Thursday May 17, 2012


QUESTION OF THE WEEK

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Stay of Default announced for livestock producers

While much of the focus pertaining to the excess moisture this year has been on grain production, livestock producers have also been affected.

Recent crop reports indicate that while haying continues, in many locations the quality of the hay is questionable. In addition, a straw shortage is anticipated in areas that were not seeded or that were flooded out after seeding.

In early August, federal Minister of Agriculture Gerry Ritz and Minister of State for Agriculture Jean-Pierre Blackburn brought some relief with the announcement of a stay on the repayment of livestock advances for some cattle and hog producers facing hard financial times.

Producers who took an cash advances under the Advance Payment Program in 2008-09 face the prospect of repaying large cash advances this fall, creating significant cash-flow pressures. A Stay of Default allows livestock producers to spread their repayments out over a longer period of time and avoid default.

Commended by both the Canada Pork Council and the Canadian Cattlemen’s Association, the reprieve allows more time for livestock producers to meet their financial obligations and helps producers better manage their cash flow and take advantage of the best market conditions.

Two new Stays of Default come into effect on October 1, 2010. Cattle producers will have until March 31, 2012 to repay amounts owed, with regular repayments to begin eight months from the start of the Stay. Hog producers will have until March 31, 2013 to repay amounts owed, with regular repayments to begin 18 months from the start of the Stay.

In addition to the August announcement, the Excess Moisture Program (EMP) can also be of assistance to livestock producers. The EMP, which provides $30 per eligible acre to Saskatchewan producers who had land too wet to seed as of June 20 or seeded crop lost because of flooding on or before July 31, 2010, can also be accessed for flooding on newly seeded forage crops. More information can be obtained by contacting Sask-atchewan Crop Insurance. EMP applications can be accessed through Crop Insurance or are available at R.M. offices. The deadline to apply for the $30 per acre program is Sept. 30, 2010.

The Government of Saskatchewan also has a valuable tool for livestock producers called the Forage, Feed and Custom Service Listing. This free service provides an avenue for producers to list or seek items such as baled forage, straw, feed grain and even pasture.

The services can be accessed by contacting the Government of Saskatchewan’s Agriculture Knowledge Centre at 1-866-457-2377 or through the Programs and Services link on the Government of Sask-atchewan’s Agriculture home page (www.agriculture.gov.sk.ca).


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