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Manitoba Pork Council Call for Changes to CAIS Program

by 5m Editor
6 May 2004, at 12:00am

CANADA - Farm-Scape: Episode 1510. Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council and Sask Pork.

Manitoba Pork Council


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Manitoba Pork Council and Sask Pork

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Farm-Scape is a Wonderworks Canada production and is distributed courtesy of Manitoba Pork Council
and Sask Pork.

Farm-Scape, Episode 1510

Manitoba Pork Council is calling for two key changes to make the new Canadian Agricultural Income Stabilization Program more responsive to the needs of swine producers.

In an effort to determine how the Canadian Agricultural Income Stabilization Program will work for hog producers, Manitoba Pork Council commissioned Meyers, Norris, Penny to evaluate several scenarios.

Pork Council Chair Karl Kynoch says the study indicates the program will work better for swine producers than had been feared but two changes would improve its responsiveness.

"The two changes that we would like to see in this program would be, one, to have the option to select between the three year reference margin or the olympic average. We'd like to have the option to choose that reference margin.

The margin they're working on, I think, is the previous three so that would be one positive...to have the option to have either one of those reference margins.

The other thing that we would like to see is we would like to be able to use 'period one-period two' pricing, which means you could actually value your inventory on January 1st and value it again on December 31st.

Right now they use the same value on both ends and we both know, in a crisis, that when prices drop our inventory takes a significant drop in value.

Sometimes, when we get that huge drop in value, you can see where an operation can all of a sudden become cash strapped at the bank.

They always look at your debt ratio to equity and that would possibly help cover some of that so those are the two things we'd like to see change".

Kynoch says, on the positive side, the CAIS program will not penalize swine producers for employing good management practices.

He says those producers who are able to run with lower costs and maybe higher selling margins will be able to protect higher reference margins and will not suffer for being efficient.

For Farmscape.Ca, I'm Bruce Cochrane.

5m Editor