Ontario Agriculture

The network for agriculture in Ontario, Canada

NPPC Voodoo Economics

Here's a piece from a commentary from Larry Martin...

"Nevertheless, an official of the NPPC, quoted today (August 26), says that the program will put the onus on poor American producers to adjust and relieve the responsibility from Canadian producers. No one should have any sympathy for this type of woeful spin. The fact is that Canada has already reduced its herd, while US mid-year inventories of hogs have grown every year until 2008 before dropping slightly by 1.4% this year.

Whether this Canadian program is good policy or not, from a Canadian perspective, remains to be seen. However, it is responsible from an international trade perspective. It appears inevitable that there will be threats and the potential reality of yet another trade action by the NPPC. One can only hope that, when it occurs, the US industry will be held responsible for its failure to adjust to an ugly market situation, and that proper economic analysis is used in the argument. "

I think he is right. No matter what Canada does it seems we are always wrong and they are always right. How do we do anything when we have to battle a mindset like that?

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