Crown land rental fees a hot topic

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This article was published 14/09/2023 (1098 days ago), so information in it may no longer be current.

A Progressive Conservative campaign promise to permanently cut in half rental fees for agricultural Crown lands this week will only partially roll back the fee increases that Manitoba producers have faced over the last several years, according to Manitoba Beef Producers general manager Carson Callum.

“Back in 2019 and in the subsequent years, we saw lease doubling, if not tripling in some instances of those rental fees for producers and in light of other market pressures or weather challenges and that really impacted the producers’ bottom line,” Callum told the Sun.

Concerns have arisen regarding Crown land leaseholders’ regulations, particularly the significant increases in rental fees witnessed in the industry since 2018.

“The increase in Crown land leases, among other issues, has had a significant impact on our costs,” he said.

Many operations, especially those in northern areas of the province, Callum said, heavily rely on Crown land leases to operate and when those rental fees go up, it essentially increases producers’ input costs substantially.

Callum explained that despite the increasing operational cost witnessed over the years, the leaseholders have not increased the market price for live cattle until this year. “Since 2018, it’s been exceptionally challenging for beef producers to turn a profit. When you compound these challenges with rising rental fees, it further escalates the financial burden on producers.”

Nonetheless, Manitoba Beef Producers has lauded the partial rollback of the fee.

“The rental freeze is definitely seen as a positive move because it will instill more confidence in the sector and help alleviate some of the inflationary cost pressures that producers are grappling with,” he added.

In addition to the concerns raised by Manitoba Beef Producers, national data reveals a declining trend in cattle inventories in Canada. The Canadian Cattlemen reported that on Jan. 1, 2023, total cattle and calf numbers were 2.2 per cent lower than in 2022, standing at 11.27 million head.

It stated that the decline has been ongoing since 2018, with the beef cow herd declining by 2.5 per cent to 3.56 million head as of Jan. 1, marking a 4.8 per cent decrease from the 2018 peak,” it stated.

Meanwhile, an NDP spokesperson expressed skepticism.

“Heather Stefanson’s PCs lied to Manitobans before the 2019 election. Instead of making life better for ranchers and producers, they raised rents on Crown land leases by over 300 per cent and cut unit transfers,” the spokesperson said. “This criticism highlights the political context surrounding the promise and questions the sincerity of the commitment.”

As Manitoba inches closer to the Oct. 3 election, the Progressive Conservative pledge to permanently halve the rental fees for agricultural Crown lands has not only altered the agricultural landscape but also become a focal point of passionate debates among stakeholders.

“Producers have endured hardships since the 2021 drought, and a temporary measure will now become permanent,” said Derek Johnson, who’s seeking re-election for the Tories in Interlake-Gimli.

Johnson underscored the significance of this policy shift, particularly in light of the severe drought in 2021 that exacerbated the challenges faced by Manitoba’s agricultural sector.

Furthermore, the party pledges to double funding for the Winnipeg Humane Society’s One Health Program, designed to provide essential veterinary care in underserved rural regions.

“This initiative addresses the health-care needs of animals in remote areas, often overshadowed amidst other agricultural concerns,” Johnson said.

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