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How funding for the New Era Beef Industry will benefit all beef producers

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This fall, Alberta’s beef producers will vote in a province-wide plebiscite on the industry’s checkoff program. The issue at hand is whether the refundable payment should become non-refundable.

Why the checkoff is currently refundable

The beef industry checkoff has been around since 1969 as a levy paid to the Alberta Cattle Commission (later to become Alberta Beef Producers, ABP). Funds from the levy were used for industry research and marketing, but it was somewhat contentious from the start. In 2009, the Alberta government passed a bill making the checkoff payment refundable – meaning that producers were able to apply for full reimbursement.  

Why a change to the non-refundable checkoff makes sense

Despite these early challenges, ACFA believes the associations and organizations representing different sectors of the beef industry production chain must join together and work for the benefit of the entire industry.

In 2017, the Alberta Cattle Feeders’ Association and ABP reached an agreement founded on their shared belief in collaboration and mutual support between different beef production sectors. The New Era Beef Industry (NEBI) is the result of that agreement, and it heralds a return to a mandatory beef cattle checkoff, with revenues to be shared by ABP, ACFA and a new Alberta Beef Industry Development Fund (ABIDF).

The ABIDF will provide project funding for market development, research, education, consumer advocacy and industry collaboration, for a stronger, more profitable beef industry. The fund will be governed by a council comprised of three representatives selected by ABP and three selected by ACFA. The six council members will select a chair who is not a member of the board or of either organization.

ABIDF will help compensate for the loss of the Alberta Meat and Livestock Agency, which provided funds for industry development until it was shut down by the government in 2016.

Under the New Era Beef Industry, the total checkoff payment will be $2 per head of cattle. It will be distributed like this:

  • 5 cents to the remitters of the checkoff 
  • $1.30 to ABP 
  • 25 cents to ACFA 
  • 40 cents to the Alberta Beef Industry Development Fund (ABIDF)

If the plebiscite in the fall results in a vote for the refundable checkoff, ABP will continue to collect the mandatory checkoff, and producers can still request a full refund if they wish. If the plebiscite results in a vote for NEBI, it will provide a unique opportunity for crucial industry research and development.

The checkoff was just one of the issues that new ACFA board chair, Ryan Kasko flagged as important to cattle feeders this year. You can read about the other issues in ‘Finances are among cattle feeders’ top issues’. 

Finances are among Cattle Feeders’ top issues

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Ryan Kasko, ACFA’s new board chair, talks in this blog about priority issues for the upcoming year.

Non-refundable checkoff

ACFA is working on a plan to collaborate with Alberta Beef Producers to build a new path forward that would include an Alberta Beef Industry Development Fund, Ryan said.

“We will be asking producers to vote in a plebiscite this fall to return to a non-refundable checkoff,” he said. “The money generated will be used to finance marketing activities, research and other projects that will benefit the Alberta beef industry.”

Ryan said the Alberta Livestock and Meat Agency (ALMA) used to provide $20 million for industry research and marketing initiatives. The funding has been eliminated, so it is hoped the checkoff proceeds will at least partly offset the lost funds. “We’re hoping to work with the government to show the value this investment is providing, and to hopefully get more government funding,” he said.

Farm safety

The association is also heavily invested in making sure its members understand recent changes to the Alberta Labour Code. “We’re offering a feedlot safety program to ACFA voting members so that feedlots can get up to speed on farm safety, specifically in reference to those changes,” Ryan said.

Trade

NAFTA is at the top of cattle feeders’ minds. “Although we’re not directly involved in negotiations, we work alongside the National Cattle Feeders’ Association and the Canadian Cattlemen’s Association to support them in their efforts to make sure the beef industry remains part of NAFTA.”

Looking for a new CEO

Bryan Walton, ACFA’s president and CEO, will retire this fall, and a search for a replacement has started.

“We will be sad to see Bryan go,” said Ryan. “He’ll be a hard person to replace. But at the same time, any change provides an opportunity for new ideas, and we’re looking forward to that process.”

You can learn more about Ryan and his work as a cattle feeder in an earlier Meet the team post.

The Top 5 blog posts of 2017

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Thanks for reading our blog this year. We hope you’ve enjoyed the information we’ve shared about how Alberta’s cattle feeders operate, the innovations they’ve introduced and the challenges they face.

As we head into 2018, we’re looking back at the most popular blog posts from 2017. Here are the posts most read and shared by you, our readers:

New program customizes farm safety for feedlots. Cattle feeding is a unique industry, and the requirements of a feedlot safety program cannot be met by standardized programs. In this post, we explained a safety program that feedlot operators can customize to their own operation.

5 feedlot issues to watch for in 2017. Transportation, traceability, trade, safety and infrastructure were all flagged as important issues for Alberta’s cattle feeders, and which we covered in posts during the year.

Why Lethbridge County cattle feeders could be leaving via new roads. This was one of several posts discussing proposed legislative or tax changes that could impede the profitability of cattle feeders.

Meet the team: Ryan Kasko, vice-chair of the board. In 2017, we introduced Ryan as our vice-chair, and this year we look forward to having him serve as our new Chair. Martin Zuidhof will become the Past Chair. The Alberta Cattle Feeders’ Association is fortunate to have such committed and knowledgeable individuals serving on its board.

Canadian beef in demand: feeding the European market and why it matters. The importance of international trade to Canada’s beef industry has been a theme throughout the year. In this post, we introduced one of the few Canadian feedlots that produces beef that meets the requirements of the European market.

We’re glad you enjoyed these posts, and we’re already hard at work planning a great series for 2018. Stay tuned – and in the meantime, Happy New Year!

Meet the team: Ryan Kasko, vice-chair of the board

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Here at the Alberta Cattle Feeders’ Association we couldn’t truly represent the interests of our industry without input from our board of directors. Comprised of the men and women who work in the cattle feeding industry every day, our board helps provide direction for all our activities.

For this week’s post, we sat down with Ryan Kasko, CEO of Kasko Cattle Company in Coaldale, Alberta, and vice-chair of ACFA’s board of directors, for another installment of our meet the team series.

Ryan grew up just outside Coaldale, the son of a cattle dealer, but it wasn’t until after graduating from the University of Lethbridge, with a bachelor of management degree, that he became involved in the industry himself. At that time he joined his father’s business, and two years later they decided to buy a feedlot together.

That was 20 years ago, and Kasko Cattle Company now has feedlots in four different locations. As it has expanded, it has also provided opportunities for other family members – Ryan’s wife, Shannon, is the office manager, and his brother and brother-in-law, and their wives, also work in the business.

“It’s an exciting industry to be in,” said Ryan. “The technologies we are using today are really sophisticated, and we’ve made significant improvements over the last 20 years, in the way we manage people and how we take care of the animals – it’s an industry that’s just been constantly changing and it’s great to be a part of that change.”

Helping the ACFA represent a changing industry to the government

Ryan has been on the ACFA board for five years now, a responsibility he takes very seriously. “It’s important to serve the industry,” he said, “and I’ve done that in different organizations through the years. I think the ACFA does a very good job representing cattle feeders in Alberta and I thought it was important I take my turn.”

“There’s been a lot of things going on recently,” continued Ryan. “New laws around labour standards and safety, and initiatives like the carbon tax have significant impacts on our operations. The ACFA works with government to help them understand the industry, and what we do every day – to help them make decisions that are going to work for our industry and the people involved in it. As a board, we help provide the association with direction.”

The Kaskos at home

With four children – one in middle school, two in high school and one in his first year of college – Ryan and his wife have a very busy family. They enjoy watching basketball together, and while his kids also play, Ryan says that watching is enough for him. For stress relief, though, he plays squash and competes in triathlons.

In other posts in our meet the team series, we introduced you to Bryan Walton, CEO, Page Stuart, past board chair, Martin Zuidhof, board chair, Casey Vander Ploeg, manager of policy and research, and Jennifer Brunette, manager of events and member services.

3 challenges facing Alberta’s beef industry

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Beef is big business in Alberta – but like any business owners, ranchers and cattle feeders must navigate regulations, market conditions, public opinion and much more in their bid to stay competitive and profitable.

This was the subject of a recent article in Alberta Beef Magazine, in which ACFA chair Martin Zuidhoff and vice-chair Ryan Kasko were asked about cattle feeders’ new and old challenges. Read more