The light is starting to appear at the end of the tunnel for Canada's beef producers, as the United States Department of Agriculture issued a proposed rule that may allow certain live cattle to cross the border from Canada, possibly as soon as February.

Word also came out over the weekend that the federal government is close to releasing an aid package to deal with cull cows that farmers are unable to sell.

Cattle producers in the Weyburn area expressed optimism that young cattle will start going back into the U.S. in the new year, which will help resume activities at the feedlots and processors again here in Canada.

"I think it's a very positive move. It might not be the total big light at the end of the tunnel (but) the Americans want our cattle and beef, so I think they'll work something out," said Fillmore cattle producer Tom Grieve.

"We were very pleased to hear that, we were expecting it. We're pleased it's also only a 60-day comment period rather than a possible 120-day period. We're looking forward to bigger and better things," said Neil Jahnke, Saskatchewan producer and president of the Canadian Cattlemen's Association, in an interview from Ottawa on Tuesday.

The U.S. border closed to all Canadian cattle on May 20 after one single case of a cow was found with bovine spongiform encephalopathy (BSE) or so-called mad cow disease. In the subsequent investigations, it was proven several months ago there were no other cases of the disease in Canada, but the U.S. and Mexico only partially opened the border to boxed boneless beef in August. More recently, they also began to allow other cattle products, such as cow tongue and liver.

"Anything is possible. We hope we've done everything right, and we feel confident we'll see the borders open in the first quarter. We're thinking it'll be open in February or March, and if all the comments they get are all favourable, it could open sooner than that," said Jahnke.

Ceylon-area producer Keith Kaufmann said it's good news if it goes through, saying it's about time something is happening.

"I find it hard to believe that it's taken this long to get the border open," he said, noting after Canada proved there were no more cases of mad cow disease, the process went from being science-based to politics-based decision-making.

Kaufmann hopes what will happen is a change in regulations regarding BSE, so an entire industry isn't put in jeopardy for a single case of BSE, as has happened in Canada.

"If you've got one cow or a bunch (with BSE), everybody's treated the same. From what I've heard, they're trying to get the regulations changed, based on the severity of the disease. It's all going to take some time, but it makes for a more common-sense approach to it," he said.

Grieve sees other positive aspects if young cattle under 30 months are allowed into the U.S.

"When live cattle under 30 months is going into the States, it means a large number of finished cattle from Alberta and Saskatchewan will be moving south, which will make space in feedlots for our calves to be fed and finished. We still have a little bit of problem with older cattle," he said, adding that with young cattle heading south, there would then be a market for their older cattle which producers haven't been able to sell up until now.

On the proposed aid package for cull cows, reportedly worth $100 million, both Grieve and Jahnke said there isn't a lot of information available about the package, if it will be worth that much or who will qualify to receive it.

"The provinces and the federal government are having discussions, and we've had some input. Whether they will follow our proposal, we don't know, but we're certainly hopeful there will be a package," said Jahnke.

Under the USDA's proposed rule, Canada would be placed on a list of countries considered as a minimal risk for BSE, making Canada eligible to export live cattle who are of minimal risk, namely those under 30 months, sheep and goats under 12 months, fresh meat and half or whole carcasses from cattle less than 30 months of age, liver and cow tongue, and fresh meat from sheep or goats less than 12 months.

Also, ruminant animals which have been shot by hunters, and meat from animals raised on game farms will also be allowed, such as caribou, musk ox and other cervids.

The USDA also released a study from the Harvard Center for Risk Analysis, which found that Canada poses a minimal risk for spreading BSE into the U.S. herd, even if a small amount of contaminated meat or feed were to enter the U.S.