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  • Ranching Task Force

    2009

  • II   

  •    III

    The development of the cattle industry in British Columbia has been unique. It was the earliest in Canada and represented an important stage in the settlement of our province. British Columbia’s ranching industry began in 1846 when the Hudson’s Bay Company moved cattle and horses from Fort Vancouver to Fort Kamloops and Fort Alexandria. Small herds of beef and dairy cattle were kept at Fort Kamloops, Fort Alexandria, Fort Victoria, and Fort Langley to supply the gold rush trail and outposts. Permanent settlements soon followed. The ranching industry provided substance and color to the region, largely shaping its culture and heritage.

    Over the last 160+ years, ranching has changed from an extensive, pioneering way of life to a modernized business enterprise. B.C.’s cattle industry today is an integrated part of a larger Canadian beef production system. Canada is the 3rd largest exporter of beef worldwide and well-respected for having a high quality, finished product. Canadian beef producers are renowned both for the wonderful taste of their beef, and also for the way in which their cattle are raised, in a healthy environment and ecologically sustainable manner.

    Ranching has a great past and has an even greater future ahead if we can navigate through our current challenging times.

    Roland BaumannPresident, B.C. Cattlemen’s Association

    The ranching industry in British Columbia has successfully weathered many storms due to the resilience, determination and fierce independence of those who cherish their way of life that just happens to nourish and sustain the rest of us. The forces working against the ranching industry have never been more challenging than in the last few years and it was against this backdrop that Premier Gordon Campbell announced the Ranching Task Force in order to find ways of creating a sustainable industry that has long been part of the fabric of British Columbia.

    The task force, supported by a dedicated group of staff from many different ministries, examined the current state of the industry and developed ideas to reduce obstacles and create opportunities. The timeline was intentionally short given the urgent need for action and I want to personally thank my Co-Chair Roland Baumann and all of the task force participants along with the many members of the industry who submitted comments and ideas.

    As Parliamentary Secretary to the Ranching Task Force, I am committed to ensuring government consider carefully all of the report’s recommendations in a timely fashion.

    Dr. Terry Lake, MLA, Kamloops-North ThompsonParliamentary Secretary to the Ranching Task Force

    Co-Chairs Messages

  • IV   

    Ed SallePast President, BCCA

    Karen KochelPresident, BC Breeders

    and Feeders Association

    Chief Harold AljamPresident, First Nations Agriculture Association

    Judi GuichonVice President, BCCA

    Robin SmithPresident, BC Food

    Processors Association

    Ella BrownIndependent Rural

    Representative

    Bill FredingPresident, BC Association

    of Cattle Feeders

    Andy DolbergExecutive Director,

    BC Agriculture Council

    Ranching Task Force Members

  •    V

    Executive SummaryUnder the leadership of Premier Gordon Campbell, the Ranching Task Force was announced in May 2009 to identify key issues and opportunities facing the ranching industry in British Co-lumbia, and to make recommendations to ensure a strong, vibrant and sustainable industry in British Columbia for this and future generations.

    To meet this outcome the Task Force:

    • Identified policies, regulations and legislation that may be adversely affecting the com-petitive position of the B.C. cattle industry;

    • Identified the most immediate non-regulatory industry priorities;

    • Identified actions to be taken by industry and government to ensure a more profitable self-sustaining industry in the long-term.

    The Task Force membership included representatives from both government and the beef industry who worked jointly to develop recommendations for resolving the challenges facing this industry today.

    This report provides recommendations to government and the ranching sector to enhance the ranching industry in British Columbia.

    The Future of the B.C. Cattle Sector

    The future of the cattle sector in B.C. is uncertain following a 6-year period of unprecedented events that have adversely impacted the industry and left it weakened and stretched in its capacity to adapt to changing economic circumstances. In response to these challenging times, the Ranching Task Force recommends that industry focus attention on the following goals supported by activities and recommendations to both industry and government included in the report:

    • Adhere to a set of standards for production that will make B.C. producers leaders in the production of quality beef;

    • Significantly increase the number of B.C. finished cattle going into B.C. value-added markets; and

    • Support national efforts to pursue beef sales in regions of the world that are experi-encing significant growth in consumer demand for beef (Russia, China and European Union).

  • VI   

  • Table of Contents

    Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V

    Ranching Task Force Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

    Ranching in British Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

    Government Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Regulatory Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

    Ranching Industry Investment Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

    • Announced Government Commitments

    • Future Government-led Investment

    • Industry-led Investment

    Raising the Profile of Agriculture in Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

    APPENDICES

    Appendix A - Ranching Task Force Terms of Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    Appendix B – Website Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

    Appendix C - Government Investment into the Beef Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

    Appendix D – B.C. Beef Value Creation Program – BCCA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

    GLOSSARY (Organizations and programs referenced in the report) . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

  • 2  British Columbia Ranching Task Force Report to Government

    Ranching Task Force Overview

    Ranching Task Force Members

    The Ranching Task Force is chaired by Roland Baumann, President of the B.C. Cattlemen’s Association, and MLA Terry Lake, Parliamentary Secretary to the Ranching Task Force.

    Including the co-chairs, there are 12 Ranching Task Force members representing various regions and industry associations throughout British Columbia. Task Force members were selected for their leadership and ability to bring diverse viewpoints to ranching and beef industry issues. The Terms of Reference for the task force can be found in Appendix A.

    Ranching Task Force Overview

    The Ranching Task Force (RTF) identified government policies, regulations and legislation that may be hindering the competitive position of the B.C. cattle industry. The RTF was supported in this work by a cross-government team that has developed recommended solutions to the identified regulatory challenges.

    Recognizing that the current economic situation does not provide the provincial government with flexibility in terms of providing financial assistance, the RTF has identified the most immediate investment priorities for the sector, for future consideration by the provincial government.

    The RTF has also made a number of recommendations to both industry and government to support a more profitable self-sustaining industry over the long-term.

    Ranching Task Force Activities

    The RTF met for the first time on June 30, 2009 in Richmond, B.C. Minister Thomson attended the inaugural meeting and expressed his support for the cattle industry through this process, recognizing the challenging economic conditions facing the provincial government. The RTF was tasked to complete a report for the Minister, making recommendations to government and industry to ensure a strong, vibrant and sustainable industry in British Columbia for this, and future generations.

    The RTF website accepted submissions from across the province. A summary of the website feedback is included in Appendix B.

    Members of the RTF met monthly via video and teleconference to discuss immediate challenges facing the ranching industry and identify possible solutions for resolving these challenges.

    The final report was reviewed and endorsed by the RTF at a meeting in Richmond on November 6, 2009.

  • British Columbia Ranching Task Force Report to Government  3

    Ranching in British Columbia

    The ranching industry has a long history in British Columbia that has included homesteading many areas of the province. In much of rural B.C., ranching is the mainstay of the local economy and supports many other rural businesses including feed stores, equipment dealers, abattoirs, and transportation businesses.

    There were 4,086 cattle ranches in British Columbia reported in the 2006 agricultural census. Revenue from cattle sales in 2008 was $250 million. The B.C. beef herd was approximately 212,000 cows in 2009 which represents 4.5% of Canada’s herd. Alberta is the largest producer of beef in Canada with 40% of the national herd. There are an estimated 8,700 people employed in the B.C. beef sector including ranchers, feedlot operators, abattoirs and beef processors.

    There are a large number of small beef farms in B.C., mostly concentrated in the South Coast region. Medium to larger sized ranches are located in the Interior, Kootenays and Northern B.C. These large farms can be important anchors in the local economy and produce the bulk of B.C.’s beef calves. The many small farms are often not profitable, but contribute significantly to the farm input and farm support services industry.

    Most beef ranches in B.C. are cow-calf or cow-yearling operations as B.C.’s competitive advantage lies in its ability to produce forage on private land as well as access to an abundance of Crown land that produces forages for cattle grazing. The primary function of the cow calf and yearling operation is to “harvest sunshine” by converting grass into a form of protein that can be consumed to sustain human populations with very little fossil fuel input. The grazing lands used to produce forage in B.C. are largely not suited to cultivation and are often in areas that lack sufficient water for growing higher valued crops. By managing these grazing lands sustainably, ranchers provide prime habitat for wildlife and many of the endangered or threatened species associated with grasslands. The maintenance of deep rooted healthy grasslands and the increase of soil organic matter produced by well-managed ranges are an effective means of carbon sequestration and carbon storage.

    Through partnerships with government, universities and non-government organizations (NGOs), the B.C. Cattlemen’s Association (BCCA) is working on continually improving range management in B.C., thereby putting into practice a truly sustainable method of local food production. B.C. ranchers have also been implementing beneficial management practices identified through the Environmental Farm Plan Program. B.C.’s Climate Action Initiative is developing further climate action resources to assist ranchers to become part of a solution to today’s climate action challenges.

    Farm size:

    Small . . . . . . . . . . . ($500,000) . . . . . . . . . . 3% ranches; . . . . . . . . . . 36% FCR

    *FCR = Farm cash receipts

  • 4  British Columbia Ranching Task Force Report to Government

    B.C. is moving to address global warming by establishing firm targets for greenhouse gas reductions in our province, while ensuring British Columbians have the means to adapt to climate change. As extensive land stewards, ranchers have a unique role in B.C.’s low carbon economy – not only does the sector sequester carbon, but it generates a product that is vital to the health of British Columbians and their communities – food.

    Through their own initiative or as part of BCCA’s Farmland-Riparian Interface Stewardship Program, B.C.’s ranchers have also restored and enhanced substantial fish and wildlife habitat across the province.

    B.C.’s cattle and ranching sectors are also leaders with respect to the humane treatment of farm animals. The BCCA has recently joined with other B.C. livestock and poultry farmers to initiate the B.C. Farm Animal Care Council. Through communication and sharing of knowledge, the Council fosters a greater understanding for the responsible way in which B.C. farmers and ranchers care for their animals and the use of best animal care practices.

    Pastoral vistas provided by our ranches are used by the B.C. government to attract tourists to rural areas of the province. There are numerous agri-tourism opportunities on many interior ranches where visitors can experience ranching firsthand.

    Ranchers in B.C. typically augment their private holdings with large tenures of both private and Crown land, increasing their capacity to raise beef beyond the limitations of the feed that can be produced on their own cultivated fields. B.C. ranches occupy over 5 million acres of private land, and have tenure on a further 21.5 million acres of Crown range land. Approximately 60% of the Agriculture Land Reserve is owned by ranches. The average size of a cattle ranch in B.C. is 1,074 acres.

    Cow-calf operators typically sell their calves in the fall to feedlots for back grounding and/or finishing (see glossary). If a rancher has abundant feed, he/she may choose to keep the calves to yearlings, adding weight with available forage. There are approximately 40 feedlots in British Columbia and an additional 75-100 backgrounding operations that utilize existing feed to add weight to animals prior to finishing. Due to limitations in accessing the grains used to finish cattle, many B.C. calves and yearlings are sold to feedlots in Alberta and the US. Large feedlots in Alberta are in close proximity to feed grain, thus avoiding the costs associated with transporting feed grains to cattle. The remaining calves/yearlings stay on B.C. ranches, backgrounding operations and feedlots. Of these fed cattle, a portion is processed here in B.C. The feeder industry in B.C. provides a key input for B.C.’s slaughter industry, in which government has recently made a significant investment, and for the upstream food (and beverage) processing sector, now B.C.’s largest manufacturing segment.

    There are currently 34 abattoirs in B.C. that process relatively small volumes of cattle which are typically sold into local markets. Due to the seasonal nature of beef production, most animals are auctioned within a 3 month period which subjects these abattoirs to inconsistent supply throughout the year. These abattoirs cannot achieve the economies of scale of the very large processors in Alberta, for example, and often are challenged with finding markets for cattle by-products such as trim, offal, hides. The existing abattoirs do indicate, however, that they have

  • British Columbia Ranching Task Force Report to Government  5

    capacity to double their slaughter volumes, if supply was available throughout the year. Were this to occur, existing abattoirs could be processing up to 20% of total B.C. calf production, a significant portion of annual beef production.

    These small, local abattoirs have made significant new investment in plants and equipment to meet the increased standards and inspection requirements of the B.C. Meat Inspection Regulation of the B.C. Food Safety Act (2004). These costs for transition to the new regulatory environment have been partially offset by the provincial government’s Meat Transition Assistance Program and Meat Industry Enhancement Strategy; a provincial investment of $11.9 million to date.

    The implementation of an Enhanced Feed Ban in 2007, excluded Specified Risk Materials (SRM) from the production of by-products such as fertilizer, pet food and animal feeds. The ban was brought on by the discovery of BSE in Canada, and is designed to prevent any potentially infectious cattle tissue material from entering the human or animal food chain. As a result, SRM are now unusable and considered waste. SRM at one time generated revenue for abattoirs and now are a significant cost to the industry. A survey of Canadian slaughter facilities in 2009 found that the cost to dispose of SRM to meet the requirements of the enhanced feed ban was at least $31.70/animal over 30 months old.

    Twenty-percent of ranch revenues are derived from the sale of cull cows. The majority of B.C. cull beef cows are exported to the U.S. If local, low cost solutions were developed to address the additional costs of disposing of slaughter waste, small abattoirs would become more viable, thus adding more value in B.C.

    Current Financial Situation of B.C. Beef Industry

    Beef production is a cyclical, seasonal and commodity-based industry. A typical cycle is 10 years with 5 years of expansion, 3 years of liquidation and 2 years of consolidation. However, events that have impacted the B.C. industry over the past 6 years have been unprecedented and beyond the control of industry including a world recession, multiple droughts, a strong Canadian dollar, rising feed/energy prices, Bovine Spongiform Encephalopathy (BSE) and Country of Origin Labelling in the U.S. The B.C. industry has been stretched in its capacity to adapt to these changed fundamentals.

    The size of the cow/calf industry is measured by the number of breeding cows in the provincial herd. The size of the breeding herd is typically an indication of the profitability of the industry at any moment in time. When calf prices are low and/or input costs are high, ranchers may sell their breeding stock and the provincial herd shrinks. However, during the recent BSE events and resultant border closures, an anomaly in the cattle cycle occurred; the herd size increased during this period of low prices reflecting the inability of ranchers to sell cull cows. The market for mature cows during this period was significantly constrained by the border closures.

  • 6  British Columbia Ranching Task Force Report to Government

    While the province of B.C. has a natural endowment that favours cow/calf production, strengthened by access to Crown forage, this endowment is not sufficient to make the cattle sector competitive unless a variety of factors are favourably aligned. These variable factors are currently stacked against B.C. producers and have significantly weakened the sector, during a period when the cattle industry should have been enjoying some favourable returns as a result of a peak in the 10 year cattle cycle. These challenges are facing the entire cattle sector across Canada.

    At the same time, the housing recession in the US has reduced secondary income opportunities that many ranchers rely upon from logging. In future years, the Mountain Pine Beetle Epidemic is expected to cause a reduction in such income opportunities for ranchers even after the US housing market recovers.

    1996 Major indicators signal the Cattle Price cycle hit a trough, bottom of the cycle. B.C. beef cow herd: 273,000.

    2000-01 Prices, Farm Cash Receipts and Net Operating income indicate 10 year peak, suggesting a premature top of the price cycle. B.C. cow herd: 285,000.

    2002 Drought in Canada/U.S. – herd liquidation. B.C. inventory of cattle remains high. B.C. cow herd: 291,000.

    2003 U.S. prices good. Case of BSE discovered in Alberta which causes all borders to close, including the U.S. Government program payments increase from 2002 through 2005 as margins fall and government responds with ad hoc payments. B.C. cow herd: 293,000.

    2004-05 Cow inventory high as market for cows becomes very limited due to US border closure. Prices fall. Farm Cash Receipts peak in 2005 as program payments peak. B.C. cow herd: 320,000.

    2006-08 Trough in Net Operating Income. Strong Canadian dollar weakens demand from the US and international markets. Government biofuel policy has contributed to increased feed prices and peak oil has increased energy prices, reducing margins further. Country of Origin Labelling in the US is announced. US border to cows (over 30 months) reopens and Canadian herd reductions begin. Age verification program pays $18/head as an incentive for B.C. ranchers to ensure calves are age verified in an effort to encourage borders to re-open in export markets. B.C. cow herd: 244,000.

    2009 B.C. cow herd is significantly reduced in response to market signals and drought. Program payments are declining as negative margins over 4-5 years reduces government program’s ability to make payments. B.C. cow herd: 212,000.

    Future Forecast is for cattle prices to recover in 2012. This is dependent on Canada gaining access to international markets and the world economy recovering from the recession.

  • British Columbia Ranching Task Force Report to Government  7

    For a portion of B.C. ranches, revenues from the livestock market have not been sufficient to meet costs of production resulting in asset dispersal, cost restructuring and exiting from the industry. Forecasters are not predicting price recovery for beef until 2012. With peak oil, energy prices will continue to fluctuate, but remain higher than earlier in this decade. Government policies encouraging biofuel opportunities may continue to put upward pressure on feed prices. A US fiscal policy to keep interest rates low and balance their massive trade deficit will keep the Canadian dollar strong relative to the American dollar, at least until their economy rebounds. This will have a dampening effect on demand for beef from the US. The impact that Country of Origin Labelling will have on US imports of calves and beef is yet to be determined, however it will likely result in a reduced demand for Canadian calves. As North American beef consumption levels off, only export markets are predicted to experience growth in the demand for beef worldwide. The B.C. cattle sector is currently contracting in response to market signals and may continue to consolidate. It is yet to be determined whether this restructuring will be sufficient to ensure the future viability of this industry in B.C.

    Government InvestmentThe cattle industry in B.C. has historically chosen not to participate in government support programs for fear of retribution – via a North American Free Trade Agreement (NAFTA) challenge - from their major trading partner, the U.S. However, B.C. cow/calf producers are competing with Alberta ranchers who have received significant provincial financial support in the past few years. B.C. cattlemen would ideally like to ensure financial support is equal across Canada in order to create a level playing field for ranchers in all provinces.

    In the past 10 years (since 1999), the beef sector in B.C. has received government payments of over $182 million. These include AgriStability, drought assistance, BSE Recovery, Age Verification and other programs. The existing Business Risk Management suite of programs is cost-shared between the federal and provincial governments. However, during periods of financial distress, other one-time payments to farmers can come from either the federal or provincial governments. Other government investments in the sector are made on a cost shared basis between both federal and provincial governments and the rancher. A cumulative summary of the program payments made to ranchers over the past 10 years may be found in Appendix C of this report.

    Provincial and Federal Government Investmentin the BC Beef Industry

    (1999-2008)

    Type of Investment Total Investment Investment/cow/year1

    Income Assistance $124,000,000 $49.60

    Compensation for Loss Events $ 58,000,000 $23.20

    Total: $182,000,000 $72.80/cow/year 1 Based on 10 year average breeding cow herd size: 250,000 cows in BC

  • 8  British Columbia Ranching Task Force Report to Government

    In addition to direct farm payments, the B.C. government has invested in other cost-sharing programs with industry, recognizing that there is a public benefit to these investments, including Invasive Plants Management programming, Environmental Farm Planning, Verified Beef Production, Livestock Waste Tissue Initiative, Meat Transition Assistance Program, Highway and Range Land Fencing programs and Feeder Guarantee programs. The total funds attributed to these indirect payment programs over the past 10 years to the entire agriculture sector are $55 million. The cattlemen can also lever funds from the $9.37 million Beef Cattle Industry Development Fund (BCIDF), initially set up using government contributions from the wind-up of the National Tripartite Stabilization program.

    Of the income assistance programs, AgriStability - a voluntary federal/provincial Business Risk Management program - is no longer making significant payments to the cattle industry due to a prolonged period of negative returns in this industry. This Business Risk Management tool was not designed to provide payments to operations that are unable to demonstrate a profit over a period of years. AgriStability is designed to stabilize margins during years of unexpected drops in income. It was not designed to address BSE–type events that resulted in prolonged border closures. AgriStability was not a good income support response to a disaster such as BSE. The ongoing BRM review should consider alternative tools to respond to BSE-type events.

    Conclusion

    Not unlike other sectors in B.C. during these unprecedented recessionary times, the cattle sector is in financial distress. There are industry concerns that the B.C. cattle herd is at its lowest point in recent history and that remaining ranchers are dependent upon non-farm income or asset dispersal in order to remain in business. Although there are ranches in B.C. that continue to have positive net operating incomes due to having low levels of debt, all ranches in B.C., large or small, are struggling to meet their costs of production and maintain ranch infrastructure. It is a time of difficult decisions for a sector with an aging demographic.

    The cattle industry in B.C. remains optimistic that world demand for beef is increasing and therefore, the nature of this downturn is temporary. The industry acknowledges it may need to restructure to ensure a robust future for a new generation of ranchers. This process of consolidation and herd liquidation is ongoing. Forecasters are predicting that North American demand for beef will level off, and growth will be focussed in export markets. A portion of the B.C. sector may also turn its attention to local markets and finish more cattle to take advantage of opportunities for value-added B.C. beef products. B.C. must position its industry to take maximum advantage of all emerging markets.

  • British Columbia Ranching Task Force Report to Government  9

    Regulatory Review

    Regulatory Review Process

    An inter-ministry committee was convened in June, 2009 to support the Ranching Task Force in identifying regulations/policies and processes that could be changed to improve the business climate for ranchers in B.C. The committee was comprised of members from the ministries of Agriculture and Lands, Environment, Forests and Range, Community and Rural Development, Transportation and Infrastructure, Healthy Living and Sport and Aboriginal Relations and Reconciliation.

    Regulations to be considered were identified by Ranching Task Force members, the Beef Industry Strategy (2007) and staff members from the respective ministries.

    Regulatory Review Recommendations

    The Regulatory Priorities for the Ranching Task Force are:

    1. Secure access to water;

    2. Secure access to sufficient range land (forage;

    3. Low cost, regional animal waste disposal; and

    4. Agricultural Land Reserve improvements.

    The following recommendations for change to legislation, regulations and policy, as identified by the associated inter-ministry committee and endorsed by the Ranching Task Force are (by ministry):

    Environment (MOE)

    Water access

    1. Through Water Act modernization, secure access to water that will meet the needs of livestock on range and private land.

    2. Develop regulations under the Water Act that facilitate off-stream livestock watering and help secure stream health.

    3. Develop a process to be followed when dealing with conflict between fish and agricultural uses during periods of drought.

    Wildlife Populations

    1. Manage wildlife populations based on social carrying capacity of the ecosystem. Social carrying capacity balances the impacts of wildlife on ranching businesses with society’s willingness to support wildlife populations.

  • 10  British Columbia Ranching Task Force Report to Government

    2. Secure resources and funding to develop long term solutions to the mitigation of targeted predators with verified cattle kills.

    Slaughter Waste Disposal

    Current waste requirements are complex and costly to implement for small scale abattoirs. One such requirement is for Qualified Professionals to be hired to ensure requirements of regulation are being met. This is a barrier to expanding slaughter capacity in many regions, particularly remote regions, of the province.

    1. Provide less restrictive, less costly alternatives to meeting the Organic Matter Recycling Regulation (OMRR) requirements to facilitate small scale on-farm composting.

    2. Encourage MOE and Qualified Professionals to adopt and apply regulations, codes and guidelines relative to public health and environmental risks as opposed to prescriptive standards.

    3. Work with local governments and MAL to find both short and longer term solutions for disposal of solid slaughter wastes, including SRM, such as allowing slaughter wastes in landfills.

    4. Ease requirements under the Slaughter and Poultry processing Industries Code of Practice or the Agricultural Waste Control Regulation to facilitate small scale on-site composting.

    Community and Rural Development (MCD)

    Rural Subdivisions

    Communicate to, and encourage, local governments to take advantage of legislation that enables them to require fencing when subdivision occurs adjacent to rangelands.

    Healthy Living and Sport (MHLS)

    Meat Inspection Regulation

    The B.C. Meat Inspection Regulation sets standards for slaughter plant construction and equipment and inspection of animals before and after slaughter and requires that all slaughter plant operators be licensed. Prior to 2004, these requirements did not apply in some areas of the province. This added cost to operators resulted in significant losses and closures in this sector. The B.C. government stepped in to assist with these costs to ensure this sector remained viable, and to retain high standards for food safety and public health, the original intent of the Regulation.

    1. Government continue to pay meat inspection fees beyond 2012.

    2. Consider adapting the inspection system to make it more responsive to the needs of all provincially licensed slaughter facilities.

    3. Continue to augment regional slaughter capacity through the Meat Industry Enhancement Strategy.

  • British Columbia Ranching Task Force Report to Government  11

    Forests and Range (MOFR)

    Range lands

    1. Streamline and simplify the Forest Range Practices Act (FRPA). Amend Section 33 of FRPA to incorporate a concept of Best Practices to make FRPA objectives for range more realistic and attainable.

    2. Amend legislation and policy to enable silvopasture development and other Agro-forestry initiatives on Crown land tenures, in an effort to manage land for both forestry and forage values simultaneously.

    3. Increase security of Range tenure by amending Section 4 of the Range Act to increase the term of grazing licenses from 10 to 20 years.

    4. Amend current policy under the Land Act to allow for creation of new Grazing Leases.

    5. Provide alternate timber pricing for range improvements including: fencing, fence protection, ecosystem restoration, pasture development, agro-forestry and silvopasture projects.

    6. Communicate to MOFR District Managers options for facilitating the removal of mountain pine beetle (MPB) trees along fencing corridors. These options should not impose significant costs to the cattle industry given they are investing in the maintenance of the Crown’s infrastructure.

    7. Amend the Forest and Range Practices Act to add a “forage” objective in the Forest Planning and Practices Regulation, and an objective for timber in the Range Planning and Practices Regulation.

    8. Support eligibility for the replacement of Range improvements (fencing) damaged by wildfire in federal disaster relief funding.

    9. MOFR and BCCA work collaboratively to establish a protocol for the application of brush fences to mitigate the breach of a natural range barrier.

    Proposed MOFR Regulation and Policy

    1. Ensure proposed Zero Net Deforestation legislation does not limit ranchers’ ability, or add cost to the conversion of forested land to farm land for the purposes of forage production. Also, that it does not put undue pressure on afforest land currently used for forage purposes. The Zero Net Deforestation policy should not encourage the afforestation of natural grasslands that produce multiple values including forage, habitat for species at risk, carbon sinks and biodiversity.

    2. Ensure the British Columbia Forest Offset Protocol does not result in extensive conversion of farm land and natural grasslands to forested land.

    3. Exclude Crown land in the Agricultural Land Reserve from the proposed Commercial Forest Reserve and respect the contractual rights of existing Range and Land Act tenure holders.

    4. Ensure that the implementation of the Silviculture Strategy is respectful of range licensees and range values.

  • 12  British Columbia Ranching Task Force Report to Government

    Transportation and Infrastructure (MOTI)

    Highway Fencing

    Develop a protocol for MOTI District offices or maintenance contractors to contact a rancher in case of fence damage due to Motor Vehicle Accidents or fire or any other breach.

    Rural Subdivision

    Reinforce Land Title Act provisions for developers to fence subdivision properties when they border range and ranch lands.

    Weigh Scales

    Promote awareness of current policy allowing unladen farm vehicles having a registered GVW of less than 11,794 kg. to bypass weight scales.

    Spring Load Restrictions

    In case of an emergency, a temporary permit for 100% legal load capacity should be issued to move feed to livestock or livestock to feed.

    Aboriginal Relations and Reconciliation (MARR)

    Treaty settlements

    1. Minimize the impacts on ranch and range lands of treaty settlements.

    2. Where impact is unavoidable, mitigate and/or compensate for economic losses.

    3. Through the MOU that exists between MARR and BCCA, ensure communication and collaboration between all stakeholders, including MAL, at each step of the treaty negotiation process.

    Agriculture and Lands (MAL)

    Waste Disposal (Specified Risk Material and non-SRM)

    Collaborate with MOE, local governments and the Agricultural Land Commission to pursue low-cost, regional, short and long term solutions for the disposal of slaughterhouse waste.

    On Farm Energy

    Collaborate with other agencies (MOE, MEMPR and ALC) to facilitate the production of on-farm energy.

  • British Columbia Ranching Task Force Report to Government  13

    Agricultural Land Reserve

    The B.C. Cattlemen’s Association canvassed its members regarding the Agricultural Land Reserve (ALR) in the summer of 2008. The Association produced a position statement and recommendations that were provided to the Premier in May 2009. Four of these recommendations became a focus of the Ranching Task Force (RTF). The first – loss of financial support programs for ranchers located in the ALR – is not a matter within the jurisdiction of the Agricultural Land Commission (ALC) and is discussed in the next section.

    With input from the Chair of the ALC, the RTF focused on the remaining three issues in keeping with the purposes of Agricultural Land Commission Act (the ALC Act) to preserve agricultural land and encourage farming. These recommendations will support farmer’s efforts to remain viable and continue to farm within the ALR. Issue

    To allow home site severance of ranch lands in the ALR to facilitate the intergenerational family transfer of active ranch operations. Recommendation

    The ALC should meet with the BCCA to discuss what criteria its members believe the ALC should consider when assessing subdivision proposals meant to facilitate the intergenerational family transfer of active ranch operations.

    Issue

    To facilitate the development of primary agricultural production and processing infrastructure in the ALR to support agriculture uses of farm and ranch lands by considering greater flexibility with respect to:

    • Non-farm uses;

    • Processing of agricultural products using more than 50% from off-farm sources; and

    • On-farm energy projects such as anaerobic digesters and wind farms.

    Recommendation

    To develop a protocol agreement between the ALC and the Union of British Columbia Municipalities with participation from the Ministry of Agriculture and Lands to address issues associated with local government’s authority under the ALC Act to not forward applications to the ALC. Consult with the B.C. Agricultural Council and the BCCA.

  • 14  British Columbia Ranching Task Force Report to Government

    Issue

    The ALC should improve the accuracy of the ALR by reviewing ALR boundaries to ensure lands suitable for agriculture are within the ALR.

    Recommendation

    Support efforts to review the agricultural suitability of lands in the ALR in selected areas of the province, such as the East Kootenay area, to ensure that the ALR boundary accurately reflects lands with agricultural suitability.

    Ranching Industry Investment Priorities The RTF has identified opportunities for government to invest in the cattle sector to support industry’s viability in the long term. Given the current financial situation being experienced by industry, some members of the RTF consider government investment in the beef industry as essential to preventing further exodus of ranchers from the industry in British Columbia. Given the current state of government revenues, the RTF understands that the government may be limited in its ability to financially assist the sector during this economic downturn or until provincial revenues improve.

    Announced Government Committments

    In the past few months, government has made several announcements for programming that respond to priorities that had been raised by the cattle industry. Below are the details of six of the programs that the Ranching Task Force support with the understanding that they meet the expectations of industry as outlined below.

    1. Harmonized Sales Tax (HST) The RTF is in full support of the harmonization of provincial and federal sales tax, with the understanding that the HST will apply to farmers and ranchers on July 1, 2010 in the same way that the Goods and Services Tax currently does.

    2. Highway and Rail Corridor Fencing - $10 M over next 5 years  Fences along highway and rail corridors are necessary to keep livestock off road and rail systems both for the safety of the cattle as well as the motoring public. This program was announced by the Premier in May, 2009. The RTF, in conjunction with the Ministry of Transportation and Infrastructure (MOTI), estimate that $10 million is needed to improve highway and rail corridor fencing over the next 5 years. MOTI would oversee the program with delivery by the BCCA. The program should begin spring 2010. Due to the MCD range fencing program currently underway, industry would like MOTI to consider ramping up spending on this program over the next 5 years with less money available in the first two

  • British Columbia Ranching Task Force Report to Government  15

    years and more in the last three years. This request is due to concerns that having two concurrent provincial fencing programs will stretch the capacity of fencing contractors to complete these essential fencing projects.

    3. Business Risk Management Programs Agri-Stability Program –

    I. The responsibility for Agri-Stability is being transferred from federal to provincial delivery which will improve service. Cattlemen would like B.C. to simplify the application process and promote the program to ranchers as a tool to manage price and input cost risk.

    II. Business Risk Management program strategic review. The RTF would like Ministry of Agriculture and Lands to support changes to the Agri-Stability program to allow for longer periods of negative returns. Alternatively, to ensure widespread animal health events trigger payments under the Agri-Recovery program.

    4. Range Fencing $5.5 M The Ministry of Community and Rural Development (MCD) announced a range fencing program for Crown Land in July, 2009 that would be funded jointly between MCD and the federal government. Fencing projects from this fund are underway with delivery of this program by the B.C. Cattlemen’s Association.

    5. Farm Advisory Services Ranchers will be able to access funds through Growing Forward Farm Advisory Services. Funding for consultants will be made available to complete farm financial assessments and specialized business planning to assist individual ranchers to improve profitability.

    6. Off-Road Vehicle (ORV) Management  The Ministry of Tourism, culture and the Arts has developed an ORV Management Framework that will require vehicle registration and clearly visible licence plates or decals to assist compliance and enforcement efforts in identifying irresponsible ORV riders that have damaged ranch and range lands. Penalties for mud bogging will be easier to enforce with these new requirements.

  • 16  British Columbia Ranching Task Force Report to Government

    Future Government Led Investment

    The RTF understands that the government is limited in its ability to afford further financial assistance to the cattle industry at this time. However, when provincial revenues permit, the RTF advises investment in the following programs to improve the viability of the cattle sector.

    1. Beef Value Creation Program - $40 M (estimated)

    Adhere to a set of standards for production that will make B.C. producer’s leaders in the production of quality beef.

    B.C. beef producers have the potential to be leaders in product quality, food safety, traceability, animal health and environmental stewardship. By meeting a set of industry standards that align with those being proposed by the Alberta Livestock and Meat Agency, B.C. ranchers will be supporting efforts to differentiate Canadian beef in world markets and gain a presence in growth markets.

    A beef value creation program is a RTF recommended investment in the cattle sector that in the short term would encourage ranchers to adopt practices that in the long-term will create value for their products in domestic and international markets. These best management practices can then be used to brand Canadian beef products as premium, thus providing a competitive edge against other exporters.

    The newly created Alberta Livestock and Meat Agency has a strategy to encourage ranchers to produce meat that is differentiated in the domestic and international markets. The attributes that Alberta producers will be focussing on include:

    1. Traceability (premise ID and animal movement)

    Traceability is the ability for industry to trace a food product from its origin, through processing to the retailer. Traceability provides the means to quickly respond to, control and eliminate risks, thereby restoring confidence and access to markets domestically and internationally in an expeditious manner.

    2. Age verification requires ranchers to match animal birthdates with individual ear tags, thereby ensuring buyers of the animal’s age

    3. Bio-security ensures farm sector practices meet standards that prevent the spread of animal disease.

    4. Animal health. Develop standards and protocols to protect animal health and minimize risk exposure to animal disease events.

    5. Animal welfare. Animal welfare ensures that industry follows a standard of animal care practices that are accepted by society.

    6. Environmental Stewardship. Ensures that ranchers undertake an Environmental Farm Plan and address red box issues identified in the Plan. The result is a sector that exemplifies environmental leadership.

  • British Columbia Ranching Task Force Report to Government  17

    7. Brand Attributes (range fed, forage fed). Develop B.C. brand attributes that can be supported by industry built standards or certification.

    8. On-farm Food Safety (Verified Beef Production). Attend a Verified Beef Program workshop, invest in a farm assessment and adopt food safety practices that result in certification.

    9. Yield and Grade. Abattoirs share yield and grade information with value chain partners including feedlots and calf producers.

    See Appendix D for the B.C. Cattlemen’s proposal for a B.C. Beef Value Creation Program.

    It is recommended by the RTF that the B.C. government contribute funding towards this type of program as an investment into the long-term viability of the cattle sector.

    2. Canadian Beef Export Federation - $250,000 /year

    Support national efforts to pursue beef sales in regions of the world that are experiencing significant growth in consumer demand for beef

    (Russia, China and European Union).

    The recent presentation from CANFAX to the Global Market Advisory Committee (GMAC) indicated that the domestic and US market for beef will be constant at best, but considering consumer health and environmental concerns, could be challenging. The growth projected in the beef industry is expected to come from export markets, outside of the USA, mainly Asia, Russia and the European Union. Canadian Cattlemen’s Association (CCA) completed an analysis last year that confirmed international markets offer some $85/carcass more potential value than the Canadian market and $100/carcass more potential value than selling Canadian beef to the USA. CANFAX Research completed a major study earlier this year, which calculates that trade to the USA (beef and live) has added $312/head to Canadian fed cattle prices since access was fully restored. The same study indicates that recovered access (and sales) to markets outside the USA has added an additional $270/head to Canadian fed cattle prices. Finally, the study indicates that normalizing access and exporting beef to all remaining restricted markets outside the USA will add another $130/head to Canadian fed cattle prices.

    This value, combined with the direct performance of the Export Federation’s programs and services, indicate that those efforts will be central and vital to the partial recovery of the cattle industry, and will play a leading role in the full recovery yet to occur. A modest investment made into the export markets by the B.C. Government over the next five years will yield the highest potential of return to B.C. producers. An investment made in the form of a grant to Canadian Beef Export Federation (CBEF) can leverage a substantial amount of Legacy Fund money to access the markets of Russia and the EU. B.C. will set an example amongst provinces in assisting its beef industry in the recovery and will help to position the Canadian Beef Industry for growth and renewed profitability.

  • 18  British Columbia Ranching Task Force Report to Government

    3. Range Improvement Fund - $2.0 M/year Due to a deterioration of Crown range infrastructure, create a Range Improvement Fund that will provide a steady source of funding to address issues such as fence construction/maintenance, forage improvements, off-stream watering, ecosystem restoration and invasive plant management. This proposed $2.0 million annual expenditure will be cost shared between the tenure holder (20%), interested non-governmental organizations (5%) and the provincial government (75%) – the latter component would be funded from the existing source of revenue from grazing fees. This proposal would address six action items in the “BCCA’s Beef Industry Strategy – December 2007.

    4. Cattle Price Insurance B.C. to approach Alberta about B.C. feedlots being given the opportunity to participate in their new feeder price insurance products. Work with Alberta to develop and then participate in a calf price insurance product with the intent to pursue this as a national risk management tool.

    B.C. to request the federal government to introduce a national cattle price insurance product for all cattle producers.

    5. Ecological Goods and Services 

    The government should initiate discussions with producers to seek options for monetary compensation for provided ecological goods and services (see glossary).

    6. B.C. Branding Initiative $2.0 Million

    The RTF supports the Ministry of Agriculture and Lands, in association with the agriculture industry, efforts to develop a B.C. branding initiative that will focus on creating brand recognition for B.C. food products, including beef, in local markets.

    Industry Led Investment

    The cattle industry recognizes that there have been fundamental changes in the world market to which they must adapt. The following recommendations are directed at the B.C. cattle industry, and involve investment to respond to changes in their marketplace.

    The first two initiatives recognize that B.C. finishes and direct markets only 15% of cattle raised on ranches in this province. B.C. abattoirs report that there is existing slaughter capacity and demand to double the amount of beef processed in B.C. B.C. cattlemen recognize that B.C. beef is produced using practices that are highly valued by consumer’s wanting to lessen their carbon impact and connect with the people that produce their food. Consumers in B.C. are health conscious, environmentally aware and have relatively high disposal incomes. This could result in B.C. beef products that focus on the premium local market where gains can be made in price, thus improving the viability of ranches.

  • British Columbia Ranching Task Force Report to Government  19

    Significantly increase the number of finished cattle going to a B.C. value-added market.

    1. Value Chain Development The RTF supports the value chain development initiative proposed by the B.C. Food Processors Association for the Beef Roundtable. This initiative will link partners in the beef value chain, determine gaps and opportunities for B.C. beef to producers and processors and further growth and sustainability of the B.C. beef and ranching industry.

    2. Quality Standards Development Project The RTF supports Thompson Rivers University and the B.C. Association of Abattoirs initiative to improve beef quality standards by developing a web-based carcass tracking system for use by abattoirs. It will improve abattoir efficiencies, provide information for ranchers on beef quality and streamline food safety and traceability for consumers.

    3. Beef Industry Check-off The RTF recommends B.C. producers support efforts to increase the national check-off to focus on marketing. The beef industry has already decided to increase the provincial check-off from $2 to $3/head.

    4. Vancouver/Whistler Olympics  B.C. Beef industry will be involved in an Olympics food/agriculture event in 2010 to showcase B.C. beef products to international media.

    5. Trade Missions The RTF recommends the Beef industry pursue a joint trade mission to China with B.C. and Alberta Ministers of Agriculture and industry representatives, to pursue export markets for B.C./Alberta beef products.

     Raising the Profile of Ranching in GovernmentAn important outcome of the RTF will be to raise the profile of the beef sector across the provincial government. To that end, the RTF supports the following activities:

    1. B.C. Beef Day Hold a B.C. beef day for industry in the spring/2010 that includes a barbecue for MLAs at the legislature. Raise the profile of B.C. beef products by promoting B.C. beef in local butcher shops, abattoirs and restaurants.

  • 20  British Columbia Ranching Task Force Report to Government

    2. Parliamentary Secretary

    Continue the role of Parliamentary Secretary to raise the profile of industry issues with caucus and government.

    3. Minister Meetings

    Improve relationships, by holding regular meetings with other Ministers including the Ministry of Environment and the Ministry of Small Business, Technology and Economic Development.

    4. Trade Missions

    Any B.C. trade missions that target key export markets (Asia, European Union), should have representation from the cattle industry. British Columbia should partner with the Alberta Minister of Agriculture to send a trade mission to China that focuses on expanding beef exports to this region.

    Next Steps

    The RTF identified some priority topics that they did not have the opportunity to address during this initial process. They include:

    • Payments for ecological goods and services;

    • Trade.

    The RTF would like to continue to meet quarterly in order to address some of these issues in more detail.

  • British Columbia Ranching Task Force Report to Government  21

    APPENDIX A: Ranching task force terms of reference

    Purpose:

    The Ranching Task Force will identify key issues and opportunities facing the ranching and beef industry in British Columbia, and make recommendations to ensure a strong, vibrant and sustainable industry in British Columbia for this generation, and for future generations.

    To meet this outcome the Task Force will:

    • Identify policies, regulations and legislation that are adversely affecting the competitive position of the B.C. cattle industry;

    • Identify the most immediate non-regulatory industry priorities;

    • Identify actions to be taken by industry and government to ensure a more profitable self-sustaining industry in the long-term.

    The regulatory review will include policies, regulations, and legislation overseen by the Ministry of Agriculture and Lands, as well as those of the Ministries of Aboriginal Relations and Reconciliation, Community and Rural Development, Environment, Forests and Range, the Integrated Land Management Bureau, Transportation and Infrastructure, Healthy Living and Sport, and Finance.

    The Ranching Task Force members will not be expected to reach consensus or agreement, nor is the Ranching Task Force a decision making body.

    Operation:

    The Parliamentary Secretary for the Ranching Task Force will co-chair the Task Force with the President of the B.C. Cattlemen’s Association.

    The regulatory review and identification of immediate and long-term actions required by industry and government will be based on input and recommendations from the beef and cattle sector, the broader agricultural sector, and senior ministry officials.

    The Task Force will welcome presentations, input and ideas from agriculture sector representatives, associations and interested individuals. The Task Force will be asked to review and comment on proposals, questions or issues, and will have the ability to request briefings from agriculture sector or other experts.

    A website will be established to provide for public input and provide public information about the Task Force and ranching in British Columbia.

  • 22  British Columbia Ranching Task Force Report to Government

    Secretariat Support:

    The Ministry of Agriculture and Lands will provide secretariat support to the Task Force and will coordinate the working group of Ministries and agencies tasked to undertake the regulatory work, and associated research. Policy, regulatory and legislative changes, as well as actions to move the industry onto a self-sustaining footing, will be assessed based on their financial cost, time required for implementation, and overall impact.

    Principles:

    The following principles will be followed:

    • Existing agreements will be honoured;

    • First Nations rights will be respected;

    • No subsidies will be provided to business;

    • Government’s commitment to the climate action plan will be maintained.

    Task Force Membership:

    Terry Lake, Parliamentary Secretary to the Ranching Task Force, Co-ChairRoland Bauman, President, British Columbia Cattlemen’s Association, Co-Chair

    Judi Guichon, British Columbia Cattlemen’s AssociationEd Salle, British Columbia Cattlemen’s AssociationBill Freding, British Columbia Association of Cattle Feeders Karen Kochel, British Columbia Breeders & Feeders AssociationAndy Dolberg, British Columbia Agriculture CouncilRobin Smith, British Columbia Food Processors AssociationChief Harold Aljam, First Nations Agriculture AssociationElla Brown, Independent Rural Represenative

    Deputy Minister of Agriculture and Lands (ex-officio)Deputy Minister of Forests and Range (ex-officio)

    Members may be added to the Task Force at the direction of the Minister of Agriculture and Lands.

    Reporting:

    The Task Force will make recommendations to the Minister of Agriculture and Lands within 90 days of their first meeting.

  • British Columbia Ranching Task Force Report to Government  23

    APPENDIX B: Website summary

    Website Issue Summary # e-mails Rank

    Waste Disposal – objections to proposed sites. 22 1

    Range Issues – almost all about fencing (need for infrastructure investment)

    8 2

    Meat Regulation – stifles local beef economy and direct marketing. 5 3

    Marketing – increase B.C. beef (5); export opportunities (1) 6 4

    Predator Loss – success of program; need for ability to hunt wolves. 3 5

    BRM – concerns about AgriStability. 2 6

    ALR – slow to process; need appeal process; allow conservation covenants

    2 7

    Price Insurance – need for price insurance to cover costs in B.C. 2 8

    Marketing Boards – need for supply management for beef in B.C. 2 9

    Government extension – need continued investment in extension and research.

    2 10

    Carbon tax – unequal playing field with Alberta; remove. 2 11

    Harmonize subsidies with Alberta. 1 12

    Environment – increase funding to EFPs; tax incentives for conservation.

    1 13

    Invasive Plants – need for a pesticide program; address spread of noxious weeds.

    1 14

    ATV – need to identify ATVs that do damage with decals. 1 15

    Community Pastures – encourage small scale beef production. 1 16

    Traceability – invented an all satellite livestock traceability ear tag. 17

    Total e-mails submitted to RTF website 61

  • 24  British Columbia Ranching Task Force Report to Government

    Provincial and Federal Government Investment to Beef Sector (1999 - 2008)

    TYPE OF INVESTMENT1 TOTAL INVESTMENT INVESTMENT/COW2

    Income Assistance:    Ag. Income Disaster Assistance Program $520,000  Canadian Farm Income Program $7,390,000  2003 Transition Funding $3,065,000  CAIS $66,551,000  CAIS Inventory Transition Initiative $11,701,000  Cost of Production Payment $2,507,000  AgriStability $6,122,000  AgriInvest Kickstart $2,660,000  Agri-Invest $1,067,000  Transitional Industry Support Program $12,032,000  Farm Income Payment $7,055,000  Producer Assistance 2003 $343,000  Livestock Protection Grant $10,000  Age Verification Program $3,075,000  Total Income Assistance: $124,098,000 $496

       Compensation for Losses Programs:    Crop Insurance (government only) $12,994,000  Wildlife Compensation Program $4,046,000  Total Compensation Programs: $17,040,000 $68

       One-Time Program in Response to an Event:    BSE Recovery Program $12,062,000  Cull Animal Program (net CAIS) $6,148,000  Drought Assistance $10,822,000  Feeder Calf Set Aside $11,320,000  B.C. Steer & Heifer market Transition $373,000  B.C. Bovine TB Assistance Program $167,000  One-Time Program in Response to an Event: $40,892,000 $164     Total Government Investment $182,030,000 $7281 Based on 10 year average B.C. cow herd size: 250,000 cows

    Industry/Government Shared Programs - All Commodities: $55,000,000Environmental Farm Plans Highway Fencing

    Invasive PlantsLivestock Tissue Waste

    APPENDIX C: Government investment

  • British Columbia Ranching Task Force Report to Government  25

    APPENDIX D: BCCA beef value creation program

    Program Details

    B.C. Cattlemen’s Association proposes the B.C. Beef Value Creation program as a way to align British Columbia beef cattle producers with the national standards being required under the newly established beef branding and marketing program known as The Canadian Beef Advantage (CBA).

    The B.C. Beef Value Creation program is intended to assist cow/calf producers in meeting enhanced requirements for food safety, animal traceability and environmental stewardship. B.C. beef cattle producers that meet the B.C. Beef Value Creation program requirements will be eligible for a total payment of $175 per breeding cow, based on their inventory at the start of the program.

    Requirements

    Possible requirements for a B.C. Beef Value Creation program are outlined in two stages. Stage 1 requirements must be completed before the end of year 1 and Stage 2 requirements must be completed before the end of year 2.

    Requirements of the B.C. Beef Value Stage 1 Stage 2 Final

    Creation program: year 1 year 2

    Complete an Environmental Farm Plan (EFP) √ √

    Attend a Verified Beef Production (VBP) training Workshop √ √

    Age verify calves with the √ √Canadian Cattle Identification Agency

    Complete a Premise ID registration with the √ √Canadian Cattle Identification Agency

    Age verify calves with theCanadian Cattle Identification Agency √ √

    Correct all the red boxes identified in your EFP and √ √have it signed off by the EFP advisor

    Completed the VBP audit and register your ranch √ √with the program Eligible Payment per breeding cow $75 $100 $175

    * Stages 1 & 2 can be completed within the same year.

  • 26  British Columbia Ranching Task Force Report to Government

    Benefits

    Despite the present crisis in the beef industry there are many reasons to be optimistic about the future of the industry. World meat demand is increasing and forecast to continue to increase. Canada is the largest exporter of top quality grain fed beef and the projections for the demand for that product are excellent. Provincially there is an ever increasing demand for locally produced food. There are an increasing number of provincially inspected plants that can move product into local and regional markets. There is great potential in ‘designer’ beef products that have healthy marketable attributes such as omega 3 fatty acids and conjugated linoleic acids.

    British Columbia has the resources and human capital to take full advantages of the growth potential in the industry as it moves forward by implementing the B.C. Beef Value Creation program.

    To enable B.C. producers to take advantage of these opportunities it is imperative that they implement production practices and operating procedures that make their products stand out above the competition as being produced to the highest food safety standards always with the environment in mind. The B.C. Beef Value Creation program seeks to assist and encourage beef cattle producers to move in this direction.

    Anticipated Results

    A conservative estimate is that 95% of British Columbia’s beef cattle herd would meet the requirements for the Canadian Beef Advantage brand. This program will assist producers with exceeding the both Provincial and Federal standards for food safety, environmental and traceability.

    Funding

    The BCCA is seeking full funding for this program from the Province. The total dollars required for the program will depend on the final program details. If all beef cattle operations are eligible and a large percentage of producers apply, then the estimated cost over two years would be approximately $40 million for producer payments. The BCCA would also request administration fees plus additional funding for the Verified Beef Production Program.

  • British Columbia Ranching Task Force Report to Government  27

    Glossary of Ranching TermsBovine Spongiform Encephalopathy (BSE) - Bovine spongiform encephalopathy (BSE), commonly known as mad-cow disease (MCD), is a fatal, neurodegenerative disease in cattle, that causes a spongy degeneration in the brain and spinal cord.

    Feeders - 650 to 850 pound steers or heifers that will enter finishing feedlots Breeding herd - the number of beef cows that have produced a calf, as tracked by Statistics Canada. Backgrounding - feeding of calves, usually but not always over winter, on a high-roughage, relatively low rate-of-gain ration.

    Ecological Goods and Services – are the benefits and services provided to society from ecological processes occurring on natural landscapes including food, fibre, pollination, carbon sequestration and storage, nutrient cycling, erosion control and others.

    Enhanced Feed Ban – To limit BSE spread among cattle, the Government of Canada banned most proteins, including Specified Risk Materials (SRM), from cattle feed in 1997. To provide further animal health protection, as of July, 2007, SRM are also banned from all animal feeds, pet foods and fertilizers.

    Livestock Access – the right for livestock to physically access a water source (stream etc.) as well as recognition of the usage (volume of water consumed).

    Net Operating Income - Net Operating Income measures cash flow (revenue minus expenses) of farm operations. Revenues include sales of agricultural commodities and services, as well as direct payments. The expenses will include the business costs associated with these activities. Neither a capital cost allowance nor a value of inventory adjustment are included in the calculation. Net Operating Income does not include non-farm income. NOI = farm cash receipts – expenses.

     Specified risk material (SRM) includes the skull, brain, trigeminal ganglia, eyes, tonsils, spinal cord, and dorsal root ganglia of cattle aged 30 months or older, and a portion of the small intestine of cattle of all ages. SRM contain prions that may cause BSE in cattle which create an animal and/or human health risk if they are not destroyed.

    Social Carrying Capacity (wildlife) – balances the impacts of wildlife on ranching businesses with society’s willingness to support (financially) wildlife populations through compensating the rancher for tolerating larger populations of wildlife.