[White Doors]

Originally Posted by mykalberta

The problem is that Canada's grain farmers have been forced to compete with both hands and a leg tied behind their back.

Look at it from a buisness perspective:

Costs: Land prices (1500-2500 per acre depending on where you are), fuel, fertilizer, machinery prices have all skyrocked yet

Income - wheat has stayed ar roughly 5.50/bushel. In a good year a farmer might be able to get 45 bushells an acre, average I would say about 30.

Market Forces: Are not at play because while oil companies pass the costs of operation to consumers, grain producers cant pass increased costs to consumers because the wheat board regulates the price. There fore the only way to compete is to get bigger and bigger to apply the laws of capital appropriation dilution (the reason companies merge - more assets makes it easier to borrow and easier to justify the high costs of machinery), further driving up land costs. Before you could own 500 acres and say 100 head of cattle and have a pretty comfortable life. Now if you own under 1000 you are small potatoes.

Wheatboard: initially designed so the small farmer has a chance agains the big guy, it has now turned into a way the Government of Canada can send wheat to africa and not have to pay far market prices - also the main reason the US has for subsidization cause theysay Canada floods the world market.

US industry - while the livestock industry is heavily subsidized - the grain industry isnt - they get tax breaks off fuel, but so do Alberta farmers.

EU industry - is heavily subsizdized, but almost has to be cause they couldnt compete with the operations of size in North America/USSR and also because WW1 and WW2 taught those countries that you need your own food supply.

It would be the same as if you worked in Calgary for 20 years with no raise, the only way to make more income would be to get a second job.

MYK

Good post.