WINNIPEG MB, April 10, 2008

Today's provincial budget is a disappointment for Manitoba's cattle producers as it fails to provide sufficient support for the province's struggling livestock sector, and once again, misses an opportunity to fulfill a 2007 election pledge to bring in an ecological goods and services fund for farmers.

Commenting on the budget, Manitoba Cattle Producers Association President Martin Unrau said that simply re-announcing an insufficient assistance package is not a realistic option and that inaction at all levels of government threatens to undermine one of the province's primary sources of wealth.

"Agriculture as a primary industry is the real driver of Manitoba's economy. Livestock represents half of the total value of the agricultural sector. The cattle industry puts over $500 million dollars to the provincial economy each year and if we lose our province's cattle industry to complacency, it is only a matter of time before everyone in Manitoba begins to feel the economic hit," Unrau said.

Livestock's only mention in the budget involved a restatement of earlier announcements of a federal-provincial ruminant assistance program and a loan program for the hog sector. No further action was announced by the government in support of the cattle industry.

"The ruminant program was only the smallest of steps in the right direction, one that would not make much of a difference to the average cattle producer," Unrau added. "At a time when we are losing between $150 to $200 per head on our cattle, this pre-announced program will deliver at best $15 per animal. Worse, some producers are going to be left out of this program because of the sound business decisions they made earlier to keep their operations sustainable."

MCPA also noted that the province's $7.35 million contribution to the program is less than the $10.6 million the province's is allocating for administration of the Manitoba Agricultural Services Corporation (MASC) - the agency responsible for delivering the program.

MCPA was further disappointed that the provincial government has yet to live up to its 2007 election commitment to implement a Farmers Eco-Fund that would reward agricultural producers financially for good environmental practices.

Earlier this year, the MCPA approached the provincial government with a proposal for Manitoba to become the first province in Canada to implement an annual Ecological Stewardship Payment to cattle producers for the environmental goods and services that their farm operations provide to all Manitobans.

MCPA Director and Environment Committee co-chair Greg Johnson noted that cattle producers each day provide a wide range of environmental goods and services through their pasture and forages, including carbon sequestration, enhanced biodiversity, improved protection against soil erosion, and better nutrient and water management. MCPA is proposing that these environmental goods and services be recognized by the province with compensation of a $25/acre for Class 1 to 4 land, $18/acre for Class 5 and 7 land, and between $0.50 and $0.75 for leased agricultural crown land.

"We know that the provincial government and the public at large are now interested in finding new ways to reward positive environmental behavior as well as regulate against environmental damage. Our proposal fits naturally into the government's promise of rewarding ecological goods and services and we are very disappointed that it's not in this year's budget," Unrau said.