New grazing legislation introduced last week will ensure sustainability of ranching and rangelands in the province, says area MLAs and government ministers Jason Nixon (Environment and Parks) and Devin Dreeshen (Agriculture and Forestry).
The NDP official Opposition also called the updating of grazing legislation a good move.
The Public Lands Modernization Amendment Act (Bill 16) includes updates to the rent and fees ranchers and cattle owners pay to government for the use of public lands.
The legislation is the first major update of grazing legislation in Alberta in 25 years. It modernizes the grazing disposition rental rate formula, repeals homesteading clauses, and establishes a dedicated revenue stream.
Under Bill 16, rental rates will move from a three-zone framework to a two-zone framework structure with a boundary based on the transition to the boreal region.
Rental rate changes will be implemented using a phased approach over the next five years, with the rates calculated as the base rate plus an annually increased percentage of the premium beyond the base rate.
In the southern Alberta Zone 1 (which includes this region) the minimum rental rate will be $2.30 animal unit per month, a 2020 phased-in rate (20 per cent variable rate) of $2.73 AUM, and $4.46 AUM full rate.
Assignment fees will move from a per AUM charge to a province-wide flat fee of $3,150, and 30 per cent of grazing rental revenue over $2.9 million will be moved to a dedicated revenue.
“Ranchers play an important role in Alberta,” said Nixon, the UCP MLA for Rimbey-Rocky Mountain House-Sundre. “They support our economy and are responsible for protecting some of the province’s important grasslands and wetlands.
“It’s important that we work with ranchers to modernize our legislation so that the ranching industry can continue to grow and thrive for generations.”
Devin Dreeshen, the UCP MLA for Innisfail-Sylvan Lake, added, “Ranchers are an important part of our province, and government is listening to their needs. We’re committed to cutting regulatory red tape to make their jobs easier,”
The province says the changes will “create a system that is transparent and fair for ranchers, while ensuring that Albertans receive fair return for the use of the province’s resources.
“If passed, these changes would be phased in over five years to help ranchers adjust to new rates after 25 years of frozen rates. Government is also proposing a flat-rate fee for the transfer of a lease, which would remove red tape for ranchers, and reduce barriers to entry into the industry.”
Charlie Christie is the chairman of the Alberta Beef Producers, which represents cattle ranchers in the province.
“We welcome the government’s announcement to modernize Alberta’s grazing lease rental rate framework on public lands,” Christie said.
“The new framework will reflect our current business environment and will align with other resource-based industries in Alberta, while also ensuring our province is fairly compensated for leasing public lands.
“In addition, we are pleased that a portion of revenue generated from grazing lease rental rates will be used for environmental stewardship and range improvement, which ensures the land will continue to be healthy and sustainable for future generations.”
Lorne Dach, official Opposition critic for Agriculture and Forestry, provided the following comment to the Gazette: “We’re pleased to see the government is continuing the work the NDP started to modernize grazing lease rates. This was part of our work we did to ensure the economy and the environment go hand-in-hand.”
A portion of revenues realized through the modernization will be reinvested in rangeland sustainability initiatives and would provide annual funding to proactively invest in approaches to ensure the long-term success of Alberta’s ranching industry, the province said.
