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February 12, 2015
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SERVING MANITOBA FARMERS SINCE 1925 | Vol. 73, No. 7
Pork producers warned of difficult year ahead Hog profits last year will shrink in 2015
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Changes to cost sharing could hit Manitoba hard Federal government changes DFAA, increases amount provinces must pay to trigger for federal disaster relief payouts
By Ron Friesen Co-operator contributor
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espite racking up solid profits in 2014, Manitoba hog farmers face an uncertain year ahead because of falling prices, risi n g f e e d c o s t s a n d p ro blems in financing new barn construction. Last year was a turning point for Manitoba’s long-suffering pork producers, who finally saw a return to profitability after years of low prices, high costs and crushing debt. But a financial model developed for the Manitoba Pork Council by Meyer Norris Penny estimates the average margin for a finished pig in 2015 will plunge to $7.48 from $55.31 the year before. Average revenues of $203.69 per pig experienced in 2014 are expected to drop by nearly 20 per cent to $163.71 this year, while the cost of feed is predicted to rise by over eight per cent. Meanwhile, Manitoba continues to experience a serious shortage of pigs because hog barns emptied in recent years are not being replaced. Producers used money from profits in 2014 to pay down debt and restore some equity in their operations, said Andrew
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See PORK on page 6 »
The federal government says it’s moving to a model that will allow better planning for and prevention of flood risks. photo: manitoba government
By Lorraine Stevenson co-operator staff
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loods and other disasters are about to become even more expensive for Manitobans. That’s the inevitable outcome of a federal government change to how it contributes to disaster financial assistance, say provincial and municipal leaders. Canada’s Minister of Public Safety and Emergency Preparedness Steven Blaney announced changes last month to federal Disaster Financial Assistance Arrangements (DFAA). As of Feb. 1, the province’s threshold for eligibility for federal disaster assistance has risen significantly. That means Manitobans are on the hook for more of the cost of a disaster before the rest of Canada steps in to help, said Premier Greg Selinger. “Under the new rules, a disaster in Manitoba would have to reach $3.9 million before federal cost sharing
would begin. The previous limit was $1.3 million,” he said in a news release. “The 90-10 cost-sharing formula, where the federal government pays 90 per cent of the costs, won’t kick in until Manitoba’s costs reach almost $20 million,” he added. “The previous threshold was $6.5 million. The impact to rural and northern communities in particular will be significant.” Selinger said if these changes had been in effect back to 2000 they would have cost the province an additional $54.9 million. This is the first time the federal government has updated DFAA since 1970. It is part of Ottawa’s plans to roll out its new National Disaster Mitigation Program on April 1. That program will stream more money into flood prevention, and it also lays the groundwork for introducing a new residential flood insurance program in Canada, a federal news release stated. “We are shifting from a reactive
model to one that allows us to better identify, plan for, and prevent flood risks and the costs to Canadians that come with them,” said Blaney in the same release. Municipal leaders are nervous that this is going to mean higher costs to them too, said Joe Masi, executive director of the Association of Manitoba Municipalities. Municipalities’ share has been capped at $5 per person in the event there are damages from flooding. That’s been much better than having to pay a percentage of disaster costs, which can be highly variable, he added. “The way the formula has worked over the years has been very good,” he said. But this new federal-provincial formula could lead to municipalities having to contribute more upfront costs too, he said. See DFAA CHANGES on page 7 »
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