Ottawa plans compensation for farmers

[sumdumguy]

Sure opened the eyes of some "loyal" supporters.

[FarmRanger]

While I am not in favour of the massive consumer subsidies that supply management enjoys, I don’t think it’s fair to just drop the whole system without some kind of compensation either. Now, before people start yelling at me for thinking compensating wealthy supply management guys is a good idea, please hear me out.

I don’t agree that it ever made sense to subsidize an industry to the point where the licence to milk a cow is worth more than the cow itself. Those consumer subsidies (which keep out imports with tariffs and increases prices domestically) have become “capitalized”, which means that future subsidies (overpriced dairy, chicken and eggs) have been built into the price paid for the quota by new entrants. If that quota had never changed ownership, then the cost of removing those subsidies would fall on the same people who benefitted from them in the first place, and I would be OK with just dropping the whole system with no compensation.

The big problem arises when you have the original owners who sell quota which has many years of future subsidy built into the price, to another farmer. While government has the ability to make that quota worthless overnight, and there are a lot of really good reasons to do so, the poor schmuck who paid for them without reaping the benefit of the future subsidies may be left holding worthless quota with a huge debt against it. The fact is that the purchasing farmer now needs the subsidies to pay for his investment on the license to produce. Therefore, without “compensation” as sumdum calls it, these farmers could be bankrupted overnight through no fault of their own. They purchased quota in good faith and while I disagree vehemently with the whole system, I disagree more with the unfairness placing a disproportionate amount of the costs of ending it on the newest entrants.

I really don’t want to get into the CWB debate again, but the removal of the single desk buyer is not an apples to apples comparison, as there was never any subsidy - consumer or otherwise, built into the price of wheat from having only one buyer, and certainly no tangible value asset like dairy quota that was ever traded amongst farmers for the “privilege” of having only one wheat buyer in western Canada.

[mustardman]

Guarantee you one thing Farmranger, if durum was selling at Port for $15 under the CWB you would be getting a HELL of a lot more ( at least 85 percent) whereas this past year you were lucky to get half of the $15
Graincos Wetdream - Marketing Freedom

[tweety]

Sumdum it is unfortunate the first to file first to patent law change enabled a protection time increase.

Regardless of what the new industry seed model will look like can farmers expect new seed technologies disease resistance etc but also not expect to pay for them ?

If u don't then AC Barrie et al are your go to varieties.

[tweety]

I think grain farmers are often jealous of the stability and good money that comes with SM and wish grains were the same way

[JDGreen]

Mustard that's total crap. Selling range for durim this past year was 12.50-16.00 on our farm. Under the board this would not have been possible as they would have done the same as always and presold 70% of the expected crop at Walmart prices prior to harvest.

[bucket]

Jdgreen

The old cwb needed a different attitude and maybe some new people. New owners won't be their savior in the long run.

As for this government's record it really hasn't been that good for primary producers.

Better for everyone else living off the primary producer and getting better all the time.

I am not sure this is what I voted for last time.

[riders2010]

Seems also to me Tom you ve been boasting the last years about your weather there likely I would suspect you need a second coat of gold this year Taxpayer funded????

[mustardman]

Keep drinking the Kool- aid Jd. And mouthing the mantra
Marketing freedom
Marketing freedom
Marketing freedom
Oh oh the graincos are Coming ! Lol

[mustardman]

I hate to say I TOLD you so but Some of us tried warning posters on here about this government and we got nothin but $hit and abuse

They Are not and never have been a FRiend of the farmer ,corporate interests are their friends

[bucket]

Mustard

Yes I can hold up my hand and say they duped me.

I just wanted an open transparent market. Vessel reports, forward sale info etc.

Stuff like that that is a given in the states.

The conservatives won't entertain the idea nor add a regulator to both the railways and graincos with real teeth.

Most of that stuff should have all been put in place by now. Instead they give some a million dollars to develop an app that has no value other than averaging prices for info only. Idiotic.

[bucket]

And pdqinfo hasn't updated any news since June 1 2015.

Seems to me alot has happened since then.

Makes you wonder how accurate the pricing info is.