Beef producers applaud Crown land rent reduction

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This article was published 25/11/2023 (1036 days ago), so information in it may no longer be current.

The province’s decision to boost the temporary rent reduction on agricultural Crown land forage leases is good news for cattle producers, and a step in the right direction to help them recover from some difficult years, according to Matthew Atkinson, president of Manitoba Beef Producers.

Effective immediately, the rent reduction is being increased to 55 per cent from 33 per cent for the 2024 growing season, Premier Wab Kinew and Agriculture Minister Ron Kostyshyn announced yesterday in Eriksdale.

Agricultural Crown lands are parcels of land leased to producers for agricultural use including grazing, haying or annual cropping. These lands are important public assets economically, environmentally and socially, essential to supporting and growing the livestock industry in Manitoba.

“It’s definitely helpful,” Atkinson told the Sun. “It’s still a temporary rent reduction. That’s not to say we don’t really, really appreciate it, but we do look forward to engaging and having some real long-term solutions as well.”

Previous changes to the rent system under the Progressive Conservative government hurt producers in all aspects of their business, including production and market costs, Kinew said during the announcement.

“This rent reduction will essentially freeze rates to the same as 2023 and will provide producers with over $2 million in support,” Kinew said.

Carson Callum, the general manager of Manitoba Beef Producers, previously told the Sun that since 2019, leases doubled and tripled in rental fees for producers, which, combined with market pressure and weather challenges, severely impacted many producers’ bottom lines.

Friday’s announcement is part of the new NDP government’s promise to ensure affordability with agricultural Crown land lease rates and is a step toward accomplishing the goals set out in the minister of agriculture’s mandate letter, Kostyshyn said.

“We will continue to review the agricultural Crown land program to ensure it best serves Manitoba producers.”

The Manitoba government, Kostyshyn said, encourages sustainable use of Crown land for multiple uses through a careful planning process, including the intensity of use and how different parcels may be developed. The program contributes to ecological goods and services, and provides mitigation and adaptation to climate change, he added.

Friday’s announcement adds to the optimism Manitoba’s cattle industry has been feeling lately thanks to better cattle prices, but with rising costs of feed and fuel, it’s not a cure-all, Atkinson said.

“When we see a big jump in calf prices, we know that’s also going to lead to a big jump in lease rates. But that doesn’t always necessarily lead to that big of a jump in profitability.”

Manitoba Beef Producers is hoping to create a positive working relationship with the new provincial government, based on open communicaton and collaboration, Atkinson said. Going forward, he hopes to discuss the issue of Crown lands with the province, as well as the problem of predation and cattle theft.

“We haven’t yet been able to have some sitdowns and formal meetings, but we look forward to doing so in the future on this and some other files,” he said.

“The open communication back and forth is just so important to us all working towards these goals.”

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