The unequal government support
prices for crops give new meaning to the real estate mantra
"location, location, location." With corn running in the
vicinity of $2.25 a bushel, a crop farmer would be a lot better off in
either Quebec or Michigan, the origins of cheap corn flooding the Ontario
market and forcing the price below cost of production.
In the editorial "Recognizing
Reality" in the December Ontario Corn Producer makes the case
for its producers by attacking bureaucratic perception. Some people
evidently say producers could have locked in when the price was higher,
but says the editorial, and rightly so, that would have been a high stakes
gamble. Had the crop failed and the price stayed high the farmer who sold
his crop last February would have lost his shirt.
But some other things in the
editorial are not reality. We’d like to know where that $500 cost of
producing an acre of corn comes from. Somebody’s rental fees for the
land must be very high.
What we find very unrealistic is the
hand wringing at the end of the editorial. Price prospects for 2005 are
below the cost of production and government needs to provide more
assistance, says the editorial. Both Quebec and Michigan, who are flooding
our markets, are more highly subsidized.
The reality is that the Ontario Corn
Producers Association looks much like two years ago, before hundreds of
eastern Ontario producers took their tractors on the roads. They chastised
their politicians and their leaders for failing to negotiate a farm policy
that would allow them to establish stability. Unfortunately, the reality
is that corn producers in Ontario are further behind than they were two
years ago. The safety net programs now in place will not protect them from
two years of lower corn prices.
There is no point in lamenting that
a Quebec farmer is guaranteed $4.95 per bushel for corn. Good for him.
Lament rather that Ontario farmers are getting $2.30 a bushel and his
organizations and governments are too timid to use the legal tools
available to protect his market. We’re talking countervail. Michigan
corn producers are dumping on our market. Dumping is defined as exporting
a product into a country below the country’s cost of production and
distorting that country’s market.
The corn producers association
should do something about it. That’s reality, too.
What is also reality is the good
money made in the food business. Galen Westen, the owner of Loblaw’s, is
one of the 10 richest men in the country. His wife used to be Lieutenant
Governor and did some of the finest charity work in the country. Your wife
(or husband) too would have time for charity if you were paid decently for
your product.
Here’s reality. One dollar’s
worth of fries in a retail store or restaurant provides only a fraction of
a penny to the farmer who harvested it. We have seen from the BSE inquiry
before the Standing Committee in Agriculture that packers and chains never
suffered. Their profits soared while farms pulled in their belts and tried
to stave off bankruptcy. The Competition Bureau is toothless. The banks
are fat. The politicians are not answerable to anyone and they can’t
tell the contents of a honey wagon from the contents of a grain wagon.
Everything is bull.
What’s at stake? The livelihood of
the lower half of producers is at stake, which may not bother officials.
Governments have often said that only two-thirds of the current producers
are needed in this country. In Ontario, they could soon get their wish.
Yet if those producers were in Michigan or Quebec they could go on
producing and making some money. But not in Ontario, where farm policy
consists of some "Buy Ontario" ads in various media during
harvest.
If those producers go out of
business, rural areas will be financially hurt. Together the 25,000 or so
farmers who could be forced out of business pack a big financial clout. It
won’t be just their income. It will be the income of many small
businesses. That’s the reality.
Commodity boards and general farm
organizations must convince governments the assumption our food supply is
guaranteed is short-term folly. Convince them that short-term
inconvenience is often the price of long-term prosperity. Show them
reality. Maybe farm organizations aren’t up to the job.
— T. Meagher