Tribunal digs in its heels over dairy quota policy

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Former farmer had to look after dying wife and couldn’t look after the farm; Agriculture, Food and Rural Affairs Tribunal rejects his plea to rethink its decision to enforce a controversial Dairy Farmers of Ontario quota policy

Comments

A terminal illness is never an enjoyable time - yet this farmer would appear to have sold 47.906 units of quota for about $32,317 per unit of quota, almost at the top of the market.

Even with the 15% assessment, he still got to keep the proceeds from the sale of 40.72 units of quota, which at $32,317 per unit, would have netted him some $1,315,948.

If his wife was sick now, rather than in 2008, a sale of quota at $25,000 (or whatever it is) and assuming he got to keep 100% of the money, it would net him far over $118,000 less, in total, than what he received for his 85% share of the proceeds in 2008.

If I was to be on the Tribunal, I wouldn't hesitate to use the words "frivolous and vexatious" when describing this farmer's claim. And, really, there's no reason why the Tribunal shouldn't have used this type of expression in this case, if for no other reason than to deter others who waste Tribunal time and money by trying to have things both ways.

$232,000 may be frivolous to you, and the comment "he still got to keep the proceeds from the sale of 40.72 kilograms" is abhorrent! The man and his wife worked hard all their business life filling that quota, no doubt scrimping and saving so they could BUY it. This was never a gimme for him and he shouldn't be expected to subsidize the rest of the industry when he's already suffered such loss. I'll bet he would gladly give the money back and keep milking if he could just have his wife back. Shame on you and shame on the tribunal and shame on DFO.

I don't care how you look at it, this guy got to put $1.3 million dollars in his pocket that the rest of us can only dream about. Furthermore, I'll bet my own farm that he never spent a penny more than $300,000 to buy the 40 kg of quota that he got to keep the proceeds from, and that, therefore, $1 million of what he put in his pocket, was pure profit.

The truly abhorent fact of the matter is that this $1.3 muillion represented money which is coming, or is expected to come, directly from the consumer. The fact that dairy farmers are so completely cavalier, even in their grief, about the money they are unfairly extracting from the consumer, is more than enough reason to just simply abolish quota, and supply management, completely, and the soomer, the better.

Dollars aside - the poor guy lost his wife and his livehood, forced to sell a really good herd of cattle. Master breeder herd and a top notch manager....three generations deep.
If she hadnt been sick, their daughter was going to carry on the operation.

Regardless of $, a life change is not easy.

PS I am one who had to beat the country roads in the 1980's to buy cows and quota. The time was hell with shady deals all over the place, Not saying the current system is any better.

Divorce ended my farming days.

A good friend started dairy farming in 1980. Even with the high interest rates of the time, he claimed quota had a five-year payback. When he sold the cows, the quota, and the farm, in 2000, quota had a 20-year payback. The first reason he got out was with that type of price/earnings ratio, it made sound business sense to sell: the second reason he sold was that he figured that with this type of price/earnings multiple, it was only going to be a matter of time before consumers figured out that supply management was an obscenity they were paying for, and he didn't want to own quota when that happened.

Furthermore, now that you brought up the subject, divorce is just as valid a reason to have to sell quota, as death - especially if the sale of the quota is ordered by a judge. And even though I'm opposed to any sort, type, or kind, of this type of after-the-fact award, I'm surprised no farmer who had to sell his quota because of divorce has appealed to this Tribunal.

While you express great concern about this farmer subdidizing the rest of the industry, you seem to show no concern whatsoever about the only subsidy that matters, and that is the subsidy dairy farmers receive from consumers because of 200% tariff barriers on dairy products.

The subsidy argument is a door that swings both ways, yet farmers have great difficulty understanding that concept.

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