Manitoba pork producers are asking municipalities to lower their property and business taxes to reflect the declining value of their operations.
Farmers shouldn't be paying taxes on something that's worth nothing, said a Manitoba Pork spokesperson.
"You're talking about values in the millions of dollars when things are right, and now they've dropped down in some cases into the hundreds of thousands of dollars," said Mike Taillet of the Pork Council of Manitoba. "So for taxes, you're talking tens of thousands of dollars difference."
The combination of low hog prices, fluctuating currency exchange rates, high input costs and an erroneous perception that swine flu is somehow related to pork has left the industry on its knees.
A tax break would help the beleaguered pork farmers stay afloat, said Taillet.
"When the value of the assessment drops as precipitously as it has, then the assessment should also drop," he said.
With the values of pork farm assessments as low as they are, banks are telling farmers their buildings and operations are worth nothing and can't be borrowed against, making it increasingly more difficult for them to weather the storm, Taillet said.
Assessments can be reviewed
Manitoba pork producers have told government officials their industry is in crisis and that nearly one-third of pig farmers have gone out of business in the past two years. But officials at the Association of Manitoba Municipalities disagree, arguing farmers do have options to stay in business.
Doug Dobrowolski, president of the municipalities association, said farmers can ask to have assessments reviewed on an individual basis, the same as everyone else.
"Each pork producer and each taxpayer does have the opportunity to appeal their taxes," he said.
The Pork Council has set up a meeting with government officials to examine the options available to farmers but it's not known when it will take place.
