Big Farms

[farmers_son]

Stomp Farms, Saskatchewans second largest hog producer filed for bankruptcy.

To me, that says three things.

One, mega farms (whether cattle or hogs) are really not viable and cannot manage risk on small margins per unit of production.

Two, cattle do not want to follow the unsuccessful hog model although that is what ALMA is trying to do (our Premier is a hog farmer by the way).

Three, if Stomp farms had built in Alberta the Stelmach government would have bailed them out with direct support amounting to tens of millions of dollars direct subsidy for each large operation.

http://www.saskatoonhomepage.ca/index.php?option=com_content&task=view&id=18860&It emid=424

Stomp Files for Bankruptcy

The second largest pork producer in Saskatchewan is calling it quits.

Like everyone in the hog business . . . Stomp Pork Farms has been going through some very difficult financial times over the past three years.

Low prices have resulted in losses ranging from $25 to $40 per head. The closure of the province's only hog slaughtering plant two years ago has also increased transportation costs.

Stomp Pork Farms has about 15,000 sows and accounts for 18 per cent of the pigs raised in Saskatchewan. Most of them are weanling pigs sent to the United States for finishing.

Owner Ivan Stomp was not available for comment . . . but 600 Action News spoke to the General Manager of the SPI Marketing Group, a hog marketing agency. Don Hrapchuk says "his barns will continue operating for the next two to three months as the sows farrow and eventually as the iso-weans are sent into the United States for finishing, then those sows will be culled and sent to market."

The company has about 125 employees at a number of barns. Local grain producers will also feel the impact. Hrapchuk says "that's a fairly large number of units--15,000 sows--and for them to shut down, it means there will be one less opportunity for feed grains in Saskatchewan."

The largest hog producer in the province is Big Sky Farms. The Saskatchewan government owns 70 per cent of the company.

[coppertop]

When did our Premier become a hog farmer ?
He had a cow/calf operation for many years
until he sold his cows shortly after he
became leader of the PC party.

[grassfarmer]

Hey Coppertop why spoil a good story by supplying some facts?

[farmers_son]

Well there is an important fact that we have to get straight...was Stelmach a cattle farmer or a pig farmer or both.

I had a long bus ride with one of Stelmach's next door neighbours (I believe he was closely related through his wife too) who described Stelmach as a hog farmer. Stelmach's Wikipedia page includes a link that states he maintains a small herd of Angus cattle. Another link (Macleans)says he keeps a dozen dairy cows which was being milked by a brother when Stelmach was campaigning. That same link includes a quote to the effect that Stelmach got out of hogs just before the price went down. It is possible that Stelmach had all three, beef, dairy, hogs.

Based on what I have seen of Stelmachs policies I would tend to think of him more as a dairy farmer or hog farmer, not so much of a cow calf guy. Not really very free enterprise, would make a better socialist than a cowboy.

See:
http://www.macleans.ca/article.jsp?content=20061225_138423_138423

Besides the crucial point of just what Stelmach raised on his farm the more important point remains that big farms may enjoy economies of scale but have clearly demonstrated that they cannot survive market down turns without massive government support. Yet Governments federal and provincial keep feeding these Subsidy Kings with limited support dollars that otherwise would have gone to the average guy like you and I who would otherwise be sustainable.

Our esteemed Ag Minister Groeneveld repeatedly has said the Government spent $2.5 billion on BSE. I can guarantee you I did not see much of that...it all went to about 20 very large feedlot Subsidy Kings including two packers. One of those packers has since folded up their bags and left the country, including the subsidy money which was shipped off to U.S. head office in the form of corporate profits. The 20 other Subsidy Kings still have their hand out after getting the bulk of what AFRP money there was.

Meanwhile you and I were told there was not enough to go aroung and we got 30 cents on the dollar.

[coppertop]

fs, I happen to know Premier Ed very
well, he may have had hogs early in his
farming years, but he did not have a hog
operation when he was campaigning for
the PC leadership. He spoke often about
how he seeded some of his land to crops
and had a herd of Red Angus x cattle.
Marie calved the cows and the joke
always was that no matter what Ed made
in politics he could never afford to buy
more cows than Marie could calve !
They sold their cows in December of 2006
just after he was elected leader.

[farmers_son]

Further to the burning question of Ed Stelmach the farmer (whether he be farming cows, hogs, dairy)....

See:
http://www.premier.alberta.ca/biography/

Click on What Ed Does In His Spare Time. In Premier Stelmach's own words, he has no livestock other than a dog and cat.

[grassfarmer]

Talk about pointing the finger and having 3 pointing back at you farmers_son. You tirelessly promote the ABP, an organization which refuses to adopt any policy to reign in packer power, couldn't contain their glee when the packers were cleared of unfairly taking advantage of BSE bailout money(the Doerksen/McClelland photo op), aggressively lobbied for the cap on CAIS payments per operation to increase time and again until we reached the current $3 million limit.
Then you tell us you are the only organization that backs the family size cow/calf producer - and you are suprised when no-one believes you?

[coppertop]

Exactly FS, Premier Ed doe not have
livestock so he is NOT a HOG FARMER !!
The ABP issue isn't the reason I opposed
Bill 43. I opposed it because I felt we
needed a plebicite, not a ruling from
the top down. As I have stated
previously on this site, it is either a
mandatory check off or a voluntary one,
and if that is the case then Age
Verification should be treated the same
way. What I have been told is that
feedlots felt it was unfair that the
cow/calf producer should have equal
voice to the feedlots as far as checkoff
goes, hence the legislation vs a
plebicite. This flies in the face of the
democratic process which as far as I
know is still one person, one vote. ABP,
like any organization is only as good as
it's members, and particularly its board
of directors. I know some of the current
Board and delegates and by and large
they are doing a good job, unfortunately
they are in the bad books with Minister
George and this refundable check-off is
the result.

[farmers_son]

Well we got that settled. Coppertop…I agree 100% with your comments (as I usually do). In hindsight I did not need to include a remark about Ed Stelmach, it took away from the discussion on mega factory farms which I think is an important discussion. I voted for Stelmach during the leadership race and still think that was the best choice. I have quite a few problems with a lot of the legislation that was introduced this spring and wonder where most of that came from. But at the end of the day Ed Stelmach is a very decent fellow and he does have closer roots to agriculture than any Premier we have had or are likely to have. Still thinking I need to vote for another party in the next election although not sure which party that might be.

Grassfarmer: I believe you are making things up. I have consistently have been in favour of the family farm in these pages. I have been consistent in my support of producer packing plants. I have consistently forwarded my opinion that large farms/feedlots are not the way to go. To try and twist that around to suggest something else is wrong. I know you do not like ABP and that is your privilege. I see ABP as a way for the average producer to improve their lot. So we are going to disagree on ABP.

That should not take away from an important discussion that our industry needs to have on whether the mega factory farm model is where we should go as an industry. I clearly do not believe that is what should happen. The bankruptcy of Saskatchewan’s second largest hog producer is an example of that. In fact Saskatchewan’s largest hog producer is majority owned by the Sask government or it would have folded too. I would think you would agree.

I do not believe Governments giving million dollar subsidy cheques to mega factory farms is acceptable, either politically or from an economic standpoint. Clearly the diversified family farm can manage risk better, is more likely to withstand downturns and supports a more realistic vision of what rural Canada should be like. Whether we are talking cattle or hogs it is no ones interest to have agriculture mostly in the hands of 20-40 feedlots and a similar number of hog barns. Obviously there is more to agriculture than economies of scale.

[coppertop]

fs, I think the current leadership of
ABP is the best in years. I don't know
Rick Burton but I do know Kevin Boon,
and he is an everyday cow/calf man, and
works his tail off for the producers of
this province.
I think that many of the large Confined
Feeding Operations are under financial
pressure with the exception of Dairies.
In the early 2000's the mindset of
government was to expand the livestock
industry. Hog production in the province
was increased dramatically with the huge
hog barns coming on stream. Some new
feedlots were approved, although not
many before BSE hit.
I know some of the internal dispute
issues between ABP and the Minister, and
I think ABP has really tried to
represent the cow/calf producer a lot
more in the last while.
I know grassfarmer may not agree, but I
can also see his point in this.
There are spin off organizations that
seem to have the ear of the Minister,
but interestingly enough there doesn't
seem to be many cow/calf people on them.
Don't feel bad about disagreeing on this
issue, I happen to know a family that is
well known in cattle circles in this
area and two brothers in the same family
don't agree on the refundable check-off
!! I have always felt that Ed is a good,
honest man, and that is why I supported
him. I do think he is getting some very
bad advice on a lot of issues .

[grassfarmer]

No fs it's not me that is twisting things around its you. I was merely pointing out the contradiction that appears all the time when you back ABP and yet claim your personal beliefs are more or less exactly the opposite.
You claim to back the cow/calf producer, small operations against giant, producer plants against the big packers yet as I said before ABP policies favor the opposite.

ABP actively supports captive supply, a practice which lowers live cattle prices for all producers.
ABP supported the bailouts the big packers got after BSE.
ABP promotes giantism through their campaign to increase the CAIS payment caps.
ABP campaigns for an end to supply management which delivers viability to family sized dairy operations.

[coppertop]

In the grand scheme of things, the most
important thing we need now is RAIN, and I
doubt if either ABP or Premier Ed can do
much about that !!!
We got a nice little shower this morning,
not enough but hopefully we will get more
over the next few days.

[farmers_son]

Actually Grassfarmer, that is a gross misrepresentation of ABP. And Coppertop is right, what we need is rain. We would all feel better.

Still think there needs to be more awareness that the mega factory farm concept is not the way for agriculture to go. What would happen to agriculture if it is all in the hands of a handful of enterprises and they start to go bankrupt like the hog farm in the first item in this thread. It will be GM and Chrysler all over again. Government is going to own most of GM. If agriculture goes big (and it is on its way to being there) Government will end up owning agriculture too.

What a minute...government already owns the biggest hog farm in Saskatchewan. Go figure....

[grassfarmer]

Why is it a gross misrepresentation fs? Please tell me which of the points I quoted aren't true.
1 ABP actively supports captive supply.
2 ABP supported the bailouts the big packers got after BSE.
3 ABP campaigned to increase the CAIS payment caps to $3 million.
4 ABP wants an end to supply management.

As for Kevin Boone I would disagree with you there Coppertop - with his pinstripe suits, spotless new cowboy hat and working off farm he doesn't impress many of my friends in this zone with his ability to represent us. He does a great job for the packers though arguing as he does for captive supply, no BSE testing etc etc.

[coppertop]

grassfarmer I live about fifteen minutes
from Kevin Boon. If all you see when you
think of him is pinstripe suits then you
don't know the man at all. He does not
have a large cattle operation and his
off farm job as you call it is in the
cattle industry. Sometimes I think we
only hear what we want to hear both on
this site and in person. I think it is
difficult for any organization to
represent the cattle industry when that
industry can't agree on what the issues
are and how they should be solved. All
one has to do is look at the posts on
this site and it is easy to see why
governments think they need to regulate
us, because we don't know what is good
for us !!!!