La Financière agricole du Québec, which is the provincial farm finance agency, paid nearly $55 million to producers of feeder calves, steers and slaughter cattle as part of the first compensation advance of the 2021 insurance year to the Programme d’assurance stabilisation des revenus agricoles (ASRA) farm income stabilization insurance program.
For feeder calf producers, the total payment amounts to $46 million, which represents $60.66 per cow and $0.6949 per kilogram of calf sold after deduction of the 2021 preliminary contribution. Steer and slaughter cattle producers will receive $8.6 million, or $0.1696 per kilogram of weight gain, or $60.22 per steer sold after holdback. Of this payment of nearly $55 million, a net amount of more than $7 million will be paid to producers after payment of their contribution.
First advance payment for grain-fed calf producers took place in May, rather than July. After collecting their annual contribution to the program, producers were awarded a total of more than $6 million.
These payouts will allow producers in the beef sector to have access to liquidity in a context where the selling price is lower than the cost of production.