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

[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.

[farmaholic]

Grass:

I can't argue about the AgInvest. But it really doesn't amount to alot of money. But I am grateful for it.

I'm not in crop Insurance so I am not getting that "subsidy". And is it really subsidized to the tune they say it is? Are the salaried employees included in that so called subsidized premium?

Re fuel tax exemption. Maybe its available because alot of the purchased fuel.is burned in the field and not on the roads. Except for hauling grain to the terminals and general business and abused personal use "road use", I guess you could.say there is a partial subsidy.

[grassfarmer]

Bucket dairy farmers aren't guaranteed a profit - they are guaranteed a price for their milk - big difference. They still need to run their business successfully to make a profit - some don't and they go bust like anybody else. Running that business involves borrowing the money to build barns or buy quota. Maybe $4 million for quota for 100 cows, all the time threatened that supply management could be abolished with the stroke of Harper/Ritz's pen.
I think they are still taking some big risks.