Direct payments questions

[bucket]

What do farm groups and farmers have against direct payments?

The USA does it. Most recently the ECAP was announced there with a direct acreage payment for the 2024 crop.

Why does the government always want to talk to industry officials as opposed to farmers that are taking the direct financial hit?

I doubt any graincos are losing money on this latest drop in futures.

But the main question is why are farmers and those farmers that represent us say a direct payment is bad .

Policy or trade policy/negotiations won't cover the $$$$ losses by farmers.

Every other industry gets direct subsidies or payments.

FFS the entire EV industry in Canada is government funded and some of those companies have already went bankrupt.

It's insane to think there are farmers out there that want their farm to compete against the treasuries and policy of other nations.

This is a year old issue in canola and most farm groups talking publicly haven't done much to avoid the current issue.

John Barlow , the ag critic for the conservatives that people think is brilliant hasn't got the canola issue to the ag or international trade committee in parliament for a study.WHY?

Did anyone notice the conservatives took the time this summer to have a committee meeting about the BC ferry boondoggle???

[farmaholic]

...because it becomes a subsidy to the Industry through wider elevator basis, higher fertilizer prices, higher machinery and parts prices?

I get it, it's a politically caused disaster, not a production disaster(which there is supposdely insurance for).

Question is, is there a difference and how should the shortfall be covered and distributed?

[cropgrower]

simple answer is if their was a direct payment to farmers they would pay even more to rent land and be no better off , thats what happened in europe

[bucket]

...because it becomes a subsidy to the Industry through wider elevator basis, higher fertilizer prices, higher machinery and parts prices?

I get it, it's a politically caused disaster, not a production disaster(which there is supposdely insurance for).

Question is, is there a difference and how should the shortfall be covered and distributed?

If they give it to industry to trickle down to the farmers, it never seems to get to farmers.

Richardsons, if given the money will not lower their basis. There is a shorter canola crop coming this year and basis is already widening. Given the current weather cycle might be a long harvest. That should give graincos the time they need to avoid being artificially plugged.

Don't know how fertilizer prices can go higher with current returns on any farm.

Machinery - look at what Deere announced at their harvester works in the last few days. That will be an artificial shortage of their combines . Not sure why they pursued the X9 adventure with limited resell.

[bucket]

simple answer is if their was a direct payment to farmers they would pay even more to rent land and be no better off , thats what happened in europe

True for some guys, but I am not sure that political incompetence belongs on my farm's shoulders or finances.

[FarmJunkie]

Bucket everything u said i agree with. Pisses me off that all our social programs cater to the ones that will never better themselves with that help but we continue to subsidize them.
I’ve said this before and I fully understand why it won’t ever happen but u gotta get there attention by refusing to grow a crop. We all do that and then they got bigger troubles. Sad that it would have to come down to that but they take us for granted. What we produce makes our society roll and they know it but dare us to defy it. And I understand why it won’t happen because too many took the low interest bait and now u gotta work for the man!(government). It’s unfortunate but we shoot ourselves in the ass based on the situation in front of us and then when a worse situation arises we have no out. I know it’s not the answer u want and I feel the pain just like u and ALOT of others in this business.

[bucket]

Mother Nature has trimmed this crop ,, not sure why the prices have to fall much.

Remember the canola council had a goal of 25MMT by 2025. Just think where we would be today. Anyone remember $6 or $8 canola?

[Grain Farmer]

Dont think a top up of 2 to 3 bucks would do anything for increases of costs, it would put us back to a slight profit.
we are not asking to top up 20 buck canola.
14 dollar canola doesn't buy much, or pay off much.

[goalieguy847]

I understand the desire for a direct to farm payment... but i believe it would be a huge mistake. Just as subsidizing major industries can be.
You are taking tax payer dollars and expecting that farmers will do the best thing with it ( and what % actually would?) With 0 oversight.
look at some of the largest subsidy recipients in the usa and it is giant land holders, some senators... its a proper opportunity for corruption.

Plus.. how would it get distributed and how could it be " fair?"
does a farm that avgs 60 bshl canola receive more than a farm that avgs 30? Should an area that has declared an ag disaster, such as thorhild county where we farm in, receive more on a per acre basis than any county that doesnt?

As canadian farmers we are already subsidized fairly well ( crop insurance.. ag stability for those in it.. agrinvest... grain advance loans) these, along with insurance, work fairly well because they use a farms PRODUCTION levels as a backstop ( and also as the meterstick) for what that farm receives.

A direct to farm subsidy would be an invitation for govt oversight. Even with agrinvest this yr you need to have an environmental farm plan in place in order to put money into it.

A direct payment would only artificially increase everything because you are creating a reliance on govt handouts. Isnt this how russian farms were years ago?

plus... i ask.. what is YOUR silver bullet for china here? They have tariffed canadian canola ( or aussie canola) every year since what... 2013? Its a game they play.
do we really believe that this is in response to canada EV tariffs? Cmon... now...
wasnt the last tariff in response to that ... and now they are going to be taking aussie canola.again?

What would trump do if we dropped tariffs against chinese evs?

what concessions would you propose we give to china, in order for them to lift tariffs against our canola... and how long can china go without our canola?

Would we get a subsidy for our wheat, as trump has/ threatened/ maybe will maybe not... put tariffs against our wheat?
Would peas get a subsidy because of indias seasonal tariffs against them in order for india to arrificially raise their farmgate prices for peas to incentivize their farmers to grow more?


would the subsidies go to farms that hit their production levels?

even though we are all angry at trump... china... and our current govt.. we surely must all see the disaster that would be created by direct to farm.subsidies here..

Right?

[bucket]

Dont think a top up of 2 to 3 bucks would do anything for increases of costs, it would put us back to a slight profit.
we are not asking to top up 20 buck canola.
14 dollar canola doesn't buy much, or pay off much.

Interesting comment. I agree , but it begs the question as to why MPs think they are worth the three raises they have given themselves when they hardly work.

What makes an MP worth $200K and a gold plated pension?

There wages never go down but my income can fluctuate while I work fairly consistently throughout the year.