Supply Management

[GrainVac]

I have a family member who runs a mixed farm: cow/calf, grain and broiler chickens...He is only 50 years old and is faced with the decision of selling his broiler quota before WTO/changes to supply management change the status quo. Should he stick it out with the only profitable venture on his farm right now or cash out at inflated quota prices before it crashes? He was granted 100% of his quota 25yrs ago when the marketing boards were formed and I last heard some trade for $72/unit...The quota sale would not be enough to support him & wife for next 30 years and quitting farming altogether would probably kill him...what should he do?

[Incognito]

Ask yourself this question:

If the Feds are in a negotiating crunch and it comes down Supply/Management or the Canadian Wheat Board, which do you think they will choose?

Answer that and you can make plans out 5 years.

The CWB will become a pawn in the WTO chess game.

They are even making the general public more aware of the WTO by spending farmer's dollars advertising about the WTO's impending crisis on the radio.

And R.E.G. won't have to make a political decision...just as the WGTA.

[wd9]

55 would be a great age to retire after selling the quota. Something to think about as most farmers just keep farming and never consider retiring until it is way too late to do other things. Farming is still what you do, not who you are.

[jluimes]

I would consider selling the quota particularly if the facilities are getting worn out, investing the proceeds elsewere and continuing on with the cow calf and grain portions of the operation. Income from the other investments could help supplement the income from the rest of the farm and would continue after retirement. This way they would be certain to capture the value of the quota.