Aaron said:
Why don't we all just close the border again both ways? The Canadian market can shrink to domestic supply size and implement a 100% CDN Beef label and the US can implement proper COOL measures on their side.
Reading the last Manitoba Co-operator farm paper, there was a good comment that runs parallel with my thoughts. An older beef producer was quoted as saying, "It's time for the gray hairs to get out of it and let the young people carry on. If not, their won't be young people to farm in the small communities in 10 years." He also stated along the lines that old men subsidizing their operations with pension cheques have no business in the industry.
There is no shortage of guys in their 60's, 70's and even 80's farming in my area, and only a couple of handfuls of young guys under 30 doing it. If the past-retirement age producers didn't get out 10 years ago when times were better, then I guess we need a string of really hard years to shake the CDN cattle herd down to size. Close the border.
Aaron
Fact is the US is unable to supply its own domestic markets AND their export markets without importing beef.
I am and have been for years, a proponent of locking the border - let the US supply their own domestic / and their export markets with imports from Mexico and further south.
A one time buyout for Canadian national herd reduction probably would have been cheaper to the taxpayer than all of those other programs when combined.
If we shut US beef out of Canada, and refused to allow American chain restaurants and meat sellers - M&M, Montana and so on - to sell anything unless it was born, raised and processed in Canada - the country would be far better off.
Bottom line - the US is the elephant and we are the mouse. When they roll over in bed we need to be very nervous.
It would be nice to see a small additional levy on all oil and gas heading south. As we are - if memory serves - the largest supplier of those items to the US. China is using American money from loans to commence huge gas and oil developments in Canada - there will soon be another player and that will very likely drive that price up anyways - so as long as Canada is smart they will come out the winner.
China accepts American money for loans - uses it to finance their own natural resource industry - cannot call them stupid - it was a brilliant play that was enabled - yet again - by the present US administration. Essentially they lend out the cash - make money on the loan and get a source of energy built for them by US dollars.
A one billion plus dollar per day trade with the US is reducing and not so slowly due to the "buy American" policy - Canada is and will be for a long time - sucking the hind tit - so we ARE looking for new investors and there are many out there with cash that want to get involved.
China is now tossing the US buck - they have made their money and made their down payment on the new resource plans - so they no longer want this money - to them it is too risky - so it will slowly be sold off - driving the US buck down even further.
To give you an idea on how the Chinese have penetrated markets the world over - I was shopping in downtown Damascus last week. Pashmir scarves for women - silk and cashmir combined - are now made in China - exported to Syria and sold in the Suq as quality products. I did not buy as they were not authentic - but the Syrians buy them up like hotcakes. And this is a city of about 8-9 million people - so the market is not small.
There is little chance of the US administration shoring this money up and holding it up over the long term, as to accomplish this they will have to print more money - making the US buck even cheaper.
Things will change in the future. The US dollar is on its way down and when China pulls the trigger there will be some serious financial woes in the US - most brought upon them by the financial irresponsibility of the present administration raising their national debt to astronomical heights within the past year.
Changing the international currency is a slow process, but the Euro is gaining prominence in the mid east countries - their financial clout has yet to be truly recognized or acknowledged by the US - and they are teaming in many areas with China - the mortgager of all things US.
Every time the dollar falls, the US interest bill goes up - making it more and more difficult for America to actually pay their debts.
Canada - despite its poor ag policies and limp wristed approach to trade with its southern neighbour will be in a far stronger situation over the next few years unless things change down south - and at present I do not see that happening.
Hang in if you can - if you cannot - liquidate and rent the land for crops - we did. It is time to do whatever must be done to keep the land - if cows are costing then toss them. Sooner is better than later as the first loss is often the best loss - as additional losses only pile on to the first.
Talk of quota a while back was interesting.
In Israel at present there is a guaranteed minimum price for calves of a certain weight - then additional money per kilo of weight. I do not have the details but intend to find the specific numbers over the next week or so.
It has been said to me by Toad - cowboy from the Golan - over coffee under the trees at the line shack - that this is what saves them. I have sat at three different ranches over here and they all say the same thing - without that minimum support they could not survive. The packers pay it because they cannot import unless there is no available local supply.
This is done to ensure there is always a self contained food supply in this country - no requirement to rely upon foreign interests.
Off to look at some more desert and rocks in Syria - cheers
BC