Farm Support: Liberals 1 - Conservatives 0

[sverchomin]

Props to all the guys seeing that an ad-hoc payment is not the solution. I think we all know that 2005 was extremely difficult year given the low crop prices (although Wheat and Canola have been showing some strength of late) and 2006 is not much more promising given increased costs to fertilizer, fuel, and labour. However, I am not to sure how an ad-hoc program is a long-term solution. What happens if chemical prices shoot sky high next year??? Should there be another payment?? Ideally a program that analyzes the grain and oilseed sectors economic status and supports it likewise would be preferred. CAIS has the right idea with the anlysis it's just a matter that it is not the best at being cash flow responsive. I think changes to the CAIS program is the right step, lets not ruin a good start.

That's my two cents and I'm sticking to it.

[Incognito]

Agreed on the band-aid solutions.

But if the government wants to be involved in grain marketing and they are - CWB, CGC, CIGI, Canada Ports, Pilotage fees, charge charge charge, yadda yadda yadda, either get out of the road or fix the income problem.

You cant have it both ways.

Vader: Why do you hate ADM so?

Have you ever sat down with Andreas?

Before you start talking price fixing you better make sure your house is in order with this oil-for-food inquiry in AUS.

[cropduster]

I agree on the oil for food thing Incog.Lets have a full CANADIAN enquiry.I don`t think Sasch Pool paid all those "trucking fees" on their own.If the CWB will `drop their drawers` 12 bucks a tonne on price, I can`t see that they aren`t "dirty" on the rest of the Iraq transactions also!!Am wondering who kept the notes when the Aussie`s where here to share info.Did the directors even know??

[Vader]

Incognito, I don't hate ADM or any other corporate entity whether it be Cargill, Monsanto, John Deere, Microsoft or Nike. I am truly amazed by their corporate success. I wonder what share of the retail food dollar those in the food industry command, and how that compares to the share of the retail food dollar that farmers receive.

I happen to think it is important for farmers to understand what their relationship is with "the big 5". They have their business objectives and farmers have theirs. Some of these objectives are shared and some are not.

It is certainly of no concern to firms in the food industry, whether individual farmers are profitable or whether they survive or not. Farmers and the large grain companies do business with each other and at a transactional level they are in direct competition. This relationship has some similarities to me and the implement dealership. When I negotiate the price of a piece of equipment the dealer wants the highest price and I want the lowest price.

Farmers and grain companies both have a vested interest in the success of the supply chain and its ability to serve the end user. Farmers might be well to question who is responsible for supplying food to consumers. Is it the farmer or is it the grain company, packing plant, miller, baker, processer, wholesaler, broker, retailer or anybody else in the supply chain. We all consider the consumer to be our ultimate customer. The farmer could consider everybody between him and the consumer to be "service providers". From that perspective it might be said that the people that we have hired to get our product processed and delivered to the consumer, our "service providers" as it were, are too expensive. In this current business model our service providers eat up all the profits and leave the farmer, the original producer of the food in a loss situation.

It has often been said that farmers are not efficient and that they must become more efficient to survive. I beleive that farmers are as efficient as they can be. Maybe those other operators in the supply chain, our "service providers" are inefficient in that they are costing the farmer too much in the performance of their duties in the overall supply chain. Perhaps they need to trim their costs and profit margins to maintain the retail price levels while allowing the farmers to receive their fair share of the retail food dollar.

In any event the grain companies are not the farmers partner the way the industry is structured today and they have no responsibility and I would argue no concern about the welfare of the farmer. I do business with them and they provide services that I have little choice but to employ. They are not my partner nor are they my friend. We simply do business. I do not hate them nor do I love them.

I would if I could cut them completely out of the supply chain that leads from my farm to the consumer were that possible. I have no vested interest in their survival other than when they perform an essential service. Now if I had shares in one of those companies or if I held a seat on their board of directors then I might talk differently but then I would not be speaking of behalf of farmers.

[Incognito]

Thanks for the explanation.

My astonishment when you whack them is that they are your customer and you wouldnt do that to the JFA - so why do it to ADM?

How many tonnes of grain would ADM buy from the CWB in any given year?

Do you know or is it a trade secret?

[TOM4CWB]

Vader,

Pride and arrogance comes before the fall.

The ads the CWB is running... tell a huge story... spend my money against my will.