Dealing with America

[rain]

It was announced this week the US Government is going to the WTO about the CWB and the American perception of the CWB trading practices. While I am not what you call a supporter of the CWB I find it very hard to understand where the US is coming from.

US gunboat diplomacy is getting harder and harder to stomach. There are those who say we need too negotiate with the US better. Unfortunately there does not appear to be anyone in Canada that knows how.
Apparently the US has forgotten what the term negotiate means. While I think a hard stand with the US is needed and needed now. What do we have to loose. Lumber has already been hit. Country of origin labeling for meat imported into the US cannot be good in any way shape or form. Any one who thinks otherwise should go out and buy shares in a Canadian hog or feedlot operation. Through all of this you have the US telling there producers here is a whole bunch of money grow a whole bunch of stuff and get the highest yield you can and you will make a little money.

George Bush, Jean Chrétien and Saddam Hussein all have a few things in common. All three are so far removed from the real world they do not know what is going on. None of the three care about the long-term ramification of what they are doing and if they do care I don’t think they understand these ramifications. All three are so caught up in there delusion of grandeur and the legacy they look to leave behind, that none of them really realize that when they are gone they most likely will not be remembered for any more than the mistakes they made. There are no Gandhi’s, or Mandela in this group. It is more like Moe, Larry and Curly, but two of the stooges have big guns, and the third stooge can’t be trusted with one. Actually that’s an insult to the Three Stooges its more like the Three Blind Mice.

It is time for Canada to start giving back to the US. Giving the US a little wedgie right now would wake them up some. Energy and security is the two things the US appears to be the most concerned about right now. Maybe a tariff on all energy imported from Canada or an open immigration policy from North Korea, Iran and Irag. That may get the short man from Texas to stop and think about what he is doing.

I am going to do my bit and that is to buy as much non-American, or non-American made as possible. It won’t make much difference but I will sleep better a night knowing I am doing my bit.

[TOM4CWB]

Rain;

Here is the US Wheat Associates News release;

"Wash DC/ Dec 17 -- The U.S. wheat industry applauded today's announcement of the Bush administration's request for consultations under the World Trade Organization dispute settlement system with the Government of Canada to resolve long standing issues about the monopoly practices of the Canadian Wheat Board.
"U.S. Trade Representative Robert Zoellick's action is a major initiative in a comprehensive strategy laid out earlier this year. Today's announcement is the key element following up on October's International Trade Commission findings against the Canadian Wheat Board. It recognizes and addresses the harm done when a state trading enterprise contravenes the trading rules," said Jim McDonald, chairman of U.S. Wheat Associates.

"The long march toward equity and fairness in global wheat trade made great progress today with this welcome announcement," said Larry Lee, a farmer serving as chairman of the North Dakota Wheat Commission, the state wheat organization that filed the case.

As the first official move towards WTO action, the USTR formally requested consultations with the Government of Canada on issues long in contention. If no resolution is reached through consultations, the matter may be heard before a WTO panel for a decision."

My personal opinion is that this was a much more constructive approach than the US ITC putting on tarrifs like they did on softwood lumber.

On Softwood lumber, I see the US lumber admitting yesterday that the domestic market and smaller US producers have been significantly hurt by the US duties... Canada has no limit on volume... they have been running 24hrs a day on our efficient lumber plants and pumping lumber south to get efficiencies up to remain profitable.

This has driven down US domestic lumber prices, opposite to what the US domestic producers thought would happen... they are admitting the duties are a failure. Now they are calling for an end... as Canadian lumber plants have restructured and become even more productive and profitable...


If the US can show the CWB is damageing world wheat prices... I would appreciate the CWB stop price discrimination... and stop selling our wheat at less than fair market value...

On Country of Origin labeling... this one could have a silver lining as well.

The USDA is requireing the US Cattle/Hog/Sheep/Fish producers to PROVE they are actually US born grown and slaughtered... a cost of an estimated billion plus per year... to the US Livestock industry.

We can be very proud of our Canadian meat products... brand them... and even end up ahead of the US on this one...

Plus institutional/finished food product US use is not regulated... this will open a whole value added opportunity for Alberta to develop a finished ready to eat, food processing industry.

There can be no question the US is our best market...

Shouldn't we work through these issues rather than just dump on them?

On apple juice, when you pick up a carton, and it says "Canada #1 Choice"... doesn't it bug you just a little that these may be Apples from China, the only thing Canadian about it was that they put it in a Carton in Canada?

[bmj182]

Tom,
I like your comparison with the
lumber industry. The Canadian farm
is now lean and mean just like the
lumber companies. God help the
Americans when their subsidies do
come off!

[rain]

Lean and mean is not the point. The CWB could go today and it would do nothing but good for my business. The point I am try to make is that the whole Fortress America thing is getting stale. Tom the first time I saw a comment from you on Agri-ville was just after September 11, and you where not to sympathetic to what happened to the US.

Two things your not suppose to talk about at a party. Politics and Religion. The US appears to have there own religion and I call it Americanism. If any one out there thinks the US will do away with there type of ag subsidies, it will not be in my lifetime.

I may be ranting but the US does what it wants when they want to who they want. I am glad where a freinds with the US. To bad we can't get the same deals that China gets. I suppose China is a better friend.

US trade policy sucks! There idea of free trade means they are free to trade any way they want.

The US farmer does not deserve the support that they do get. Except for Northern Wheat producers south of the border that do whine and complain year in and year out. The rest of them are are like pigs at a trough. Sitting there lapping up and telling there congressman good job. How much do I get next year.

Shame on America. Shame on the American Farmer. And shame on Canada, for taking the attitude that we don't want to upset our neighbors to the south.

[ValueChainFX]

Rain:

You have good points, but we have no need to upset our US friends!!!! They are going to help us (as they did in the lumber issue) Marketing Canadian ag products in the US is not a hard sell, the rest of the world also likes our product as well. Making things more Canadian will just help us all the more.

The US is not the only ones in the world that enjoy our Canadian product they just happen to be the closest.

Well either way when we deasl with the Americans all we have to keep in mind is they have their own way of doing business ... but then so does Japan, the EU and even our domestic customers!

Well guess we will just have to market the way each customer wants our products ehh!!

[Family_Farmers]

I agree that we should not be purposely provoking any other country, but on the other hand, I have to wonder when we will realize as a people that we do not NEED the US in order to exist. What we do need to do is look hard at ourselves and decide what is good for us. Not what is good for us, and helpful to our neighbours to the south.

[crusher]

Rain,
I enjoyed your comments (humor) at the start of the thread. I'm suffering from crappy news overload and am looking for anything uplifting. Got most of my canola in the bin, and dislike seeing a $40/tonne drop in the past few weeks. Went long beans and my stop got touched yesterday. What else - CWB PRO's are today and Charlie is predicting another $20/t drop. I've got no snow cover, at least I don't have any animals to feed. Looking forward to farmtech 2003. Usually lots of positive information and conversation - I highly recommend it. P.S. Tom - don't try to pick any fights at the conference this year.

[rain]

Crusher
I do feel bad about using the three stooges as my comparison. I try and expose my kids to older stuff like the stooges. It is amazing how 11-13 year olds in the 21 century can still enjoy this older stuff.

It is not that I am not pesamistic about the future. As a long time supporter of the American way, it can not be good for there PR if someone like me is ranting against them.

May be my long and wrong March and July canola futures is making me a might testy. But I am riding this one out.

If I am not back in Agri-ville before Christmas Everyone have merry Christmas and a Happy Marketing Year.

[TOM4CWB]

Crusher;

Glad you brought the CWB issue at Farm Tech up... Did you understand what it was about?

If you own a condo at an agent of the CWB, there is no assurance after 90 days that you will ever be paid for CWB grains delivered, graded, and possibly half way across the world in a CWB cargo.

I had always expected that the least I could expect from the CWB, is that if I delivered CONTRACTED PRICED and GRADED grain to the CWB's agent, that the least I would be assured of... is that I would be paid for this grain.

On top other farmers and grain companies have consistantly delivered over quota grain, been paid for it, and the CWB does nothing about this.

THe CWB keeps close personal watch over everything that I do... OK, but all I ask is that if I deliver contracted graded priced grain to a CWB Agent, that I be assured I WILL BE PAID FOR THIS GRAIN.

IS this tooo much to have expected, or expect now Crusher? I sure hope not.

If the CWB shows up and is delinquent in carring out it's statutory obligations, I am sorry, but they are fair game.

At the 03 Farm Tech, I will keep my mouth shut about the CWB, as I am now your Commissioner for the APG, which I was not last year.

Thanks for bringing up this issue Crusher... I hope we all have learnt something from it.

[TOM4CWB]

Rain;

On the US and 9:11;

It is very sad that this disaster occured... of course.

Yet the US is as the FSU was, many times a bully... now there is no balance, it is more difficult to maintain a balance within the world power structure.

A new balance has emerged, a new threat that a very small group of people can totally disrupt a whole society, with very small resourses.

Unless we want to become a part of the US, we must expect to have bumps in the road... our job it to make problems into opportunities!

THE US hs proven to be by far the biggest and best market, for Canada, on planet earth.

I don't see this changing any time soon, do you?

[TOM4CWB]

Rain;

THought you might be interested in this:

http://www.grandforks.com/mld/agweek/4748299.htm

Posted on Mon, Dec. 16, 2002

Landlord's choice
Values, rents may 'creep' as land and bases improve
By Mikkel Pates
Agweek Staff Writer

FARGO, N.D. - The new farm bill could mean land owners can expect higher value and rent, as federally guaranteed payment bases and yields increase.

"Under this scenario, nobody should end up with less base than before," says Dwight Aakre, a North Dakota State University, Fargo, farm management economist. "The majority should end up with more base. Given whatever level of federal funding, there's more acres that will be earning government payments."

That doesn't guarantee more income per acre, but it should give them a better chance.

Rain;


It really looks to me like the farmers operating and actually doing the production will be seeing less of the increased subsidies than would first appear.

US farm operators could well be no further ahead than we are, in a few years... as subsidies are capitalised into the land base.

The subsidy game is destroying the competitveness of both the EU/US farm communities, one wonders when the insanity will end...

How do we get off this treadmill?