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This section focuses on the needs and management options for livestock producers to use in response to the BSE situation.

Marketing

Marketing of Canadian cattle and other ruminants was thrown into turmoil with the May 20, 2003 announcement of the case of BSE. Since then, many producers have postponed their marketing, hoping that the US will reopen their border to live Canadian ruminants, and our prices would recover. It is a difficult, risky and frustrating situation. There are many uncertainties and few, if any, of the traditional price protection alternatives available. Forward pricing contracts are scarce and the connection to the US market is weak. Even more than in a “normal” market, the price is outside of the sellers’ control. Buyers are reluctant to provide on-farm price guarantees, and producers can only react to yesterday’s prices, with little confidence in what tomorrow will bring. In this situation, it is necessary to “go back to the basics” in marketing decisions. As a producer, it is critical to know your operation’s costs per unit of production, understand your financial position, know how your livestock fit into the marketplace, where to get market information, and what the advantages and disadvantages are of the many pricing and selling alternatives. The following marketing-related links lead to information that can help in making some of the difficult decisions in light of the BSE situation.

• Are You a Good Marketer - Twelve Steps to Good Marketing
  A discussion of the many factors that influence the success of marketing amidst the BSE situation
  
• Market Information Sources for Western Canadian Farms
  A listing and description of market information sources
  
• Weekly Livestock Market Review
  AAFRD: price/volume tables for livestock markets
  
• Direct Marketing Meats
  
• Farm Direct Marketing for Rural Producers
  

Production

The production section covers topics related to producing feed and managing the beef cow through BSE. It offers suggestions on how to grow more feed, feed less forage, waste less, bank more, and manage the cow. Some of the articles highlight cost savings or cash flows of over $100 per cow wintered.

• Beef Cow Body Condition Management
  With BSE resulting in more cows and less cash flow, the economics of Body Condition Management are very important this fall, with potential savings of over $50 per cow.
• Swath Grazing in Western Canada
  Management practice to extend the grazing season and reduce costs.
• Winter Feeding Programs for Beef Cows and Calves
  Before making management decisions about feeding beef cattle and calves, producers need to answer some questions.
• Feed Waste Management
  With BSE resulting in more cows to feed, and less money to do so, managing feed waste will save you as much as 15% in feed, and over $3750 per 100 cows this winter.
• Cattle feeding: Limited Intake and Adding Corn Grain
  If feed supplies are tight, this factsheet covers Limited Intake rations for beef cows, resulting in feed savings and reduced feed costs.
• Straw Quality
  As the industry focuses on "feed more animals for less cost", incorporating more straw into rations becomes more important.
  

Business and Economics

The BSE business and economics section will provide clients with tools to assess their current financial position and help them develop profitable strategies.

• AgriProfit$ Newsletter for Alberta Cattlemen
  This newsletter provides timely information, analysis, and applied research on the economics and business management of cow/calf operations.
• AgriProfit$ Benchmarks for Alberta Cattlemen
  These benchmark reports enable producers to gauge their productive, economic and financial performance relative to their peers locally and provincially.
• AgriProfit$ Business Analysis - Create & Use Your Own Production Cost Information
  BSE has heightened the need to know and use your own "on-farm" facts to reduce production costs, improve your farm’s financial position, and manage risk.
• Tax Deferral
  This article explains the drought deferral options.
• Cash Flow Your Short Term "Break Points"
  This budget tool will help you build a cash flow and determine your break points if you should buy or sell your mature animals and/or calf crop. It will also help you screen out those options that are not feasible from those that are realistic and preserve some business flexibility.
• Rolling Cashflow
  The Rolling Cashflow Forecaster can forecast cashflows over any length of time. This tool is especially useful when cash flow is tight.
• Agricultural Business Analyzer
  A must have tool to assess your current financial position. The Agricultural Business Analyzer is a 12-month whole farm budgeter to project your upcoming financial activities and analysis your last 5 historic years and trends. No cost - it's free.
• CowProfit$
  Use CowProfit$ to know your cost per pound of beef production. This software will analyze your feeding, forage, grain, and pasture enterprises that directly affects your cow/calf enterprise. CowProfit$ sells for $150 plus GST.
• Alberta Cow Calf Cash Forecaster
  The object of the program is to look at the sustainability of individual cow/calf enterprises. In the midst of BSE, this program can be beneficial in determining future cash returns after calf sales.
• Low Cost Cow/Calf Production, Dick Diven,
  BSE has made it necessary to lower input cost--this can be done by lower feeding costs. This school helps you understand how to better utilize your resources by matching your feeding requirements with your feed resources.
• Pike Management Group Inc., Gary Pike,
  Add value to your crops by marketing their attributes and learn how to mitigate your risks during these challenging times of BSE.
• Ranching For Profit School, David Pratt,
  Ranching for profit is a holistic school to help you set up a profitable ranching enterprise and to help you calculate trigger points to minimize risks like BSE.
• The Ferguson Group, Roy Ferguson,
  The Ferguson Group will train you on how to make monthly and annual budgets and understand the "dashboard of ratios" so your business can be profitable.

Programs

The Alberta government provides on-going support programs for producers. The following programs have the potential to address issues caused by closure of the borders due to BSE.

Alberta Agriculture and Food

• For a list of the major BSE recovery programs, click here
• Six-Point BSE Recovery Plan
  The Alberta government took a major step forward in assisting its struggling beef industry with a BSE go-forward six-point recovery strategy. The Alberta government added $16 million to the recovery strategy in July 2005.
• The Canada-Alberta BSE Surveillance Program offers reimbursements to producers, veterinarians and abattoirs to offset the costs of BSE surveillance.
• Feeder Association Loans
  This program provides farmers with an alternative method of financing feeder cattle and sheep. Some producers will elect to retain their weaned calves and a Feeder Association loan may be an option.
• Alberta Farm Fuel Benefit
  This program provides Alberta farmers with motor fuel at a reduced rate designed to be competitive with rates paid by farmers in other provinces and areas of the US.

Agriculture Financial Services Corporation

Canadian Agricultural Income Stabilization (CAIS) Program
As part of the Business Risk Management Chapter of the Agricultural Policy Framework (APF), the CAIS Program provides producers with a tool to protect their farming operations against margin declines, large or small. Producers are able to apply for an interim payment based on equity loss on inventory or projected income loss getting the cash to them when it’s needed most.
• Alberta Disaster Assistance Loan Program (ADALP)
  The disaster loan program assists Alberta producers to restore sufficient working capital to maintain operations. The program lends up to $1 million.
• Alberta Farm Loan Program
  The farm development loan program has been designed to provide the financing needed to start, develop and grow farming operations. The program lends up to $2 million.
• Other farm loans
  Other products are available for agriculture producers and commercial businesses.
  

International Developments

Minister Horner responds to live cattle crossing the US border.

Financial Counselling

The impact of BSE has created financial difficulties for many operations and made it a challenge to plan for the future. There are three programs available to help make financial and business planning advice both accessible and affordable.

Agriculture Financial Services Corporation
AFSC understands that producers, agribusinesses and small businesses face changing business environments and market realities. AFSC lenders help their clients understand and assess their financial position so they can better manage the financing of their operations.

• Financial Counseling Services

Renewal
One of the five chapters of the Agricultural Policy Framework (APF), Renewal provides farmers with access to information and tools to help them manage their business in our ever-changing agricultural industry.
Programs for Producers

• Canadian Farm Business Advisory Services (CFBAS) - A single entry point for professional business planning services for farmers.
• Specialized Business Planning Service - Offers financial assistance to producers in preparing the plans needed for their business, such as diversification, marketing, human resources, expansion, risk management or succession. Producers hire and work with a consultant with expertise in a specific area. Governments will pay 50 per cent of the eligible cost of consultant fees up to a maximum of $8,000.
• Planning and Assessment for Value-Added (PAVE) - Provides farmers with financial assistance to retain the services of business planning professionals and develop plans for value-added projects. These plans will improve the chances for a successful launch or expansion of value-added enterprises.
• Canadian Agricultural Skills Services (CASS) - CASS will help farmers and their spouses increase their family income through improved farm practices or through increased off-farm income.

For a listing of the APF Federal-Provincial-Territorial Programs.

Farm Debt Mediation Service
Provides insolvent farmers and their creditors with mediation services pursuant to the federal Farm Debt Mediation Act (FDMA) and Regulations to help them arrive at a mutually satisfactory arrangement.

For more information visit the website or call 1-866-452-5556.

Stress Management

Stress is a normal reaction to anything that threatens our safety and well-being. Certainly the impacts of BSE have added to stress levels everywhere in the agriculture industry. If you or a member of your family need assistance managing stress help may be only a phone call away.

Alberta Mental Health Help Line 1-877-303-2642
Toll-free help line, 24 hours a day provides confidential advice and information on mental health services.

An important first step in dealing with stress is being able to recognize when and how it is affecting you and others. The following articles point out some symptons to watch for as well as providing suggestions on what you can do to help yourself and others.

• Resiliency in Rural People (615 KB PDF)
• Managing Stress (555 KB PDF)
• Preventing Suicide (613 KB PDF)

	BSE: Managing the Challenges - Producer Information
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	The contents of this page are no longer available.
	For more information about the content of this document, contact Amber Gosselin. This document is maintained by Shamim Rajani. This information published to the web on July 21, 2004. Last Reviewed/Revised on May 28, 2008.