Distorting natural advantages of producers???

[IluvABbeef]

I started doing a bit of reading on the cow-calf industry tonight (interest) in the "The Beef Cow-Calf Manual" by AB Agriculture and stumbled across this:

"- Various provincial subsidy programs to livestock and feed grain producers may distort the natural advantages of producers in different parts of the country and influence where beef production will be most profitable."

This quote is listed among a half dozen others as one of the factors/variables that would affect beef production in the future and is confusing the heck outta me and I just want to know as to what it really means. (I know what subsidies are... :roll: Yeah, and let me know if the following are stupid questions that I could just find out myself by doing a little research/further readings...)

So.......Why and/or How would provincial (or state) subsidy programs distort the natural advantages of producers? :?:

And BTW (stupid question), what are "the" natural advantages of producers?? :?:

That's 'bout all the questions I can think up of on this at this time of night, so I'll leave it up to you guys now.

Karin

PS. Thanks in advance... :cboy:

 

[Ratfish]

Seems like it means that a producer in a particular region has distorted profits on paper because they are getting paid by the government more than someone in a region less generous with tax breaks etc.

 

[Frankie]

I would think "natural advantage" would mean climate, forage available, etc. For example, OKlahoma is one of the best places to raise cattle in the US. We have moderate winters and while our summers are hot, not like in the southern US. We have a lot of land that can't be cultivated, but can be used for pastures. "Unnatural" advantages might mean tax rates or tax breaks for ag enterprises. Our tax rate here is pretty decent, too, though we do have a state income tax. And our state cattlemen's assn is strong.

 

[dun]

Seems like it would be people raising cattle in areas that need to be supplemented because people are getting paid to raise the supplement in an area that wouldn;t support grazing/cattle production otherwise.

dun

 

[IluvABbeef]

Thanks for clearing that up, Ratfish, Frankie and dun. Makes a little more sense now, even though it probably was something that I just had to read between the lines a little more to understand.

Thanks agian.