Farm Business
June 16, 2017, Montreal, QC - Compensating farmers who paid for production quotas with the revenue from a temporary tax would allow the government to abolish supply management in the dairy, poultry, and egg sectors, shows a Viewpoint published by the Montreal Economic Institute (MEI).

Such a measure would be positive both for farmers and for Canadian consumers. "If the government decided to compensate farmers for the value of their quotas over a period of ten years, it would have to offer them annual payments of $1.6 billion. Yet the net benefit for consumers would be from $3.9 billion to $5.1 billion each year, and up to $6.7 billion once the reimbursement period is over," explains Alexandre Moreau, Public Policy Analyst at the MEI and co-author of the publication.

For example, Canadians could pay $2.31 for a two-litre carton of milk following liberalization, instead of the current price of $4.93, he adds.

The accounting value of the quotas, estimated at $13 billion by the MEI, is on average equal to 38% of their current market value, which comes to a little over $34 billion.

Compensation would vary from one farmer to another in order to avoid providing excessive compensation to farmers who bought their quotas at a fraction of the current price, or received them free of charge, while being fair to those who acquired quotas recently at a higher cost.

If Ottawa decided to liberalize supply-managed sectors, a temporary tax should serve to finance the compensation paid to farmers. This tax would disappear once the compensation was paid in full.

"Such a policy was used successfully in Australia when that country eliminated its own supply management system," explains Vincent Geloso, Associate Researcher at the MEI and co-author of the publication. "The compensation offered to producers was financed by a transitory tax equal to half of the expected consumer price decline. Consumers were therefore immediately able to enjoy price reductions while farmers received payments to compensate them for their losses of revenue. The same principle could be applied here," he adds.

Rules regarding the environment, health, and food quality would continue to apply to products imported from abroad once the market is liberalized.

"This exit plan would be positive and fair both for farmers and for consumers. Now, it's up to public decision-makers to take action and dismantle this regime that is unfair and costly for consumers, all while adequately compensating farmers," concludes Alexandre Moreau.

The Viewpoint entitled "Ending Supply Management with a Quota Buyback" was prepared by Alexandre Moreau, Public Policy Analyst at the MEI, and Vincent Geloso, Associate Researcher at the MEI. 
Last month Statistics Canada released the results of the 2016 Census of Agriculture. Like many of you, I was eager to read up on the results and discover how our industry has changed in the five years since the last survey was conducted.

Some findings, such as the edging up of the average age of farm operators from 54 in 2011 to 55 in 2016, aren’t all that surprising. After all, aging is a fact of life. Other findings, however, gave me pause. For example, Statistics Canada found that even though the average age of farmers has increased, only one in 12 operations have a formal succession plan outlining how the farm will be transferred to the next generation.

In other words, the vast majority of Canada’s farm operators have not taken steps to safeguard the businesses they’ve worked long and hard to build.

Experts in the field agree there are many reasons farmers shy away from succession planning, including fear: fear of change, of creating conflict within the family, of losing one’s identity as a farmer, and of confronting the fact that not even the healthiest among us live forever. Then there’s the time required to craft a plan and implement it when there are still animals to feed, seeds to plant and suppliers and customers to work with, plus all the other tasks that contribute to a farm’s long-term success. Perhaps one of the most significant barriers, though, is the daunting scope of work the term “succession planning” entails.

Though we can’t do that work for you, the editorial teams behind Agrobiomass, Canadian Poultry, Fruit & Vegetable, Manure Manager, Potatoes in Canada and Top Crop Manager have partnered to help ease the way with our first annual Succession Planning Week.

From June 12 to 16, we’ll be delivering a daily e-newsletter straight to your inbox, packed with information and resources to help you with succession planning in your operation. Each e-newsletter will offer practical advice and suggestions you can use, whether you’re an experienced farm owner wondering if your succession plan needs some tweaking or an aspiring successor wondering how to start the succession conversation.

But that’s not the only conversation we want to kick-start. Share your succession planning tips and success stories on Twitter and Facebook using the hashtag #AgSuccessionWeek. The best of the best will be published on our website (FamilyFarmSuccession.ca) and included in Friday’s e-newsletter.

We hope Succession Planning Week offers valuable information to help you keep your operation growing, now and for generations to come.
June 9, 2017, Canada - For too long, supply management in our dairy, poultry and egg sectors has been seen as a “third rail” in Canadian politics, an untouchable sacred cow. No longer.

The evidence for reform is staggering. Research and analysis conducted by a variety of experts across Canada have overwhelmingly demonstrated the inequity and inefficiency of the current system.

Increasingly persuasive commentary is coming from all sides. And despite the propaganda made possible by the wealth and power of the dairy lobby, more and more politicians are seeing the public opinion tide turning.

It is, after all, a non-partisan issue. Progressives who espouse social justice simply cannot defend the unnecessary costs imposed on consumers – especially low-income families with children in need of affordable essential nutrition – in favour of what is now a small group of millionaire producers. But neither can conservatives defend a regulated cartel which flies in the face of a market-based economy.

And all politicians in Canada, of all stripes, know that Canada’s economy is dependent on trade. We can no longer afford to have supply management harm our leverage in our trade negotiations – particularly given what is now happening with our largest trading partner next door.

It is time for our politicians to do what is right. We are past knowing “why” – now is time for “how.”

How do we transition forward from supply management in a way that is fair to our dairy, poultry and egg producers, as well as to consumers and taxpayers? We know that we can. We have, after all, done this before, most notably with Canada’s wine industry – to great success. And we have other international examples from which to learn – both for what to do and what not to do.

This report proposes just such a plan.

More work is needed to iron out details which will require engagement by all involved. After close to 50 years, the system has become complex.

The same numbers won’t apply to long-time producers as to new entrants, or to producers in different parts of the country. Some producers are ready to retire, or their farms are too small to compete – they would benefit from an appropriate buyout.

For those who want to compete, grow and profit from the incredible international opportunities, additional transition assistance will be needed.

The plan must address both.

The only missing piece now is for our politicians to stand up, defy the power of a wealthy lobby and show the leadership Canadians expect.

A big opportunity has emerged to do something that not only helps in our looming trade negotiations, but that is actually right for Canada.

The future of the dairy industry is bright in Canada. Reforming supply management should not be seen as an obstacle, but rather as an opportunity to redress domestic inequities in a way that is fair to producers, grow our industry, open new markets and, most importantly – compete and win. Because we can.

View PDF report: http://cwf.ca/wp-content/uploads/2017/06/CWF_SupplyManagement_Report_JUNE2017.pdf
May 29, 2017, ST-GEORGES, Que. – Quebecers and the ''extremely strong'' lobby of the province's professional farmers' union are to blame for Maxime Bernier's defeat in the Conservative leadership race, according to an ex-mayor in Bernier's hometown in Quebec's Beauce region.

Roger Carette, a Bernier supporter who served as mayor of St-Georges from 1994 to 2009, says he can't understand how Quebec let the candidate down.

''It's Quebec that took him out of there,'' he said, moments after learning Bernier had lost the race to Andrew Scheer. ''If you look at the difference of one per cent of votes, that's the difference in Quebec.''

According to Conservative party data, Bernier was beaten by Scheer in his home riding of Beauce, collecting 48.89 per cent of support compared to 51.11 per cent for the Saskatchewan native.

With the support of farmers, Scheer campaigned in Beauce against Bernier's plan to gradually abolish supply management, the quota and price control system that ensures a stable income to dairy and poultry farmers despite market fluctuations.

Bernier wanted to liberalize the system, arguing it keeps prices artificially high and limits competition. He suggested a transition period with compensation.

Carette blames the ''undue intervention of the farmers' movement'' for sabotaging the campaign of ''a guy from home.''

''I'm disappointed. I recognize that Quebec decided it wanted a guy from Saskatchewan to lead the party and, maybe one day, the country,'' he said.

''It's a bit distressing to see we've been a part of that,'' said Carette, who believes Bernier's proposal to abolish supply management would not have passed easily and would have been the subject of vigorous debate within the party.

At ''Chez Gerard'' restaurant in St-Georges, the 40 or so Bernier supporters who had gathered to watch the results were feeling the same letdown.

Swear words rang out as Scheer's victory was confirmed, with many of the partisans getting up to leave soon after.

A party atmosphere had reigned for much of the evening, as supporters paused between bites of sausage and breaded mozzarella sticks to express their confidence in Bernier, who they described as generous, sincere, and ''close to his people.''

By the tenth tour, that confidence began to evaporate.

''Maxime had a split vote in Beauce, but he had a lot of support in Alberta. It's incomprehensible,'' said Johanne Maheu, a Bernier volunteer.

The Beauce riding has one of the country's largest concentrations of farmers under supply management.

Several dairy farmers in the region, including Frederic Marcoux, had set out to block Bernier's campaign and damage his campaign co-president, Jacques Gourde.

A Facebook page whose title translates as ''friends of supply management and the regions'' got almost 10,000 members.

On Saturday, Marcoux said farmers didn't just beat Bernier – they've also made the entire political class take notice of them.

''Everyone saw us, everyone heard us...everyone saw the final result,'' he said in a phone interview. ''For me, we won't see anyone attacking supply management for a damned long time.''

Marcoux said it was ''easy'' to blame the professional farmers' union – the Union des Producteurs Agricoles – but believes the grumbling against Bernier was in fact more widespread.

''Maxime Bernier held himself back,'' he said. ''Supply management, just in his riding is a half-billion, what did he think would happen?''
May 19, 2017, Toronto, Ont. - At its 32nd annual meeting held in Toronto May 18, 2017, the Further Poultry Processors Association of Canada (FPPAC) elected the following Board of Directors and Officers:

Officers:
Chairman- Blair Shier, J.D. Sweid
Vice-Chair- Chris Hobbs, ADP Direct Poultry

Board of Directors:
Betty Dikeos, D & D Poultry
Jamie Falcao, Maple Leaf Foods
Keith Hehn, Golden Valley Farms
Ian Hesketh, Intercity Packers
Chris Hobbs, ADP Direct Poultry
Don Kilimnik, DC Foods
Ed Lamers, Tillsonburg Custom Foods
Blair Shier, J.D. Sweid
Kevin Thompson, Sargent Farms

Appointments:
CFC Rep- Ian Hesketh, Intercity Packers
CFC Alternate- Don Kilimnik, DC Foods
TFC Rep- Keith Hehn, Golden Valley Farms
TFC Alternate- Tony Tavares, Exceldor Foods

TQAC Chicken Rep- Ian Hesketh, Intercity Packers
TQAC Chicken Alternate- Ed Lamers, Tillsonburg Foods
TQAC Chicken Alternate- Robert de Valk, FPPAC

TQAC Turkey Rep- Keith Hehn, Golden Valley Farms
TQAC Turkey Alternate- Tony Tavares, Exceldor Foods
TQAC Turkey Alternate- Robert de Valk, FPPAC

General Manager- Robert de Valk, FPPAC
May 12, 2017, Burlington, Ont. - National allocations for A-145 (Aug 6 – Sept 30) and A-146 (Oct 1 – Nov 25) are both set at +5.0% relative to adjusted bases at the Chicken Farmers of Canada (CFC) meeting on May 3, 2017 in Ottawa.

Chicken Farmers of Ontario (CFO) provided its recommendation for national allocation to CFC of +6% above adjusted base for A-145 and A-146. As in prior periods CFO’s recommendation had been framed on a public policy of “balanced best interest” and based on an analysis of the market and an assessment of the demand and supply opportunities as well as potential risks to the market. READ MORE
May 4, 2017, Guelph, Ont. - Whether you scroll through your feed on Facebook, Twitter, Instagram or another social network of your choosing you’ll likely see conversations happening about food and farming.

While agriculture, and the plant science industry in particular, have a great story to tell in terms of helping farmers grow a safe, affordable and abundant food supply for Canadians and the world, this isn’t always the message that makes it onto social media.

As someone involved in the industry you have the ability to help shape some of those online conversations. Your family members, friends and colleagues see you as a trusted source of information and that gives you a great place to start.

Whether you’re a casual social media user or an avid user, join this half-day session to learn about how you can strategically use social media to constructively share positive information about the plant science industry.

The training event will take place in Guelph, Ontario on May 23 from 1 PM to 4 PM. 
For more information, visit: http://www.croplifecanadaevents.ca/183-Social_media_training.php

April 24, 2017 - Farm Credit Canada reports, despite slower growth in farmland values, the outlook for agriculture on the prairies is positive.

Farm Credit Canada's latest Farmland Values Report shows, while farmland values increased in 2016, the rate of that increase slowed for the third consecutive year.

Canada’s farmland values showed an average increase of 7.9 per cent in 2016, compared to a 10.1 per cent increase in 2015 and a 14.3 per cent increase in 2014.

“The impact of some of the key farmland value drivers appear to be fairly consistent across Canada,” said J.P. Gervais, FCC Chief Agricultural Economist. “Levelling out of commodity prices and some challenging weather conditions may have taken some of the steam out of farmland values and hopefully this moderating effect will turn into a trend.” READ MORE
April 10, 2017, Guelph, Ont – Average farmland values in Canada continued to climb in 2016, but lost steam in most provinces, including Ontario, according to Farm Credit Canada’s (FCC) latest Farmland Values Report.

Canada’s farmland values showed an average increase of 7.9 per cent in 2016, compared to a 10.1 per cent increase in 2015 and a 14.3 per cent increase in 2014. Canadian farmland values have increased at various rates for the past 25 years.

The average value of Ontario farmland increased 4.4 per cent in 2016, following gains of 6.6 per cent in 2015 and 12.4 per cent in 2014. Values in the province have continued to rise since 1988.

In six provinces, the average increase in farmland values slowed from the previous year. And despite the overall national increase, seven of the 51 regions assessed across Canada showed no increase in farmland values in 2016.

“The impact of some of the key farmland value drivers appear to be fairly consistent across Canada,” said J.P. Gervais, FCC chief agricultural economist. “Levelling out of commodity prices and some challenging weather conditions may have taken some of the steam out of farmland values and hopefully this moderating effect will turn into a trend.”

Prince Edward Island experienced the highest increase among the provinces and saw the only double-digit increase at 13.4 per cent. There were not enough publicly reported transactions in Newfoundland and Labrador to accurately assess farmland values.

“Demand for Canadian agricultural products remains strong at home and abroad,” Gervais said. “A healthy agriculture sector – supported by a low Canadian dollar and low interest rates – helped sustain increases in farmland values in 2016.”

“I would, however, caution producers not to become overly confident,” he said, noting crop receipts have increased at a slower rate than farmland values over the past few years. “Although we have just come off of several years of record farm receipts, agriculture is a cyclical business and producers should always plan for different market conditions.”

Gervais encourages producers to identify key risks and available solutions to manage these risks should changes suddenly occur in their businesses or the economic environments in which they operate.

To view the 2016 FCC Farmland Values Report, video and historical data, visit www.fcc.ca/FarmlandValues.

To learn more about the report, register for the free FCC webinar on April 18, which can be found in the Agriwebinars section at www.fcc.ca/events.
March 27, 2017, Churchbridge, Sask – Canada’s Outstanding Young Farmers’ (OYF) program is once again offering two $1,000 scholarships to Canadian agriculture students. Applications for the 2017 awards will be accepted until June 30, 2017.

The OYF Memorial Scholarship will be awarded to one individual entering post-secondary education from high school, and one individual who has already completed at least one year of post-secondary study. Applicants must be pursuing a diploma or degree in agriculture.

The late Martin Streef, OYF alumnus, established this scholarship program to help future generations of Canadians pursue their passion for agriculture. Streef was the 1997 winner of both Ontario’s and Canada’s Outstanding Young Farmers and president of Streef Produce Ltd, a family-run fresh fruit and vegetable business in Woodstock, Ontario.

Scholarship application forms are available here.

Celebrating 37 years, Canada’s Outstanding Young Farmers’ program is an annual competition to recognize farmers that exemplify excellence in their profession and promote the tremendous contribution of agriculture. Open to participants 18 to 39 years of age, making the majority of income from on-farm sources, participants are selected from seven regions across Canada, with two national winners chosen each year. The program is sponsored nationally by CIBC, John Deere, Bayer, and Agriculture and Agri-Food Canada through Growing Forward 2, a federal, provincial and territorial initiative. The national media sponsor is Annex Business Media, and the program is supported nationally by AdFarm, BDO and Farm Management Canada.
Canadian poultry processors need a consistent supply of dependable, high-quality chicken to supply to their distributors and retailers. In order to achieve this, many processors have contracts with multiple farmers. This begs the question: Can anything be done to ensure the quality  of their supplied product?
Jan. 27, 2017 - Canada's 150th anniversary is an excellent opportunity to celebrate the historical role of farmers in growing our nation. The Canada's Farmers Grow Communities program, sponsored by the Monsanto Fund, provides yet another opportunity for Canadian farmers to strengthen their communities by nominating their favourite local charities to win grants of $2,500.

Over the first five years of the program, more than 300 rural charities have received almost $1 million thanks to farmers. The fascinating stories of the farmers, the charities and their connections to the community paint a colourful portrait of rural Canada which will now be shared on the Canada's Farmers Grow Communities blog.

"Farmers are often unsung heroes in Canadian history," says Kelly Funke, public affairs manager for Monsanto Canada. "But farmers deserve credit for their contributions. That's why we created this program, and why we've now added a blog to our website to further highlight the stories behind the farmer heroes and their chosen charities."

The list of charities can include almost any non-profit organization based in rural Canada. Winners have included 4H clubs; rural daycares; libraries; volunteer fire departments; hospitals; schools; ag societies; senior centres; and other community facilities.

Farmers who are considering an application are encouraged to visit the Canada's Farmers blog at http://canadasfarmers.ca/blog/ for inspiration and to think about their own local charities or non-profit organizations. It takes just five minutes to apply and be entered into the random draw.

Once again in 2017, two $2,500 grants will be awarded in each of 33 different territories across the grain growing regions of northeastern B.C. (Peace River district), Alberta, Saskatchewan, Manitoba, Ontario, Quebec and the Maritime provinces. Applications are open now through September 30, 2017. And anyone can suggest a charity for a farmer to discover! Simply visit www.CanadasFarmers.ca where complete contest rules and an online application form are available. Winners will be selected by random draw on or about Nov. 1, 2017 and notified by Nov. 15, 2017.
Jan. 24, 2017 - The single biggest labour challenge for the dairy, poultry and egg commodities will be finding skilled and experienced farm managers, including owner-operators. For these commodities, management and ownership jobs account for almost two-thirds of the current workforce, and between now and 2025, they will account for the majority of the jobs going unfilled due to a lack of domestic workers.
 
The Canadian Agricultural Human Resource Council (CAHRC) has completed a three-year study and released the Dairy: Labour Market Forecast to 2025 and Poultry and Egg: Labour Market Forecast to 2025. These studies examine two of Canada’s most significant agricultural industries, which together account for 55,500 jobs, or 15 per cent of the total agricultural workforce.
 
Through consolidation, automation and other efficiencies, the dairy-cattle industry has shed more than a third of its workers since 2009, employing 39,900 as of 2014. However, despite this reduction in the size of the workforce, an additional 3,400 jobs went unfilled due to a lack of available domestic workers. This labour shortfall cost an estimated $71 million in lost sales.
 
While the labour demand is expected to continue to decline as a result of a stable market for the industry’s products, the labour supply is also predicted to shrink. As a result, the industry will continue to experience a labour shortage, with manager and owner-operator jobs at the greatest risk of going unfilled. Of the 1,100 jobs forecasted to go unfilled by 2025, 90 per cent will be jobs at the manager and owner-operator level, which will result in a skills shortage as well as a labour shortage.
 
For the poultry and egg industry, the research included farm operations engaged in breeding, hatching and raising poultry for meat or egg production, including chickens, turkeys, ducks, geese, pheasants, partridges and pigeons. Similar to the dairy industry, a leveling of demand for poultry and egg production and improved industry productivity will limit the demand for labour, while a shrinking supply of domestic labour will widen the industry labour gap. In 2014, 15,600 people were employed in the poultry and egg industry and an additional 250 jobs went unfilled due to a lack of domestic labour. These shortages cost the industry an estimated $6 million in lost sales. By 2025, 15,900 workers will be required, and 1,100 jobs are at risk of going unfilled. As with the dairy-cattle industry, manager and owner-operator jobs will be the most difficult to fill.
 
Both industries will be significantly impacted by retirement, with nearly one-third of the dairy workforce and nearly one-quarter of the poultry and egg workforce expected to retire by 2025. Finding Canadian workers with the right skills and experience is the greatest barrier to recruitment for both industries, despite the fact that they often offer attractive work conditions, including full-time, year-round employment located relatively close to urban centres. Both industries also have voluntary turnover rates that are below the sector average, which means that fewer employees choose to leave their jobs.
 
Unless these industries can find additional sources of labour with the right skills and experience, they will suffer from a critical gap at the managerial and leadership levels that could inhibit their ability to thrive.
 
To address the labour issues identified in the research, CAHRC has developed agriculture-specific human resource (HR) tools designed to support modern farm operations to manage their workforce. CAHRC offers Agri Skills, online and in-person training programs, and the Agri HR Toolkit – an online resource guide and templates to address the HR needs of any business. For agricultural organizations there are customized labour issues briefings that apply the new research to specific commodities and provinces, to explore the labour implications within their specific area.
 
The Dairy: Labour Market Forecast to 2025 and Poultry and Egg: Labour Market Forecast to 2025 reports can be downloaded at http://www.cahrc-ccrha.ca/agriLMI.ca. The study data was validated through industry consultations conducted Canada-wide including: 1034 surveys of employers, workers and industry stakeholders; 80 phone interviews; six focus groups for a total of more than 100 participants; and seven webinars focused on specific commodity groups with 100 participants in total.
 
The LMI research was funded in part by the Government of Canada’s Sectoral Initiatives Program.
Jan. 20, 2017 - Ontario livestock and poultry farmers now have a more consistent and transparent process for compensation when their animals are injured or killed by predatory wildlife. The newly updated Ontario Wildlife Damage Compensation Program (OWDCP) standardizes the requirements farmers need to meet to receive compensation. In addition, a new single-stage appeal process simplifies the process to address program application concerns and disputes.

The compensation rates, program guidelines and application forms are available at www.ontario.ca/predation.
Jan. 4, 2017 - Canadian agriculture benefited from a relatively low dollar throughout 2016 and this trend is expected to continue into 2017, according to J.P. Gervais, Farm Credit Canada’s chief agricultural economist.

Top Drivers“There are certainly other factors that could influence Canadian agriculture, such as the global economy, the investment landscape, commodity and energy prices,” says Gervais, speaking to his top five agriculture economic trends to watch in 2017. “The Canadian dollar, however, has been a major driver for profitability in the last couple of years and could have the biggest influence on the overall success of Canada’s agriculture industry in 2017.”Gervais is forecasting the dollar will hover around the 75-cent mark and will remain below its five-year average value relative to the U.S. dollar in 2017, potentially making the loonie the most significant economic driver to watch in Canadian agriculture this year.

The low dollar not only makes Canada more competitive in agricultural markets relative to some of the world’s largest exporters, but it also means higher farm cash receipts for producers whose commodities are priced in U.S. dollars.

Producers
A low Canadian dollar will keep the demand for Canadian agricultural commodities healthy, which is especially important considering the higher projected supply of livestock and crops. This means potential revenue growth, especially considering a likely rebound in livestock prices off the weakness observed in the second half of 2016.

“A lower Canadian dollar makes farm inputs more expensive, but the net impact in terms of our export competitiveness and cash receipts for producers is certainly positive,” Gervais says. “Given the choice, producers are better off with a low-dollar than one that’s relatively strong compared to the U.S. dollar.”

Food processors
Food processors are also better off with a low Canadian dollar, which is partly the reason behind the strong growth in the gross domestic product of the sector over the past few years. Canadian food products are less expensive for foreign buyers, while it is more difficult for foreign food processors to compete in the Canadian market, according to Gervais.

“The climate for investment in Canadian food processing is good, given the low dollar and growing demand in the U.S.,” Gervais says. He projects that exports of food manufactured products to the US could climb five per cent in 2017.

Agribusinesses
A lower-than-average U.S. per Canadian dollar exchange rate supports foreign sales of agribusinesses as more than 90 per cent of all exports are made to the U.S., and compensate for a weaker demand due to the recent downturn in the U.S. farm economy.

“The dollar’s impact on agribusinesses is complex and not as consistent as it is on producers and food processors,” said Gervais, noting that strong farm cash receipts due to a weak loonie are generally good news for agribusinesses, since they can expect sales to producers to increase with rising revenues.

But he also notes that “a weak loonie raises the price of inputs like fertilizers or equipment, making them more expensive for producers, which may impact their purchase decisions.”

For an in-depth analysis of the impact of the Canadian dollar and Gervais’s four other economic drivers to watch in 2017, visit the FCC Ag Economics blog post at www.fcc.ca/AgEconomics
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