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Bill C-282, now in the Senate, risks holding back other economic sectors and further burdening consumers

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6 minute read

From the Frontier Centre for Public Policy

By Sylvain Charlebois

Bill C-282 currently sits in the Canadian Senate and stands on the precipice of becoming law in a matter of weeks. Essentially, this bill seeks to bestow immunity upon supply management from any potential future trade negotiations without offering increased market access to potential trade partners.

In simpler terms, it risks holding all other economic sectors hostage solely to safeguard the interests of a small, privileged group of farmers. This is far from an optimal scenario, and the implications of this bill spell bad news for Canadians.

Supply management, which governs poultry, egg, and dairy production in Canada, has traditionally enabled us to fulfill our domestic needs. Under this system, farmers are allocated government-sanctioned quotas to produce food for the nation. At the same time, high tariffs are imposed on imports of items such as chicken, butter, yogurt, cheese, milk, and eggs. This model has been in place for over five decades, ostensibly to shield family farms from economic volatility.

However, despite the implementation of supply management, Canada has witnessed a comparable decline in the number of farms as the United States, where a national supply management scheme does not exist. Supply management has failed to preserve much of anything beyond enriching select agricultural sectors.

For instance, dairy farmers now possess quotas valued at over $25 billion while concurrently burdening dairy processors with the highest-priced industrial milk in the Western world. Recent data indicates a significant surge in prices at the grocery store, with yogurt prices alone soaring by over 30 percent since December 2023. This escalation is increasingly straining the budgets of many consumers.

It’s evident to those knowledgeable about the situation that the emergence of Bill C-282 should come as no surprise. Proponents of supply management exert considerable influence over politicians across party lines, compelling them to support this bill to safeguard the interests of less than one percent of our economy, much to the ignorance of most Canadians. In the last federal budget, the dairy industry alone received over $300 million in research funds, funds that arguably exceed their actual needs.

While Canada’s agricultural sector accounts for approximately seven percent of our GDP, supply-managed industries represent only a small fraction of that figure. Supply-managed farms represent about five percent of all farms in Canada. Forging trade agreements with key partners such as India, China, and the United Kingdom is imperative not only for sectors like automotive, pharmaceuticals, and biotechnology but for the vast majority of farms in livestock and grains to thrive and contribute to global welfare and prosperity. It is essential to recognize that Canada has much more to offer than merely self-sufficiency in food production.

Over time, the marketing boards overseeing quotas for farmers have amassed significant power and have proven themselves politically aggressive. They vehemently oppose any challenges to the existing system, targeting politicians, academics, and groups advocating for reform or abolition. Despite occasional resistance from MPs and Senators, no major political party has dared to question the disproportionate protection afforded to one sector over others. Strengthening our supply-managed sectors necessitates embracing competition, which can only serve to enhance their resilience and competitiveness.

A recent example of the consequences of protectionism is the United Kingdom’s decision to walk away from trade negotiations with Canada due to disagreements over access to our dairy market. Not only do many Canadians appreciate the quality of British cheese, but increased competition in the dairy section would also help drive prices down, a welcome relief given current economic challenges.

In the past decade, Canada has ratified trade agreements such as CUSMA, CETA, and CPTPP, all of which entailed breaches in our supply management regime. Despite initial concerns from farmers, particularly regarding the impact on poultry, eggs, and dairy, these sectors have fared well. A dairy farm in Ontario recently sold for a staggering $21.5 million in Oxford County. Claims of losses resulting from increased market access are often unfounded, as farmer boards simply adjust quotas when producers exit the industry.

In essence, Bill C-282 represents a misguided initiative driven by farmer boards capitalizing on the ignorance of urban residents and politicians regarding rural realities. Embracing further protectionism will not only harm consumers yearning for more competition at the grocery store but also impede the growth opportunities of various agricultural sectors striving to compete globally and stifle the expansion prospects of non-agricultural sectors seeking increased market access.

Dr. Sylvain Charlebois is senior director of the agri-food analytics lab and a professor in food distribution and policy at Dalhousie University.

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Agriculture

While Europeans Vacation, Denmark Attacks Livestock Farmers With Cow Tax

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From Heartland Daily News

By Andrew Weiss

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

As Europeans generate greenhouse gas emissions by driving or flying off on their long summer holidays, Denmark is trying to lower those emissions by taxing cow burps and flatulence to combat climate change.

The Danish government believes that taxing methane produced by animals will improve the lives of citizens by lowering global temperatures. Therefore, beginning in 2030, livestock farmers will be taxed $17 per ton of carbon dioxide-equivalent emitted by their livestock. That tax will increase to $43 by 2035.

The average cow emits the CO2 equivalent of about three tons per year in methane, so each cow will cost farmers $50 in 2030, reaching about $125 by 2035.

Other livestock such as sheep and pigs are also subject to the methane tax, but they emit less methane because of differences in the chemistry of their digestive systems.

But two professors—William A. van Wijngaarden of York University in Canada and William Happer of Princeton University—argue that restrictions on methane emissions are “not justified by facts.”

CO2 currently makes up about 420 ppm (parts per million), which is 0.042% of the atmosphere. Methane is a much lower 1.9 ppm, or about 0.0002% of the atmosphere.

Methane is increasing in the atmosphere at a rate of about 0.0076 ppm per year, while CO2 is increasing at a rate 300 times faster, or 2.3 ppm a year.

The methane molecule is about 30 times better at trapping heat than the carbon dioxide molecule. Therefore, methane contributes about one-tenth the warming of CO2.

Effect on the Economy

Denmark’s new animal tax will raise food prices. Prices for beef and milk will go up, percolating throughout the nation’s economy. Denmark’s economy contracted 1.8% last quarter and the inflation rate is 2.1%, but expect to see inflation increase with the new animal tax. The tax will disproportionately affect middle-income earners and the poor.

At the same time, farmers will see smaller profit margins. Some farmers will reduce their numbers of cows and shift to other animals or grain. Others might sell their farms and change occupations.

In America, the majority of beef farms are run by small operations. According to the U.S. Department of Agriculture, 54% of farms with beef cattle had fewer than 20 cows. On such a farm, raising a cow costs about $900 per year.

A U.S. methane tax identical to Denmark’s would be the same as an additional 15% tax on cattle. This would be devastating to small ranchers who are already pinched by increased overhead costs.

The Danish policy taxes carbon at $43 per ton. This so-called social cost of carbon is priced even higher here in America, and is an easily manipulated price tag that the government puts on carbon emissions.

Last fall, the U.S. Environmental Protection Agency proposed $190 per ton as the social cost of carbon to make its policies seem worth the regulatory burden. If taxed at this price level, a 20-cow operation would owe Uncle Sam an additional $11,000 per year.

Effect on Carbon Emissions

All 1.5 million cows in Denmark account for about 0.1% of the European Union’s annual 3.6 billion tons of greenhouse emissions.

The chart below compares greenhouse gas emissions by Danish cattle to emissions in all of Denmark and in the entire European Union.

When it comes to the atmospheric concentration of carbon dioxide, CO2 emitted in Denmark is no different than CO2 emitted anywhere else in the world.

If Danish lawmakers are concerned about CO2-caused climate change, the cost of the tax policy needs to be weighed against the global effect on emissions.

In 2022, India emitted 189 million metric tons more than it did in 2021. This is more than four times the entire carbon footprint of Denmark.

Effect on Global Climate

Economics aside, this policy will have no effect on global temperatures. Even if the entire European Union halted all emissions (including livestock) the global temperatures would be reduced by only 0.12 degrees Celsius by the year 2100, assuming the highest climate sensitivity to carbon.

These numbers are calculated using The Heritage Foundation’s climate calculator, which uses a government climate model. (You can use the calculator for yourself here.)

From Denmark to California

Although such policies may seem unlikely to take hold in freedom-loving America, similarly intrusive regulations already have been implemented across multiple sectors. These regulations affect everything in the U.S. from large-scale power plants and the automotive industry to everyday household items such as gas stoves, water heaters, and lawn equipment.

In some states, including New York and California, building codes now prohibit gas hookups in many new construction projects, denying residents the right to decide for themselves what energy sources to use.

As of Jan. 1, it became illegal to buy gas-powered lawn equipment such as lawnmowers, leaf blowers, or chainsaws in California. This law will cost landscaping businesses over $1 billion and raise the price of landscaping services, causing some to lose their jobs and business closures.

It is time to stop perpetuating the fairy tale that taxing cow burps will reduce global temperatures. Such regulations only increase food costs and inflation in general, making poverty even worse.

Andrew Weiss is a research assistant for domestic policy at The Heritage Foundation.

Originally published by The Daily Signal. Republished with permission.

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Agriculture

Their Strategy in the War on Food

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From the Brownstone Institute

By TRACY THURMAN  

In my previous two articles, we covered the global war on farmers and the culprits behind this agenda. Today, we will dive into the tactics these organizations use to foist their dystopian vision on the rest of us.

Perhaps you remember Event 201, the pandemic simulation run in late 2019 that served as a dress rehearsal for the 2020 Covid response. Such simulations have been used in the War on Food as well. Take, for example, the Food Chain Reaction Game, a 2015 wargame that simulated the time period from 2020 to 2030. Cargill and the other participants have removed the Food Chain Reaction Game data from their websites, but Cargill’s version was archived by independent researchers, so you can still see it here.

In the simulation, the decade brought “two major food crises, with prices approaching 400 percent of the long term average; a raft of climate-related extreme weather events; governments toppling in Pakistan and Ukraine; and famine and refugee crises in Bangladesh, Myanmar, Chad and Sudan.” When the game ended, its organizers had imposed meat taxes in Europe, capped CO2 emissions, and instituted a global carbon tax. The time period of the Food Chain Reaction Game handily coincides with the 2020 Covid crisis and ends with the culmination of Agenda 2030. If you don’t think those dates are significant, you aren’t paying attention.

The parties behind this simulation include the World Wildlife Fund, the Center for American Progress, the Center for Naval Analyses, and Cargill. Note the participation of US military and intelligence-linked organizations in this simulation, much as they appeared throughout the Covid power grab. Cargill, as I mentioned before, is one of the most powerful members of the global Big Ag cartel and have excelled in crushing independent farmers globally to establish total control of the food supply. The Center For American Progress is a Soros and Podesta-affiliated think tank.

The World Wildlife Fund has a shady Malthusian history dating to its eugenicist founders like Prince Bernhard of the Netherlands, co-founder of the Bilderberg Group; transhumanist Julian Huxley (brother of Brave New World author Aldous Huxley); and Britain’s Prince Philip, who said he wanted to be reincarnated “as a deadly virus, to contribute something to solving overpopulation.”

Note that the measures these conspirators concocted – meat taxes and a global carbon tax – have nothing to do with increasing the food supply to end famine – much as Event 201’s participants obsessed about vaccines and controlling misinformation rather than providing effective early treatment for disease. To state the obvious, neither simulation is really about solving hunger or viral contagion. They are designed to game out how to ram an agenda down the throats of an unwilling populace.

Both exercises are classic examples of Hegelian Dialectic, the problem-reaction-solution strategy whereby a problem is created or used to stimulate public demand for a solution. The solution always involves pre-planned actions or legislation that never would have passed public approval before the problem was created. To quote Rahm Emanuel, President Obama’s Chief of Staff, “Never let a serious crisis go to waste. By that I mean, it’s an opportunity to do things you think you could not do before.”

The goal of the Food Chain Reaction Game simulation and the global elites who share this vision is simple but devastating: the controlled demolition of the current food supply and supply chain network – not to end factory farming and replace it with regenerative, earth healing agriculture – but to replace it with a global, centralized, fully surveilled, and tightly controlled food system based on lab-created and industrially processed so-called foods, with little dietary choice and abysmal health outcomes for all but the elites, using climate change as the excuse for it all.

As Bertrand Russell predicted, diet will not be left to individuals, but will be such as the best biochemists recommend.

If you’re new to this topic, you may feel that statement is hyperbolic. It is hard to grasp that there are people planning something this far-reaching and diabolical – it’s as far-fetched as a network of global elites using a lab-escaped virus as an excuse to destroy the economies of the world and forcibly inject billions with experimental poisons. But it is reality, and as the quotes from Bertrand Russell and Monsanto’s CEO hint, this agenda has been in the works for decades.

In my next article, we will look at some of the publicly acknowledged projects that are in the pipeline for achieving this goal.

Author

Tracy Thurman is an advocate for regenerative farming, food sovereignty, decentralized food systems, and medical freedom. She works with the Barnes Law Firm’s public interest division to safeguard the right to purchase food directly from farmers without government interference.

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