Government Systems

[pandiana]

Steve, if "Most of the grain and beef prices are good this year and the crops yields are at least average in areas with some moisture" then why is that many of us could sell all of their produce at these prices and would still not have covered input costs, let alone yardage and overhead? Cash price for produce is irrelavant, I think. It is what one has left over that determines the quality of life that people enjoy.

As to the 'gloom and doom' you speak of, it seems to me that many farmers today are forced into taking risks far beyond their comfort level; not out of greed or a sense of adventure but merely to have a chance at one more year of farming. The pervailing emotion I think is one of anxiety not doom. If farmers were really pessimistic, why would they risk everything for another year of anxiety and hard work in order the hold on to an industry which seems to have little value in the eyes of most Canadians. It is after all 'Next Years Country'. Happy New Year

[Steve]

Happy New Year to All !

Pandiana: I try to see the good side of life.

A positive attitude goes a long ways to eliminate stress and anxiety and it helped me in farming and surveying business. Even when things looked bad, but with good management and some luck I was very successful.

If farmers want a change and join the labor force and enjoy all the luxuries of life, land is easy to sell. I tried to buy more land in the past but none was available in my area, but I sold last year by just putting a for sale sign on the gate post.

Farmers are pessimistic in words only and not in action and that is the way we make the general public see us.

In this Free World we all choose our own bed to sleep in, therefore make things happen on your own.

Farming is a business therefore the land base, equipment, number of people to support and good management have to be in good order, before one can have all the luxuries of life. This stands true in all businesses and not only in farming. Also forget what we used too and look what we can in today’s world. Never think that you can’t be replaced because some one else may just take over and even do a better job.

So chins up farmers, there is still hope for the farming industry and I secretly believe farming is a good way of life even with the highs and lows.

Lets start working together and save when we can to get us through the poor years, and prove to the rest of the people we are good managers and will keep the food chain going.

Regards Steve.

[cowman]

Ian mentioned Argentina and low prices...I was at a "Pursueing Profits" workshop about four years ago and one of the speakers had just returned from Argentina. Argentina has almost no programs,subsidies, or special tax deals for their Ag. sector. He said they drove through countless miles and miles of land that had just been left to go to weeds. It cost more to grow a crop than what they could get from it, thus with no support the farmers just stopped! Could this happen here? Is this part of the reason Argentina is such a wreck?
As an aside...At that time Argentina was getting close to being declared FMD free. He said at the border with Brazil(which is full of foot and mouth) they observed 4 or 5 cattle trucks crossing without the border guards even stopping them. He suggested Argentinas FMD free status was going to be a joke...and guess what happened...Surprize! Argentina has foot and mouth again! And you can just bet the good old Canadian govt. was just chomping at the bit to let that dirty meat in, so Toronto could have some cheap deli cuts!
Maybe it's time we got the govt. out of our businesses whether it be crop insurance or meat inspection or marketing grain and we decide what comes in and what doesn't?

[Steve]

Cowman I think we have a more responsible and accountable Government in Canada and that is the extent of my comment

[nakodo]

Argentina is an interesting one, the fact they hooked their currency to the USD and locked it there has made their products 40 % more expensive than the market would dictate.

The new president (the 5th in a few weeks) has decided to uncouple their $ and reduce its value by 40 %. This means their purchasing power (if you had a job) just dropped 40 % BUT if you are a farmer your price for products in your own currency is now 'reasonable'. This does not mean it jumps up in value, it means you can actually sell the crop if you grew one. Growing it with no buyers is less attractive than growing it with some buyers, even if it sells for a lower price in terms of USD it now is selling for more in your own currency. This means Argentinians will once again start to buy local produce and to process local products into value added products at home as well.

Again less government meddling may be the savior of the Argentinian farmer???

[ianben]

I thought Argentia had trouble paying dollar debts.
If they have devalued by 40% must they now export 40% more to pay this debt.

If they do this with ag products for every 100tonnes they sold last year this year they must sell 140tonnes.

Driving prices down for us all and meaning they must sell even more next year.

A vicious circle leading to too much cheap food in the 1st world and poor hungry people in the third.

Would higher commodity prices help the third world and farmers everywhere??

Regards Ian

[cowman]

I am sure not up on how international monetary systems work but I would expect Argentina farmers would need to export more of their produce. Sort of like how it is in Russia where you need foreign currency to buy foreign inputs(machinery etc.). I would expect the average Joe in Argentina is going to find food becoming very expensive as their money becomes worthless and food being exported. Sort of like here but on a bigger scale.
I remember in 1992 when calf prices peaked how we all thought we were rolling in clover, until we actually went to spend that money on a tractor or truck....then the check didn't look so sweet! When our dollar has fallen from 89% to 62-63% in a little over a decade, and we produce almost none of our own hi-tech goods, we just can't be surprized at all when we go buy parts or equipment. This is a sure way to go broke as a country eventually.