Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFFO Commentary The $25,000 Cow - The Rest of the Story (part 2)

By Nathan Stevens
September 9, 2011
 
Andrew Coyne, one of Canada’s most respected journalists, has garnered a lot of attention in his recent article in Maclean’s that turned a harsh eye towards supply management. He makes a number of strong assertions in his article that are worthy of further discussion. This is the second in a series of commentaries that will provide counter-points to those assertions, this time focusing on trends towards higher prices and fewer farms.
 
Coyne asserts that supply management has led to higher prices, fewer farms, less product innovation, and general inefficiency up and down the supply chain. While these statements may be accurate in and of themselves, the connections between them are more complex and less straight-forward than his article makes them appear.
 
Let’s start with fewer farms and innovation on farm. The progression to fewer farms is one that has been taking place since man decided that living in urban areas and specializing in an activity that wasn’t subsistence food production was a good idea. This process was hastened with the domestication of work animals like horses and oxen, progressing to tractors and now enveloping all the advances that science has made in both cropping and animal production. The net result in the proliferation of technology is that a single farmer can handle far more than his predecessors. That supply-managed farms have consolidated is an indication that innovation, technology adaptation, and a focus on efficiency are in fact strong drivers in the industry.
 
Higher prices are a product of having bargaining power in the marketplace. Supply-managed farms have been able to demand that their prices rise as the cost of production rises. Average consumers are aware of the impact of rising energy prices and probably not as aware of much higher prices for grains. This is simply a fair approach to dealing with other players when your product, like milk or eggs, is perishable. In a “free market” arrangement, these farmers face the threat of becoming price-takers, rather than negotiators.
 
Andrew Coyne turned a harsh eye towards supply management in his recent Maclean’s article. Such scrutiny is necessary and good for regulated industries from time to time. However, fewer farms is a natural process in agriculture due to the impact of technology, and higher prices are a result of bargaining clout. Expect more on the Coyne column next week.
 
Nathan Stevens is the Research and Policy Advisor for the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham, and UCB Canada radio stations in Chatham, Belleville, Bancroft, Brockville and Kingston. It is also archived on the CFFO website: www.christianfarmers.org. CFFO is supported by 4,200 family farmers across Ontario.

Views: 90

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

MLAs clash over foreign ownership of Saskatchewan farmland

The issue of foreign ownership of farmland rose to the surface again at the Legislature. During Question Period last Thursday, the opposition NDP accused the Sask. Party government of not taking the issue seriously and failing to enforce the illegal purchase of farmland by foreign entities. “We’ve been calling on that government from the moment they’ve been elected, and they look the other way and have failed to enforce the law,” said Trent Wotherspoon, deputy agriculture shadow minister. “There’s so much more that we need to do. The Farm Land Security Board needs more resources and real teeth. The fines for breaking the law need to be more than a slap on the wrist. And most importantly, the government must audit and enforce the divestiture of land acquired and owned by foreign entities that have breached the law and caused the forfeiture of profit in its divestiture.” Wotherspoon went on to say that no ‘foreign entity, governments like China or criminal organizations’ should be abl

Federal strychnine ban review may help control gopher ‘plague’ on Sask. crops

Farmers and rural officials across Saskatchewan say Ottawa’s decision to review the strychnine ban could finally bring relief in the fight against gophers. Still, some warn that the solution needs to balance effectiveness and safety. At the Saskatchewan Association of Rural Municipalities (SARM) midterm convention in Regina, delegates announced a resolution calling on the federal government to either reintroduce strychnine or provide a cost-effective alternative for pest control. The once-common chemical was banned by Health Canada’s Pest Management Regulatory Agency (PMRA) in 2023, leaving producers with few reliable options. SARM President Bill Huber told delegates that the association had received a verbal commitment from Ottawa to review the use of strychnine in emergencies, with support from provincial and municipal governments. “We also asked for the reinstatement of strychnine to manage Richardson’s ground squirrels,” Huber said. “They’re not just a nuisance, they’re a plagu

Foreign ownership of farmland a hot topic at Sask. Legislature

The issue of foreign ownership of farm land rose to the surface again at the Saskatchewan Legislature. During Question Period on Thursday, NDP Leader, and Agriculture Shadow Minister, Carla Beck accused the Sask. Party government of not taking the issue seriously.  "Mr. Speaker, the (Provincial) Auditor and SARM (Saskatchewan Association of Rural Municipalities) have both sounded the alarm when it comes to the wide gaps in the system that supposed to ensure that only Canadians can buy Saskatchewan farmland. Will the Premier finally admit what most people on coffee row already understand, and that is that his government has failed to ensure that...those foreign interests can't buy up Saskatchewan farmland." Beck asked. In response, Moe noted "increases in the stringency on ownership in this province" and ensured that "there is an ongoing discussion and a committee that is going to be engaging with (land) owners to ensure that we have this right all the time in this province."  The p

Ag in the House: Nov. 3 – 7

Conservatives targeted the industrial carbon tax and its effect on Canadian ag and food

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service