Hi everyone,
After listening (reading) to all the various things on
dereg. we have come to the conclusion that if we do get a payout, I will
be finding a very safe place or profitable but accessible place to sit
on it and wait. At the moment it would seem this would be for 2 maybe 3
years. This seems to be the approx. time it will take for the dust to
settles once this dereg. comes in. If it was all going to run smoothly,
why else would this compensation package be offered?
At the moment we get the impression that unless the other states
join in with dereg. at the same time as us, then we may be in for a bit
of competition there, no we were told at one meeting, we wouldn't be
dropping our price in confrontation here, we'd send it oversea. But
having seen what is going on over there in some countries, how would we
get our product in there, and get reasonable returns? Most people would
have seen the farmers marching on the news a while back, over cut backs
to there subsidies, we were told that was a good sign, that dereg. will
be coming in over in those countries, the farmers being worried enough
to make a fuss. Of course they are worried! this is there livelihoods!
Most of those farmers receive very substantial subsidies. We were told
of one country that receives 100% subsidy, my understanding being that
for every dollar they made on milk they sold, the government in that
country gave them another dollar. I admit I am no expert on how things
run overseas, but from what we hear, we are years ahead in the dereg.
department, we have struggled for years without gov. subsidies, and
dwindled the farming population down until only the most fittest and the
most cost efficient farmers have survived, we heard it thrown around
that we are amongst the world best for producing cheap milk, Yet we are
told that more of our own farmers will go broke, or be forced out for
under producing, we've all heard it'get big or get out'.
So here we are on the theshold of entering a 'new era' in
milk harvesting and marketing, meanwhile overseas farmers have still got
all this 'cost efficient' lessons to learn. I can see they are really
going to embrace us dumping on there markets. We heard that some U.S.
farmers are wanting higher tariffs, or total closure of its doors to
markets that infringe on the farmers livelihoods, will this effect us?
we know a lot of countries overseas are in political turmoil, will that
make a difference? There are a lot of little farmers in some countries
overseas, I mean the real little ones, will there big populations allow
these family farms to crumple, more unemployment, etc.? It was pointed
out to us that once the general population in these countries realized
how much tax payer money went into these subsidies, that they would all
push for there reduction also, but are these tax payers willing to put
there own countrymen on the bread line for a cheaper drop on there corn
flakes?
In January last year we had 3 Swiss tourist come and ask
to camp on our front lawn. No problem we told them. 2 of them barely
spoke english, the 3rd acted as interpreter. It turned out that one of
the girls came from a dairyfarming background, which was why they picked
a dairyfarm to camp at, there parents told them dairyfarmers were more
friendlier, and they'd be safer. They were most eager to hear about our
operation and couldn't believe it when we told them we milked about 200
cows! Their parents milked 25 cows, and were considered well off, more
than the average farmer milked over there. They must have thought we
were millionaires!!!( I wish! ) They must get a lot more per litre than
we do! We didn't ask how much (or if)they were subsidized, deregulation
was just sort of rumoring around at that stage, but most of there cows
are barned, totally different system to ours. Now I know its "not our
problem" what these little farmers will face ahead, but I'm just
pointing out the few little differences that we know of to base what our
future may hold, and what we would do with out payout. We know our
factory has assured us that they will not fall for the trick off passing
on any price cutting on to us the farmers, saying that the farm gate
price will not be undercut, but, we have been told to be even more cost
efficient, bit hard when the items we need to run our cost effective
dairies keep going up!! Maybe one of these schemes were you put the
excess income away for a 'rainy day' might be the trick, this would slow
down the tax problem, and still be able to access the funds in the year
(years) they are needed, unlike superannuation. That way technically
speaking, you would have the money, at a time when you need it and tax
may not be a problem.
A lot of these things are out of our control, but
may directly effect us, yes the future will be a challenge, but
hopefully, eventually, a profitable one, we have heard of eventual
prices in the future, once the dust has settled, of being from 35 cents
a litre upwards. That would be worth hanging out for, but l still
wouldn't race out now and take out a big loan to capitalize on this
prediction, or immediately use the compo. package, the 'settling in'
phase seems to uncertain to need the extra stress. The compensation
package should be calculated by using a formula base on the gross
production figures of the farms involved for the last 4 or so years,
this might help the adjustment of figures for the farmers who have been
in drought. Sharefarmers do there own seperate tax returns, and have
records for production, they shouldn't be beholden to their farmers for
a fair share, especially if they have moved within the season, we need
to encourage knowledgeable people to stay in the industry through this
change. If these sharefarmers choose to leave the industry, or farm
owners, surely they wouldn't be eligible for this package, isn't it for
loss of future earnings?
Well that was a mouthful. The future looks like a
challenge, I'm sure we are up to it, I just hope our timing is right, It
looks like a lot is being planned for 'in the year 2000'.
See you.
Clare and Trevor Porter
dairyfarmers
Yarram
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