Adler vs Supply Management

[FarmRanger]

<i>"the supply managed
sectors are the only ones that get their entire income
from the marketplace" </i>

Hardly.

Most of their income comes from crippling import duties to keep prices artificially high to Canadian consumers, and impenetrable barriers to keep domestic competition out. The small remainder of their income is from “the marketplace”.

[tubs]

supply marketing is price fixing.

[grassfarmer]

No - clearly every dollar of their income comes
directly from the sale price of their milk. Subsidies are
the things given to support the "free market" sectors
- crutches like Agristability because farmers cannot
remain in business longterm producing below the
cost of production. Multi million dollar payouts every
year primarily to the hog barns, feedlots and grain
farms.
Supply management successfully addresses this
problem hence there is no need for Agristability or
other support programs for the SM sectors.

[FarmRanger]

It doesn't take a rocket scientist to see that the price of dairy is above the "market" price.

Does it really matter where the subsidy comes from, whether from the Canadian taxpayer or a single Mom shelling out extra $ for her kids cheese sandwich?

The bitter irony is the ever increasing subsidies are being capitalized into "quota" and that money exits the industry with retirees.

Insanity.

[grassfarmer]

I don't suppose it does matter ultimately how the
money comes through for the product whether it be
directly through the price a consumer pays (SM) or
through consumer paid price plus consumer funded
aid packages to maintain farmers (beef, hogs, grain)
But lets drop the lie that this has anything to do with
"free markets" and that those of us in the beef, hog
and grain sectors are unsubsidized and somehow
superior while the people in SM are subsidy junkies.
This is a complete reversal of the truth.
SM works because there are regulations in place to
ensure processors pay a fair price for their raw
material. Lack of excessive profits in the processing
sector are what ensures adequate returns to dairy
producers. SM returns all come from the market and
it's a system that obviously works.

[ColevilleH2S]

The dairy system as we know it in Canada is going
to hit a very hard wall if interest rates take-off.
Imaging how you will finance your 2,000,000 quota
fee with FCC when rates are in the double digits
again. Young producers are getting a F-job from the
establishment and bankers are reaping the rewards.

[grassfarmer]

I don't see why they would be hit particularly hard
with an interest rate hike - remember they are in a
highly, and consistently profitable sector. It's
generally accepted that you can buy and pay off milk
quota in around 7 years.
Contrast that to beef, hog and grain operators.
Feedlot cattle have averaged a net loss of around
$6/head over a 30 period, how much have hog
operations averaged over the same period? With the
machinery and other input costs associated with
modern grain farming as well as greatly increased
land costs how many of you are looking forward to
double digit interest rates? Especially given the risk
you are taking - not getting a crop seeded, getting
hailed out, having a poor crop due to too wet, too
dry, early frost etc and having no control over the
prices received.
None of these things affect the dairy (egg or chicken)
farmer - supply management is a good system don't
throw it out to appease our trade competitors.

[Fransisco]

The system "works" in the same way as robbing banks "works" for thieves.

And it is the biggest subsidy scheme we have going. Anyone who doesn't recognize that has been sleeping with a bag of furadan under their pillow.

I can understand why those who are in it don't want things to change its a really nice gravy train for them. But there's nothing in it for anyone else, consumers and other farmers get the short end of the stick. Its a classic win lose scenario.

[bgmb]

I am not fond of supply mgmt but beware the next
thing adler will be after is agristability and crop
ins. Subsidies. Public pays for them as well.

[perfecho]

The oil sands have been subsidized....natural gas have been subsidized....corporate meat packers have been subsidized....the US dairy system has been and will be heavily subsidized......so let’s throw out our system that the sell price actually has something to do with the costs.
I agree changes could be made, however, don’t be jealous just because someone has figured out how to make money in the food system.....you would rather pay incompetent CEO major bonuses for screwing the system....hell even they are subsidized.