Carbon tax revenue from our area - Page 2 - The Combine Forum
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post #11 of 13 (permalink) Old 06-23-2019, 11:34 AM
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Unless, of course, it's a farm business and you can't pass on the extra cost. Farmers are price takers and this type of cost eventually finds it's way into lowering our asset values, which is the only expenditure that we can set the price on. Even then it takes a long time to manifest itself, hence why AG is very cyclical.
That is only true to a point. Example, lets say that the government put on a 10% "wheat tax". Would you still grow wheat for the present day price if you knew you had to pay 10% of it for the tax or would you grow something else until the wheat price came up enough to cover the tax??. Farmer DO set the price (to a point) when they choose what to grow. Something doesn't pay, you don't grow it until it does. That IS over simplified of course but the concept is accurate and practiced every year in farming.

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post #12 of 13 (permalink) Old 06-23-2019, 02:09 PM
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That is only true to a point. Example, lets say that the government put on a 10% "wheat tax". Would you still grow wheat for the present day price if you knew you had to pay 10% of it for the tax or would you grow something else until the wheat price came up enough to cover the tax??. Farmer DO set the price (to a point) when they choose what to grow. Something doesn't pay, you don't grow it until it does. That IS over simplified of course but the concept is accurate and practiced every year in farming.
We don't set prices...period! We can try to grow the best option for our area and some of us have more options, but make no mistake, it is a see-saw reaction unless you divert acres to something else like livestock or ??? If everyone heads for the other side of the boat it just tips the other way and the price of that commodity gets over-produced. You can try to outsmart the market by forward-selling or building bins and storing grain, but year-to-year we are at the mercy of the markets.

And absolutely jvw is right that our idiotic government policy puts us at a definite disadvantage to other farmers around the world. It's something that Canadian farmers have become accustomed to, but doesn't make it right.

So all these policies like carbon tax/workplace health and safety/other tax levels/destruction of personal property rights/regulation of pesticides/lack of a functional rail policy/useless education system/lack of accountability within government/CORRUPT MEDIA/etc/etc have a profound effect on the viability of our industry and the wealth creation within the borders. Just because it takes time for these effects to manifest themselves or that people don't understand what the cause is for the effect we are seeing doesn't mean it didn't happen. People have a very short-sighted view of things nowadays and that is most unfortunate, probably because we are complacent as it's been "too easy for too long"...

Rant of the day.

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post #13 of 13 (permalink) Old 06-23-2019, 04:58 PM
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My Dad worked at CSP foods (formally Sask wheat pool) in Saskatoon. Attached to the elevator was a mill that made everything from flour, to cake mixes. They also had a canola crusher. When canola was over $13 dollars a bushel, it was cheaper to import canola from other countries then buy from local farmers.
Either, we give it to them at a competitive price, or they will just get it from someone else who will, i feel, there will never be a day of $10-$12 dollar wheat, or $13-$15 dollar canola. Only way to increase profits is to decrease spending (on everything).

I was reading an article on wheat sales, that when we (Canada) export, we have the longest shipping distance to get to customers. It was talking about the Africa and Asia markets. Australia gets Asia, Europe gets Africa.
Canadian farmers are the most expensive growers, and the farthest away, and not surprisingly the heaviest leveraged. My good friend from nigeria is trying to get me to go there, and consult the farmers in putting in crops. The money they have, and the acres they want to seed, and the thousands of citizens who are aching to do it, makes you wonder, where do i fit in as a farmer in the 21 century. The world's population is increasing, and you know what! so are the population of new farmers in areas where there was none. Unless, there is a catastrophic event, maybe even a world war, the Canadian farmers are going to evolve, into something that is not what it is today, good or bad, depends on individual perspective.

I was asked to go for an interview for a company in Calgary here, the guy builds some kind of pump (don't know much about it) for oil drilling. He has a side project of building, a self propelled palm oil picker. Basically it is a souped up, uber computerized, scissor lift, LOL. This thing was crazy, it had a cab, that went up about 40ft, and stabbed the berry, which is the size of a 5 gallon pail (Canadian that is) Lol, and monster wheels. he must have been into for a couple of million. Of course it was painted green,Lol.
He was telling me about the labor shortages in indonesia at the palm oil farms, seems that nobody wants to do the work anymore, and there 1000's of acres of palms, rotting, because no one wants the job to pick them.
The guy was a complete A-hole though, I never felt like punching an interviewer at a job interview before that day. My point being, technology is coming online in areas we serviced, because they couldn't do it before. Makes sense to produce your own food in country, than pay somebody else to do it. Also, a lot of our corporations, have no problem, selling them equipment, and the likes, slitting our throats to increase their profits. With all the added taxes and fees we pay that other countries don't on there agriculture sector, where do we fit in?

Last edited by Combine Pilot; 06-23-2019 at 05:26 PM.
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