How a few rich dairy farmers....

[jamesb]

Supply management was an answer to a problem at the time but ended up creating other problems as big as the original problem. Quota values are crazy and we now have to find so way to unwind ourselves from this wreck. From my understanding many supply management people have mortgages to the eyeballs to buy quota. Create a plan to extract Canada from this mess. As almost all other countries with supply management have ended their programs it is obvious that this is the direction that Canada should move too. If parliament is willing to unanimously vote support to supply management at the cost of other ag industries, which they just did, they crossed a line that can and will make things worse for grain, oilseed and cattle producers that want to sell around the world. It is a sad state we are in .

[Grahamp]

The values have been pushed so far past anything reasonable that buyouts would irresponsible and frankly impossible. Also the quota holders want it both ways they want to keep getting issued essentially free quota in the form of increases and then have a safety net at the insane levels quota is currently trading at.

As an example Saskatchewan broiler quota trades around $170 a bird. This allows you to produce 11.5 KG’s of chicken per year. A good return is .70 cents per KG after chick and feed. So think about this for a minute, that is a 4.7% return on your investment. This does NOT include insurance, utilities, labour, facility, catching, repairs, vet etc. Give these numbers a fair value and the return is negative. People paying this much for an asset should not be bailed out in anyway. It’s like yacht owner meets equestrian rider and collects rare Pokémon cards.

[bucket]

Well considering there are three irrigation districts in Saskatchewan, that over the last decade have received $400 per acre in subsidies, Lets start there.

[wrongway]

It was like any other investment, I have yet to be made "whole" on my investments that didn't turn out. The fact that it was an investment that was at the whim of trade negotiations made it risky. The closest would be the crow payout which was gone in the first year with higher freight.

the Net Present Value of the crow benefit payout was in the 100's of billions...yet farmers got about 1billion. The assets of the CWB went to the suadi's of all places. there are plenty of precedents for governments absconding with what people believe to be intractable entitlements. the reason the dairy and feather industries are sacred is because of quebec and ontario hold the vast majority of producers and they are in close proximity to ottawa... making it easy to protest with manure wagons and tractors.

When you make a deal with a government you have to expect that at any time it will be retracted. Governments change and priorities change. Agriinvest nad agristability will now have "climate change" goals to follow if you want to get any money. I am sure they will happily take the premiums but when its time to payout well you know they'll use a microscope to find a reason not to.

[blackpowder]

U raise good points and I'm certainly no expert. Although I think the Crow and CWB on paper are not the same as quota. More myth than tangible.
If those two any indication.
Dismantling has as yet little to no support anywhere.
It was SM that constantly supported no change for grain in Ottawa.
In short, 80 years of stupidity in grain.
At least the two processors would secretly be on board.
Dairy will not happen overnight.
Possibly generations due to deep political power.
They have time to fund their own buyout package. That time will be dithered as well.
Any package will appear cheap to the industry when looking back.
I say whatever it takes.

[wrongway]

U raise good points and I'm certainly no expert. Although I think the Crow and CWB on paper are not the same as quota. More myth than tangible.
If those two any indication.
Dismantling has as yet little to no support anywhere.
It was SM that constantly supported no change for grain in Ottawa.
In short, 80 years of stupidity in grain.
At least the two processors would secretly be on board.
Dairy will not happen overnight.
Possibly generations due to deep political power.
They have time to fund their own buyout package. That time will be dithered as well.
Any package will appear cheap to the industry when looking back.
I say whatever it takes.

The first thing to go was the 2 price system for board grains where the domestic users had to pay a higher price than the world market. this was back when wheat oats and barley were under cwb control, and only in western canada. once that was gone it was only matter of time the rest would go. Western farmers have really benefited when these so called market supports were gone. I feel the rest of the SM commodities would also benefit immensely if only the government was brave enough to take them on.

[poorboy]

The biggest issue is the guarantee is too high on the supply managed items in Canada. It is based on the costs of a very inefficent, small operation using outdated equipment and technology. And then the price is set to guarantee those guys a profit, while everyone else makes out like bandits and hence over pays for quota.

That price set for supply managed items needs to be done with more of an average sized operation and then profits to producers and costs to consumers would be more realistic.

I think supply managed items and prices in Canada is a good thing (and I am only a grain farmer) but right now it is too good of a thing.

[dirt farmer]

The biggest issue is the guarantee is too high on the supply managed items in Canada. It is based on the costs of a very inefficent, small operation using outdated equipment and technology. And then the price is set to guarantee those guys a profit, while everyone else makes out like bandits and hence over pays for quota.

That price set for supply managed items needs to be done with more of an average sized operation and then profits to producers and costs to consumers would be more realistic.

I think supply managed items and prices in Canada is a good thing (and I am only a grain farmer) but right now it is too good of a thing.

In researching the methodology used, I learned that out of the random producers that are audited for the COP, the least efficient 25% of the producers are excluded from the exercise. This means that 75% of the sample data is used. Of these, only those above the median are looking at a positive ROI. Hence, 37.5% of them will make a profit. Therefore, 67.5% of dairy farmers are being told to pull up their socks and increase efficiencies or they will eventually be forced to leave the industry due to poor management.

[bucket]

I don't know all the intricacies of dairy, I do know I am not changing my milk brand.

Costco sells Beatrice and I am good with that . We buy four - 4L jugs at a time and usually it goes over the past due date without issue.

[SASKFARMER]

They then sell out and buy huge tracks if Saskatchewan farm land.