With a 50/50 cost sharing initiative from the provincial government, dairy farmers, like West Valley Farm in the Codroy Valley, will soon be able to produce most of their own feed rather than importing it from out of province. File photo

It may be located in one of the most fertile corners of the island, but West Valley Farm has been bringing in forage from other provinces for its dairy cows for years.

New funding from the provincial government should change that, allowing West Valley and other dairy operations to become self-sufficient in forage production over the next three to five years.

Gerard Cormier, owner and operator of West Valley Farm, said he will be using the funds to hopefully develop about 800 acres of land in the Codroy Valley. Much of that will be land already owned by West Valley Farm, while some will have to be purchased.

He said the development will create spin-off jobs in the valley as people are hired to clear the land. The farm will then need more staff to harvest those extra 800 acres.

Mr. Cormier said his company usually brings in about 8,000 bales of forage each year for its dairy cows.

Forage - usually corn silage, grass silage and hay - is mixed with grains to produce feed for the cows.

Mr. Cormier said at $40 a bale, 8,000 bales of silage can put a dent in the bottom line of the farm. Province wide, dairy farmers import about $4.4 million worth of forage each year.

While bringing in forage is currently a cost of doing business on the island, the province is hoping to change that with this money.

Given West Valley Farm's rapid growth over the past few decades, Mr. Cormier said remaining self-sustainable was possible but not cost effective.

"We fell behind because the cost of clearing land, it just wasn't affordable. We could only do so much a year, but we weren't able to keep up with our needs," he said.

The provincial government is providing dairy farmers with $6 million dollars from the Agrifoods and Agriculture Development Fund to assist farmers in the cost of purchasing and developing land for the growth of forage production. The funding will be matched by dairy farmers.

West Valley Farm will have to increase its storage capacity to house more forage, but Mr. Cormier said that is a small cost compared to the long-term savings of being self-sufficient.

The money will go a long way toward helping Newfoundland and Labrador dairy farmers meet milk production quotas set by the Dairy Farmers of Canada, according to Mr. Cormier.

Newfoundland and Labrador has committed to produce 31 million litres of milk per year by the year 2016. Provincial farmers aren't even halfway to meeting the quota yet.

"We needed this program to make enough forage so it's affordable to produce this quota," he said.

Kathy Dunderdale, minister responsible for the Forestry and Agrifoods Agency, made the funding announcement at the Dairy Farmers of Newfoundland and Labrador's annual general meeting.

Ms. Dunderdale also announced a change to the Growing Forward program that will allow provincial farmers to access more grants towards the purchase of specialized farm equipment.

Mr. Cormier said new farming techniques often require new, specialized equipment. He said the former $200,000 cap on assistance wasn't enough to give large farms capacity to avail of new technology. The funding cap has been increased from $200,000 to $500,000 - a move Mr. Cormier sees as a step in the right direction.

reporter@gulfnews.ca