AAFC Investigation into Farm Income Crisis

[TOM4CWB]

IS anyone out there appearing or sending in a written submission to this process?

[agstar77]

Investigating Time has past a long time ago, its time for positive action such as an acreage set aside for grain farmers or a cattle cull for beef farmers. When I talk to other producers and discuss their investment in farming versus investing in the petroleum industry where royalty gas trusts return 25 to 30 percent without the stress. How do you justify wasting your time feeding the urban masses. As far as I am concerned its time to wind down the production of bulk farm commodities because no one is willing or able to pay what it costs to produce them. Why would we waste Natural gas to make fertilizer when we have to sell the commodity for less than it costs to produce it. Sorry but when its cold and snowing I get into these moods.

[TOM4CWB]

Agstar77,

It is amazing to put the crop in the ground, watch it come up... and see the beautiful green crops in spring and summer. It is simply a miracle, one I cannot imagine being apart from.

That the world is still hungry, that every year does not bring bountiful harvests, that we are honourable sevants of humanity... is enough to keep going, isn't it?

When I see the truck fill with grain, then the bin fill... when the Combine harvester finishes the last feild... and we thank the Good LORD for all our blessings as farmers...

Doesn't this encourage us to continue being farmers?

Isn't it worth the fight?

[WRAPper]

Hi Tom
I was asked to but was unable due to other obligations, I haven't spoke to the Ex.Dir. to see who else was asked and or attended from the various organizations, if you want to know you're a member and its a toll free number............

[agstar77]

Its all touchy feely until the banker comes to your door and shuts you down putting your family out in the street. Somehow I don't think the banks share the same romantic feeling about farming as you do. All your other suppliers will probably give your inputs free too. There is plenty of food in the world, look at the mountains of surplus grain in europe. It would be a good idea to draw down stocks. There will always be starving people in the world due to wars corrupt government and inept international organizations. It is a deceit to thionk that we will feed the hungry of the world. They would be best fed locally, by their farmers. We will only supply the rich of the world who can afford our commodities and the freight to get it there. Perhaps we can survive by supplying industrial and specialty crops with a higher value. Bulk wheat and Beef won't do it. Those commodities can be produced anywhere. Sorry to rain on your parade, I used to enjoy farming too.

[TOM4CWB]

Agstar77,

If this is truly what you and your family feel, obviously your decision is simple and easy!

Life is not easy or simple... it requires work, struggle, and patience!

Selling out is a simple solution... if this is truly what is best for you and yours! There are many in the world who would trade places with us in an instant! We Both Know this is a fact!

Balance... what are our goals, where/what do we want to end our lives of creativity working at. Created in the image of God... means we are creative by nature of our existance... Love is creative and positive... and wants the honest best for every person.

I believe this is the beautiful part of being a grain farmer in particular... pure natural nature at work... seeding, nuturing, patiently waiting for maturity, then harvesting the fruit of our creativity.

Proverbs 5 says:
"18Here is what I have seen to be good and fitting: to eat, to drink and enjoy oneself in all one’s labor in which he toils under the sun during the few years of his life which God has given him; for this is his reward. 19Furthermore, as for every man to whom God has given riches and wealth, He has also empowered him to eat from them and to receive his reward and rejoice in his labor; this is the gift of God."

Hope you can enjoy what you have been blessed with!

[TOM4CWB]

Sorry this was Ecclesiastes 5, not Proverbs.

[cowman]

Well TOM I don't think Agstar was arguing about eating and drinking the fruits of his labor, but more about getting his fair share after all the hogs have been at the trough?
It is all very well to wax poetic about the joys of farming but the fact of the matter is most of us would like to have a real life as well?
The price of Ag commodities are not exactly inspiring right now? Sort of hard to take a lot of joy in growing a good crop when you realize you are basically working for free...or paying to work?
I often wonder why people continue to do agriculture, when it is such a loser? You get bigger so you can make the same amount of money you did ten years ago...is this really rational? How big can anyone get before they totally burn out?
I have come to the conclusion that farming is a disease! Not sure if it is totally genetic or if it is partly contagious! I suspect we should set up some sort of research program to find the cause and hopefully a cure to this horrible curse on mankind!

[rodb]

Hi Tom

I attended the meeting and was diappointed at the turn out. Canola, Potatoes, Eggs, goats, elk, sugar beets, Organic, Milk, wildrose,WBGA, WG,ABC,AU where present but a lot of the discussion has been cultivated to deathover the last years.
Dennis Duncan was there promoting his groups plan to create a value chain with the purchase of an existing packing plant and having their own retail stores.

Most of the grain groups stayed in the afternoon for the WTO discussion on US access to Canadian rail.


The moderator did an excellent job of summing up all the ideas that were presented but as ususall no clear consenus can be reached in such a short time.

The future is in integrated value chains and not in producing raw commodities. If one is not prepared, or unwilling to participate in further value adding, you will limp along untill you sell out. Straight production will be relagated to the life style farm no matter what the size.
Rod

[furrowtickler]

Tom you are missing the whole point here, FARM INCOME CRISIS!
Most of us are working harder, stuggling more and running out or patience. I have been crunching numbers for the last two months and 05 looks to be anouther break even year at best.
Yes farming can be rewarding if you can pay the bills at the end of the day, and make enough jingle to help raise a family, tis not the season anymore.
Getting out is not an easy solution for those of us under 40, financed heavely, and yet entirely committed to agriculture. Buyers for land are getting farther and fewer between espesially if the younger under 40 crowd calls it quits.
We all need to find solutions for this farm income crisis now before this whole system implodes.

[TOM4CWB]

Furrowtikler;

Sorry, but I am with rodb.

That we must have a decent saftey net, there is no question about it.

I really hope Crop Insurance will work to improve coverages... instead of the policy which reduces liabilities anywhere possible.

When I have $8/bu Canola locked in, I need to be covered @ $8/bu. Manitoba does this, why not Alberta?

We are in a battle.

But haven't we always been there?

I can't remember anyone promising me grain farming would be easy, or a get rich quick scheme, can you?

In my way of thinking, the crisis is in the spirit of our farm community... we are giving in to fear, deception, intimidation, condemnation, and dispair.

Our forefathers certainly did not build the Ag Community in Alberta using the above principals.

Many folks are working really hard to make it through this winter of dispair:

We must enter into faith, hope, and love what we are doing as farmers, for our communities and families.

The days will get longer.

The tempature will rise.

The crows and robins will return.

It is still a blessing to be a grain farmer in Alberta!

[Vader]

Ones level of enthusiasm might have something to do with the value of ones farmland and the degree of liquidity!

Those who are in fact having trouble putting food on the table and where the banker is rattling the chains would have somewhat more trouble putting on the happy face.

[TOM4CWB]

Vader,

Just the person I was thinking about !

We have a neighbour that took out a EPO.

It was for 80%, on Hard White wheat, for $3.30/bu.

Now I know CWB Directors cannot do PPO's but, they should still be responsible.

His Hard White turned out to be feed.

He was told this EPO could be converted to CWRS... now the CWB says no, that can't happen either.

The CWB is asking for $27/t to liquidate this EPO, on 220t.

THis is Dispair in action for a farmer.

This is intimidation.

THis creates fear, anger, resentment, frustration... and might I also point out a lack of liquidity for farmers.

The CWB promises to only charge the "cost" to liquidate PPO's.

There is no CWB cost, as the grain was never delivered. If it was never delivered, it could not be sold, because the CWB didn't know the grade... just as the farmer didn't know the grade.

We are seeing fall assesments broken all the time now, that promised a 2, 0r 3, which come back Feed, even with excelent falling numbers.

What gives VADER?

[Vader]

Ask this farmer to get the current explanation for this situation with the CWB. There may be a new options available to mitigate the losses.

The CWB directors function is to establish policy not to be hands on in individual cases.

The overriding policy is to indemnify pool participants and to have the user pay for the programs that are being offered. If the CWB uses risk management tools to offer program flexibility then these costs are passed on to the user. If problems in program delivery are identified and if program redesign is in order then certainly that should be undertaken forthwith. Participants should be aware of the obligations created under contract.

Tom, I am sure that your observations of deficiencies in the producer pricing options have been noted and have been part of the impetus for program review and reformulation.

[Vader]

from the CWB Bulletin

Bulletin
At a glance

The CWB has released the Early Payment Option (EPO) discount estimates for the new feed wheat EPO which will be offered Feb. 7, 2005. The 80 per cent EPO is expected to cost between 25 cents and 75 cents per tonne, the 90 per cent EPO to be between $2 and $4 per tonne and the 100 per cent EPO to be within a range of $11 and $15 per tonne. EPO discount prices will vary with grain market activity and CWB sales.