Yesterday they had a guy on the Rutherford show who was talking about the need for the government to put some price stability back in the fat market. I think his name was Jeff Warrack. He was sort of vague on the whole thing or else I was missing part of it...getting in and out of tractor. His general ideas were good.
But I got thinking why not turn the cattle industry into a regulated industry...just until the border opens and we have a real market again? I mean most public utilities are regulated and so were all ag products during the war?
For example the government could figure out just what the cost should be, based on the American market, and what the packers are getting in the Canadian market. Set a price and tell the packers what they need to pay. If the packers decide they can't live with that then the government should have the option of buying the plant(at fair market value) and reselling it to someone who can live with it! I mean if our government can blow $250 million on nothing in Quebec and $2 billion on a gun registry that doesn't work surely they can afford $40 million for two packing plants?
This whole regulation thing could go even further in that the feedlots would be regulated as well. Allowed a set percentage of profit for feeding the calves. This way the cow/calf producer would get his fair share of the profit as would the feeder and packer. The feeder and packer would be allowed a guaranteed percentage profit just like a public utility. This would stop the massive ripoff of the cow/calf guy and the middlemen would be guaranteed a profit without the huge windfalls or losses?
But I got thinking why not turn the cattle industry into a regulated industry...just until the border opens and we have a real market again? I mean most public utilities are regulated and so were all ag products during the war?
For example the government could figure out just what the cost should be, based on the American market, and what the packers are getting in the Canadian market. Set a price and tell the packers what they need to pay. If the packers decide they can't live with that then the government should have the option of buying the plant(at fair market value) and reselling it to someone who can live with it! I mean if our government can blow $250 million on nothing in Quebec and $2 billion on a gun registry that doesn't work surely they can afford $40 million for two packing plants?
This whole regulation thing could go even further in that the feedlots would be regulated as well. Allowed a set percentage of profit for feeding the calves. This way the cow/calf producer would get his fair share of the profit as would the feeder and packer. The feeder and packer would be allowed a guaranteed percentage profit just like a public utility. This would stop the massive ripoff of the cow/calf guy and the middlemen would be guaranteed a profit without the huge windfalls or losses?
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