(File photo/farmnewsNOW Staff)

By Nigel Maxwell

Livestock concerns

Sask. ranchers facing ‘catastrophic’ situation, says livestock marketing sector

Aug 4, 2021 | 1:33 PM

Mother nature helped provide some relief Tuesday night for drought stricken producers across Central Saskatchewan, but there are some signs many have already given up.

Faced with depleted pastures and high feed costs, cattle farmers are liquidating their herds. Alan Jackson, a cattle buyer and rancher in the Prince Albert area, told paNOW herds are being brought to market eight weeks early.

“Some of these bigger community pastures, you know there’s talk of them emptying out the first week of September,” he said.

Acknowledging feed lots can find supplemental feeds, Jackson said his bigger concern is the impact on the province’s breeding stock.

“With the feed costs it’s going to be this year for this winter, you have $800 worth of feed in by the time you get to next spring and with a $1,000 calf that doesn’t work really good,” he said.

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But while noting there’s not a lot of optimism in the sector right now — some of his senior rancher friends saying they’ve never seen it this bad — Jackson still hopes producers don’t rush to market too early.

“I think that these feed lots are pencilling in a worse case scenario for costs right now and there’s a chance maybe we get a better crop than we think or maybe they are able to get their hands on some feed,” he said.

Jackson relayed a story where he and his father sold a 3/4 piece of land to pasture, and thanks to some good conditions, a promising canola crop came up. The family then contacted a friend who is a cow-calf guy, and offered it up to him to swath it and bale it for feed for his cows.

“It’s not ideal feed but it’s feed,” Jackson said, urging other producers with a bad crop to call their local cattle producer. “It puts a little cash in your pocket and helps out your neighbor at the same time.”

Meanwhile, a spokesperson for Saskatchewan’s livestock marketing association fears the province’s cow herd, which has already decreased by over 450,000 in the past 15 years, could be depleted a further 40 per cent by Christmas.

Brent Brooks, owner/operator of Northern Livestock Sales and Meadow Lake Livestock Sales, explained the normal fall run that starts in mid-September started last month, and due to the sheer volume of cows coming through, prices are down 30 per cent.

“We’ve gone from two weeks ago selling slaughter cows from .92 to $1.04 (per pound). Those same cows today bringing .70 to .82,” he said

Brooks explained their phones have been ringing off the hook the past three weeks; all cattle producers with questions trying to figure out what their options might be. On top of the struggles brought on by a dry summer, Brooks added another challenge for producers is competition from the American market.

“We are seeing hay moving out of our Meadow Lake region into Montana,” he said.

Explaining that the Americans are dealing with trucking subsidies, hay subsides and the dollar exchange, Brooks said hay prices are being driven through the roof and local producers cannot afford it.

“They are not gonna buy $200/ton hay. It’s not feasible for them so they’ll liquidate the cow herds,” he said.

Economically for a province like Saskatchewan, Brooks said the situation has the potential to be “catastrophic” and that’s why he said it’s imperative the provincial government acts now and helps producers.

“Every time we are supposed to have an announcement by Friday, but those announcements never come,” Brooks said.

Wednesday afternoon, the federal and provincial governments announced plans to increase the 2021 AgriStability interim benefit payment percentage from 50 per cent to 75 per cent for Saskatchewan producers.

The interim benefit provides the opportunity for producers who are enrolled in AgriStability to access a portion of their benefit early, to help support losses and cover costs. With this increase, Saskatchewan producers can apply for an interim benefit to receive 75 per cent of their estimated final 2021 benefit, before completing their program year.

nigel.maxwell@pattisonmedia.com

On Twitter: @nigelmaxwell