Alberta Grazing Leaseholders Association AGM 2016 Alberta Environment and Parks

Outline 1.Current Organization a)Vacant positions 2.Grazing Lease Rental Rates Proposal 3.Grazing Lease Cost Study 4.Auditor General’s Report 5.Recreational Access 6.Heritage Rangelands 7.Stewardship Based Tenure System 8.Feral Horses

Current Organization

Grazing Lease Rental Rates Proposal Developed over 2014/2015 with representatives from: –Alberta Grazing Leaseholders Association –Alberta Beef Producers –Western Stock Growers –Northern Alberta Grazing Association –Special Areas The committee provided input on the creation of a new framework for: –grazing rental rates –assignment fees –proposal for the creation of a range sustainability fund

Proposed Systems Two zone grazing rental rate structure with a boundary based on the transition to the boreal region of the province – an area that incurs higher capital costs on grazing leases The two zones would have different minimum rental rates to reflect these differences in capital costs: –Zone 1 - $2.30/AUM –Zone 2 - $1.30/AUM A flat rate assignment fee based on a cost recovery framework

Proposed Rental Formula Market-based administrative formula: o Similar to lumber stumpage, deciduous timber, OSB, pulp and, to some extent, to conventional oil and gas Minimums when cattle prices are low and no net income is projected: o Zone 1 Minimum - $2.30 o Zone 2 Minimum - $1.30 When beef prices rise to the point where the industry can earn a profit, 10% of the projected net income from the lease is added to the base as variable rent – this percentage increases as returns to the leaseholder improve

Grazing Lease Cost Study One of the commitments of the grazing lease rental rate formula consultation was to undertake a cost study to update the inputs to the formula A request for proposal was developed and posted –following careful review of the submitted proposals the contract for the updated cost study was awarded to MNP LLP Surveys will likely start to arrive within the month

Grazing Lease Rental Rates Proposal Progress Reports have been compiled outlining required amendments to the Public Lands Act and Public Lands Administration Regulation to facilitate implementation of the elements of the grazing lease rental rates proposal The results of the new cost survey will be shared with stakeholders and integrated into the proposed rental rate formula The Department will re-engage with stakeholders in 2016 to confirm approach

Auditor General’s Report In July 2015 the Office of the Auditor General released a report on the Department’s management of systems for public land and grazing leases. –The report indicated that in general, the Department’s management processes do ensure that public land used for grazing leases is in good health overall. The Auditor General made a single recommendation to the Department based on its audit findings –“We recommend that the Ministry of Environment and Parks define and communicate the environmental, social, and economic objectives it expects grazing leases should provide all Albertans, as well as relevant performance measures to monitor and ensure those objectives are met.”

Auditor General’s Report The Department is currently implementing the recommendation of the Auditor General An implementation plan was developed and accepted by the OAG Other comments in the report have generated interest but are not part of the work the Department has been tasked with in response to the recommendation

Auditor General’s Report The Department has worked internally to develop a set of draft objectives in response to the Auditor General’s recommendation The intent is to take these draft objectives out for a public discussion in 2016

Recreational Access Regulation being renewed for 2017 with only minor revisions –Consultation has been completed with stakeholders and internal staff Rangelands is trying to make sure all contact information is updated regularly Leaseholder information is now available on iHunter app to more efficiently connect land managers and recreational users New education program will be launched when renewal revisions are finalized

Heritage Rangelands The South Saskatchewan Regional Plan recognized the contribution of heritage rangelands to Alberta’s protected area system and supported the continuation of existing grazing activities under long-term grazing leases. The SSRP states that the Minister responsible for the Public Lands Act will administer and manage heritage rangelands, which includes: –Development of a management plan working with the Minister responsible for protected areas to ensure protected area requirements are met; –Administration of grazing disposition issuance, renewals and assignments, and; –Implementation of resource management decisions in accordance with the management plan or other direction that exists.

Heritage Rangelands The Department has developed a directive to provide guidance on fulfilling the commitments of the South Saskatchewan Regional Plan regarding heritage rangelands Available at services/directives/documents/HeritageRangelands-Jun pdfhttp://esrd.alberta.ca/forms-maps- services/directives/documents/HeritageRangelands-Jun pdf

Stewardship Based Tenure System Committed in the South Saskatchewan Regional Plan (September 1, 2014) Interim strategy available at services/directives/documents/TenureStewardship-Apr pdfhttp://esrd.alberta.ca/forms-maps- services/directives/documents/TenureStewardship-Apr pdf A working group has been set up in Environment and Parks to work on a stewardship based tenure concept The results of this work will form the basis of a proposal to move forward with external engagement and policy development

Feral Horses Very emotionally charged issue makes management complex Population has seen overall growth even with removal; substantial increases since the beginning of minimum counts in 2006 PZP trial is being performed through an MOU between WHOAS and AEP in an attempt to find non-removal population controls

Feral Horses Environment and Parks intends to work with the Feral Horse Advisory Committee on a longer-term management approach for the management of Alberta’s feral horses Feral Horse Advisory Committee is composed of stakeholders and government staff to provide strategic input and advice on the current feral horse management strategy

Onefour and Stavely The Onefour and Stavely Research Stations have both reverted from the federal government and are now provincially managed Grazing contracts were allocated using a request for proposal bid process Areas will be used as a venue for: – future biological research, outreach and extension, provide grazing opportunities for the local ranching community; maintain and allow for innovation to strive for a high standard of rangeland stewardship and grassland conservation Framework for an MOU with the University of Alberta has been developed and signature is pending Management planning is underway