Is farmland a strategic resource?

[bucket]

Been thinking alot of the potash industry and how Wall called potash a strategic resource for the province.

Now with all this talk of foreign investment in farmland, should it be considered a resource and protected as well?

Asking this because as the province protected potash, they recently sold potash to India for 427 per tonne delivered to India. Meanwhile we are being told to pay over 500 a tonne.

If the premier protected potash corp., should farmers not have the same consideration at least to have the same deal?

IMHO, the difference betwen the asian price and the Saskatchewan retail price, should be considered a tax on the local farmers. Wall and his government could quickly fix this price problem and on nitrogen as well.

Basically, is farming a strategic resource for the province of Saskatchewan?

Your thoughts.

[Jeff Nielsen]

Was in Motto Grosso state Brazil in January, they
are paying the same price delivered to their farms
for potash an urea as I am at Olds.
Seems wrong doesn't it Bucket!

[bucket]

Yep, more than just a little wrong. Its absurd.

I have a couple of calls in to the province's minister of industry and the ag minister. But I doubt they will know WTF I am talking about.

I tell you the lack of vision by these elected officials really grates me.

And instead of having groups that can take on these issues, the people that have the ministers' ears in this province decide to promote a wheat commission. The blind leading the blind.

[wilagro]

bucket: You would expect that these different GRAIN COMMISSIONS take on government effectively regarding issues of policy or direction??? Not likely when for the most part they depend on government for direct funding and the indirect funding provided from producers through enabling check-off legislation. That would be like biting the hand that feeds you.

Most of these COMMISSIONS are started by a small cadre of MEDIUM and LARGE producers who want to control the so-called industry THEIR way. If you have the ear of government presumably there will be a benefit in the long run.

This is not to say that these commissions are necessarily evil but there can be some self-serving motives behind their organization and the way they are run.

[bobofthenorth]

The real issue here is the cartel - Canpotex. Absent monopoly pricing there would be an incentive for individual producers to bid down the local price to the tidewater price less freight, because we are exporters. Its exactly the same argument for why we end up paying NOLA plus freight on phosphate - because we are importers in that case.

BHP might have changed that - we'll never know and that ship has sailed. I think I heard that Kloppers is resigning so we're probably stuck with the "benefits" of the cartel. If you were hollering for Wall to squash the BHP deal don't come back complaining now.

[seabass]

It's seems to be what the market will bear. Just
the same as buying a vehicle in Canada vs the
US. Considerably cheaper down south.

[bucket]

bobofthenorth

I can't remember which side I was on when BHP came calling.

But it would be nice if there was a consistent policy from the government on all industries.

There is problem when the government protects potash corp and then it allows them to take advantage of the support it got from the residents of saskatchewan.

What would happen if a firm like FNA decided to bring in potash from Russia. I would put odds it wouldn't be to well received.

They are gouging the shit out of producers in Saskatchewan on both potash and nitrogen and the government ignores the request to explain it.

Nitrogen from the black sea area has a production cost of 350 a tonne. There is no way it costs more to make it in saskatchewan. Current urea prices on the US plains are running at 565 per tonne. We are over 600. And chances are its coming out of belle plaine.