Conversations with the cattle crowd

Bob Lowe, outgoing Canadian Cattlemen’s Association (CCA) president, shares some of the many challenges cattle producers faced during his tenure while COVID-19 cast its long shadow across the country; Piper Whelan speaks with new CCA president, Reg Schellenberg, about where the association is preparing to focus its priorities in 2022; and Fawn Jackson, CCA’s director of policy and international affairs, offers her take of the recent federal budget and what parts of the plan are designed to support the agriculture sector. Hosted by Lisa Guenther.

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Lisa Guenther: [00:00:06] Hi everyone and welcome to another edition of Between the Rows. I’m Lisa Guenther, editor of Canadian Cattlemen and your host this week. I caught up with Fawn Jackson of the Canadian Cattlemen’s Association last week to find out what the new federal budget means to ranchers and beef farmers. 

Fawn Jackson:  There was a very significant investment in that that merging of environment and and agriculture. And I think it speaks to agriculture. Having said for a long time, you know, we have more that we can offer for environmental solutions, but we also need investments that that go with them. 

Lisa Guenther:  Piper Whalen brings us an interview with Reg Schellenberg, the new CCA president, on his priorities for the next two years.

Reg Schellenberg: [00:00:49] We want to make maintain a viable industry, preserve it, protected and promote it and make sure that there’s an opportunity for the next generations to carry it forward.

Lisa Guenther:  [00:01:00] And we’ll hear from Bob Lowe, who recently completed his two year term as Canadian Cattlemen’s Association president.

Bob Lowe: [00:01:07] It was two years and 11 days ago, March 13th, 2020, which was a Friday, by the way, that I got elected to the to the presidency of the Canadian Cattlemen’s Association. That was on a, as I said, a Friday. We got out Friday night and Monday they locked the country down for COVID.

Lisa Guenther:  [00:01:29] But first, here’s a word from our sponsor.

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Lisa Guenther:  [00:02:08] We’re back. You’re listening to Between the Rows, and I’m your host, Lisa Guenther. It was a little more than two years ago that Bob Lowe was elected president of the Canadian Cattlemen’s Association at the group’s AGM in Ottawa. He became president on a Friday the 13th, and that date foreshadowed what was in store for him over the next two years. I caught up with Lowe last month at the CCAs AGM to chat about the unexpected challenges and how the CCA tackled them. Just a note to listeners. You’ll occasionally hear Bob tapping on the table for emphasis.

Bob Lowe: [00:02:47] It was two years and 11 days ago, March 13th, 2020, which was a variety, by the way, that I got elected to the to the presidency of the Canadian Cattlemen’s Association. That was on a, as I said, a Friday. We got out Friday night and Monday they locked the country down for COVID. If you planned on traveling during your tenure that was out. We we came together. It’s amazing how it happened. The just the structure of the CCA and and the the staff and things. We immediately set out a business plan. And one of the things that we was stressed was we communicate to everybody about everything. Can we keep everybody in the loop all the time? We had weekly, biweekly, sometimes weekly officers meetings. We had town halls, regular town halls to keep everybody up to date. Probably weekly or bi weekly executive meetings. I know I’ve become quite proficient at teams and Zoom and Skype and everything else you can do with a computer from your kitchen table. I guess the sum total of it was is we marched on. Our number one focus was to keep the borders open, keep trade happening. We we managed to influence the government. They did all that. They they understood the need for that, too. I mean, the number one thing is we we had to keep everybody fed during this thing. And of course, you hear, well, it’ll end next week and it’ll end next week and then next week turns into next week. And here we are two years later. And it’s it’s relaxing now, but in parts of the world it’s not. So who knows if we’re opened up or not. But we need to we needed to keep the borders open. We did that.

Lisa Guenther: [00:05:01] Dealing with all the COVID issues meant in-depth discussions with the CCA board and staff, especially Dennis Kraft, executive vice president and von Jackson, Director of Policy and International Affairs.

Bob Lowe: [00:05:15] Dennis Laycraft and Fawn Jackson and me would probably, after a day of Zoom meetings and interviews and strategizing. Fawn and Dennis and me would get together every night via Zoom or phone call for half an hour or maybe 3 hours to figure out what was going to happen the next day. Oh, wow. It was huge respect for Fawn and Dennis, but I think we all got sick of each other. And in a nice way.

Lisa Guenther: [00:05:45] Covid hit packing plants and processors across North America early in the pandemic. In the spring of 2020, the disease ripped through the workforce of Alberta’s two big packers. Tragically, a few workers and their family members died in the outbreak. Those outbreaks also slowed production at the JBS plant in Brooks and briefly halted Cargill’s High River plant.

Bob Lowe: [00:06:07] When you two Packers control 80 or 85% of the or processed, 80 to 85% of the cattle in Canada, one of them goes down. It doesn’t take long to back up a lot of cattle. We got agriculture and Agrifood Canada to work hard for us and with Treasury to get a set of side program in place. Of course, none of these things ever happened fast enough, but it did happen. And when you get one of the processors goes down, it doesn’t take very long to back up a lot of cattle. So we used a set aside. We got through that backlog of cattle, which probably helped a little bit in taking the high out of the market that we were expecting to have. So we kind of got whacked there.

Lisa Guenther: [00:06:58] Once we got through that crisis, it seemed like things might be looking up for ranchers. Beef demand was strong, despite rising retail prices, and market fundamentals indicated that better cattle prices were just around the corner.

Bob Lowe: [00:07:10] Things are looking really good for the next year where we produce protein in a protein deficient world. Numbers were down. Should have been a really good year. Everybody goes into it. Pretty optimistic. We hit the drought last summer. Which was, I believe, unprecedented in in I don’t know, since they’ve been taking temperature and rain records anyway just for the sheer size of it, basically the western half of North America. Wildfires in B.C. no crop in the prairies. Took away another high in the cattle market force and we worked with the federal government. We got some changes to Agri stability, working with the Canadian Federation of Agriculture, with the Canadian Pork Council. We got some changes. Agri Stability over the course of the winter. This hit, we got the process of Ag recovery going and worked with the provinces, with the cattle feeders. To get Ag recovery. And and although it wasn’t fast enough, I know when when I went to buy hay because we didn’t get to produce any. And I talked to the guy I bought the hay from I talked to him on a Thursday. Bought some hay, told them I was going to go home and talk to the bank because I wanted another bunch. He phoned me Friday and he said, You asked me on yesterday if the Americans were up. He said, Well, they weren’t when I talked to you, but they are now. And I’ve got my third cut as all I’ve got left. And he hadn’t even started cutting it yet. So we stress that to governments federally. The provincial members stressed it to their governments. You know, the cattle feeders came on board saying.

Bob Lowe: [00:09:03] Their message was the same as ours. We need to protect the mother cow. That’s got to be the first first order of agenda. Anyway, Ag recovery when it did rollout, which the speed most of this stuff happens, it rolled out really fast. In comparison. Not fast enough, but fast. We’re working to make that a little faster even than this next time. 

Bob Lowe:  So the price of grain is right through the roof, if you could find it. So we go to, you know, we’re an ingenious lot and we head said, I believe we are the US’s number one corn market. And this is unheard of. So we’re bringing corn up to run the feeding industry basically in Saskatchewan and Alberta. It takes a lot of corn to feed the numbers you hear on a feed or somewhere somewhere north of a million head 1.1 million head or something. It takes a lot of corn. So that’s rolling along. Eight, nine trains a week are coming in. The corn was high priced, but it was all high priced. But we were feeding the cattle. Well, then the train started to slow down. So we talked to CP Rail along with the cattle feeders. And they were saying, well, COVID. Covid has hit our people. The cold weather trains slow down and cold weather. They did not actually I believe they did not understand the cattle need to be fed. They didn’t understand we didn’t have a backup plan. They didn’t understand that the reason that we were we the reason that we were using all this corn wasn’t because barley was too high priced.

Bob Lowe: [00:11:02] It was because there was no barley. Once they got that understanding. Know, I was talking to one lady at CP Rail and I said, you know, when you say the trains slow down in cold weather, I understand that machinery does that. I said, unfortunately, cattle speed up, they eat more. Well, there’s a look of shock on her face. Got that through to them. They started running trains again and they were coming in. Logistically, you can’t run enough. There isn’t enough trains to haul enough grain to get enough of a supply. So it’s been a logistical nightmare all winter. It’s kind of just in time. They picked up on the number of car trains and these are 120 to 150 car unit trains. To think we’re getting between depending on the week between nine and 12 trains a week. So we’re getting close to, well, the last couple of weeks. Things are rolling along pretty smoothly. I’m getting pretty close to the end of my tenure and CP rail goes on strike or they’re threatening strike action. So I know more about trains than I ever thought I’d ever want it to. So we went to battle again. We talked to CP Rail. We talked to the president of the Teamsters Union. Tactic? Well, basically, any politician that had listened to us and convinced them that this had zero to do with economics in the cattle industry case, it was all about animal welfare. Economics of feeding cattle went out the window, I don’t know, last winter or sometime. Yeah. So this is just about keeping the cattle fed.

Lisa Guenther: [00:12:48] The CCA and the National Cattle Feeders Association then held a press conference on the rail strike. Shortly after that press conference, Bob got some good news.

Bob Lowe: [00:12:58] Well, I got a text at 2:57 Tuesday morning that said they’d agreed to go into binding binding arbitration, which means the train started again at, I believe, noon on Tuesday. They started running again. It was a it was really, as far as the industry goes, very little effect on the industry. As far as corn. We had a week to two weeks supply in most cases, but it could have been bad. And the longer the train’s shut down, the longer it takes for them to get going. So we really appreciate the fact that the government stepped in. And I believe that the Teamsters and CP Rail, nobody wanted this this animal welfare thing to be on their on their shoulders.

Lisa Guenther: [00:13:46] And so after a tumultuous two year term, Bob has handed over the presidential reins, but he remains active in the CCA, as well as other industry groups. Those are just a few highlights from that interview with Bob Lowe. For the full interview, visit Canadiancattlemen.ca  The CCA also voted in a new president this spring. Reg Schellenberg Ranches with his family at Beechy, Saskatchewan. Our former field editor, Piper Whalen, caught up with Reg from his ranch near Lake Diefenbaker to chat about priorities for the industry and the silver lining and the smaller cow herd numbers.

Reg Schellenberg: [00:14:38] My name is Reg Schellenberg and my wife Shannon and I and our son and his wife were ranching a bit south of, Beechey, Saskatchewan, along Lake, Diefenbaker, Saskatchewan.

Piper Whalen: [00:14:48] And can you tell me a little more about your operation?

Reg Schellenberg: [00:14:52] Our operation is a semi-arid climate. We have a lot of native rangeland. We are running 475 mother cows and a hundred yearling heifers on 14,000 acres. And obviously. We we’re in a. Pretty semi-arid area. So stocking rates can can vary, but it takes a lot of ground to support a cow in this country.

Piper Whalen: [00:15:17] So what are some of your priorities for CA in the coming months?

Reg Schellenberg: [00:15:23] I guess priorities are going. Coming up real quick here, the livestock price insurance program to be available for all the provinces from west coast to East Coast so that people can make the choice to lock in protection over their commodities, just like they do with other commodities, and that that premium would be cost shared with government to make it more affordable. The second one would be is I guess the CCA sees is the importance of establishing a back foot and vaccine bank. And we ask the government, the federal government to participate in that and include that in their federal budget. Right now, I think CCA sees the inequities of our free trade agreement with the UK and we’re working hard to establish some changes that would make make access for Canadian beef equal to that of the U.K. We want we want both both sides to benefit from this trade agreement.

Piper Whalen: [00:16:22] What are some of the opportunities that you see for the Canadian beef industry on the horizon?

Reg Schellenberg: [00:16:28] I think looking forward to the fact that the herds are contracting both in Canada and south of the border. It’s not a positive thing that they’ve contracted, but long term, if the numbers are down, there will be some some benefits for those that are still involved.

Piper Whalen: [00:16:45] And what does it mean to you to take on the role of CCA president and represent cattle producers across the country?

Reg Schellenberg: [00:16:51] Well, it’s it’s a big responsibility and it’s a team effort. We’ve got a great board. We’ve got a good group of officers. And our first priority is to represent the beef industry at every level, every province. And I think I’ve shared this with this with you this earlier. We want to make maintain a viable industry, preserve it, protected and promote it and make sure that there’s an opportunity for the next generation of security for.

Lisa Guenther: [00:17:33] That was Reg Schellenberg talking to Piper Whalen. You can learn about Schellenberg and his priorities as a president in the May issue of Canadian cattlemen. You may have noticed that, I said. Piper Whalen is our former field editor. Since that interview, Whalen has moved on to a new position. We were sad to see her go, but we wish her all the best with her new gig. Readers will still be able to catch her work in the May and June issues of the magazine. You’re listening to Between the Rows, and I’m your host, Lisa Guenther of Canadian Cattlemen. Finally, we have Fawn Jackson, director of policy and international affairs with the Canadian Cattlemen’s Association. Jackson discussed what was a hit and what was amiss for the beef industry and the new federal budget. And so what was your overall impression of the federal budget that just came out and how it relates to the production? 

Fawn Jackson:  Yeah, well, there were certainly a few pieces in there that we found quite intriguing. Investments in supply chain resiliency the last couple of years has has certainly taught us how important it is to get that rate. There was, as earlier indicated, a significant investment in climate smart agriculture. We were quite excited about some of the labor pieces. And then sort of more broadly speaking, investment in rural infrastructure also had us excited. On perhaps the flip side, there is a couple of pieces that we were hoping to see and we didn’t. We’re really looking for an investment in a foot and mouth disease vaccine bank and then also looking for some further investments in technical trade support within the Indo-Pacific region.So things that will continue to have those conversations on with with the government. 

Lisa Guenther: And I would hope that most of our listeners are aware of foot and mouth disease and the risks. But maybe if you could just tell us why we need a need for a Canadian foot and mouth vaccine. 

Fawn Jackson:  Well, certainly we see it as one of one of the biggest economic risks in front of our our industry. And of course, no, it’s not here right now. And so I suppose for some folks, it’s a problem of the future. But, you know, we certainly see it as a problem of right now. And and I would say that we have really broad support for this and, you know, across industry and government. And it’s more so finding the right pot of money that it’s that it’s going to come from. But luck favors the prepared and we’re certainly looking to be prepared. So we see this as one of our top priorities that CCA is getting this vaccine bank up and running. 

Lisa Guenther:  So infrastructure was was an area that saw some funding. What were you pleased to see in there for rural infrastructure? And I guess perhaps given what’s happened in B.C. in the last year and that kind of thing. 

Fawn Jackson:  Yeah. Yeah. So, you know, one of the key parts of the infrastructure was the rural investment in of about 2.75 billion for the universal broadband fund to improve high speed Internet across rural and remote areas. Of course, there has never been a better example of why we need an Internet, you know, than than the last two years. But certainly all of our businesses are dependent on on having this. So we were pleased to see that as as an example. And then, you know, perhaps more of a focus on on B.C. there was a recovery dollars that were flagged for to address the B.C. flood situation. So we were we were also pleased to see that, you know, if you look at more the resilient supply chain, which, you know, is really infrastructure, right? There was 600 million when I think we’d start thinking about infrastructure, 600 million does and of course go very far. But but what they did identify were some previously announced funds of, I think, around $4 billion. And that now those those dollars are really going to be focused in on resilient supply chains. And of course, in the beef industry, we export 50% of of what we produce. We have to have access to our international markets, and we have to be able to also get products to our producers within Canada. So, you know, pleased to see that new direction or that perhaps more focused direction in on on those supply chains. Because I would say we see that as well as labor is being, you know, some of our risks for the future, 

Lisa Guenther:  This government is quite focused on environmental issues and that was reflected in the budget as well, which is that I mean, this is perhaps a very broad question, but what does that environmental funding mean for for beef producers on the ground? 

Fawn Jackson:  Yeah, you know, it’s it’s interesting. There was a very significant investment in that that merging of environment and and agriculture. And I think it speaks to agriculture. Having said for a long time, we have more that we can offer for environmental solutions, but we also need investments that go with them. So I would see this as an indication of government saying, Great, we’re excited to be your partner on this. So there’s just over a billion dollars announced for Agriculture Climate Solutions Fund, a new, resilient Agriculture Landscapes program to focus on carbon sequestration and co benefits. There was some clean technology programs and then also a recognition on the research side that we need to continue investing there, which is a very proven place for for solid investment to have environmental results. So I would say overall, we’re excited. But, you know, there’s lots of details to really figure out as as goes with any budget. So we’ll be having those conversations with government to make sure that those investments are particularly aligned with our 2030 goals that we have and that they’re aligned with the action items that we see are key to us being able to to achieve them. But, you know, I would generally say I think it’s exciting and you just need to make sure that they’re now invested in in the right way. 

Lisa Guenther: Great. Anything else you want to add Fawn? 

Fawn Jackson: You know, we also saw an indication of some other pieces in the budget of things to come and one of them is that we expect that there’s going to be a consultation process for Bill C. 208, which was a private member’s bill that has already received royal assent but is related to intergenerational generational farm transfer. So of course, we’re interested to see the reasons for going back to to look at that. And of course, we want to see that that bill stays stays in place in the way that it was intended to. And then there was also a couple of other interesting pieces. They’ve said we are absolutely moving forward with the Canada Water Agency. They didn’t say where it’s going to be. But of course, we expect somewhere on the prairies and we’ll be watching that closely because of course, we need to make sure that our producers have access to excellent water infrastructure, which we would see within within that department. And then also, there was an indication that they’re going to work on a National School of Food Policy. So interesting days ahead and of course, will be engaged in all those conversations. 

Lisa Guenther: Great. Well, thank you very much, Fawn. 

Fawn Jackson: Thanks for joining me today. Thanks for having me. 

Lisa Guenther: That was Fawn Jackson of the CCA. That’s it for Between the Rows. And thanks for joining us this week. Remember, you can find the show and some extras on YouTube by searching for Between the Rows podcast. Be sure to include podcast. I am Lisa Guenther, Canadian cattleman, editor signing off.

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