Report suggests alternatives to county feedlot tax
LETHBRIDGE – Lethbridge County’s business tax on feedlots is coming under criticism in a new report from the University of Calgary’s School of Public Policy.
The tax, implemented in 2016 as a way to help pay for road maintenance, is based on the livestock storage capacity of a confined feeding operation, rather than its actual production volume. The report argues this increases an operation’s fixed costs by as much as 20 per cent of average operating margin, and may lead to fewer feedlots in the long-term.
Report co-author, professor emeritus Melville McMillan noted the county has been providing some concessions to feedlots operating well below their capacity. He also noted the tax’s effect varies based on an operator’s production level.
It makes the argument that it would be difficult to shift the burden of the tax to feed or feeder cattle producers or beef producers, because there are too many other factors affecting prices.