Friday, February 7, 2014

Subsidies for Supply Management

Taxpayers and consumers subsidize Canada's Supply Management System
by being forced to pay 50% to 300% higher retail prices.  However, does the government directly subsidize them as well?

To find out, I did an Access to Information Request ("AIR") with FPCC (Farm Products Commission of Canada), and got a 5 page response to my AIR.

Turkey Farmers

The Turkey Farmers of Canada ("TFC") say on their website:
"The organization is entirely funded by levies, remitted by turkey farmers on each kilogram of turkey marketed."
Is it true?

For my Access to Information Request, the government sent me They sent me a copy of a page out of the National Farm Products Marketing Council (predecessor of FPCC) for 1973 - 1974 which showed a $100,000 grant to the Canadian Turkey Marketing Agency (predecessor of TFC).

In my books, a grant is a subsidy.  To the best of my knowledge, that $100,000 was never refunded to the government.  In addition, the on-going interest on that money from 1973 to present, a total of 41 years and counting, is substantial.  If we assume 7% per year interest, the total of that subsidy is now $1.6 Million with a subsidy in 2014 of $112,159

Therefore, we have debunked the TFC's bald assertion that they are 100% funded by the turkey farmers.  In a previous Blog posting, I discussed the possibility of false or misleading advertising by the Supply Management people.  Now we have proof of false or misleading advertising.

Who will file a formal complaint?

Canadian Broiler Egg Hatching Marketing Agency (CBEHMA")

According to the financial statements for the 14 month period ending Dec. 31, 1987 we learn that CBEHMA received a grant of $100,000 from the Canadian government.

Same grant, same annual benefit, equal to $112,159 per year in 2014.


We were unable to get any data on grants received by Dairy Farmers of Canada, as a different agency (ie. Dairy Commission of Canada) handles that, and we would have to make a separate AIC


I was surprised to not see #ChickenMafia with their beaks in the government's subsidy trough.  The AIR response notes that financial records of FPCC are only retained for 6 years.  If the grant or loan is older than that, it becomes invisible.  While we may not have documentary evidence to prove it, can we assume that CFC also received $100,000 to get going? 

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