We need to protect our farm supply system from U.S.

As NAFTA rhetoric ramps up, the U.S. has been throwing rocks at Canada’s agricultural system of supply management. This serves their interests, not ours, as supply management operates in the Canadian national interest.

Here’s a quick debrief on how it works: For several sizable Canadian agricultural commodities (most notably dairy, egg and chicken), these sectors operate under supply managed production. Under this regime, farmers can only produce set levels of product. These amounts are closely monitored, with product levels estimated to service the domestic market, prevent wastage and regulate price.

This leads to far more stability in pricing than comparable sectors in other Western countries that have deregulated markets. Using dairy as an example, unchecked production around the world has caused an overage of supply, without markets to buy the additional product. This has resulted in a global price decline, often pushing market pricing below the cost of production. This is not sustainable and has led to desperate times in countries such as the U.K. and, most recently, our neighbours in the U.S.

Now enter U.S. President Donald Trump. As his NAFTA demands widen, he’s under tremendous pressure to attain additional access to the Canadian agricultural market to offset the massive oversupply within his own country. Dumping. Wastage. Cancelled Contracts. Bankruptcy. That’s the modern reality for many farmers across the border.

The situation is so dire, that amid U.S. rhetoric to strike down supply management and get into the Canadian market, Wisconsin dairy farmers earlier this month held a series of meetings to review and analyze Canadian supply management with the hopes of potentially adopting it themselves. If the U.S. would just cap its production, it could stabilize its market.

Instead, they rely on back-talking their way into Canada by way of Trump’s influence and “hugely” inaccurate policy statements.

What supply management effectively does is focus on creating a strong local/domestic market for farmers producing perishable products. When you buy eggs, chicken and dairy in Canada, most often you are directly contributing to your local economy.

The desperate U.S. will keep pushing false messaging to push their interests. They want you to believe that by removing supply management it will mean cheaper food for Canadian consumers. Many Canadian researchers have been duped into the same false assumption.

The reality is that food prices are set by processors and retailers, many of whom are multinational corporations. Striking down supply management would boost their profit margins and mean very little savings for the average consumer. Apply some business logic to the argument : Processors are not morally bound, or business incentivized to lower their prices. So why would they?

Supply management has been in place for more than 50 years and helps support family farms across Canada. The structure isn’t one of massive industrial size with environmental and animal welfare standards suffering as a result. Canada’s landscape is one of hard-working Canadian farmers producing top quality agricultural product.

As NAFTA talks move along, here’s hoping our federal government continues to support this obviously winning Canadian economic system.

Trevor Hargreaves is director of producer relations and communications with the B.C. Dairy Association and president of the British Columbia Farm Writers’ Association.