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COUNTRY LIFE IN BC • AUGUST 2018


Chicken quota to increase 20% in 2020 First increase in more than 20 years follows FIRB review


by DAVID SCHMIDT ABBOTSFORD – BC chicken


growers are getting a hefty quota increase – eventually. In a highly unusual move, the BC Chicken Marketing Board announced a quota issuance more than two years in advance. In mid-May, the board announced growers will receive a 20% pro rata quota increase effective period A-164, which begins July 5, 2020. This will be the first quota increase for chicken growers since 1997, despite the fact that growth in chicken production has not been stagnant for the past 20 years. BCCMB practice is to issue


period-by-period allocations as a percentage of a grower’s quota. In recent years, those allocations have been well over 100%.


The new quota will be


issued under the new rules set by the Farm Industry Review Board in its Quota Tools Assessment Review (QTAR) supervisory decision issued in February. BCCMB chair Robin Smith


says the new rules are behind the board’s decision to provide two years’ notice of the quota increase. Among other things, those new rules specify that any grower who transfers quota within 12 months of a new quota issuance is ineligible to receive any new quota. “If FIRB had not put in that


clause, we would have been able to issue quota much sooner,” Smith said.


Creative solution


Smith calls the board’s decision a “creative” solution which effectively allows growers to have their cake and eat it too. There has not been a lot of movement of


quota in the past few years and this announcement gives growers the opportunity to sell some of their existing quota before November 8 without jeopardizing their ability to receive the new quota. “Growers transferring


quota after November 8, 2018 will be ineligible for any portion of the A-164 pro rata quota increase,” the board’s notice states. A primary condition of


growing chicken is having the barn space to produce it. The notice states that growers have until July 5, 2021, to provide the required space to grow the birds to receive the new quota. In other words, the notice gives growers time to “right size” their farms. (The provision is noteworthy; while the ability to “right size” farms was an argument heavily used in the BC Milk Marketing Board’s


submissions to QTAR, the chicken board’s submissions never mentioned it.) Growers who are already


producing at the maximum their facilities allow and who do not wish to or are unable to increase their barn space therefore have until November to divest themselves of some of their existing quota to make space available for new quota. At the same time, it gives other growers up to three years to build additional barn space in order to receive the new quota.


Farm size increase


The board also announced it will increase the maximum farm size from 750,000 kgs per cycle (about 388,000 birds) to 900,000 kgs, a 20% increase. This ensures all growers, regardless of size, are able to obtain the new quota.


The board also announced that, as per the QTAR directions, the “last In-first out” condition on quota transfers has been eliminated for all growers except new entrant growers taking advantage of the board’s matching quota (buy one/get one) program. Matching quota will be considered last in and the first to be transferred but in all other cases growers will have the option of choosing which of their quota to transfer. New quota issuances are subject to a declining 10-year 10% transfer assessment so future growers wishing to transfer out some of their quota can choose to transfer older quota rather than newly received quota. Since there have been no new quota issuances since 1997, no transfers of existing quota will be subject to any transfer assessments.


Dairy incentive days this fall


by DAVID SCHMIDT ABBOTSFORD – BC milk


TRACTORS


JD 1445 4WD MOWER, 60” DECK, FRONT BLADE, REFURBISHED 11,700 JD 7410 CAB, 4WD, 10,950 HRS [U31753] .......................... 39,500 NH 8160 2WD, CAB, 4000 HRS, NICE CONDITION [CNS714] .. 25,900 NH 54D 4WD, CAB, LDR, 40 HRS, LIKE NEW, SOME WARRANTY (U31396) ............................................... 49,500 NH 8770 4WD, 10,800 HRS, 160 HP, NICE RUNNING TRACTOR [CNS690] ........................................................................... 56,000 NH TM155 9,000 HOURS, 4WD, NICE TRACTOR [CNS693] ..... 45,000 NH TS 110 ROPS, 4WD, LOADER, 6,000 HRS [U31754] ......... 19,500 NH TZ25DA 2006, 780 HRS, 4WD, 54” LAWN MOWER (U31683) 9,500 NH BOOMER 2035 2008, 625 HRS, 4WD, LOADER (U31684) . 20,575 NH T6.165 2014, 7600 HRS, 20.8X38 REAR TIRES (U31662) 64,900 NH BOOMER 20 W/LDR, 60” MID MT MOWER, 200 HRS (U31247) . 18,200 QUALITY USED EQUIPMENT


CASE IH DISC MOWER ROLL CONDITIONER [U31840] ................ 11,900 CASE SU185 2012, 8,500 HRS, NICE CONDITION [U31819] ...... 16,625 BE-RG500 ROTARY CUTTER, NICE CONDITION [U31826] ............ 1,475 FELLA TH68D HYDRO 6 BASKET TEDDER, HYD, FOLD, 2004 [U31737] 9,900 FELLA TS 456T RAKE [U31222]...................................................8,600 SMC 2584 FERTILIZER SPREADER, 8 TON, STAINLESS HOPPER [CNS692] ................................................21,500 NH STACK CRUISER 1049 1979; GAS; GOOD COND; (CNS720) 19,500 NH 1012 BALE WAGON W/UNLOAD, 55 BALES [CNS711] ...........5,900 NH 1412 DISC MOWER [U31336].......................................... 16,900 NH FP240; GOOD CONDITION, 2005, TANDEM AXLE; HI DUMP HOSES; SPOUT EXTENSION; 29P GRASSHEAD (U31570) .................... 29,000 BRILLION SS-10 SEEDER VERY GOOD COND; AS NEW; STORED INSIDE (U31507) .................................................... 11,500 FP 230 2001 METALERT NO HEADS - U31374.......................... 6,900 PARMITER BALE WRAPPER, TRAILER TYPE, 30” WRAP [CNS710] 5,900


producers are not getting a quota increase this year but they are being given the opportunity to produce a little more milk this fall. Producers will be allowed up to eight incentive days between August and December, with a maximum of three incentive days per month. Incentive days allow producers who produce their entire quota allotment in a given month to increase their milk shipments by up to three days’ worth of their continuous daily quota (CDQ). Although they may use up to three incentive days in any month between August and


December, they may use only eight incentive days in total during the five months from August to December. At their spring producer meetings, the BC Milk Marketing Board announced that the four provinces in the Western Milk Pool had agreed to a moratorium on quota increases and incentive days, citing a lack of processing capacity and the fact butter stocks had been replenished. Although there has been


an “incremental” increase in processing capacity in the West, BCMMB general manager Robert Delage says it is not enough to require a quota increase.


Despite that, Delage notes milk production is generally


lower in the fall than in the spring so the board is issuing the incentive days to ensure there is enough milk to meet processor needs. “There are some years


when it’s challenging to fill all the orders from processors in the fall,” Delage said, adding the BCMMB often faces the opposite scenario in the late winter and early spring when production sometimes exceeds processor capacity. As of early July, BC


production was less than 1% below its allocation. “Our continuous daily quota is very close to zero per cent over or under,” Delage said. “We’re the only province in the country that can say that.”


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