Canada: Feds reveal farm aid plan

We know the beef industry is in shambles on both sides of the border. But not as many people are aware the grain producers have been whalloped hard in the past year as well.

The Canadian Federal Government just announced a $1 Billion aid package for affected farmers. While a good hunk of change is going to the beef industry, $480 million is going to the grain sector, which is facing the lowest commodity prices in over 25 years.

Why are grain prices so low? A number of factors, undoubtedly. But unfortunately, I don't believe the situation is going to change anytime soon. With the advent of low cost producers like Brazil and China entering the global marketplace, the trend will undoubtedly continue.

What does it mean for an average North American farmer? I'd like to think it means they're going to look at value added alternatives. It's a sad reality, but it's a reality - new fuels for your car, new medicines and new bioproducts are going to come out for two reasons - a) they're just plain cool, but b) because there are very few other ways for the North American farmer to compete.

Little mini chemical and plastics plants will soon be popping up all over your rural landscape. The activists have wisened up and are starting to target the agriculture sector... lets hope the agriculture sector can get past the shortsightedness of short-term financial aid and start addressing the upcoming realities. At the moment, farmers are still considered 'highly credible.' It will be fascinating to see if this continues over the next five or six years...