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Cattle economics in Alberta
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<blockquote data-quote="john250" data-source="post: 693795" data-attributes="member: 4406"><p>They are government programs, and simplifying them is like asking me to simplify the law--not easily done. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite15" alt=":cry:" title="Crying :cry:" loading="lazy" data-shortname=":cry:" /> </p><p>The CRP (Conservation Reserve Program) takes highly erodible or other environmentally sensitive land out of production for 10 yr contracts. The landowner gets rent from the gov. The land cannot be cropped or grazed. </p><p>Generally, if some land is removed from production the remaining land will command a higher rent, be it for grazing or cropping. That is why I say our subsidies get factored back in to our costs. </p><p>The programs for corn, wheat and soy keep farmers producing in times of low prices. That stabilizes the demand for fuel, fertilizer and seed to plant acres which might otherwise go fallow some years. Input prices never go down, it seems. </p><p>Your point is well taken about the effect on Canada. Being next door, our subsidies would tend to keep your inputs higher than they would be otherwise. The seed and fertilizer companies will send product where it can be sold for the highest price. </p><p>Pardon my poor explanation, but even the people who administer our programs struggle to explain them.</p></blockquote><p></p>
[QUOTE="john250, post: 693795, member: 4406"] They are government programs, and simplifying them is like asking me to simplify the law--not easily done. :cry: The CRP (Conservation Reserve Program) takes highly erodible or other environmentally sensitive land out of production for 10 yr contracts. The landowner gets rent from the gov. The land cannot be cropped or grazed. Generally, if some land is removed from production the remaining land will command a higher rent, be it for grazing or cropping. That is why I say our subsidies get factored back in to our costs. The programs for corn, wheat and soy keep farmers producing in times of low prices. That stabilizes the demand for fuel, fertilizer and seed to plant acres which might otherwise go fallow some years. Input prices never go down, it seems. Your point is well taken about the effect on Canada. Being next door, our subsidies would tend to keep your inputs higher than they would be otherwise. The seed and fertilizer companies will send product where it can be sold for the highest price. Pardon my poor explanation, but even the people who administer our programs struggle to explain them. [/QUOTE]
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