Supply Management or NO DEAL

[ajl]

Pay the Dairy Farmer ! Its hard work 24/7 !

Thanks for the Milk !

Robots do the work today. Company in Quebec even makes a robot milker for tie stall dairy barns. Look up Milkomax on Youtube to see it in action.

[littledoggie]

Heard on the CTV news last night that Trump said there should be no tariffs and no subsidies.

[chuckChuck]

https://www.realagriculture.com/2018/02/u-s-dairy-subsidies-equal-73-percent-of-producer-returns-says-new-report/
U.S. dairy subsidies equal 73 percent of producer returns, says new report

Written by
RealAgriculture News Team

February 9, 2018

Comparing government support for Canadian versus American dairy farmers is not a simple black and white process. While Canada’s dairy sector operates under a regulated supply management system, the U.S. government’s support for its dairy farmers is less direct.

Support, in its various forms, equaled 73 percent of U.S. dairy farmers’ market returns in 2015, according to a report published by a Canadian trade consulting firm on Thursday.

The 588-page study by Grey, Clark, Shih and Associates — commissioned by Dairy Farmers of Canada (DFC) — says the American government contributed around $22.2 billion in direct and indirect subsidies to the dairy sector in 2015.

Lead author Peter Clark shared the numbers at DFC’s annual policy conference in Ottawa this week.

“The support is completely ignored,” he said. “When it comes to farm support, the U.S. has the deepest pockets; deeper even than the European Union. Our study provides detail nationally, and on a state basis, the losses to U.S. dairy farmers. USDA data reveals that for more than a decade, U.S. farm gate prices for milk fail to cover costs of production.”

Based solely on the USDA’s national average farm-gate price and national average costs of production, Clark says American dairy farmers lost money every year from 2005 to 2016.

The report figures support granted to U.S. dairy farmers in 2015 represented approximately C$0.35 per litre — almost three-quarters of producers’ revenue.

The calculations include government expenditures outside of dairy programs, such as subsidized irrigation water, nutrition programs and government loan programs. For example, the benefits of state and local irrigation programs are estimated at $2.1 billion.

Clark calls the subsidies “an 800-pound gorilla in the room,” with the U.S. dairy industry demanding increased access to Canada’s supply managed market in the current North American Free Trade Agreement (NAFTA) negotiations.

“U.S. politicians have been quick to demonize Canada for its different system. Fair trade is in the eye of the beholder. For example, some 41 countries, including the U.S., has WTO approved tariff-rate quotas. The U.S. challenged Canada’s rights to use their quotas within NAFTA over 20 years ago. The U.S. lost. But the U.S. does tend to cast a very broad net when they complain about trade,” said Clark.

The report follows similar analysis conducted by Grey, Clark, Shih and Associates in 1990, 1998, 2003, 2005 and 2010. In 2010, the firm found U.S. government support equaled 62 percent of American dairy farmer returns, totalling nearly $20 billion.

The U.S. Dairy Export Council has not yet responded to a request for comment on the report.

[GDR]

Most of you guys need to wake up and look at the big picture. It is absolute jealousy that makes you guys anti quota system and anti us subsidies. Both make you money in prairie agriculture. Without US ethanol mandates where would grain prices be, just look at the huge price swings the last couple years everytime they look at changing regs we get huge market reaction. The good prices and profitability we have had the last 10 yrs have a lot to do with ethanol production.
And if supply management goes you will also have lower grain prices, more farmer competition and dont forget higher taxes. As for milk prices, its as cheap as any other bottled beverage already so it ain't going down. And work wise it is still a tough 24/7 job. Robots tech can only do so much, no different than adding a Gps to your tractor, makes life better but doesn't eliminate the work.

[ajl]

You do need to understand Chuck that research paid for by the DFO will be as unbiased as climate research paid for by a liberal government. In another words, put it on the toilet roll.

[sewen]

I read American farms can have cousins, nieces and nephews apply for subsidies even if they don’t live on the farm. Heck why not give the dog a subsidy too.

[beaverdam]

This issue is bound to accelerate, because two very different things are happening here,

1) Trump is looking at improving trade deals so they're more balanced and re-establish some industry in the heartland.

2) Trudeau is looking for any possible way to get re-elected, because his latest moves(pipeline purchase) hasn't been as positive for him, as he'd hoped.

If Trudeau has any hope of getting re-elected, he has to stay on board with those protected industries, particularly, that bulk of them are in Quebec and Ontario.

Trudeau isn't talking about U.S. programs in public, nor have I heard Freeland mention anything.

Trump is the perfect foil for Justin to campaign against, and to boot, the media already hate Trump, so Justin is bound to get positive coverage.

This is more about Trudeau getting re-elected, than trade.

Question is how far will Justin take this, because politically, he can't loose votes/ridings in Quebec.

Trump is turning the knife now, by mentioning the auto industry, Justin can't afford politically to loose that either, nor does he want that to be his legacy either.

So who's going to give what? Trudeau, a stubborn Frenchman, politically desperate, at about 30% in the polls. Trump at 50% in the polls, on his way to de-nuclearize the Korean peninsula.

How rich will you Trump haters feel with $0.50CAD, oh ya, you won't be able to export your grain or livestock to the USA, nor will you be able to buy fertilizer or chemical from them either.


For those that haven't seen it yet, here is our illustrious trade negotiating team,

https://twitter.com/MargaretsBelly/status/1002298937146003456?ref_src=twsrc%5Etfw&ref_url=ht tp%3A%2F%2Fwww.smalldeadanimals.com%2Findex.php%2F page%2F3%2F https://twitter.com/MargaretsBelly/status/1002298937146003456?ref_src=twsrc%5Etfw&ref_url=ht tp%3A%2F%2Fwww.smalldeadanimals.com%2Findex.php%2F page%2F3%2F

enjoy the comments in the thread,

[Oliver88]

Heard on the CTV news last night that Trump said there should be no tariffs and no subsidies.

Trump and Larry Kudlow both said they want 0% tariffs with all G7 countries.
They used the 270% on dairy entering Canada as the main example of why they are implementing tariffs.

Dairy is too big of a trade irritatant it seems, time for changes.

[chuckChuck]

Get rid of supply management and we will get rid of Canada's smaller farm based dairy industry.

US dairy farms are often much larger corporate owned mega operations.

US dairy farms are suffering because of over supply of a perishable product.

US Taxpayers are subsidizing their system.

Which system actually costs consumers less after you factor in taxpayer subsidies?

Which system produces better quality? Canada.

Dairy costs for consumers in the US are not always lower.

Which system makes more sense for business planning and farm stability?

Many smaller dairy farmers in the US are committing suicide because they cant make enough money from the market and subsidies.

If we give up supply management what do we get in return?

Why would we give up our dairy industry and all the jobs that go with it for f...all in return?

Trump is not to be trusted on trade as he changes his mind over night depending on who he last talked to. He doesn't even know the basic facts of our trading relationship.

Rex Tillerson was right, he is a moron.

[chuckChuck]

You do need to understand Chuck that research paid for by the DFO will be as unbiased as climate research paid for by a liberal government. In another words, put it on the toilet roll.

Ok, produce evidence they are wrong!


http://business.financialpost.com/pmn/commodities-business-pmn/agriculture-commodities-business-pmn/baloney-meter-does-the-united-states-protect-its-dairy-producers-too

"Adam Taylor, a trade consultant who was an aide to the former Conservative trade minister in Canada, says there’s a more insidious form of U.S. subsidies — undocumented migrant workers on U.S. dairy farms.

Taylor pointed to a pair of surveys that measured the impact of undocumented workers on the dairy industry.

A September 2015 survey by the U.S. National Milk Producers Federation found that half of all workers on U.S. dairy farms are immigrants and if those workers were excluded from the workforce, the price of a gallon of milk would soar 90 per cent. It said the cost to the U.S. economy would be $32 billion.

Last month, another study found that if all illegal workers were kicked out of New York state, 1,100 of its farms would go out of business or reduce their output significantly.

“Americans are hypocrites for going after supply management given their reliance on the undocumented workers that keep U.S. dairy prices artificially low,” said Taylor.

Taylor’s old boss, former trade minister Ed Fast, urged the Liberal government to use that “hypocrisy” to push back at the NAFTA bargaining table.

“The industry itself in the United States has admitted they wouldn’t be viable if they couldn’t use undocumented workers. This is a problem we don’t have in Canada,” said Fast in an interview."

[bobofthenorth]

Everyone with a brain has known for years that supply management's days were numbered. Trump has figured out that it is the hill Truedumb is prepared to die on. This will get a lot worse before it gets better because in the big trade picture supply management is irrelevant. Auto manufacturing on the other hand is serious business and that's Trump's real target. Watch him make the little potato squirm over which industry he wants to cave on. Meanwhile JT is looking to 2019 and being able to run against Trump. I don't expect any quick resolution.

[tubs]

the dairy boards are like the mafia a good old boys network. We get subsidy too through useless programs that keep a lot of people working. Like cropinsurance and our ag department that have no idea what is going on on the farm. Private cropinsurance way cheaper for me