Fuel Prices

[cowman]

The price of gas, in Red Deer Alberta, is right around that $1.15/liter mark. Is that too much?
Well I remember very clearly in 1973 I bought a new truck and went up to Jasper for a couple of days. I was horrified that gasoline was 52 cents a GALLON there as it was only 48 cents in Red Deer!
Now 48 cents a gallon works out to a bit more than 10.5 cents a LITER!
I also remember very clearly what I paid for that heavy duty Chev truck...$3656!
My whole point here is today in 2005 I am paying slightly over ten times as much for gasoline and probably ten times as much for the truck? I believe land prices are also similar as well as house prices? So is the gas price really out of line?
However I also remember 600 calves were right around that 60 cent range and barley around $2.25/bu.! So if they had followed the general price increases then calves should be selling right around $6/lb. and barley $22.50/bu!
And we wonder why agriculture is such a dog!
In 1973 it took around 1625 bushels of barley to buy that new pickup? Today it takes 18,182 bushels to buy a pickup! In 1973 it took 9.9 calves to buy a pickup...in 2005 it took 55.5 calves($1.20 lb)to buy a pickup! On top of that it costs one hell of a lot more to grow a bushel of barley or a 600 lb. feeder!
If something doesn't change here, how much longer will agriculture really be viable in this country?

[pandiana]

Say it again, cowman! It's been said a dozen times on this forum alone.

The Easter report reiterates it.

We've all done the figures here.

Nonetheless, are we any more likely to stand together and shout that this can't go on with some drastic changes to agriculture? Not likely! Far more than likely, someone will get on and write here that if "we become tougher,...more efficient.., bigger..., vertically integrated,... horizontally integrated, ...R-Calf members, ABP members, or go back to horses and wagons, we will do just fine. We can go on subsidizing the price of food in this country for as long as we are willing. And why not, we are happy with out lifestyle. We are individuals and need to be starved on independently. Why would we stand together and fight? It's clear that agriculture in this country, and the primary level, is of little value to Canadians, let alone to the primary producer.

Shouldn't somebody be telling the oil companies that they need to go back to drilling wells with horses and hauling it in barrels?

[cowman]

pandiana:When oil prices fall below a certain level the oil companies stop producing/cut back production. Then the price rises.
Agriculture will one day be like that but first all the farmers will have to go! When huge corporations control the resource they will pretty well do whatever they desire and to hell with the government!
I guess we are well on the way to getting rid of the farmers. The country as a whole has been doing a fairly decent job of it the last 50 years? Unfortunately that's just how it is?

[dalek]

Cowman we're at 1.34 today, 1.46 for supreme. My inlaws in North Bay are at 1.48 for regular. My mother-in-law quit her job this week because she was spending $10 more in gas than she was getting paid for every shift. They filled both vehicles (F150 with 2 tanks and a Durango) for $320 yesterday.

[FarmRanger]

The Bank of Canada just raised interest rates to supposedly curb inflation. That’s a great idea, let’s kill a few more businesses in this country so there aren’t so many people consuming fuel to get to work. :-P

[cowman]

As soon as Martin and Lalonde figure out to curtail the oil and gas wealth by taxing it some more we'll get an end to inflation! The thing driving the whole economy right now is oil and gas and it is on the way up due to the instability in the middle east, former Soviet Union etc.
We still haven't felt the financial costs of Katrina...you don't shut down 12% of the USA refining capacity and not expect some massive inflation! Every country in the world is going to be affected and practically every business.