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    #21
    If this American corn subsidy is "green", like some experts say it is, then this Canadian duty is nothing more than a trade harassment, because it will be overturned? America has been playing this game for quite awhile on many products?
    Dumping subsidized corn into our feed markets is definitely unfair, but what is the solution? Well one solution would be for our Canadian government to match the subsidy with their own "green" subsidy? The Liberals like to cry poverty but then we see these scandals and boondoggles where billions are stolen or wasted, so how much truth is in this "We are too poor to fight the American/European subsidies"?
    As a cow/calf producer I really don't care where my calves are fed out. In 2002 they all went south to the USA...to be fed on that same cheap USA corn that was being fed here! However as someone who has an interest in some barley I saw prices drop from $3.30/bu to $2.80....due entirely to imported corn!
    Quite frankly the economics of grain production in Alberta is so poor it is bordering on the ridiculous and often I wonder how we continue to basically work for nothing! But then for the last three years we've been keeping the cows for nothing too!
    Feedlots could pay more for feed except for one thing? They have to sell that steer/beef into the American market...which means they have to compete with cheap subsidized corn fed beef. We will never have a level playing field as long as subsidies on grain are unequal?
    A duty does not level the playing field, all it does is give the American hog/cattle producer an advantage over his Canadian counterpart? All a duty will do is drive the feeding industry south. The only way to level that playing field, for both the meat producer and grain producer is to match the American subsidy?

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      #22
      in reply to "Craig" from the 16th...line grain co's are already railing in wheat from AB and northern SK to the Winnipeg market. This is partly why the tariff imposed last week hasn't had the effect that everyone thought it would.

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        #23
        Doesn't it seem logical that the main result of this duty will be to push a lot more Cdn weanlings and feeder cattle down into the US where they can eat cheap corn to their heart's content? If that happens, we will see very little impact on consumption of barley, feed wheat or peas.

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          #24
          Zaphod;

          I doubt that this will happen when Capital has been invested in Barns/Infrastructure to feed the animals.

          If the feeders go broke... then there will then be a change.

          Feeding infrastructure will not likely be built if US duties are in place.

          What happens when US Corn is above cost of production, does the US COrn duty get automatically removed? I think not.

          THis is a mess... to put it mildly.

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            #25
            I can certainly understand how livestock producers want to stay on an "even footing" with their U.S. counterparts especially when much of their product is exported into the U.S. and must compete with U.S. grown livestock. However as a grain producer I feel somewhat left out in the cold. If the U.S. corn producer received what the corn is actually selling for on the open market, that would be one thing...but he's not. He receives that price in addition to his LDP payment which can vary depending on how adept he is at reading the markets. And if I'm not mistaken the LDP program is available on 100% of his actual production and I believe (correct me if I'm wrong) that no premium is paid by the farmer at all for this program.

            Tom's point is well taken, that when a predictable subsidy is paid to the grain producer some/much of that price increase will be "capitalized" into higher rent and land prices etc. However, that would happen no matter how the producer receives his income. If grain prices rise, land values and rents are sure to follow. Nobody particularly likes getting paid by the government to make up part of their income, but in this case I'm not sure there is any alternative. If anyone has any other ideas I would be glad to hear them.

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              #26
              I seriously question the logic that it makes sense to ship more livestock south in response to the corn duty. At least in Alberta if feed users can't be competitive at current feed grain prices then you my as well kiss feed grain production in Canada out the door. It bothers me that so many producers seem to fail to realize the benefits of supporting canadian industry. Many seem to want more government support, yet it takes tax dollars to provide this support. If we continue to take the attitude that it is everyone for themselves, in the end we chart a course where everyone will fail.

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