I found this article at the Canadian Farm Business Management site (www.farmcentre.com) and would like to have your comments on what the writer has said.
CBC editorial by Barry Wilson:
Canada cattle producers pride themselves on their free trade,
anti-subsidy ideology. Scratch a hardcore cattle producer and
you'll find someone who never met a protective tariff or an
agricultural subsidy he or she liked.
Sometimes they even appear to be looking down their political noses at
sectors that depend on import protection or government subsidies for
their survival.
In fact, it was a major story when Alberta's cattle lobby decided to allow
its members to join one of the most benign of all subsidy programs the
government supported Net Income Stabilization Account program.
Taxpayer aid was only accepted grudgingly cattle producers don't like or
need subsidies.
They are free trading, anti-subsidy farmers and proud of it. And they
don't take kindly to anyone suggesting otherwise.
Which is why economists and provincial government officials tend to
check to see if anyone is within hearing distance before suggesting the
prairie cattle industry owes its recent successes, in part, to subsidies and
protectionism.
If grain subsidies were to end, they say, it would mean higher grain prices
and smaller livestock margins.
The cattle industry also benefits from protectionism. Yes, it is a ferocious
supporter of open borders when it comes to trade with the United States.
But North America is protected by a tariff regime that limits imports of
meat from outside, effectively isolating North American producers from
the effects of subsidized or more cost-effective production from
elsewhere.
Subsidized European or cheaper-to-produce South America beef isn't
driving down North American beef prices the way subsidized American and
European grain is keeping Canadian grain prices low.
Despite their rhetoric, there are strong reasons why Canadian beef
producers should be careful about what they wish for when it comes to
ending all protectionism and agricultural subsidies.
How far off the mark is he?
CBC editorial by Barry Wilson:
Canada cattle producers pride themselves on their free trade,
anti-subsidy ideology. Scratch a hardcore cattle producer and
you'll find someone who never met a protective tariff or an
agricultural subsidy he or she liked.
Sometimes they even appear to be looking down their political noses at
sectors that depend on import protection or government subsidies for
their survival.
In fact, it was a major story when Alberta's cattle lobby decided to allow
its members to join one of the most benign of all subsidy programs the
government supported Net Income Stabilization Account program.
Taxpayer aid was only accepted grudgingly cattle producers don't like or
need subsidies.
They are free trading, anti-subsidy farmers and proud of it. And they
don't take kindly to anyone suggesting otherwise.
Which is why economists and provincial government officials tend to
check to see if anyone is within hearing distance before suggesting the
prairie cattle industry owes its recent successes, in part, to subsidies and
protectionism.
If grain subsidies were to end, they say, it would mean higher grain prices
and smaller livestock margins.
The cattle industry also benefits from protectionism. Yes, it is a ferocious
supporter of open borders when it comes to trade with the United States.
But North America is protected by a tariff regime that limits imports of
meat from outside, effectively isolating North American producers from
the effects of subsidized or more cost-effective production from
elsewhere.
Subsidized European or cheaper-to-produce South America beef isn't
driving down North American beef prices the way subsidized American and
European grain is keeping Canadian grain prices low.
Despite their rhetoric, there are strong reasons why Canadian beef
producers should be careful about what they wish for when it comes to
ending all protectionism and agricultural subsidies.
How far off the mark is he?
Comment