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Nearly 4 BILLION to dairy and supply managed

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    #25
    I have family in supply management and it is a tricky situation. They bought their quota in the last 20 years so while it is higher than when they bought it isn’t like they got it for free. And keep in mind it is the only legal way to produce these products. You want to be a dairy farmer? pay 25-35000 per KG or go to jail. So it does stand to reason if you have to pay that to get in that there is some protection.

    Finally I believe the 4 billion is set aside only if they are able to show that they have real losses directly related to the trade deal. It is not guaranteed.

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      #26
      Originally posted by Grahamp View Post
      I have family in supply management and it is a tricky situation. They bought their quota in the last 20 years so while it is higher than when they bought it isn’t like they got it for free. And keep in mind it is the only legal way to produce these products. You want to be a dairy farmer? pay 25-35000 per KG or go to jail. So it does stand to reason if you have to pay that to get in that there is some protection.

      Finally I believe the 4 billion is set aside only if they are able to show that they have real losses directly related to the trade deal. It is not guaranteed.
      Don't think quota prices will be going down.
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        #27
        Originally posted by Grahamp View Post
        I have family in supply management and it is a tricky situation. They bought their quota in the last 20 years so while it is higher than when they bought it isn’t like they got it for free. And keep in mind it is the only legal way to produce these products. You want to be a dairy farmer? pay 25-35000 per KG or go to jail. So it does stand to reason if you have to pay that to get in that there is some protection.

        Finally I believe the 4 billion is set aside only if they are able to show that they have real losses directly related to the trade deal. It is not guaranteed.
        We pay a shitload to play the game and getting worse while the returns now are lowered through no fault of our own. They’re already guaranteed what they get. Yet are getting another guarantee for not getting something that they don’t have to produce is that it? Seems really fair to me.

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          #28
          I may have misunderstood this payment, I am more familiar with chickens. I thought the payment was only if the trade agreement cost them money.

          As far as fair or not I don’t know what to say. At different times in the last 40 years different sectors have enjoyed different subsidies that have been very lucrative if you were in the right industry. GRIP (a little before my time) I think was free money for grain farmers. CAIS was an absolute money printing machine for feedlots that had very little other income to stabilize their revenue. (Volatile was better)

          Right now is good for supply management, but there is enormous stress when 90% of your net worth is tied up in a piece of paper that may not be around to pass on to your children. I still think there is nothing better than being a western Canadian grain grower.

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            #29
            Originally posted by Grahamp View Post
            I may have misunderstood this payment, I am more familiar with chickens. I thought the payment was only if the trade agreement cost them money.

            As far as fair or not I don’t know what to say. At different times in the last 40 years different sectors have enjoyed different subsidies that have been very lucrative if you were in the right industry. GRIP (a little before my time) I think was free money for grain farmers. CAIS was an absolute money printing machine for feedlots that had very little other income to stabilize their revenue. (Volatile was better)

            Right now is good for supply management, but there is enormous stress when 90% of your net worth is tied up in a piece of paper that may not be around to pass on to your children. I still think there is nothing better than being a western Canadian grain grower.
            I agree with your last sentence, well I used to . Check your books next February and see if you still have the same enthusiasm. Not trying to be a Debbie Downer , but reality is bitting much harder than most admit

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              #30
              Originally posted by furrowtickler View Post
              I agree with your last sentence, well I used to . Check your books next February and see if you still have the same enthusiasm. Not trying to be a Debbie Downer , but reality is bitting much harder than most admit
              Let me stress I am not running through meadows of unicorns and pots of gold. Things do look grim and things look bad for next year as well. I don’t know what to grow next year. I am simply stating I would sooner own a grain farm then a supply management operation.

              I just hate when we look to dairy and chicken farmers and think the answer to our problems is to tear down their industry. Ok so let’s end supply management tomorrow and quota is now worthless. Most dairies and chicken operations would close. It is virtually impossible to compete with the southern US cost of production. These families equity is now all gone. I suppose this would bring untold joy to Saskatchewan farmers? Canola and wheat would skyrocket and all the pulse crop tariff issues would immediately be resolved. If you anyone thinks supply management is so great they should sell their grain farm and buy a dairy or chicken barn.

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                #31
                Originally posted by Grahamp View Post
                Let me stress I am not running through meadows of unicorns and pots of gold. Things do look grim and things look bad for next year as well. I don’t know what to grow next year. I am simply stating I would sooner own a grain farm then a supply management operation.

                I just hate when we look to dairy and chicken farmers and think the answer to our problems is to tear down their industry. Ok so let’s end supply management tomorrow and quota is now worthless. Most dairies and chicken operations would close. It is virtually impossible to compete with the southern US cost of production. These families equity is now all gone. I suppose this would bring untold joy to Saskatchewan farmers? Canola and wheat would skyrocket and all the pulse crop tariff issues would immediately be resolved. If you anyone thinks supply management is so great they should sell their grain farm and buy a dairy or chicken barn.
                How the hell is grain better? our destroyed markets and selling for such lower prices while all our costs going up and using a system that works on past revenue for a guarantee. While supply produce is guaranteed a revenue and even guaranteed revenue to not produce? What guarantee do we have if canola goes to 8 bucks peas etc already in shitter prices. Wheat was better 40 years ago. There is a reason input capital is around. How many of your neighbors forced out or won’t put their kids into it or kids just don’t see the value for the risk?
                Don’t get me wrong good for supply but let’s have some equality here.

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                  #32
                  Originally posted by Grahamp View Post
                  If you anyone thinks supply management is so great they should sell their grain farm and buy a dairy or chicken barn.
                  So if people say the dairy is favoured over grain farmers this is the official response?

                  50% of dairy is in Quebec so it’s not a stretch to say this last announcement of payments over 5 years and the timing prior to an election is very political.

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