The Current State of Agriculture

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Presentation transcript:

The Current State of Agriculture Ken Perlich Consulting

State of Agriculture An unease three-way partnership: Consumer: domestic vs foreign intermediate vs end-user Producer Land (productive capacity and environmental issues) Labour (toil and management) Capital (financing) Taxpayer/gov’t regulation taxes/subsidies moral suasion

State of Agriculture Seven Areas: Markets & Marketing Institutions Farm Income & Risk Management Transportation & Logistics International Ag Policy & Trade Agreements Science & The Environment Food Safety, Nutrition & Affordability Rural Viability & Community Development

State of Agriculture Markets & Marketing Institutions: Beef for example The Magic X D1 = f(P1, PX,Y,y, POP,Taste) S1 = f(P1, PX, r, w, Tech) One case of BSE is identified in Canada How do consumers react? Uncertainty prevails, eventually domestic consumers accept beef US bans Canadian beef and cattle How do producers react? Some producers close down operations, most continue. How do gov’ts react? BSE Recovery Program/ Competitive Bid Program

State of Agriculture

State of Agriculture

State of Agriculture

State of Agriculture

State of Agriculture

State of Agriculture Markets & Marketing Institutions: Beef Grains Private Treaty Sales Auction Markets Cattle Dealers Grains Farm-to-Farm Open Market CWB Supply Management (Milk, Eggs, Poultry)

State of Agriculture Farm Income & Risk Management: Agriculture Policy Framwork Risk Management Food Safety & Quality Science & Innovation Environment Renewal Canadian Agricultural Income Stabilization (CAIS) Up to 70% coverage of olympic five-year average income Crop Insurance

State of Agriculture Transportation & Logistics: Why are bakeries in the cities & butchers in the country? Why are flowers flown in jets? Grain shipped on trains and boats? & cattle hauled in trucks? What are the historical incidents that shaped grain handling in western Canada? & how are they changing?

State of Agriculture International Ag Policy & Trade Agreements: US Farm Bill EU Common Agriculture Policy World Trade Organization North American Free Trade Agreement Free Trade of the America’s

State of Agriculture Science & The Environment: The Innovation Economy Funding efforts Patent Protection Biotechnology: Godsend or 900 lb. Gorilla Organics: Yes, but how do we feed the world? Animal Welfare/Animal Rights

State of Agriculture Food Safety, Nutrition & Affordability: Is our food safe? Bio-security in a new age of terror. Why don’t food prices decline when ag commodity prices fall? Who controls the food supply? Convenience, Health and Price: a three way trade-off.

State of Agriculture Rural Viability & Community Development: Funding of Economic & Social Infrastructure Do taxes equate with services provided? Why are rural populations declining? Can the out-migration be stopped? What role does the private sector have?