The federal hog farm transition program’s first round of bids has ended with 74 successful bidders taking a total of $10.55 million to fold up their hog operations for at least three years.
The weighted average of the successful bids was $765.52 per animal unit equivalent, the Canadian Pork Council said in a release, with accepted bids ranging from $300 up to $997 per AUE.
Out of 261 bids submitted in all, the “lowest bids were accepted first, followed by successively higher bids until the funds for that tender were exhausted,” the council said in its release.
The first tender saw inventory of 21,997 sows, 44,564 weaners up to 30 kg and 59,653 hogs ranging from 31 kg to market weight taken out of production for the next three years.
In order for bids to be compared among all types of animals and facilities, a system to equitably compare bids was developed in which each total farm bid submitted was converted to a dollar per AUE.
Second round rescheduled
The second tender for the program has now been rescheduled from Nov. 18 to Dec. 9 at 2 p.m. EST. Farmers who aren’t already registered are asked to submit their forms no later than Nov. 24 for the second tender window, the council said.
The change in timing is meant to give the program administrator enough time to evaluate forms, complete any follow-up needed to make sure applicants are eligible, and send out bid forms prior to the tender deadline, according to the pork council, which is managing the $75 million program on Ottawa’s behalf.
“The decision to extend the deadline for the second tender was made to ensure as many registered producers as possible can be approved to receive a bid package prior to the next tender deadline,” the council said.
Many of the forms submitted so far still need additional information, causing a “significant backlog” in the approval process, the council said.
For further information the council operates a producer hotline at 1-888-368-4023 from Monday to Friday, 8 a.m. to 6 p.m. ET.
Producers need only register once to be approved for all program tendering opportunities, the council said previously.