New trade agreement

[TOM4CWB]

Forage,

I spelled it out...

$20B needs to be accounted for... which means that TPP must pay enough compensation to fix a $40B economic hole.

Which is why Federal Conservatives and the Gov. of Canada... have voted to basically leave SM5 alone.

[foragefarmer]

Tom, what's your source for those for those numbers???

[wmoebis]

Who sets the price of milk quota? Why is it so high? Does the gov't get any or all of proceeds from quota sale?

[chuckChuck]

So why did the Conservatives give up the CWB without something in return from our trading partners who were asking Canada to get rid of the CWB? Since they were in such a hurry and were incompetent why would you expect them to get a good deal for farmers under TPP? Ideology seems to trump common sense with Harper.

[FarmRanger]

oh get off your soap box chuck.
Whether you agree with the ramifications supply management has on the industry, at least those farmers receive more than market price for what they're allowed to produce.

Getting more than market price was one thing the single desk buyer was never accused of by its detractors.

[freewheat]

Forage farmer, dairy guys are wealthy. I have a friend who is a large dairy guy. He says it is a license to print money. He also knows it is not a natural market place, and will not stand up to trade rules long term. Both in income, and in funny money they have large wealth. We all know that. They work very hard. They have no life. BUT they are living in a dream world of false markets. I do not begrudge wealth. I do begrudge false wealth and unrealistic policies and distortions in the marketplace which harms consumers.

New zealand got rid of their restrictive agriculture several years back. The farmers there were scared like our dairy guys pretend to be. But now, NZ has a very dynamic, non subsidized ag sector.

I believe our dairy guys can compete. They will be just fine.

[riders2010]

If you can convince the Americans to not subsidize All their farmers that would be the first step to have a trade deal based upon the actual merits. However it will never happen. So the argument is bogus that it's free trade at all.

We have a good supply of quality dairy product.

We have no competition in our grain handling, rail transportation, and equipment dealers. They pretty much soak us what ever they want. Read the thread on parts cost and then tell me if that free market system is working in any if those sectors.

[perfecho]

Really...
New Zealand is unique in that 95 per cent of milk production is exported with Fonterra collecting around 87 per cent of the milk. As a result, there is no ‘market price’ set through competition for supply.
Bad example.....

[perfecho]

d this and see how dynamic their milk sector is...http://www.bloomberg.com/news/articles/2015-07-29/china-spurns-new-zealand-milk-and-12-000-farmers-see-red

[perfecho]

Should be "Read this"...

[foragefarmer]

Freewheat

"I do begrudge false wealth and unrealistic policies and distortions in the marketplace which harms consumers."

No, I guess you'd rather see the dairy farmer knock down so that that milk processors make all the money. Have you look at the difference between the $US to CAN$? The consumer would not be saying a dime. Dairy farmers are not subsidized they control the supply so that there is no overproduction. It's called supply demand, they get a fair price for their product, unlike us grain farmer.

Freewheat I really don't believe that you are concerned about the consumer one bit, based on the history of your posts throughout the years. They tell a very different story!!!!!!

[TOM4CWB]

Forage,

I spent weeks with SM5 folks doing Financials and talking this through with them at our CTEAM.

I did a little estimate... show me I am wrong that $40B is needed to buy out SM5 quota and farms.. to leave them whole.

Governments in Canada created this mess... they will need to fix it. Since a law made by our Gov... is the Quota... the people of Canada and the provinces should hold the value... not those given the quota in the first place.

SM5 folks know this. They are locked into a paradox... Someone is paying for all the overhead Quota is valued at.... Obviously both Canadian Consumers and Quota owners pay $B$$$.

So...Dig continue to your hole Forage... but should have known what you are talking about... before you started.