Expansion?

[cowman]

Well emerald you know what they say "The bigger you are the harder you fall!" I would say anyone gearing up to buy more land and cows is sure a gambler? I doubt the profits will ever pay for it.
But there are always optomists who are willing to risk their money...or more likely the old mans money LOL!
Personally I don't think anyone should be expanding if this includes debt? The business just can't justify a heavy debt load.
I guess if the guys selling hay realize they aren't making any money they will consider doing something else? Maybe sell it to the "expander" for a big price? Then while they are sitting on the patio sipping a Pina Colada they can sit and watch the go-getter slaving away for the bank and keeping the government in beans!

[rkaiser]

I know how to limit supply cowman. Every farmer in Canada, and the world, for that matter could quit using fertilizer for 1 year, and then MAYBE limit the fertilizer you are allowed to buy after that.

Grain supplies would be down, feed supplies would be down, prices would rise, and cow guys would downsize. All the same things would happen, that would happen if we were to move toward supply management except that it would be fair for everyone. Except of course the guys/gals who have already weaned themselves of the "drug" that shows you are the best farmer in the land.LOL

[cowman]

Ain't going to happen Randy! Although I would like to see it! Fertilizer actually is a good investment, in most years! Don't know about this year!
Example" $42/acre of N returns 1 ton of hay at $80? Not to hard to figure that one out...now mind you that is horse hay! I suspect grain has a better rate of return providing it isn't rock bottom pricing? Canola...don't even go there...it just flat out pays!
I agree with your idea of limiting production will raise the price, but how do you get EVERY farmer to follow the guidelines? Are you suggesting we force farmers to produce less, because that is the only way it will happen? I hope you aren't going communist on us? Maybe the old boys on Ranchers are right about you? LOL...don't take this seriously!

[farmers_son]

There far better ways to raise on farm returns than limiting production. Supply and demand may explain flucuations in commodity prices but lack of competition explains why prices are so low.

[cowman]

Whether we like it or not we are caught up in a spiral of costs we can't escape? To just legislate an end to high output production is not reality? The policy of government is to keep food prices low? Not written down, but very real none the less? A clear example of this is the beef imports?
Let the price of hamburger get a wee bit high and in come the imports! And sorry for all you packer haters, that is not the work of Tyson or Cargill but of your own beloved Liberal government!
Legislating the amount of fertilizer could only be done with the excuse of "saving the environment" because that is the only things the urban consumer might buy into? Of course that would only be acceptable if prices didn't rise very high? Might have to import some more stuff from some country where they used everything possible!
To think that our government gives one rip about the dumb peasants down on the farm is to deny the reality of the last several decades? We really are just a problem that won't go away!

[cswilson]

Cowman that's interesting math $42/acre returns you a ton of $80 hay-if it rains when it's growing-if it doesn't rain when your haying-if there is no hay in the country to drive the price up-oops but that meant it didn't rain. The iron and chemical boys must have fun selling to you-not even a challenge. Glad I ranch in Sask. where it's still a business not a hobby like over west of us lol.