I was blogging on the CBC website and there is this douche bag who goes under the alias Deforest who I swear comes straight from the political commisars of the collectivized farms of the Soviet Union in the 20s and 30s. He says that we are an export nation and that more than 80% of our wheat is exported while in the US it is closer to 50%. I would like to ask, why do we always try to export everything rather than try to use or process it here?
For example, minus the subsidies which I disagree with on an economic level however, I think the US government spends less money subsidizing ethanol than they would to protect their energy supply and sending money to pieces of crap like Hugo Chavez, but giving back to their farmers as increased demand for corn. Talk about biting the hand that feeds you.
Right now, the US price offers for corn are about $15 to $20 higher than what can be bought from the Black Sea region and South America which has hampered thier exports likely due to the strength in the US dollar and the severe weakening of the currencies in those regions. The US doesn't have to rely on the export market like we would if we are in that situation because they have many local users of corn in the feed and the ethanol business that can't get enough corn right now at these prices and the basis is very strong. They also have lots of uses for wheat other than exporting because they actually have a vibrant milling industry and from my opinion due to the fact that wheat millers in western Canada can't manage their own price risk because they can't contract wheat with farmers and grain companies directly or buy years in advance, they can't offer flour or any other products our competitively because they have to buy back at the whim of the CWB which if you have ever tried, stifles any farmer who wishes to buy anything back.
People who export things are moving things from where the price is low and there is an abundance of supply to where the supply is low and the usage is higher. Why don't we try to help our domestic industry by reducing barriers to entry like wheat boards, monopolies on exports, quotas, fight against things like COOL,etc so that we can have less supply to fill the export markets with. THis way by increasing demand at home, we will all benefit from extra jobs and more money for grain. Interested in your thoughts on this.
For example, minus the subsidies which I disagree with on an economic level however, I think the US government spends less money subsidizing ethanol than they would to protect their energy supply and sending money to pieces of crap like Hugo Chavez, but giving back to their farmers as increased demand for corn. Talk about biting the hand that feeds you.
Right now, the US price offers for corn are about $15 to $20 higher than what can be bought from the Black Sea region and South America which has hampered thier exports likely due to the strength in the US dollar and the severe weakening of the currencies in those regions. The US doesn't have to rely on the export market like we would if we are in that situation because they have many local users of corn in the feed and the ethanol business that can't get enough corn right now at these prices and the basis is very strong. They also have lots of uses for wheat other than exporting because they actually have a vibrant milling industry and from my opinion due to the fact that wheat millers in western Canada can't manage their own price risk because they can't contract wheat with farmers and grain companies directly or buy years in advance, they can't offer flour or any other products our competitively because they have to buy back at the whim of the CWB which if you have ever tried, stifles any farmer who wishes to buy anything back.
People who export things are moving things from where the price is low and there is an abundance of supply to where the supply is low and the usage is higher. Why don't we try to help our domestic industry by reducing barriers to entry like wheat boards, monopolies on exports, quotas, fight against things like COOL,etc so that we can have less supply to fill the export markets with. THis way by increasing demand at home, we will all benefit from extra jobs and more money for grain. Interested in your thoughts on this.
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