Reall real BIG Lies

[TOM4CWB]

Remember the multinationals that pay 50% tax on large profits extracted from your farm... that gov. forgot to assure competition.... to keep costs down?

THis farm income problem is an expense problem... and gov's are laughing all the way to the bank... and from bank profits too!

Organic is trying to beat the system... by not buying traditional imputs!

[cottonpicken]

Oneoff,economics question,do you know what your
talking about when it comes to macro-economics?

[oneoff]

OK Tom; You spend almost a million dollars to earn a million dollars farming. On a good year after you took your depreciation or capital cost allowance into account you would be in the hole. And you forgot that you hadn't been paid anything for your labor too.
On the couple of years in your farming career where you should have made a nice killing you make 40,000 (as in 2008 and its again before your wages and depreciation and return on investment and nothing for your risk because we both know that at least a few times in a lifetime some bad odds are just going to catch you.) I still remember losing what should have been an 8 month opportunity to get dollars more for my durum than the CWB finally paid me. And for every dollar I didn't make; it was exactly one dollar less in net farm income that I should have had. From the Statscan data it is evident that I had lots of company because net farm income was still less than 40,000 on average for crop production farmers in 2008.
Are you fairly and adequately compensated so far. Then the government helps out with $50,000.
Remember you're running a million dollar operation and are being left with the pennies year after year.
Its like Her Majesty and road allowances or Crown Land. The old girl doesn't have the time to look after those lands herself; so she delegates rural municipalities to manage them in her absence. As you say; its all in the perspective as to who really owns and controls anything.

[oneoff]

Cotton; All I can say is that I have certainly forgotten much more than I currently know.
I try to rely on logical arguments and common sense; and when I have to; a little bit of homework isn't out of the question.
I have friends who have their doctorate in economics and their business acumen never has been any more astute than mine.
The answer is no; Maybe i'm like the consultant who said he didn't even know how to spell the word; but now he rrr's one.

[cottonpicken]

Well i know the educatedmatypes are taught in a
very flawed doctorine called keynsianism.They have
a hard time explaining resent current events and
have an even poorer record of what is coming.I
stopped bringing it up a while back.

One thing i know to be true,depressed commoditie
prices is global and cyclical with a good degree of
manipulation...not enough space on this infinite
page to begin.

Seeing what is happening is easy as long as you
believe your lying eyes.

[oneoff]

Seems to be a lot more down than up; but I can't explain it. Maybe the guy in charge could explain it to me.

[Burbert]

FARMERS #1 RULE *** 1/3 of income comes from the land, 1/3 of income comes from the government, 1/3 comes from crop insurance. Thats a sad sorry state for and industry, butt it is reality in Comedia! Like it or not that the way it happens. Give a component up, and 1/3 of income is lost.....

[charliep]

Larry has already highlighted but here is the graph in the Economist.

[URL="http://www.economist.com/node/16507149?story_id=16507149"]oecd graph[/URL]

[charliep]

I know the discussion has been about Canada but I note how much is being spent on agricultural subsidies world wide.

Begin quote
OECD countries spent $253 billion on farm subsidies in 2009—22% of gross farm receipts, the first increase since 2004. High agricultural commodity prices ensured payments slid, and reach a record low in 2008. Last year, this trend reversed as commodity prices fell.
End quote.

[skhadenuf]

Oneoff makes some valid points about the level of income made for the level of risk. So what you are saying oneoff is that governments take tax money to give to farmers so that they can pay high expenses to input corps etc. And to take that further input corps etc. control and fund our political parties therefore they are creating and part of this circle to take tax dollars ultimately not to benefit the farmer but the corporations is that what you are saying?