Pacific Trade Alliance

[bduke]

Kato... The quota... license... is required to sell a healthful legitimate
product , and the non compete regulations eliminate any fair or
legitimate competition.

This is where Parsley's competitive position is applies.

In a free market society competition is critical for fair pricing.

In a communist society the licenses would likely be allocated by privilege
and without cost.

In Canada's SM environment, the industry has outlawed competition, is
continuously setting higher prices, and is ever increasing the price of the
license because of insider desires for growth and more profits.

The SM industry basically is playing a mug's game with consumers.

The incremental compounding effect of higher costs... including quotas,
and guaranteed profitability is evident in the historical rise of quota bids.

A 70 cow dairy costs an addition $2 million for the license.

The dairy's also buy buildings, equipment and land... as do grain, beef
and hog farmers.

Imagine a grains and oilseeds farm if quotas had cost $500 per acre for
quota.... or $10,000 per cow to sell calves.

Besides the unfairness to consumers, the WTO position of Canada has
been unfair to the far greater number farmers& the value of their
products.

Remember... $28,000 per cow for the license... above the cost of the
cows, the cost of facilities, the cost of land, and the cost of equipment
to farm.

Canada has practically no export market of SM products & no
opportunities to sell into growing market demands ex-Canada.

IMHO supply Management is insular, immoral and far past its due date.

Bill

[grassfarmer]

So bduke what is your take on some of Canada's other subsidies? Lets not pretent supply management is the only thing standing in the way of a true free market. What about Agristability? or Agriinvest - it's more blatant than most European subsidies - put a few thousand dollars in a bank account and the Government matches it and you withdraw it all 6 months later.
In Canada all the rural hockey/soccer moms driving SUVs and kids around on farm plates using marked farm fuel. In Europe we could only use marked fuel on the farm not even to haul produce to market.

[bduke]

Grassfarmer... I find all subsidization distasteful.

IMHO natural comparative and competitive advantages should prevail.

However I am not so naive to not realize that Ag is along way behind other
commodities, products and proprietary rights under the WTO.

The intransigence of the EEC and US to liberate ag programs, and the
dumping of their overproduction is clearly unfair trade.

This practice is illegal in other industries and businesses.

Ergo, most exporting countries tend to establish some underpinning for
their victimized industries.

NZ an exception, but not a country of scale and, when I did a little research,
ag properties were thinly traded.

BTW the WTO has various coding for support....

Green programs are programs which do not distort trade.

When I was involved in ag policy they could only begin triggering when
average incomes drop at least 30%, i.e. some pain was felt!

Amber programs are more supportive, blue increasingly distortive and red
are blatantly distorting.

I understand the reasoning for defensive subsidization... to protect from
unfair trade, natural disasters, and predatory practices.

SM is a long way from being defensive or quota values would be of low if
any value.

Regarding licensing and fuel for off farm usage...

I did a little research into licensing a few years ago.

I learned the insurance claims for 'farm' vehicles are much lower than for
urban addressed vehicles, and that farm plates as a group are much more
profitable.

I do wish the 'F' designations were removed, and the insurance adjusted for
addresses.

As for fuel usage it seems to me that you are comfortable with government
spin that deems not being taxed a subsidy.

I live in SK and we do not have dyed gasoline.

I realize that families living on farms drive far more for family events, and
do contribute far more fuel excise and gst taxes.

BTW if you are suggesting Europe is still the gold standard of finance, living
standards and sustainability ,I wonder why you are in Canada.

Methinks you or your family had things figured out.

Cheers... Bill