Good afternoon.
My name is Nelson Fagan, Jr. I own and operate a beef cattle farm, Beothuk Land & Cattle Company. I am also a butcher and operate under N. Fagan Meats in Conception Bay South, Newfoundland and Labrador. I also grow root crops. I am the first and currently the only registered pedigree Charolais cattle breeder in my province, which I'm quite proud of. They are my passion.
I sat as a chair of the Newfoundland and Labrador cattlemen's association for five consecutive years. I am a relatively small farm compared to others Canada-wide, but in our small province, I am among the biggest beef cattle producers in my area. I am a fifth-generation farmer and butcher, and I grew up on a family farm. I raise my animals from start to finish. I have an abattoir where I process my own animals, as well as prepare them for consumers. My operation truly is start to finish.
When I think of business risk management, I think about livestock insurance, forage production and natural disasters. Under the current provincial livestock insurance program, livestock is only covered for death or injury due to dogs or predators. As a beef cattle producer, I can say that dogs or predators like coyotes have yet to be an issue in the province. Therefore, this type of insurance does not benefit any beef producer in the province.
We need livestock insurance that will cover disease outbreak resulting in a major loss of the herd. We also need livestock insurance that would cover natural disasters, like wildfires, which have been more common in our province. For example, last summer, we had a forest fire break out on the opposite side of the highway, adjacent to one of our summer pastures, only six kilometres away. It was only by the grace of God that the wind never shifted and caused the fire to move in the direction of our pasture. Had that happened, it would have wiped out my entire herd and livelihood, with no protection. With the scale of my farm, there is no way to recoup the loss.
With regard to payouts for our current livestock insurance under the provincial government, I reviewed the numbers and the payouts for beef cattle in 2026-27. For grade and registered bulls and cows, it ranges from $400 to $650 per head. For grade and registered heifers and steers, it is from $200 to $400 per head. For grade and registered calves, it ranges from $70 to just $100 per head. Even if this insurance policy were to cover things outside predators and dog attacks, it would not be worthwhile for me to invest my time and money into this, with today's cattle markets. For example, AgriInsurance would give me $650 to buy a breeding bull, but a breeding bull at today's price is $7,500.
With regard to forage production, my situation is a unique one for my area. I do not grow my own forage. I rely on purchasing the surplus hay from a network of my fellow producers. When it comes to climate risks, like droughts, which much of Atlantic Canada experienced last year, hay production is halted. This winter, under SCAP, the province introduced the AgriRecovery forage assistance initiative. I was unable to apply to this program. It was announced a few days before the deadline for the hay to be purchased. With so many producers searching at the same time, it was scarce to find. The biggest issue with living on an island is the transport cost. It was going to cost me more to transport the hay than the purchase price of the hay.
I’m sure that our issues may differ from the rest of the country, but in our province, we are all facing the same challenges in the beef industry.
Thank you for having me speak. I greatly appreciate the opportunity, and I hope that you will take these topics into serious consideration.