Question about supply managed payments

[the big wheel]

Are they based like our guarantees? You know if they don’t produce milk one month do they get a zero in their calculation for future payments for 10 years? Do they pay a premium for this money? Do they have to fill out forms asking what colour the cow is?and then have to explain to someone the colour doesn’t matter? Lol

[farmaholic]

Depends on what breed the cows "identify" as!

[grassfarmer]

I assume it's a simple scale back on KGs of production - every producer takes the same % cut to allow for the reduced market. Will be easy to apply in a regulated situation like this.

[Oliver88]

Supply Management Cash Payout Form:

Question 1: Are you from a Quebec Liberal riding?
Question 2: If you answered “Yes” to Question 1 how quickly would you like your cheque?
Question 3: Would you like to donate to the Trudeau Foundation?

[Grahamp]

You’re paid for what you produce. For chicken at least they have a percentage of your quota you are allowed to produce for the cycle. Usually this is very close to 100%. Occasionally due to oversupply or undersupply the number can go over or under that. (Each province is a little bit different.) For example I think Saskatchewan guarantees 95%. If you over supply you pay a penalty for each kg. After a certain percentage of overproduction (5-8%)the penalties become extremely punitive and you try to avoid that at all cost. I believe in theory if you chronically under produce your quota can be taken away, but before that happens you would generally lease it out to a producer that needs it.

Managing to precise percentages can be a challenge especially with chickens. Your slaughter date is set when the chicks are placed and there are a range of performance factors that are out of your control especially the quality of chicks. You’ll have 3 amazing cycles in a row with 2% mortality and a 1.6 conversion ratio and you find your extra kgs being fined at 50% so you order fewer chicks to try and stop over producing and you’ll get horrible chicks that have 10% mortality and aren’t ready in 35 days. It seems like you never get more than 3 similar cycles in a row.

[dalek]

It’s a flat amount of cash for every kg of quota you own. There will have to be quota cuts in the future but who knows how much or when. In the meantime everyone and their dog is trying to buy quota every month.

Keep in mind the previous spending announcements are still being spent on “competitiveness” projects like new barns and robots

[GDR]

It’s a flat amount of cash for every kg of quota you own. There will have to be quota cuts in the future but who knows how much or when. In the meantime everyone and their dog is trying to buy quota every month.

Keep in mind the previous spending announcements are still being spent on “competitiveness” projects like new barns and robots

In Ab they get regular quota increases as demand for milk and especially milk fats is growing. If there is any contraction in quota due to trade deals more likely to be area specific. Doubt it will be much of a change to the industry here or at home for our trading partners.