grassfarmer?

[cswilson]

Was thinking of this thread last night-maybe farming is like it is because nobody knows a definate date when their farming career will end-we don't start at age 20 knowing we'll be quitting at 55-we might go till were 80. Here's some food for thought-what if there was a semirigid retirement date for farmers and ranchers-let's say at age 60-no more support programs or a progressively higher tax rate-it might free up aome real estate for younger farmers that they can afford to by not having the 60 somethings snapping everything up.Imagine what it would be like if there was farmland coming up for sale that the landhogs wouldn't be interested in. Something to think about.

[smcgrath76]

That is interesting. I wonder how the business side of primary agriculture would look if retirement was not funded solely by equity investment, and instead was funded through off farm investment such as cash savings, RSP and pension funds.
I am not sure about the higher taxes thing though as it might prompt lower profits and create a bigger problem. I know farmers whose sole goal in business is to not pay income tax and they do a good job of it.
I also think you would have to figure out a way to ease the tax burden on land transition for those exiting the industry.

[cswilson]

Well I'm sure they could sweeten the capital gains side of things -what I was getting atr was how agricultural attitudes wqould change if we knew there was a fixed date when we could retire-most of us kind of ranch with the attitide-I'll go till a horse falls on me lol.

[cswilson]

Hopefully no one in their wisdom passes legislation anytime soon decreeing that farmers should retire at 60th, because there wouldn't be many people left farming !!!

[cswilson]

Not many 60 year olds but maybe alot more 30 year olds-it's impossible for the next generation to pay for the inflated value of their parents assests.

[cowman]

Farmers son: Is that $180 extra justified? I don't know. Maybe it is, maybe it isn't? I believe there is no one stopping anyone from exporting fats to the US? Supposedly those Canadian producers would be getting the American price? Why would they sell to Cargill for $180 cheaper?...maybe the spread is justified?
I don't have any solutions. I don't think there really are any? Now perhaps investing in a co-op packing adventure might be a good investment...or it could be throwing good money after bad? We all have to decide where we put our money...and hopefully live with the consequences! I often wonder though if the packing business is so rosy how come the banks aren't very keen on financing them?
How do I see the cattle industry in the future? Mainly as a tax dodge for the wealthy wanna be cowboy!
Now I do believe a co-op packing venture could succeed if the government stepped in and regulated the industry...sort of like in the AWP and Sask Pool hay days? However I am sure you realize those days are gone and it is very unlikely any government other than an NDP government would ever attempt it? And hopefully we never see an NDP government in our lifetime?

[farmers_son]

Cowman: Good comments. Re “I believe there is no one stopping anyone from exporting fats to the US?”. I am not able to export live to the U.S. for a number of reasons, mostly because I am not a big enough feedlot. I would point out that our domestic market is still our number one market and most of our beef is destined to stay home. The wholesale price of boxed beef is similar in Canada and in the U.S. This whole notion of a basis between Canada and the U.S. is really an excuse for a lack of competition to buy our live cattle on this side of the border.

I think you made a very good comment regarding why are the banks not keen to finance packing plants. In agriculture these days most of the financing is provided by government. AFSC and FCC would provide the lions share of financing for most large agricultural capital purchases and in fact these lenders are moving into financing operating money as well. It would seem that these government lenders would need to step up to the plate to finance capital expansion into value adding for agriculture if we ever expect to see the industry move in that direction.

I see producers looking to vertically integrate as the very essence of free enterprise and capitalism. The status quo of ad hoc programs and government assistance is more along the lines of what would be part of a NDP mandate. We need to get away from that dependence upon government aid. Producers looking to build packing plants so as to inject competition into the market is, in my mind, pretty right wing.

I am sure you are aware that government policies favour the big packers in this country at the moment. It is about high time those policies were changed to at least give producers looking to vertically integrate a level playing field.