Agriculture
For the last few weeks I have been busy preparing for my move to Toronto so I have been unable to update this one and considering I will be busy once I arrive in Toronto, I expect to post here less frequently. However, I thought it was appropriate to write on agriculture in response to the Conservative proposals to change the mandate of the Canadian Wheat Board
International Trade and Subsidies
I am a supporter of free trade and believe agriculture should be no exception, but in order for free trade to be truly free trade that means all other countries must eliminate tariffs on Canadian agricultural products and subsidies. Until that happens, agricultural products cannot compete without government subsidies and/or tariffs. However, Canada needs to be more vigorous at the WTO in encouraging the United States and the European Union to cut and eventually eliminate agricultural subsidies. We should also work with the United Kingdom and new members from Eastern Europe who are more open to cutting agricultural subsidies in encouraging them to abandon them. The biggest pushers of farm subsidies in the EU are France and Germany. I do support aid to farmers when events in the market occur beyond their control, but I don't support permanent subsidies to farmers or shielding them from competition if other parties play by the rules.
Canadian Wheat Board, Supply Management, and Marketing Boards
Although a staunch supporter of free enterprise, I do not oppose farmers coming together and forming marketing boards to give farmers greater clout on a global level. However, I believe individuals who don't wish to participate in these boards should be able to opt out, while allowing the board to maintain whatever restrictions they wish on future membership. For example, I would support saying once one leaves a marketing board, they can never use it again when prices fall, so as to avoid undermining it and the freerider problem.
In the specific case of the Canadian Wheat Board, I support moving to a dual marketing system similiar to Ontario and Australia. Contrary to what critics say, opening the Ontario Wheat Board up to a dual marketing system has not led to it being undermined. In fact some healthy dose of competition has led to a stronger Ontario Wheat Board since it must deliver for the farmers if it wishes to keep them using it. However, I believe such change should occur through two steps.
1. Make all fifteen board of directors, directly elected by the farmers.
2. Hold a plebiscite amongst farmers.
Unlike many politicians, I believe it is quite possible the farmers would vote in favour of a dual marketing system just as they did in Ontario in 2003. If the single desk is maintained, I believe the Wheat Board should be made a private non-government operation, where it would be responsible for levying fines against the farmers as opposed to jailing them.
In terms of supply management, I support it until all agricultural subsidies are eliminated globally. Supply management doesn't cause the same distortions as agricultural subsidies, but it is not free trade. Charging outlandishly high tariffs for dairy, poultry, and egg products and using the quota system cannot be said to be free trade. Instead as someone who took economics this creates what is a called an insider-outsider theory. For those who hold the quotas, they definitely benefit from supply management, but those who don't are unable to enter the dairy, egg, and poultry sectors. In addition to that, consumers pay higher prices at the grocery store, so it is bad for Canadian consumers. Therefore we should insist at the WTO the Canadian will not abolish supply management until agricultural subsidies are completely eliminated by the EU and United States, but we should not continue our current position of keeping supply management under all circumstances. Jeffrey Simpson, who is no Conservative, has a great article on supply management
Next will be on law and order, whenever I get the time to write on it.
International Trade and Subsidies
I am a supporter of free trade and believe agriculture should be no exception, but in order for free trade to be truly free trade that means all other countries must eliminate tariffs on Canadian agricultural products and subsidies. Until that happens, agricultural products cannot compete without government subsidies and/or tariffs. However, Canada needs to be more vigorous at the WTO in encouraging the United States and the European Union to cut and eventually eliminate agricultural subsidies. We should also work with the United Kingdom and new members from Eastern Europe who are more open to cutting agricultural subsidies in encouraging them to abandon them. The biggest pushers of farm subsidies in the EU are France and Germany. I do support aid to farmers when events in the market occur beyond their control, but I don't support permanent subsidies to farmers or shielding them from competition if other parties play by the rules.
Canadian Wheat Board, Supply Management, and Marketing Boards
Although a staunch supporter of free enterprise, I do not oppose farmers coming together and forming marketing boards to give farmers greater clout on a global level. However, I believe individuals who don't wish to participate in these boards should be able to opt out, while allowing the board to maintain whatever restrictions they wish on future membership. For example, I would support saying once one leaves a marketing board, they can never use it again when prices fall, so as to avoid undermining it and the freerider problem.
In the specific case of the Canadian Wheat Board, I support moving to a dual marketing system similiar to Ontario and Australia. Contrary to what critics say, opening the Ontario Wheat Board up to a dual marketing system has not led to it being undermined. In fact some healthy dose of competition has led to a stronger Ontario Wheat Board since it must deliver for the farmers if it wishes to keep them using it. However, I believe such change should occur through two steps.
1. Make all fifteen board of directors, directly elected by the farmers.
2. Hold a plebiscite amongst farmers.
Unlike many politicians, I believe it is quite possible the farmers would vote in favour of a dual marketing system just as they did in Ontario in 2003. If the single desk is maintained, I believe the Wheat Board should be made a private non-government operation, where it would be responsible for levying fines against the farmers as opposed to jailing them.
In terms of supply management, I support it until all agricultural subsidies are eliminated globally. Supply management doesn't cause the same distortions as agricultural subsidies, but it is not free trade. Charging outlandishly high tariffs for dairy, poultry, and egg products and using the quota system cannot be said to be free trade. Instead as someone who took economics this creates what is a called an insider-outsider theory. For those who hold the quotas, they definitely benefit from supply management, but those who don't are unable to enter the dairy, egg, and poultry sectors. In addition to that, consumers pay higher prices at the grocery store, so it is bad for Canadian consumers. Therefore we should insist at the WTO the Canadian will not abolish supply management until agricultural subsidies are completely eliminated by the EU and United States, but we should not continue our current position of keeping supply management under all circumstances. Jeffrey Simpson, who is no Conservative, has a great article on supply management
Next will be on law and order, whenever I get the time to write on it.
posted by Monkey Loves to Fight | 11:19 AM
2 Comments:
What a good post Miles. Not just because you agree with the Cons, but because you get it.
When we farmed, it was so frustrating to get $2.50 for wheat, when the Americans were paying twice that. We sold (initial payment with promise to pay balance on delivery) to the Board (or went to jail) and stored our grain until we were ALLOWED to delivery.
Actually I don't totally agree with the Conservatives. My position is one that supports a dual marketing system, but ensures that a referendum by the farmers is held first. Unlike any of the parties I happen to believe farmers would vote in favour of a dual marketing system. In Ontario the government played absolutely no role in the Ontario Wheat Board going from a single desk to dual marketing system, the farmers choose to do so. All the government needs to do is have a plebiscite.
Besides if it works in Ontario, I see no reason why Western farmers shouldn't have the same rights. At the very least if the single desk is maintained it should be the Wheat Board who levies the fines rather than the courts, otherwise have it operate as a private organization.
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