Dec 02/08: Canadian Political Turmoil
Lost in the current debate in Canada over the fate of the government, is the fate of the Canadian Wheat Board (CWB). Stripping the CWB of its monopoly over export grain marketing is a long standing goal of the current iteration of the Conservative party and formed part of its policy platform during the last election.
However, the inability of the Conservative Party to obtain more than minority support from Canadian voters prevented it from gaining the majority needed to change the way western Canadian is marketed.
The only way to fundamentally change grain marketing in western Canada would have been to capitulate to the will of the Canadian electorate and work in deep cooperation with at least one of the opposition parties. Such a coalition would have enabled the Conservatives to move forward on numerous fronts and avoid the current political turmoil.
Unfortunately, cooperation does not seem to be part of Harper's chemistry. In defiance of the wishes of the Canadian electorate he has instead tried to beat and bully the opposition parties and the majority of Canadian into submission. This neither leadership nor the type of politics Canadians voted for in the last election. They clearly voted for a coalition government, asking Harper to be its leader. Instead, he refuses to lead a coalition, gambling with the future of both his government and his "leadership".
However, the inability of the Conservative Party to obtain more than minority support from Canadian voters prevented it from gaining the majority needed to change the way western Canadian is marketed.
The only way to fundamentally change grain marketing in western Canada would have been to capitulate to the will of the Canadian electorate and work in deep cooperation with at least one of the opposition parties. Such a coalition would have enabled the Conservatives to move forward on numerous fronts and avoid the current political turmoil.
Unfortunately, cooperation does not seem to be part of Harper's chemistry. In defiance of the wishes of the Canadian electorate he has instead tried to beat and bully the opposition parties and the majority of Canadian into submission. This neither leadership nor the type of politics Canadians voted for in the last election. They clearly voted for a coalition government, asking Harper to be its leader. Instead, he refuses to lead a coalition, gambling with the future of both his government and his "leadership".
Jan 31/06: Agribusiness Posts Strong Quarter
The divide between the big international companies which supply and market agricultural production, and the incomes of ordinary farmers continues to widen.
The last couple of weeks saw more companies issue quarterly results and, without exception, they reported bigger profits and sometimes bigger profit margins even as primary agricultural producers suffer from a terrible cost-price squeeze.
Obviously, there is more money to be made from fueling, shipping and processing agricultural output than actually growing it. Since the other business cannot operate without farmers and they are doing well, farmers ought to own more of them!
The last couple of weeks saw more companies issue quarterly results and, without exception, they reported bigger profits and sometimes bigger profit margins even as primary agricultural producers suffer from a terrible cost-price squeeze.
Obviously, there is more money to be made from fueling, shipping and processing agricultural output than actually growing it. Since the other business cannot operate without farmers and they are doing well, farmers ought to own more of them!
Jan 19/06: Vertical Expansion for Farmers
Data from Statistics Canada and the USDA have proven that the financial state of farmers is worsening in North America as they are squeezed by low commodity prices and escalating production costs. Maybe it is time to look beyond what you grow to help smooth income from farming.
The state of farming contrasts sharply with that of the major companies. For instance, Cargill this week announced it made U.S. $495 million during the three months ending November 30, up 19% from $415 million last year. Net earnings for the first half of the 2006 fiscal year now stand at $999 million, up 10% from $910 million a year ago.
In an understatement, Warren Staley, Cargill chairman and chief executive officer, said, "Cargill delivered a solid quarter in a period marked by high energy prices and operational disruptions at the U.S. Gulf in the wake of Hurricanes Katrina and Rita."
The state of farming contrasts sharply with that of the major companies. For instance, Cargill this week announced it made U.S. $495 million during the three months ending November 30, up 19% from $415 million last year. Net earnings for the first half of the 2006 fiscal year now stand at $999 million, up 10% from $910 million a year ago.
In an understatement, Warren Staley, Cargill chairman and chief executive officer, said, "Cargill delivered a solid quarter in a period marked by high energy prices and operational disruptions at the U.S. Gulf in the wake of Hurricanes Katrina and Rita."
Jan 13/06: Donate Wheat to Support Price
A very good question was posted on the Agri-Ville discussion forums today. "If we would give our wheat away, would it impact the retail price of bread?"
The answer is no. The price of wheat has very little to do with the price of bread in Canada and other developed nations. Manufacturing, marketing and distribution eat up most of the cost of bread. For thsoe among us who bake our own bread, free wheat would have a direct impact on our daily cost of living -- if we milled our own flour.
However, there is a way farmers can give wheat away and have an impact on the price -- donate it to the Canadian Foodgrains Bank. You can get information their website http://www.foodgrainsbank.ca/
Since 1983 it has given away the equivalent of 944,000 MT of grain. CIDA does 4:1 matching on donations to a maximum value of $16 million per year; and you get a tax receipt for your donation. Your wheat will go to places where people die because they cannot buy food -- so it actually builds future demand by helping rebuild lives. Click here for their donation page
This is a most sensible way to affect markets and affect change in the world.
The answer is no. The price of wheat has very little to do with the price of bread in Canada and other developed nations. Manufacturing, marketing and distribution eat up most of the cost of bread. For thsoe among us who bake our own bread, free wheat would have a direct impact on our daily cost of living -- if we milled our own flour.
However, there is a way farmers can give wheat away and have an impact on the price -- donate it to the Canadian Foodgrains Bank. You can get information their website http://www.foodgrainsbank.ca/
Since 1983 it has given away the equivalent of 944,000 MT of grain. CIDA does 4:1 matching on donations to a maximum value of $16 million per year; and you get a tax receipt for your donation. Your wheat will go to places where people die because they cannot buy food -- so it actually builds future demand by helping rebuild lives. Click here for their donation page
This is a most sensible way to affect markets and affect change in the world.
Jan 05/06: Farmers Need to Become Engaged
An interesting discussion is trying to get started on an agricultural forum in Australia surrounding the question of why there is so little debate about agricultural issues on the internet.
There are several reasons this occurs. One is the a yearning for consensus and one voice on major issues. This stills debate and discussion. It can be argued the fact there is such a yearning is obvious from relatively strong support for marketing boards in Canada and Australia.
There are several reasons this occurs. One is the a yearning for consensus and one voice on major issues. This stills debate and discussion. It can be argued the fact there is such a yearning is obvious from relatively strong support for marketing boards in Canada and Australia.
Dec 07/05: Why The Conservatives Shouldn't Win
Like it or not, Canadians are facing a Christmas and New Year's election. While most Canadians want change, they clearly do not trust the leaders of the Liberal and Conservative parties.
