$2.6 million. To date, that is the liability for animals on set aside. According to AFSC “the number of head that will be accepted into the program and the liability associated with those additional animals will depend on the bids received and accepted for weeks that are open for bidding.” Last week, 3,415 head were accepted with an average bid price $1.72.
When COVID first caused a backlog in our processing supply chain, the basis remained positive, hence not many bids being accepted into the program. Today, the basis is negative and the potential for acceptance much higher.
“I really encourage people to watch the program,” says John Lawton of Titan Livestock, a cattle procurement and risk management firm. “We are fortunate to have this in place when the basis gets wider than historical number. This is essentially adding a third bidder to the market to control the basis.”
AFSC says “It’s difficult to say how much funding is still available in the program, as there are many variables at play within the program. The federal and provincial governments will determine when the program ends (which will occur on or before March 31, 2021) and the entirety of the program funding may not be used.”
Therefore, ACFA wants to encourage you to use the program now.
“If your cattle are a fit, it allows you to get help feeding them for those last 60 days and also helps our industry to control supply,” says Lawton.
Weekly bid process steps
Friday: Enrolled producers are notified about the upcoming bid process that begins the following Monday morning at 9 a.m.
Monday: At 9 a.m. the bid process begins. Eligible producers will be required to supply:
- Premises ID
- Lot Number(s)
- Number of Eligible Animals in each Lot
- Animal Type – Heifer or Steer
- Average net weight of the Lot must average 1,300 lbs for heifers or 1,400 lbs for steers at the date the bid is submitted
- Bid amount
Wednesday: The bid process for that week closes at noon.
Friday: By noon, all eligible participants are notified if their bids for that week were accepted or rejected.
For complete program details visit the AFSC AgriRecovery page here