U.S. farmers set for huge government payouts despite bumper harvest!

[grassfarmer]

Hey SF3 you do know that supply managed businesses aren't subsidized don't you?
The consumer pays the price which is set by the Government to limit excess processor/retailer profiteering and guarantee the farmer a fair return.
In fact because their income comes from the marketplace they are less subsidized than you grain farmers.

[Braveheart]

Grassfarmer, trade negotiators call our supply managed industries "subsidy equivalent".

A subsidy by any other name is still a subsidy.

[farmaholic]

It's kinda coming from the same pocket, but the difference is the "consumer" has a choice, the taxpayer doesn't. But not everyone pays taxes either.

[grassfarmer]

Braveheart, no wonder Canada is such a naive trade negotiator. Why would a producer in this country adopt the terminology used by overseas competitors trying to do us down and gain advantage over us?

Do you view these overseas competitors as your friends while your supply managed fellow Canadian farmers are the enemy?

Strange allegiance.

[Braveheart]

I personally do not view overseas competitors as allies/friends. But make no mistake, the supply managed sector is subsidized, consumer funded albeit.

Nonetheless, I am not currently in supply managed, neither dairy or feather. I don't deny those sectors the right to negotiate their destiny.

To me they are an interesting mix of cornering the market and a subsidized industry.

Just to be clear, we really looked at getting into dairy. Quota was just out of our financial ability.

[Braveheart]

We were also concerned with the future of supply management.

[grassfarmer]

By that token every agricultural product/producer everywhere is subsidized. Why you would call the price a consumer pays for a product a subsidy is beyond me.

[Braveheart]

Legislation limits imports or imposes sky high tariffs, limiting foreign competition. Domestic supply is managed to just meet demand and price to consumer is set by board directed formulae.

By limiting domestic and foreign competition prices are "set" by the regulatory framework. That, is the equivalent of a subsidy.

A subsidy by any other name is a subsidy.

I know the Agri-Left thinks supply management is a wonderful farming example, and it may well be, but there's no denying it's subsidized agriculture.

[mbdog]

Supply managed is good for those in supply management production system, and who own/can afford quota. Sounds like they self-regulate themselves, and set price. Govt supports cause they don't "directly" subsidize the industry. Consumer must pay domestic price.
Neither for or against...my concern would be that those in these protected industries, not just the producer, don't take consumer $/government support for granted in perpetuity. I see/hear escalating price and consolidation of quotas...best situation for everyone? What is a person to think?

[bucket]

Grassfarmer

It's a subsidy because of the formula they use to determine the price of milk.

Milk prices have the cost of fuel calculated into it along with s number of other determining factors which include a cost of productionand profit.

It's sort of like the CTA approving freight rates.

Oddly milk prices never go down and you don't see a milk futures market. Right?

Grain farmers could only hope for a COP formula linked to CPI.

[grassfarmer]

You want to talk about subsidized agriculture lets talk about grain farming. Subsidized crop insurance premiums, farm fuel benefits and then there is Agri Invest, the ultimate subsidy. Put the X amount of dollars the Government tells you to into a bank account and they double your money no questions asked. Free tax payer money given to you to withdraw and spend how you like.

Supply managed producers aren't eligible for Agri Invest.

If you are going to condemn subsidized agriculture to further the "free enterprise" myth at least be honest about it - you are recipients too. Which was my original point in highlighting SF3s error.

[bucket]

Grassfarmer

I am not arguing with you.

My point is that dairy producers are guaranteed a profit in their formulas.

And their products never go down in price no matter the factors that comprise the formula.


Grain farmers are left with all the risk.

Put it this way - no too many dairy cows don't get milked everyday. They can earn their keep rain or shine.

Now have a quick review of this past harvest.