The network for agriculture in Ontario, Canada
More Quota Policy Problems
I heard this weekend that a farmer is selling his farm - valuing quota at $30K (right now it is capped at $25.5K) -- because it is a going concern. Then today - I hear that some big producers are going to buy up those types of farms and keep milking cows on them for the required 2 years -- before moving the cows and quota to their own operation.
Is this going to happen very often? It's going to make it VERY VERY tough for anyone else to buy quota -- if the only way it is sold is along with a farm.
DFO tries to fix one problem (high quota price)-- and creates another. Will they change the policy again?
Is this going to happen very often? It's going to make it VERY VERY tough for anyone else to buy quota -- if the only way it is sold is along with a farm.
DFO tries to fix one problem (high quota price)-- and creates another. Will they change the policy again?
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Replies to This Discussion
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Permalink Reply by Darin Nooren on -
Youre right,
Over inflating the value of the land or the cows just to compensate for the capped quota value is creating problems for the dairy guys and the cash crop. It adds false value to an acre of land. it also makes it tougher to buy the quota because now youre buying 100 kgs at a time which only the big outfits can afford instead of breaking it up into smaller parcels. This needs to change or there will be five dairy farms in ontario in 20 years.
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