Fertilizer prices

[FarmRanger]

free enterprise = capitalism
no?

Can you give an example of how we are acting against our own best interests?

[jensend]

free enterprise - many buyers, many sellers, no barriers to entry, all the econ 100 conditions.

capitalism - capital gives power in the marketplace, size matters, market influence is rewarded not innovation or creativity. all the mergers and acquisitions are capitalism, not free enterprise because they just concentrate influence which is the opposite of free enterprise.

in free enterprise everyone on both sides is a price taker as determined by many transactions, not set by one or two or three big players working together. the two sides of the market are balanced.

farmers are working against their own best interests by being convinced to enter into 'partnerships' or alliances with businesses on the other side of the transaction. how does a four thousand acre farmer become a partner of cargill? the only competition is between farmers.

[TOM4CWB]

Jensend,

"how does a four thousand acre farmer become a partner of cargill?"

By providing services Cargill needs... at fair prices and provide value and integrity.

Relationships are built on trust and integrity... working with Cargill is no different than being a service provider for CN, John Deere, the Gov. of Alberta... or any other number of companies that must compete... to make a living by providing a service!

There is almost always an accountability point... which will discipline an organisation!

[FarmRanger]

“in free enterprise everyone on both sides is a price taker as determined by many transactions, not set by one or two or three big players working together. the two sides of the market are balanced.”

What you are describing is “perfect competition” which is far more likely to exist in a capitalist democracy.

Where few players have an ability to influence prices through collusion you have what’s called an oligopoly, or worse, one player who controls the market - monopoly. Good anti-combines legislation is required to reduce this ability to abuse market power.

So the opposite of perfect competition is what we have in the designated area - a monopoly buyer who can dictate any price to the trapped sellers of wheat and barley in western Canada.

[Fransisco]

Here is a good working definition of Capitalism.

<blockquote> "Capitalism: is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned.

The recognition of individual rights entails the banishment of physical force from human relationships: basically, rights can be violated only by means of force. In a capitalist society, no man or group may initiate the use of physical force against others. The only function of the government, in such a society, is the task of protecting man’s rights, i.e., the task of protecting him from physical force; the government acts as the agent of man’s right of self-defense, and may use force only in retaliation and only against those who initiate its use; thus the government is the means of placing the retaliatory use of force under objective control."</blockquote>

[Fransisco]

I'd say we've got a fair ways to go yet.

[jensend]

so tom do you think cargill would treat you or any other farmer as an equal and important partner or can they screw you because they know someone else will step in and try to make the 'partnership' work?

[TOM4CWB]

Jensend,

I have found... in dealing with our family... honest, hard working, folks associated with virtually every grain co/marketer we sell grain to.

Being that we market grain with over 25 different entities... Cargill being one of our many customers... we have been able to work through the 'sticky issues' with integrity... and I can honestly say we have finished each transaction with a balance of 'fairness' without exception.

Communication is key to fruitful business relationships... and treating others as I would have them treat me!

Generally speaking in a competitive market place... folks don't get away with being rip off artists for very long... as they simply are run off if they are dishonest and break contracts.