WEBVTT 00:00:11.720 --> 00:00:15.060 Breaking free from the chains of the past Where 00:00:15.060 --> 00:00:18.820 truth moves faster than a Holstein calf No law 00:00:18.820 --> 00:00:21.660 waiting on some printed page We're charting new 00:00:21.660 --> 00:00:25.300 ground in the digital age From genomic codes 00:00:25.300 --> 00:00:29.120 to robot facts We cut through the noise, no hold 00:00:29.280 --> 00:00:32.460 them back not your daddy's dairy news tonight 00:00:32.460 --> 00:01:02.659 we're sparking Welcome to the Bullvine Podcast, 00:01:03.179 --> 00:01:05.939 where we challenge the sacred cows of the dairy 00:01:05.939 --> 00:01:09.060 industry with fearless analysis and evidence 00:01:09.060 --> 00:01:13.219 -based insights. I'm your host, and today we're 00:01:13.219 --> 00:01:15.560 diving into one of the most controversial topics 00:01:15.560 --> 00:01:18.959 in global dairy policy, a topic that will make 00:01:18.959 --> 00:01:21.780 free market economists squirm and force every 00:01:21.780 --> 00:01:24.219 dairy farmer to question everything they've been 00:01:24.219 --> 00:01:26.680 told about competitive markets. What if I told 00:01:26.680 --> 00:01:28.700 you that everything the dairy industry believes 00:01:28.700 --> 00:01:31.769 about free markets is actually subsidized fiction? 00:01:32.709 --> 00:01:35.030 What if the system we've been told represents 00:01:35.030 --> 00:01:38.290 the gold standard of efficiency actually requires 00:01:38.290 --> 00:01:41.989 $33 billion in annual taxpayer bailouts just 00:01:41.989 --> 00:01:45.689 to keep farmers from going bankrupt? Today we're 00:01:45.689 --> 00:01:49.090 examining the $50 billion truth, a comprehensive 00:01:49.090 --> 00:01:51.930 analysis that exposes how Canada's supposedly 00:01:51.930 --> 00:01:55.290 outdated supply management system is quietly 00:01:55.290 --> 00:01:57.930 outperforming every single free market dairy 00:01:57.930 --> 00:02:02.000 system on the planet. While American dairy farmers 00:02:02.000 --> 00:02:05.920 face a 55 % surge in bankruptcies, and Australian 00:02:05.920 --> 00:02:09.099 producers report that 55 % are considering leaving 00:02:09.099 --> 00:02:12.120 the industry altogether, Canadian dairy farmers 00:02:12.120 --> 00:02:15.039 are achieving world -class milk yields of 10 00:02:15.039 --> 00:02:18.780 ,400 kilograms per cow with debt -to -equity 00:02:18.780 --> 00:02:20.960 ratios that would make any financial advisor 00:02:20.960 --> 00:02:25.219 smile. This isn't about nationalism or protectionism. 00:02:25.280 --> 00:02:28.280 This is about hard data, measurable outcomes, 00:02:28.599 --> 00:02:31.419 and the uncomfortable truth that stability isn't 00:02:31.419 --> 00:02:34.599 the enemy of efficiency. It's efficiency's most 00:02:34.599 --> 00:02:37.840 critical component. So buckle up, because we're 00:02:37.840 --> 00:02:39.759 about to challenge some fundamental assumptions 00:02:39.759 --> 00:02:43.360 about dairy policy, market economics, and what 00:02:43.360 --> 00:02:46.539 it really means to have a free market. This is 00:02:46.539 --> 00:02:49.180 the Bullvine Podcast, and we never shy away from 00:02:49.180 --> 00:02:52.300 the controversies that matter most to your operations 00:02:52.300 --> 00:02:58.430 future. tearing into something that might seem 00:02:58.430 --> 00:03:01.250 a bit counterintuitive, really. It's from a recent 00:03:01.250 --> 00:03:05.169 Bullvine article, the claim that Canada's dairy 00:03:05.169 --> 00:03:07.990 supply management system, the one that gets criticized 00:03:07.990 --> 00:03:10.590 quite a bit, well, it might actually be outperforming 00:03:10.590 --> 00:03:13.629 every single so -called free market system out 00:03:13.629 --> 00:03:16.430 there globally. So our mission today is to really 00:03:16.430 --> 00:03:19.689 unpack that, to uncover the, well, the hidden 00:03:19.689 --> 00:03:22.069 truths behind this really bold assertion and 00:03:22.069 --> 00:03:23.949 figure out what it means for your operation. 00:03:24.579 --> 00:03:26.159 Yeah, it's fascinating, isn't it? Because the 00:03:26.159 --> 00:03:29.960 Bullvine article, it really challenges the very 00:03:29.960 --> 00:03:32.479 foundation of that free market ideology when 00:03:32.479 --> 00:03:35.080 it comes to dairy. It suggests that what a lot 00:03:35.080 --> 00:03:37.120 of economists preach might just be, and this 00:03:37.120 --> 00:03:38.979 is a quote from the article, subsidized fiction. 00:03:39.400 --> 00:03:41.500 Subsidized fiction, wow. Exactly. And we're not 00:03:41.500 --> 00:03:42.939 just talking theories today. We're going to be 00:03:42.939 --> 00:03:45.840 looking at, you know, cold, hard data. Miserable 00:03:45.840 --> 00:03:48.500 outcomes. Things that suggest Canada's system, 00:03:48.620 --> 00:03:51.800 the one often called outdated, is actually delivering 00:03:51.800 --> 00:03:54.580 everything deregulation promises, but maybe even 00:03:54.580 --> 00:03:56.699 doing it better than these systems they tout 00:03:56.699 --> 00:04:00.159 as free. It's definitely an uncomfortable truth 00:04:00.159 --> 00:04:02.280 for a lot of people to confront. OK, so let's 00:04:02.280 --> 00:04:04.020 start peeling back those layers. The Bullvine 00:04:04.020 --> 00:04:06.939 article right from the get go. It hits us with 00:04:06.939 --> 00:04:09.389 some. pretty compelling data points, numbers 00:04:09.389 --> 00:04:11.629 that really challenge conventional thinking. 00:04:12.110 --> 00:04:15.009 Canadian dairy farmers, it says, are achieving, 00:04:15.090 --> 00:04:18.870 get this, 10 ,400 kilogram milk yields per cow, 00:04:19.029 --> 00:04:22.069 which for context, that's absolutely world -class 00:04:22.069 --> 00:04:24.689 productivity. But here's what's maybe even more 00:04:24.689 --> 00:04:28.329 striking. They boast incredibly low 0 .191 debt 00:04:28.329 --> 00:04:30.449 ratios. Now, if you're running a dairy farm, 00:04:30.649 --> 00:04:32.470 you know managing debt is, well, it's everything 00:04:32.470 --> 00:04:36.029 for long -term survival. And that figure, 0 .191, 00:04:36.110 --> 00:04:38.529 it's truly remarkable. I mean, basically for 00:04:38.529 --> 00:04:40.829 every dollar of assets a Canadian farm owns, 00:04:40.930 --> 00:04:43.569 they owe about 19 cents. That's a strong position. 00:04:43.810 --> 00:04:46.269 A very strong financial position. It gives them 00:04:46.269 --> 00:04:49.389 this huge buffer against, you know, unexpected 00:04:49.389 --> 00:04:52.050 challenges. A level of financial freedom that, 00:04:52.069 --> 00:04:54.850 frankly, many dairy producers elsewhere can only 00:04:54.850 --> 00:04:57.689 dream of. Yeah, absolutely. Now contrast that 00:04:57.689 --> 00:05:00.129 stability with... what the Bullvine article calls 00:05:00.129 --> 00:05:03.730 these free market systems. And the irony here 00:05:03.730 --> 00:05:06.069 is thick, right? Because the article claims these 00:05:06.069 --> 00:05:09.170 systems require massive government support, markets 00:05:09.170 --> 00:05:11.149 that are supposed to be self -sufficient, standing 00:05:11.149 --> 00:05:13.550 on their own two feet. But they're not. No, they're 00:05:13.550 --> 00:05:16.470 propped up by billions in taxpayer dollars. And 00:05:16.470 --> 00:05:18.490 the article highlights a really devastating statistic. 00:05:18.949 --> 00:05:22.509 Chapter 12, family farm bankruptcies. That's 00:05:22.509 --> 00:05:24.870 the specific type for family farmers, signaling 00:05:24.870 --> 00:05:27.470 severe distress, often the loss of a multi -generational 00:05:27.470 --> 00:05:31.079 legacy. Well, they're up an astonishing 55 percent 00:05:31.079 --> 00:05:33.600 in 2024 in these so -called free markets. 55 00:05:33.600 --> 00:05:37.139 percent. That's huge. It's staggering. Meanwhile, 00:05:37.459 --> 00:05:40.879 Canada, with its supply management system, it 00:05:40.879 --> 00:05:43.500 hasn't needed a single bailout dollar from the 00:05:43.500 --> 00:05:46.620 government to keep its dairy sector afloat. Not 00:05:46.620 --> 00:05:50.120 one. The Bullvine article, it frames this perfectly 00:05:50.120 --> 00:05:53.100 as an uncomfortable truth that free market advocates 00:05:53.100 --> 00:05:55.759 desperately want buried. And when you see those 00:05:55.759 --> 00:05:58.620 numbers side by side. Well, it really puts that 00:05:58.620 --> 00:06:01.420 subsidized fiction claim into perspective, doesn't 00:06:01.420 --> 00:06:03.959 it? It certainly does. And if we connect this 00:06:03.959 --> 00:06:06.199 to the bigger picture. You know, it raises a 00:06:06.199 --> 00:06:08.240 really important question. If the conventional 00:06:08.240 --> 00:06:10.959 wisdom, the thing we always hear, is that deregulation 00:06:10.959 --> 00:06:13.740 automatically leads to efficiency and prosperity, 00:06:14.240 --> 00:06:16.959 well, why are we seeing such a dramatic, stark 00:06:16.959 --> 00:06:19.360 difference in financial health? Right. The results 00:06:19.360 --> 00:06:21.420 don't match the promise. Exactly. The article 00:06:21.420 --> 00:06:23.740 uses this vivid analogy, one that I think any 00:06:23.740 --> 00:06:26.220 dairy farmer will instantly get. It says, if 00:06:26.220 --> 00:06:28.079 your nutritionist promised a balanced ration 00:06:28.079 --> 00:06:31.040 but delivered 40 % spoiled feed instead, you'd 00:06:31.040 --> 00:06:33.319 fire them immediately. Instantly. No question. 00:06:33.899 --> 00:06:36.959 Yet we continue to trust or at least accept dairy 00:06:36.959 --> 00:06:39.480 policies that consistently lead to these devastating 00:06:39.480 --> 00:06:43.399 outcomes year after year. We seem to accept widespread 00:06:43.399 --> 00:06:46.500 financial instability, farm failures as just 00:06:46.500 --> 00:06:49.079 a natural part of the business. It really forces 00:06:49.079 --> 00:06:50.959 you to ask if we're being fed a spoiled ration, 00:06:51.160 --> 00:06:53.500 metaphorically speaking, when it comes to this 00:06:53.500 --> 00:06:56.620 economic policy advice. That's a powerful way 00:06:56.620 --> 00:06:58.740 to put it. And the measurable outcomes the Bullvine 00:06:58.740 --> 00:07:00.699 article highlights are just critical. It goes 00:07:00.699 --> 00:07:03.139 beyond those impressive milk yields. We're talking 00:07:03.139 --> 00:07:06.939 debt -to -equity ratios of 0 .191 for Canada, 00:07:07.000 --> 00:07:08.939 like you said. Now, let's put that into perspective. 00:07:09.300 --> 00:07:11.259 Compared to New Zealand, New Zealand's often 00:07:11.259 --> 00:07:13.879 held up as a shining example, right? Export -focused 00:07:13.879 --> 00:07:16.639 dairy. Well, they operate with a staggering 47 00:07:16.639 --> 00:07:20.439 .4 % debt -to -asset ratio. Wow. Nearly half 00:07:20.439 --> 00:07:22.959 their assets financed by debt. Exactly. It's 00:07:22.959 --> 00:07:25.019 a massive difference in financial leverage, in 00:07:25.019 --> 00:07:28.300 vulnerability. While Canadian farms have this 00:07:28.300 --> 00:07:30.439 strong equity cushion, the average New Zealand 00:07:30.439 --> 00:07:32.540 farm, well, it's like operating your business 00:07:32.540 --> 00:07:34.879 on a tightrope versus a wide, stable bridge. 00:07:35.139 --> 00:07:37.839 One small gust of wind, a market fluctuation, 00:07:37.839 --> 00:07:39.879 and a highly leveraged farm can just spiral. 00:07:40.220 --> 00:07:42.620 the Canadian farm. It's built to weather storms 00:07:42.620 --> 00:07:45.079 with significant financial resilience. The necropsies. 00:07:45.180 --> 00:07:47.680 In Canada. So negligible, they aren't even tracked 00:07:47.680 --> 00:07:50.139 as significant economic indicators. It's just 00:07:50.139 --> 00:07:53.139 not a widespread issue. Contrast that with other 00:07:53.139 --> 00:07:55.720 systems seeing the surge in farm failures, thousands 00:07:55.720 --> 00:07:57.839 of families losing their livelihoods, and those 00:07:57.839 --> 00:08:00.959 milk yields. Projected at 10 ,400 kilograms per 00:08:00.959 --> 00:08:04.040 cow, they show stability doesn't stifle productivity. 00:08:04.399 --> 00:08:06.699 It enabled it. It lets farmers invest in genetics, 00:08:06.800 --> 00:08:09.339 nutrition management, maintaining that high output 00:08:09.339 --> 00:08:11.600 year after year, but with a level of financial 00:08:11.600 --> 00:08:13.639 security that makes the volatility elsewhere 00:08:13.639 --> 00:08:15.639 look like you're, you know, literally feeding 00:08:15.639 --> 00:08:17.480 your cows a different unpredictable ration every 00:08:17.480 --> 00:08:19.560 single day. So, OK, let's bring this down to 00:08:19.560 --> 00:08:22.060 the farm level. What does this all mean for your 00:08:22.060 --> 00:08:25.079 operation, specifically for your long term planning, 00:08:25.240 --> 00:08:28.420 your peace of mind? The Bullvine article poses 00:08:28.420 --> 00:08:30.680 four direct questions that really cut to the 00:08:30.680 --> 00:08:33.399 chase on sustainability. They're incredibly insightful. 00:08:33.740 --> 00:08:37.549 First, it asks, Can you plan facility upgrades, 00:08:37.750 --> 00:08:40.649 say, five to seven years in advance with real 00:08:40.649 --> 00:08:43.289 confidence? That's a big ask in most systems. 00:08:43.509 --> 00:08:45.509 It's huge. Think about that capital investment. 00:08:45.730 --> 00:08:47.970 Hundreds of thousands, maybe millions for new 00:08:47.970 --> 00:08:51.250 parlors, robots, bigger barns. Being able to 00:08:51.250 --> 00:08:53.470 confidently plan those upgrades, knowing your 00:08:53.470 --> 00:08:55.470 future income streams are reasonably secure. 00:08:55.690 --> 00:08:58.129 That speaks volumes about foresight. It cuts 00:08:58.129 --> 00:08:59.970 down an enormous amount of stress. It's the difference 00:08:59.970 --> 00:09:02.830 between reactive emergency spending and, well, 00:09:02.870 --> 00:09:05.279 strategic. proactive investment. Absolutely. 00:09:05.500 --> 00:09:07.179 Second question. Do you know your milk price 00:09:07.179 --> 00:09:10.580 within, say, 2 % 12 months ahead? Imagine the 00:09:10.580 --> 00:09:12.940 power of that certainty. Budgeting for feed, 00:09:13.120 --> 00:09:16.100 labor, repairs, making purchasing decisions for 00:09:16.100 --> 00:09:18.059 machinery or breeding programs with that kind 00:09:18.059 --> 00:09:20.519 of clarity. It transforms planning from guesswork 00:09:20.519 --> 00:09:23.139 into, well, almost a science. It changes the 00:09:23.139 --> 00:09:26.120 game completely. Third. Can you make genetic 00:09:26.120 --> 00:09:29.259 decisions based on 10 -year projections? We know 00:09:29.259 --> 00:09:31.700 genetics is a long game, right? The sires you 00:09:31.700 --> 00:09:34.539 choose today, the dam lines, they impact your 00:09:34.539 --> 00:09:37.700 herd for years, decades even. Planning that far 00:09:37.700 --> 00:09:39.960 out, knowing the market will likely support those 00:09:39.960 --> 00:09:42.620 long -term investments. That implies a stability 00:09:42.620 --> 00:09:45.799 that allows for true generational herd improvement, 00:09:46.120 --> 00:09:48.399 focusing on balanced breeding goals, not just 00:09:48.399 --> 00:09:50.559 chasing short -term output. A much more sustainable 00:09:50.559 --> 00:09:53.139 approach. And finally, the fourth question. Are 00:09:53.139 --> 00:09:55.620 your neighbors competitors or are they collaborators 00:09:55.620 --> 00:09:58.399 in market stability? This really touches the 00:09:58.399 --> 00:10:01.759 fabric of rural communities. In a volatile, deregulated 00:10:01.759 --> 00:10:03.720 market, your neighbors can feel like rivals, 00:10:03.899 --> 00:10:06.360 right? Undercutting prices, expanding to grab 00:10:06.360 --> 00:10:09.379 a shrinking pie. It can lead to animosity, isolation. 00:10:09.799 --> 00:10:12.159 Whereas in a stable system like Canada's, with 00:10:12.159 --> 00:10:14.340 managed production, there's more room for collaboration, 00:10:14.659 --> 00:10:17.019 sharing knowledge, mutual support. It fosters 00:10:17.019 --> 00:10:18.860 healthier, more resilient rural communities. 00:10:19.120 --> 00:10:21.419 That social aspect is often overlooked. Totally. 00:10:21.779 --> 00:10:24.440 And for Canadian farmers, the Bullvine article 00:10:24.440 --> 00:10:27.039 states, the answer to all four of these questions 00:10:27.039 --> 00:10:30.820 is a resounding yes. Every single one. They plan 00:10:30.820 --> 00:10:33.279 with confidence, know their prices, make long 00:10:33.279 --> 00:10:35.559 -term genetic decisions, and often see neighbors 00:10:35.559 --> 00:10:38.700 as collaborators. Now, the real test the article 00:10:38.700 --> 00:10:40.860 puts before us, before you listening, is this. 00:10:41.179 --> 00:10:44.120 How many of those questions can you answer affirmatively 00:10:44.120 --> 00:10:46.950 in your current system? That stark comparison. 00:10:47.450 --> 00:10:50.070 It really underscores the difference in operational 00:10:50.070 --> 00:10:52.830 reality, doesn't it? It really does. It's a powerful 00:10:52.830 --> 00:10:54.990 self -assessment. Okay, let's continue this deep 00:10:54.990 --> 00:10:57.230 dive. The Bullvine article uses another great 00:10:57.230 --> 00:10:59.929 analogy here. It calls this next part a feed 00:10:59.929 --> 00:11:02.090 analysis that will make free market purists as 00:11:02.090 --> 00:11:04.809 uncomfortable as a Holstein in 100 degrees of 00:11:04.809 --> 00:11:06.889 far weather. Chuckles. Yeah, that paints a picture. 00:11:07.029 --> 00:11:09.679 A cow is struggling. totally out of its element 00:11:09.679 --> 00:11:11.980 it captures how uncomfortable these truths are 00:11:11.980 --> 00:11:14.120 for that conventional thinking and the core assertion 00:11:14.120 --> 00:11:17.059 here is stark it's absolute there are no free 00:11:17.059 --> 00:11:21.000 dairy markets anywhere boom right there it's 00:11:21.000 --> 00:11:23.039 a huge claim basically arguing that the whole 00:11:23.039 --> 00:11:26.720 concept of a truly unregulated self -correcting 00:11:26.720 --> 00:11:30.279 dairy market is Well, it's a fantasy, a convenient 00:11:30.279 --> 00:11:32.220 story that just doesn't hold up when you look 00:11:32.220 --> 00:11:34.279 at the real world. So that raises the obvious 00:11:34.279 --> 00:11:36.940 question, right? If genuinely free dairy markets 00:11:36.940 --> 00:11:39.679 don't actually exist, then what are these systems 00:11:39.679 --> 00:11:42.960 doing? And what are their true costs? The article 00:11:42.960 --> 00:11:46.139 then unpacks what it calls the multi -billion 00:11:46.139 --> 00:11:48.980 dollar subsidy reality check and the picture 00:11:48.980 --> 00:11:52.059 it paints across different nations. It's quite 00:11:52.059 --> 00:11:54.399 revealing. It exposes these huge hidden costs 00:11:54.399 --> 00:11:57.399 borne by taxpayers and farmers. Okay, where do 00:11:57.399 --> 00:11:59.399 we start? The U .S.? Let's start with the United 00:11:59.399 --> 00:12:01.879 States. Often hailed, as the article says, as 00:12:01.879 --> 00:12:04.379 the poster child for dairy deregulation. But 00:12:04.379 --> 00:12:06.440 it actually operates through massive, ongoing 00:12:06.440 --> 00:12:08.899 government intervention. It highlights the Dairy 00:12:08.899 --> 00:12:11.639 Margin Coverage Program, the DMC. That's a crucial, 00:12:11.779 --> 00:12:14.100 permanent safety net for producers. Right. It 00:12:14.100 --> 00:12:15.940 protects against that margin squeeze between 00:12:15.940 --> 00:12:19.139 milk price and feed cost. Exactly. It indemnifies 00:12:19.139 --> 00:12:21.519 farmers against those volatile differences. It 00:12:21.519 --> 00:12:23.620 prevents widespread collapse during downturns. 00:12:23.700 --> 00:12:25.820 But it's not a temporary fix. It's an embedded 00:12:25.820 --> 00:12:28.529 feature. And then you look at the USDA's 2025 00:12:28.529 --> 00:12:32.190 farm sector income forecast. Cash receipts from 00:12:32.190 --> 00:12:35.870 milk sales projected at a huge $52 .1 billion, 00:12:36.129 --> 00:12:40.149 up $1 .4 billion from 2024. Sounds good on the 00:12:40.149 --> 00:12:43.070 surface. It does. Higher prices, more quantity 00:12:43.070 --> 00:12:46.429 sold. The USDA raised the 2025 milk production 00:12:46.429 --> 00:12:50.529 forecast to 227 .3 billion pounds. Average all 00:12:50.529 --> 00:12:53.950 -milk price expected around $21 .60 per hundredweight. 00:12:54.149 --> 00:12:56.210 But here's the key point the Bullvine article 00:12:56.210 --> 00:12:58.950 makes. This apparent stability in the U .S., 00:12:58.950 --> 00:13:00.769 it comes through constant government intervention, 00:13:01.149 --> 00:13:03.549 not through inherent market mechanisms working 00:13:03.549 --> 00:13:05.720 themselves out. So it's managed stability, just 00:13:05.720 --> 00:13:07.860 managed differently and maybe less transparently. 00:13:08.059 --> 00:13:09.779 You could argue that. Compared to Canada, where 00:13:09.779 --> 00:13:11.700 farmers under supply management experience minimal 00:13:11.700 --> 00:13:13.940 trice volatility, their adjustments are predictable, 00:13:14.100 --> 00:13:15.899 almost like noise. It lets them plant breeding 00:13:15.899 --> 00:13:18.940 facilities years ahead, like having a feed contract 00:13:18.940 --> 00:13:21.059 locked in at harvest. It's a stark contrast. 00:13:21.279 --> 00:13:23.340 One system relies on continuous government support 00:13:23.340 --> 00:13:25.500 for a semblance of stability. While the other 00:13:25.500 --> 00:13:27.779 builds stability into its structure. Precisely. 00:13:28.000 --> 00:13:29.980 OK, what about Australia? The article calls it 00:13:29.980 --> 00:13:31.659 a catastrophe. Yeah, the Australian catastrophe. 00:13:31.700 --> 00:13:34.460 It's a truly stark picture of what happens when 00:13:34.460 --> 00:13:37.299 that free market ideology meets reality in a 00:13:37.299 --> 00:13:40.460 deregulated environment. Get this. Fifty five 00:13:40.460 --> 00:13:43.279 percent of Australian dairy producers are considering 00:13:43.279 --> 00:13:46.789 exiting the industry completely. Wow. Over half. 00:13:47.090 --> 00:13:49.250 It's not just financial hardship. It's a total 00:13:49.250 --> 00:13:52.009 loss of faith. No viable future seen in the system. 00:13:52.389 --> 00:13:55.629 Farmers reporting earnings as low as $2 .46 an 00:13:55.629 --> 00:13:58.169 hour. $2 .46 an hour. Barely minimum wage some 00:13:58.169 --> 00:14:01.049 places. Not enough to sustain a farm. And this 00:14:01.049 --> 00:14:04.289 follows brutal 10 -15 % farmgate price cuts, 00:14:04.409 --> 00:14:07.840 often imposed by powerful processors. Since 1980, 00:14:08.080 --> 00:14:10.639 Australia has lost an incredible 80 % of its 00:14:10.639 --> 00:14:13.580 dairy farms, creating what researchers now call 00:14:13.580 --> 00:14:17.120 dairy deserts. Entire rural communities collapsing 00:14:17.120 --> 00:14:20.440 as the economic base just evaporates. The article 00:14:20.440 --> 00:14:23.919 calls it legalized destruction, not market efficiency, 00:14:24.179 --> 00:14:26.960 but exploitation driven by extreme market power 00:14:26.960 --> 00:14:29.600 imbalances. Imagine, as the article puts it, 00:14:29.659 --> 00:14:32.000 if your feed supplier had monopoly power and 00:14:32.000 --> 00:14:34.500 suddenly cut your milk payment by 15 % while 00:14:34.500 --> 00:14:37.659 your feed costs jumped 40%. That's the reality 00:14:37.659 --> 00:14:40.059 Australian farmers face. No negotiating power 00:14:40.059 --> 00:14:43.019 at all. None. Power concentrated with a few processors. 00:14:43.279 --> 00:14:45.639 Individual farmers left adrift, often forced 00:14:45.639 --> 00:14:48.019 out. Okay, and Europe. The subsidy shell game. 00:14:48.220 --> 00:14:50.519 Right, the European subsidy shell game. The EU's 00:14:50.519 --> 00:14:52.980 common agricultural policy, the CAP, one of the 00:14:52.980 --> 00:14:54.980 world's biggest subsidy programs. It's not small 00:14:54.980 --> 00:14:58.179 change, 31 % of the total EU budget. A massive 00:14:58.179 --> 00:15:02.580 $387 billion allocated just for 2021 -2027. Huge 00:15:02.580 --> 00:15:04.679 sums of taxpayer money flowing constantly into 00:15:04.679 --> 00:15:06.700 agriculture. And it's working. Well, the article 00:15:06.700 --> 00:15:09.200 notes that recent EU reports themselves are calling 00:15:09.200 --> 00:15:13.059 for a major overhaul, admitting business as usual 00:15:13.059 --> 00:15:16.799 is not an option. Why? Because of multiple crises 00:15:16.799 --> 00:15:19.759 hitting farmers, climate change, geopolitics, 00:15:19.779 --> 00:15:22.759 soaring input costs. This isn't outside criticism. 00:15:22.940 --> 00:15:25.639 It's the EU itself saying their heavily subsidized 00:15:25.639 --> 00:15:28.919 system is under severe stress, failing to deliver 00:15:28.919 --> 00:15:31.919 the promised stability or prosperity. So across 00:15:31.919 --> 00:15:35.600 the board, U .S., Australia, EU, these supposedly 00:15:35.600 --> 00:15:39.200 free or efficient systems seem to need constant 00:15:39.200 --> 00:15:41.779 massive support just to keep going. That's the 00:15:41.779 --> 00:15:43.919 core argument from the Bullvine article. It leads 00:15:43.919 --> 00:15:45.779 right back to that critical question. If these 00:15:45.779 --> 00:15:48.600 systems are so efficient. Why the constant multi 00:15:48.600 --> 00:15:50.580 -billion dollar taxpayer bailouts to prevent 00:15:50.580 --> 00:15:53.059 total collapse. The article's conclusion is clear. 00:15:53.240 --> 00:15:55.220 These aren't truly free markets. They're heavily 00:15:55.220 --> 00:15:57.419 subsidized markets. The true costs are hidden 00:15:57.419 --> 00:15:59.980 from consumers, offloaded onto taxpayers, while 00:15:59.980 --> 00:16:02.019 farmers still suffer from volatility and power 00:16:02.019 --> 00:16:04.360 imbalances. It's like an economic illusion. You 00:16:04.360 --> 00:16:06.500 know, the invisible hand is actually propped 00:16:06.500 --> 00:16:08.519 up by the very visitor hand of government checks. 00:16:08.700 --> 00:16:11.460 A powerful indictment indeed. Okay, let's really 00:16:11.460 --> 00:16:13.840 dig into the hard numbers now. The head -to -head 00:16:13.840 --> 00:16:16.480 comparisons from the Bullvine article. This is 00:16:16.480 --> 00:16:17.960 where the data really tells the story, isn't 00:16:17.960 --> 00:16:20.299 it? Like looking at the diagnostic reports on 00:16:20.299 --> 00:16:22.759 four different combines, seeing which one's performing, 00:16:22.960 --> 00:16:25.179 which one's costing you a fortune in hidden repairs. 00:16:25.480 --> 00:16:27.559 Exactly. And what's fascinating is how systematically 00:16:27.559 --> 00:16:31.200 the data contrasts Canada, supply management 00:16:31.200 --> 00:16:34.840 against the USA, free market, Australia deregulated, 00:16:34.919 --> 00:16:38.059 and New Zealand. Export focused across these 00:16:38.059 --> 00:16:41.379 key metrics. This direct comparison is where 00:16:41.379 --> 00:16:44.299 that uncomfortable truth really comes into focus, 00:16:44.419 --> 00:16:47.779 challenging a lot of deeply held economic beliefs. 00:16:48.080 --> 00:16:50.179 Where should we start? Bankruptcies. Let's start 00:16:50.179 --> 00:16:53.299 with farm bankruptcy trends in Canada under supply 00:16:53.299 --> 00:16:56.940 management. Negligible. So insignificant and 00:16:56.940 --> 00:16:58.940 it's not tracked as a major economic indicator. 00:16:59.179 --> 00:17:01.320 Think about that as a system where farm failure 00:17:01.320 --> 00:17:04.240 isn't a chronic systemic issue. Almost unheard 00:17:04.240 --> 00:17:06.609 of compared to elsewhere. Right? Compare that 00:17:06.609 --> 00:17:09.329 to the U .S. Chapter 12 family farm bankruptcies 00:17:09.329 --> 00:17:12.450 up a staggering 55 % in 2024. That's thousands 00:17:12.450 --> 00:17:15.049 of families losing livelihoods, homes, legacies 00:17:15.049 --> 00:17:17.569 due to the intense financial pressure of a volatile 00:17:17.569 --> 00:17:21.269 market. Australia, equally dire. 55 % of producers 00:17:21.269 --> 00:17:23.589 actively considering leaving the industry. A 00:17:23.589 --> 00:17:26.490 clear system in crisis. And New Zealand, despite 00:17:26.490 --> 00:17:28.950 its export success, consistently shows persistent 00:17:28.950 --> 00:17:31.490 high debt stress among its dairy farmers, highlighting 00:17:31.490 --> 00:17:33.430 the fragility that comes with that extreme market 00:17:33.430 --> 00:17:35.849 exposure. For a farmer, this isn't just data. 00:17:35.910 --> 00:17:38.150 It's the difference between stability and life 00:17:38.150 --> 00:17:40.170 -altering uncertainty. Okay, what about price 00:17:40.170 --> 00:17:42.369 swings, price volatility? Crucial for planning, 00:17:42.450 --> 00:17:45.450 right? Price volatility. Canada sees minimal 00:17:45.450 --> 00:17:47.750 adjustments, less than 1 % annually, typically. 00:17:48.490 --> 00:17:50.539 Predictable. Minor shifts you can plan around. 00:17:50.660 --> 00:17:53.079 Like a minor feed quality fluctuation you adapt 00:17:53.079 --> 00:17:56.180 to easily. Contrast that. USC's constant forecast 00:17:56.180 --> 00:17:58.539 for visions. The all -milk price swing wildly 00:17:58.539 --> 00:18:02.740 $21 .10 to $23 .05 per hundredweight in the recent 00:18:02.740 --> 00:18:05.279 forecast. That's a huge range. Australia, even 00:18:05.279 --> 00:18:07.940 more brutal. 10 -15 % price cuts in a single 00:18:07.940 --> 00:18:10.059 season. That can completely wreck a farm budget 00:18:10.059 --> 00:18:12.269 overnight. Turn profit into loss. New Zealand. 00:18:12.450 --> 00:18:15.730 Wide forecast ranges $8 to $11 per kgms kilograms 00:18:15.730 --> 00:18:18.029 of milk solids, reflecting their extreme dependence 00:18:18.029 --> 00:18:20.250 on unpredictable global markets. For a farmer 00:18:20.250 --> 00:18:21.950 trying to plan feed buys, equipment investments, 00:18:22.130 --> 00:18:24.349 hiring, this kind of volatility is paralyzing. 00:18:24.410 --> 00:18:26.230 Long -term strategy becomes nearly impossible. 00:18:26.549 --> 00:18:28.589 And the debt levels we touched on earlier. Yeah, 00:18:28.609 --> 00:18:31.089 average debt to asset ratio. Key health indicator. 00:18:31.410 --> 00:18:34.529 Canada maintains around 16%. The Bullvine article 00:18:34.529 --> 00:18:37.029 calls this sustainable. Healthy balance sheets, 00:18:37.250 --> 00:18:39.809 strong footing, starkly different from rising 00:18:39.809 --> 00:18:42.130 stress in the U .S. and New Zealand's high leverage 00:18:42.130 --> 00:18:45.509 at 47 .4%. High debt means less equity, more 00:18:45.509 --> 00:18:47.930 risk, less flexibility when markets turn sour. 00:18:48.130 --> 00:18:50.710 A small downturn can trigger catastrophe for 00:18:50.710 --> 00:18:52.849 highly leveraged farms. And the government support 00:18:52.849 --> 00:18:55.470 needed. Government support required. The differences 00:18:55.470 --> 00:18:58.390 here are stark. Canada's system. Transparent, 00:18:58.450 --> 00:19:00.869 finite compensation, mainly via tariffs and border 00:19:00.869 --> 00:19:03.750 controls, regulating imports, prioritizing domestic 00:19:03.750 --> 00:19:07.920 supply. Keywords. transparent and finite. Costs 00:19:07.920 --> 00:19:10.940 known and controlled. U .S. and EU. Massive ongoing 00:19:10.940 --> 00:19:14.299 bailouts. U .S. DMZ program. Continuously funded. 00:19:14.460 --> 00:19:16.900 A prominent multi -billion dollar taxpayer safety 00:19:16.900 --> 00:19:20.819 net. EU CAP. Hundreds of billions of euros, often 00:19:20.819 --> 00:19:22.650 just to keep the system from collapsing. These 00:19:22.650 --> 00:19:24.210 aren't one -offs, they're continuous infusions. 00:19:24.369 --> 00:19:26.950 Australian and New Zealand. Minimal, often ineffective, 00:19:27.190 --> 00:19:29.650 direct support noted. Showing deregulation doesn't 00:19:29.650 --> 00:19:31.750 guarantee self -sufficiency often leads to farm 00:19:31.750 --> 00:19:33.950 abandonment, regional collapse. How about production 00:19:33.950 --> 00:19:36.390 stability? Keeping supply steady. Production 00:19:36.390 --> 00:19:38.990 stability. Canada projects steady 3 % growth. 00:19:39.369 --> 00:19:41.829 Managed, sustainable expansion aligned with domestic 00:19:41.829 --> 00:19:44.630 demand. Stability, planned investment. The US, 00:19:44.829 --> 00:19:47.569 volatile boom -bust cycles. Overproduction, then 00:19:47.569 --> 00:19:50.269 sharp contractions. And tragically, milk dumping 00:19:50.269 --> 00:19:52.190 during crises because the market can't absorb 00:19:52.190 --> 00:19:54.900 the excess. Australia. A 30 -year production 00:19:54.900 --> 00:19:57.380 low. Direct result of farmers leaving en masse 00:19:57.380 --> 00:20:00.240 due to hardship. New Zealand. Export -dependent 00:20:00.240 --> 00:20:02.480 volatility. Production dictated by unpredictable 00:20:02.480 --> 00:20:05.579 global whims, not domestic planning. Highly vulnerable 00:20:05.579 --> 00:20:08.180 to trade shocks. Finally, the impact on communities. 00:20:08.400 --> 00:20:10.960 Yeah, rural community impact. This goes beyond 00:20:10.960 --> 00:20:13.180 economics to the heart of rural life. Canada 00:20:13.180 --> 00:20:16.390 maintains an average of 96 cows per farm. indicative 00:20:16.390 --> 00:20:19.289 of family -scale operations, supporting a dispersed, 00:20:19.470 --> 00:20:22.430 vibrant rural population. Contrast that. U .S. 00:20:22.430 --> 00:20:25.970 average, 357 cows, clear consolidation pressure, 00:20:26.309 --> 00:20:28.890 larger industrial -scale farms absorbing smaller 00:20:28.890 --> 00:20:31.329 ones. The Bullvine article argues this difference 00:20:31.329 --> 00:20:33.529 in Canada represents thousands of additional 00:20:33.529 --> 00:20:35.569 family operations that support local communities, 00:20:35.809 --> 00:20:37.970 equipment dealers, veterinarians, feed suppliers, 00:20:38.250 --> 00:20:41.069 and rural infrastructure, like a diversified 00:20:41.069 --> 00:20:43.509 feed supply network versus relying on a few mega 00:20:43.509 --> 00:20:46.259 -suppliers. Lose those family farms, you lose 00:20:46.259 --> 00:20:48.279 that economic ripple effect. Community decline, 00:20:48.559 --> 00:20:50.920 loss of services, the dairy desert seen in Australia 00:20:50.920 --> 00:20:53.880 with its 80 % farm loss since 1980. New Zealand 00:20:53.880 --> 00:20:56.579 faces intensification pressures. Environmental 00:20:56.579 --> 00:20:58.940 and social strain as operations scale up. The 00:20:58.940 --> 00:21:00.700 human element, the health of rural communities, 00:21:00.799 --> 00:21:04.000 profoundly impacted by policy choices. A cost 00:21:04.000 --> 00:21:06.160 rarely factored into those free market efficiency 00:21:06.160 --> 00:21:09.220 equations. Wow. When you lay it all out like 00:21:09.220 --> 00:21:12.380 that, side by side, the picture is... Well, it's 00:21:12.380 --> 00:21:15.420 compelling. The Bullvine article calls this Canada's 00:21:15.420 --> 00:21:18.279 silent performance revolution. Arguing the data 00:21:18.279 --> 00:21:20.440 should make agricultural economists rethink their 00:21:20.440 --> 00:21:22.740 textbooks, especially those clinging to old theories. 00:21:22.960 --> 00:21:25.579 It's bold, but the numbers seem to back it up. 00:21:25.599 --> 00:21:28.359 It stresses financial stability that actually 00:21:28.359 --> 00:21:31.769 works. Citing those roughly 12 ,000 dairy farms 00:21:31.769 --> 00:21:34.750 under supply management, around 12 % of all Canadian 00:21:34.750 --> 00:21:37.450 farms maintaining debt levels around 16 % of 00:21:37.450 --> 00:21:40.190 assets year after year. It's systemic. It proves 00:21:40.190 --> 00:21:42.509 stability and profitability can coexist for the 00:21:42.509 --> 00:21:45.089 majority. Exactly. And contrasted sharply with 00:21:45.089 --> 00:21:47.210 the U .S. where those Chapter 12 bankruptcies 00:21:47.210 --> 00:21:51.130 jumped 55 % in 2024. Yes, the U .S. dairy sector 00:21:51.130 --> 00:21:53.690 has impressive cash receipts forecast $52 .1 00:21:53.690 --> 00:21:57.049 billion for 2025. Big number. But the Bullvine 00:21:57.049 --> 00:21:58.750 article says these figures mask the uncertainty. 00:22:04.220 --> 00:22:06.200 That's a powerful analogy. Good silage management 00:22:06.200 --> 00:22:08.539 is key, right? Looks fine outside, but inside. 00:22:08.920 --> 00:22:11.319 Right. The headline number might look healthy 00:22:11.319 --> 00:22:13.640 for the whole industry, but... The reality for 00:22:13.640 --> 00:22:16.519 individual farmers can be devastating. That aggregate 00:22:16.519 --> 00:22:18.640 figure doesn't reflect the daily stress, the 00:22:18.640 --> 00:22:21.180 volatility many face, often forcing them out 00:22:21.180 --> 00:22:23.440 despite the overall market size. Yeah, the average 00:22:23.440 --> 00:22:26.039 highs the extremes. And it's not just financials. 00:22:26.039 --> 00:22:28.740 The article hits on a productivity paradox that 00:22:28.740 --> 00:22:31.940 destroys free market myths. Critics say supply 00:22:31.940 --> 00:22:34.599 management stifles innovation productivity because 00:22:34.599 --> 00:22:39.069 it's rigid, protectionist. But Canada's 10 ,400 00:22:39.069 --> 00:22:42.210 kilogram yield projections, they match Denmark's 00:22:42.210 --> 00:22:44.890 world -class output, a global leader in efficiency, 00:22:45.289 --> 00:22:48.170 directly defying claims that stability means 00:22:48.170 --> 00:22:50.390 stagnation. So productivity is high and stable. 00:22:50.690 --> 00:22:53.410 Right. While the U .S. projects slightly higher 00:22:53.410 --> 00:22:56.509 individual productivity, around 11 ,000 kilograms 00:22:56.509 --> 00:23:00.849 cow with its 9 .4 million head herd. The crucial 00:23:00.849 --> 00:23:02.750 distinction the Bullvine article makes is that 00:23:02.750 --> 00:23:05.390 this higher output comes only through a system 00:23:05.390 --> 00:23:09.130 requiring massive government subsidies. So it's 00:23:09.130 --> 00:23:11.809 not cure market efficiency, it's subsidized output. 00:23:11.950 --> 00:23:15.430 It forces the question, what's the true economic 00:23:15.430 --> 00:23:18.869 and social cost of that productivity? Is it sustainable 00:23:18.869 --> 00:23:21.329 for the individual farmer without that constant 00:23:21.329 --> 00:23:23.970 external support? Great questions. And that leads 00:23:23.970 --> 00:23:26.250 nicely into the next point, doesn't it? How stability 00:23:26.250 --> 00:23:29.170 impacts investment. Exactly. Let's dig into that 00:23:29.170 --> 00:23:31.430 because stability isn't just about avoiding bankruptcy, 00:23:31.569 --> 00:23:33.569 right? It actually opens doors for strategic 00:23:33.569 --> 00:23:36.279 growth. The Bullvine article dives into how this 00:23:36.279 --> 00:23:38.339 affects technology investment and uncovers some 00:23:38.339 --> 00:23:41.039 truly hidden costs in those other systems we 00:23:41.039 --> 00:23:43.099 rarely talk about. Yeah, what's fascinating here 00:23:43.099 --> 00:23:45.640 is how that stability in Canada's system creates 00:23:45.640 --> 00:23:48.380 these unique opportunities for strategic technology 00:23:48.380 --> 00:23:51.200 investments. In volatile markets, farmers are 00:23:51.200 --> 00:23:53.380 often forced into reactive spending, putting 00:23:53.380 --> 00:23:55.599 out fires, replacing equipment in an emergency, 00:23:55.859 --> 00:23:58.519 making short -term calls just to survive. Playing 00:23:58.519 --> 00:24:01.440 defense, not offense. Precisely, but stable systems. 00:24:01.640 --> 00:24:04.809 They enable proactive planning. The article likens 00:24:04.809 --> 00:24:07.369 it to buying equipment during a planned upgrade 00:24:07.369 --> 00:24:10.329 cycle versus emergency replacement. Imagine the 00:24:10.329 --> 00:24:12.750 difference in your stress, your ability to optimize 00:24:12.750 --> 00:24:15.309 for the long term, your ROI, when you can actually 00:24:15.309 --> 00:24:18.210 predict income streams years out. It changes 00:24:18.210 --> 00:24:20.450 everything. The article gives a really compelling 00:24:20.450 --> 00:24:23.529 ROI calculation example for robotic milking systems. 00:24:23.789 --> 00:24:28.190 Super relevant today. Cost, $200 ,000, $300 ,000, 00:24:28.369 --> 00:24:31.519 ballpark. Under stable pricing, payback is a 00:24:31.519 --> 00:24:34.359 predictable 7 -10 years. Clear returns makes 00:24:34.359 --> 00:24:36.180 the investment sensible for future efficiency. 00:24:36.500 --> 00:24:39.079 But under volatile pricing, that payback could 00:24:39.079 --> 00:24:41.859 stretch to 15 plus years or maybe never happen. 00:24:41.960 --> 00:24:44.140 Just too much uncertainty. The risk is too high. 00:24:44.279 --> 00:24:46.559 Exactly. This Canadian advantage, the article 00:24:46.559 --> 00:24:48.910 notes, comes directly from... predictable income 00:24:48.910 --> 00:24:51.170 streams, fundamentally de -risking those big 00:24:51.170 --> 00:24:53.329 long -term capital spends. And it's not just 00:24:53.329 --> 00:24:55.490 theory. It's proven by Canadian farms' strong 00:24:55.490 --> 00:24:57.750 adoption of capital -intensive tech, robotic 00:24:57.750 --> 00:25:00.670 milking systems, used for 17 % of the nation's 00:25:00.670 --> 00:25:02.950 tested dairy cows. That's significant strategic 00:25:02.950 --> 00:25:05.589 investment. They can actually plan for and afford 00:25:05.589 --> 00:25:08.420 the cutting edge. Right. And McKinsey's 2025 00:25:08.420 --> 00:25:11.440 dairy survey, mentioned in the article, notes 00:25:11.440 --> 00:25:14.460 80 % of global dairy leaders expect volume growth, 00:25:14.579 --> 00:25:18.200 54 % are already using AI in pricing and manufacturing. 00:25:18.880 --> 00:25:21.599 Canadian farmers, due to stability, are positioned 00:25:21.599 --> 00:25:23.819 to invest in these things strategically, not 00:25:23.819 --> 00:25:25.880 as a gamble, but as a calculated step towards 00:25:25.880 --> 00:25:28.420 future efficiency. Which brings us to the hidden 00:25:28.420 --> 00:25:30.980 costs of free markets. Yeah, the article argues 00:25:30.980 --> 00:25:33.740 the myth completely collapses like a poorly formulated 00:25:33.740 --> 00:25:36.579 TMR that looks cheap until you calculate the 00:25:36.579 --> 00:25:39.420 real cost per pound of milk produced. Huh. Another 00:25:39.420 --> 00:25:42.539 great feed analogy. Cheap TMR up front can cost 00:25:42.539 --> 00:25:44.680 you dearly later with health or production issues. 00:25:45.119 --> 00:25:47.900 Exactly. And these free dairy markets, they come 00:25:47.900 --> 00:25:50.759 with massive, often unacknowledged costs borne 00:25:50.759 --> 00:25:54.339 by taxpayers and society. Let's talk the true 00:25:54.339 --> 00:25:57.130 subsidy math that changes everything. The article 00:25:57.130 --> 00:25:59.809 contrasts Canada's transparent, finite compensation, 00:26:00.170 --> 00:26:02.789 like for trade deal impacts, with the U .S. system's 00:26:02.789 --> 00:26:05.009 massive, often hidden, ongoing interventions. 00:26:05.309 --> 00:26:08.750 The DMC program, a permanent taxpayer -funded 00:26:08.750 --> 00:26:11.690 safety net, always there, always funded, plus 00:26:11.690 --> 00:26:14.390 emergency billions injected during crises, often 00:26:14.390 --> 00:26:16.839 reactively and inefficiently. And do those subsidies 00:26:16.839 --> 00:26:19.119 even help the farmer directly? Well, the article 00:26:19.119 --> 00:26:21.720 quotes Dr. Marin Bolzik, a University of Minnesota 00:26:21.720 --> 00:26:24.980 dairy economist. He states that direct payments 00:26:24.980 --> 00:26:27.359 to crop producers rarely translate to lower feed 00:26:27.359 --> 00:26:29.619 costs for livestock operations. Where does the 00:26:29.619 --> 00:26:32.200 money go? The subsidy gets capitalized into land 00:26:32.200 --> 00:26:34.619 values and farm equity rather than leading to 00:26:34.619 --> 00:26:37.819 lower commodity prices. So for you, the dairy 00:26:37.819 --> 00:26:40.000 farmer, those grain subsidies, they don't necessarily 00:26:40.000 --> 00:26:42.880 lower your feed bill. They inflate land values, 00:26:43.059 --> 00:26:45.059 making entry harder for new farmers, boosting 00:26:45.059 --> 00:26:47.660 assets for landowners, but not necessarily helping 00:26:47.660 --> 00:26:49.799 the milk producer pay the bills. It's a shell 00:26:49.799 --> 00:26:51.880 game, like the article said. It can feel that 00:26:51.880 --> 00:26:54.279 way. Then there are the environmental externalities. 00:26:54.400 --> 00:26:57.039 Canadian dairy farmers, one of the world's lowest 00:26:57.039 --> 00:27:00.319 carbon footprints, 0 .94 kilograms CO2 equivalent 00:27:00.319 --> 00:27:03.660 per liter of milk. And it decreased 9 % between 00:27:03.660 --> 00:27:07.029 2011 and 2021. Sustained improvement within a 00:27:07.029 --> 00:27:09.589 stable framework enabling proactive environmental 00:27:09.589 --> 00:27:12.190 investment, like having a long -term nutrition 00:27:12.190 --> 00:27:15.329 plan versus constantly changing rations in panic 00:27:15.329 --> 00:27:18.430 mode, compared to intensification pressures in 00:27:18.430 --> 00:27:21.170 export -focused systems. The relentless drive 00:27:21.170 --> 00:27:23.250 for scale often creates significant negative 00:27:23.250 --> 00:27:26.210 externalities, more greenhouse gases, water quality 00:27:26.210 --> 00:27:28.990 issues, land degradation. The article mentions 00:27:28.990 --> 00:27:31.529 research noting 1 billion hectares globally used 00:27:31.529 --> 00:27:34.190 to feed dairy animals. Often the drive for efficiency 00:27:34.190 --> 00:27:36.650 in deregulated markets pushes for larger operations 00:27:36.650 --> 00:27:39.009 that, while productive, can have a much larger, 00:27:39.109 --> 00:27:41.509 less sustainable environmental footprint if not 00:27:41.509 --> 00:27:43.430 managed under a stable, regulated framework. 00:27:43.890 --> 00:27:46.490 And finally, the social cost. The social cost 00:27:46.490 --> 00:27:49.690 of market efficiency. Profound, often overlooked. 00:27:50.549 --> 00:27:53.130 Canada's system preserves around 12 ,000 dairy 00:27:53.130 --> 00:27:57.029 farms, average herd size 96 cows. A model supporting 00:27:57.029 --> 00:27:59.569 family -scale operations, multi -generational 00:27:59.569 --> 00:28:03.119 farming. Compare that to the U .S. average. 357 00:28:03.119 --> 00:28:06.579 cows. Clear consolidation, rapid move to fewer, 00:28:06.660 --> 00:28:09.539 much larger industrial operations. The article 00:28:09.539 --> 00:28:11.720 argues that difference in Canada represents thousands 00:28:11.720 --> 00:28:13.559 of additional family operations that support 00:28:13.559 --> 00:28:16.160 local communities, equipment dealers, veterinarians, 00:28:16.180 --> 00:28:18.839 and rural infrastructure. These smaller farms 00:28:18.839 --> 00:28:21.339 anchor local economies. Keeping rural communities 00:28:21.339 --> 00:28:23.240 alive. Exactly. They support local businesses, 00:28:23.380 --> 00:28:26.099 schools, the social fabric. Lose those thousands 00:28:26.099 --> 00:28:28.539 of farms, like the 80 % loss in Australia, you 00:28:28.539 --> 00:28:30.519 lose that ripple effect. Communities decline, 00:28:30.859 --> 00:28:33.039 services vanish, you get those dairy deserts. 00:28:33.200 --> 00:28:36.039 These are the true, often uncounted, social costs 00:28:36.039 --> 00:28:38.880 of free markets, where chasing theoretical efficiency 00:28:38.880 --> 00:28:40.839 can decimate the human element of agriculture. 00:28:41.240 --> 00:28:43.160 Okay, this is really where it gets interesting, 00:28:43.259 --> 00:28:46.000 isn't it? The fundamental irony the Bullvine 00:28:46.000 --> 00:28:49.170 article presents. That Canada's supposedly rigid 00:28:49.170 --> 00:28:52.289 supply management system actually delivers the 00:28:52.289 --> 00:28:55.430 very benefits free market theory promises, but 00:28:55.430 --> 00:28:59.170 rarely provides. Efficiency, innovation, consumer 00:28:59.170 --> 00:29:02.250 value, economic stability. It's a fascinating 00:29:02.250 --> 00:29:04.569 paradox. It really is. And what's key here is 00:29:04.569 --> 00:29:07.589 how that stability fosters real innovation under 00:29:07.589 --> 00:29:09.690 stability. And it's not about just surviving. 00:29:09.789 --> 00:29:11.849 It's about thriving, looking forward confidently. 00:29:12.069 --> 00:29:14.630 This stable environment enables strategic tech 00:29:14.630 --> 00:29:17.769 adoption, not crisis -driven spending. The article 00:29:17.769 --> 00:29:19.829 mentions that industry analysis showing dairy 00:29:19.829 --> 00:29:23.009 leaders focusing on AI 54 % already using it 00:29:23.009 --> 00:29:25.190 for pricing, optimization, supply chains. Because 00:29:25.190 --> 00:29:27.910 they can actually plan for it. Exactly. Predictable 00:29:27.910 --> 00:29:29.809 income streams let them make these long -term 00:29:29.809 --> 00:29:32.329 investments confidently, knowing returns won't 00:29:32.329 --> 00:29:35.349 vanish overnight. And it allows for genetic strategy 00:29:35.349 --> 00:29:38.339 spanning generations. optimizing for balanced 00:29:38.339 --> 00:29:41.119 performance indices, building a herd for long 00:29:41.119 --> 00:29:43.339 -term profit, selecting traits carefully over 00:29:43.339 --> 00:29:45.660 years, not just chasing peak production numbers 00:29:45.660 --> 00:29:48.119 that might be unsustainable or need costly inputs. 00:29:48.339 --> 00:29:50.680 It shifts decisions from short -term survival 00:29:50.680 --> 00:29:54.000 to long -term strategic growth. And it also helps 00:29:54.000 --> 00:29:56.680 balance power, right, between farmer and processor. 00:29:57.059 --> 00:30:00.680 Huge point. Market power balance bordation. That 00:30:00.680 --> 00:30:03.589 prevents exploitation. The Bullvine article highlights 00:30:03.589 --> 00:30:05.589 Canada's system using provincially regulated 00:30:05.589 --> 00:30:08.710 produce marketing boards. This structure gives 00:30:08.710 --> 00:30:11.329 farmers legal mechanisms for countervailing power 00:30:11.329 --> 00:30:13.369 against processors. What that means for your 00:30:13.369 --> 00:30:15.730 operation. You're not negotiating alone against 00:30:15.730 --> 00:30:18.029 giant corporations who can dictate terms. You 00:30:18.029 --> 00:30:19.970 have a collective voice. A negotiating block. 00:30:20.400 --> 00:30:22.319 Preventing the kind of exploitation seen elsewhere, 00:30:22.500 --> 00:30:24.319 you have a seat at the table. The article uses 00:30:24.319 --> 00:30:26.640 that powerful chilling example from Western Australia. 00:30:26.940 --> 00:30:29.900 Just three processors control the entire market. 00:30:30.019 --> 00:30:32.359 In that concentrated market, they have suppressed 00:30:32.359 --> 00:30:36.299 farm gate prices by a shocking 30 % below national 00:30:36.299 --> 00:30:39.740 averages. The article asks you directly, what 00:30:39.740 --> 00:30:41.779 would happen to your operation if your processor 00:30:41.779 --> 00:30:44.779 suddenly cut payments by 30 % while your costs 00:30:44.779 --> 00:30:47.339 stayed the same? That's not hypothetical for 00:30:47.339 --> 00:30:49.720 free market farmers. It's a harsh reality when 00:30:49.720 --> 00:30:52.500 processors wield monopoly power, leaving farmers 00:30:52.500 --> 00:30:54.660 with no recourse, forcing them into distress 00:30:54.660 --> 00:30:57.819 or out of business. Canada's system, by design, 00:30:58.079 --> 00:31:00.819 avoids this dramatic power imbalance, ensuring 00:31:00.819 --> 00:31:03.259 fairer value distribution, protecting producer 00:31:03.259 --> 00:31:05.980 livelihoods, making sure the farmer, bearing 00:31:05.980 --> 00:31:08.329 the risk and effort, isn't at the mercy of few 00:31:08.329 --> 00:31:11.049 powerful buyers. Okay, so bringing this all together 00:31:11.049 --> 00:31:13.390 for strategic planning on your farm, the Bullvine 00:31:13.390 --> 00:31:15.890 article offers this stability assessment checklist. 00:31:16.210 --> 00:31:18.930 It's a really actionable way to evaluate your 00:31:18.930 --> 00:31:20.970 long -term viability under different policies. 00:31:21.170 --> 00:31:23.930 It's a great framework. First, income predictability. 00:31:24.190 --> 00:31:27.109 Can you forecast cash flow 12 plus months ahead? 00:31:27.349 --> 00:31:30.009 For many, that's a pipe dream, constant anxiety. 00:31:30.410 --> 00:31:33.069 Doing it changes everything financially. Second, 00:31:33.210 --> 00:31:35.609 investment confidence. Can you justify those 00:31:35.609 --> 00:31:38.289 long -term facility upgrades, robotic milkers, 00:31:38.369 --> 00:31:40.609 barns, making those huge commitments without 00:31:40.609 --> 00:31:42.890 losing sleep, knowing the market won't pull the 00:31:42.890 --> 00:31:46.630 rug out? Third, genetic strategy. Can you plan 00:31:46.630 --> 00:31:48.789 breeding across generations for long -term improvement, 00:31:49.049 --> 00:31:51.549 setting your farm up for future success, not 00:31:51.549 --> 00:31:54.920 just reacting? Fourth, market relationship. Do 00:31:54.920 --> 00:31:56.819 you have real negotiating power with processors 00:31:56.819 --> 00:31:59.900 or are you just a price taker? Crucial for fair 00:31:59.900 --> 00:32:02.420 prices, preventing exploitation. And finally, 00:32:02.519 --> 00:32:05.039 crisis resilience. Can you weather downturns 00:32:05.039 --> 00:32:06.819 without needing emergency government bailouts? 00:32:06.839 --> 00:32:08.539 Because the system itself provides a buffer. 00:32:08.660 --> 00:32:10.579 It's about the fundamental health of the system 00:32:10.579 --> 00:32:13.519 you're in. And the contrast is stark. Extremely. 00:32:13.559 --> 00:32:16.039 The Bullvine article says Canadian farmers check 00:32:16.039 --> 00:32:19.940 all those boxes. A resounding yes to each consistently. 00:32:20.539 --> 00:32:23.359 free market operations they consistently struggle 00:32:23.359 --> 00:32:27.680 often checking no or maybe with luck this gives 00:32:27.680 --> 00:32:29.859 you a clear framework to assess your own situation 00:32:29.859 --> 00:32:33.019 understand the policies that support or hinder 00:32:33.019 --> 00:32:35.539 your success it shows it's not just about how 00:32:35.539 --> 00:32:38.099 hard you work it's profoundly about the system 00:32:38.099 --> 00:32:40.079 you work within absolutely critical distinction 00:32:40.079 --> 00:32:43.839 okay let's wrap up by unpacking the 2025 stress 00:32:43.839 --> 00:32:46.200 test results from the bullvine article these 00:32:46.200 --> 00:32:49.650 past few years 2020 2025 especially With all 00:32:49.650 --> 00:32:52.630 the global chaos, they've provided clear, undeniable 00:32:52.630 --> 00:32:55.150 lessons for dairy policymakers everywhere. The 00:32:55.150 --> 00:32:57.750 core takeaway? Stability isn't the enemy of efficiency. 00:32:57.910 --> 00:33:00.369 It's efficiency's most critical component. That 00:33:00.369 --> 00:33:02.109 flips conventional wisdom right on its head. 00:33:02.250 --> 00:33:04.450 A predictable environment is what truly allows 00:33:04.450 --> 00:33:06.950 optimal performance, innovation, long -term resilience. 00:33:07.450 --> 00:33:09.829 And the real -world test was crisis response, 00:33:10.109 --> 00:33:12.430 wasn't it? The article points right at COVID 00:33:12.430 --> 00:33:16.099 -19's impact. U .S. farmers faced massive disruptions, 00:33:16.119 --> 00:33:18.900 supply chains broke down, demand shifted, leading 00:33:18.900 --> 00:33:22.099 to widespread milk dumping, heartbreaking, economically 00:33:22.099 --> 00:33:25.019 damaging, pouring product down the drain because 00:33:25.019 --> 00:33:27.259 the market system couldn't cope. A direct result 00:33:27.259 --> 00:33:29.720 of volatility and lack of coordination. Exactly. 00:33:30.039 --> 00:33:32.380 Contrast that. Canada's centrally coordinated 00:33:32.380 --> 00:33:35.119 quota system provided tools to rebalance supply 00:33:35.119 --> 00:33:37.900 with demand almost immediately. The article's 00:33:37.900 --> 00:33:40.200 analogy. Comparing two feeding programs during 00:33:40.200 --> 00:33:43.200 a feed shortage. One system panics, massive waste 00:33:43.200 --> 00:33:45.839 and loss. The other systematically adjusts production, 00:33:46.140 --> 00:33:48.559 optimizes inputs, avoids catastrophe by matching 00:33:48.559 --> 00:33:51.140 supply to demand. A fundamental difference in 00:33:51.140 --> 00:33:53.420 resilience during crisis. Technology adoption 00:33:53.420 --> 00:33:56.660 too. Technology adoption under different systems. 00:33:57.160 --> 00:33:59.400 McKinsey's survey showed global leaders planning 00:33:59.400 --> 00:34:02.119 more innovation investment, AI rising in priority. 00:34:02.680 --> 00:34:04.799 The Bullvine article states Canada's stability 00:34:04.799 --> 00:34:08.139 enables consistent tech investment. Farmers can 00:34:08.139 --> 00:34:10.039 budget for and implement advanced solutions. 00:34:10.599 --> 00:34:13.559 Robots, software, AI, knowing income streams 00:34:13.559 --> 00:34:15.719 are predictable, investments will yield returns. 00:34:16.039 --> 00:34:18.519 Unlike the feast or famine cycles in volatile 00:34:18.519 --> 00:34:21.099 markets. Have a good year. Want to invest? Boom. 00:34:21.469 --> 00:34:24.409 downturn hits, plans shelved or abandoned, undermining 00:34:24.409 --> 00:34:26.710 long -term competitiveness, preventing full use 00:34:26.710 --> 00:34:28.889 of crucial modern tech. And the food security 00:34:28.889 --> 00:34:31.989 angle. Crucial point. Food security is a strategic 00:34:31.989 --> 00:34:35.030 asset. By design, Canada's supply management 00:34:35.030 --> 00:34:37.130 ensures domestic self -sufficiency in dairy, 00:34:37.349 --> 00:34:40.010 producing enough milk for its own needs, reducing 00:34:40.010 --> 00:34:42.070 reliance on unpredictable global markets for 00:34:42.070 --> 00:34:44.889 a basic food. That's a huge strategic asset in 00:34:44.889 --> 00:34:48.039 today's world. Geopolitics, trade wars, pandemics, 00:34:48.119 --> 00:34:50.840 fragile supply chains. Domestic food supply is 00:34:50.840 --> 00:34:53.119 national security. Unlike export -heavy systems. 00:34:53.500 --> 00:34:55.940 Right. Contrast with export -dependent systems 00:34:55.940 --> 00:34:58.380 like New Zealand, exporting 95 % of its dairy. 00:34:58.599 --> 00:35:01.460 Profitable in boom time, sure, but incredibly 00:35:01.460 --> 00:35:04.000 vulnerable to global trade disruptions, shifting 00:35:04.000 --> 00:35:07.059 demand far away, currency swings. Their food 00:35:07.059 --> 00:35:08.900 security is at the mercy of international events. 00:35:09.019 --> 00:35:11.760 In a crisis, relying heavily on others for basic 00:35:11.760 --> 00:35:14.360 food is precarious. Okay, so let's bring it home. 00:35:14.460 --> 00:35:16.820 What does this mean for your operation? Actionable 00:35:16.820 --> 00:35:18.940 steps, takeaways. The Bullvine article gives 00:35:18.940 --> 00:35:21.500 us a clear framework, like a diagnostic tool 00:35:21.500 --> 00:35:24.380 for your farm. Yeah, it encourages some immediate 00:35:24.380 --> 00:35:27.360 assessment steps. First, calculate your volatility 00:35:27.360 --> 00:35:30.139 cost. How much do you really spend managing risk? 00:35:30.659 --> 00:35:32.860 Hedging, futures, or just the hitting cost of 00:35:32.860 --> 00:35:34.699 not planning ahead delayed decisions, missed 00:35:34.699 --> 00:35:36.760 opportunities. Compare that to stable system 00:35:36.760 --> 00:35:39.860 farmers where it's often near zero. Second, evaluate 00:35:39.860 --> 00:35:42.639 investment delays. List those upgrades, facilities, 00:35:42.880 --> 00:35:45.239 equipment, tech post honed only due to price 00:35:45.239 --> 00:35:47.480 uncertainty. What's the true opportunity cost? 00:35:47.920 --> 00:35:51.099 Third, assess processor relationships. Do you 00:35:51.099 --> 00:35:53.119 have meaningful negotiating power or are you 00:35:53.119 --> 00:35:55.559 just a price taker? Fundamental for fair pricing. 00:35:56.219 --> 00:35:59.760 Fourth, analyze crisis vulnerability. How dependent 00:35:59.760 --> 00:36:01.659 are you on government programs for survival? 00:36:01.860 --> 00:36:03.699 How resilient are you if that net isn't there 00:36:03.699 --> 00:36:06.820 or shrinks? And fifth, compare technology adoption. 00:36:07.400 --> 00:36:10.079 Benchmark your innovation investment. Are you 00:36:10.079 --> 00:36:12.139 consistently investing in the future or always 00:36:12.139 --> 00:36:14.099 playing catch -up due to instability? Really 00:36:14.099 --> 00:36:16.679 forces you to look inward. And beyond that, the 00:36:16.679 --> 00:36:19.159 article poses these powerful strategic questions 00:36:19.159 --> 00:36:22.380 for operation evaluation. Really make you think 00:36:22.380 --> 00:36:24.300 about the ideal state. How much would guaranteed 00:36:24.300 --> 00:36:26.260 pricing 12 months ahead change your investment 00:36:26.260 --> 00:36:29.760 decisions, your hiring, your whole outlook? What 00:36:29.760 --> 00:36:32.179 specific tech upgrades would you pursue with 00:36:32.179 --> 00:36:34.599 predictable cash flow, knowing the ROI is clear? 00:36:34.760 --> 00:36:37.079 How would stable neighbor relationships collaborative, 00:36:37.380 --> 00:36:39.760 not... cutthroat change your planning, your community 00:36:39.760 --> 00:36:42.159 involvement, and maybe the biggest one. What 00:36:42.159 --> 00:36:44.739 would eliminating systemic bankruptcy risk mean 00:36:44.739 --> 00:36:47.139 for your family's future, your peace of mind, 00:36:47.320 --> 00:36:49.869 your multi -generational legacy? These aren't 00:36:49.869 --> 00:36:51.630 just questions. They're an invitation to critically 00:36:51.630 --> 00:36:53.610 examine the foundations of your business and 00:36:53.610 --> 00:36:55.530 the policy environment around it. Yeah, this 00:36:55.530 --> 00:36:57.389 deep dive into the Bullvine article, it really 00:36:57.389 --> 00:36:59.750 hammers home the idea that the evidence from 00:36:59.750 --> 00:37:03.570 2020 -25 demolishes the free market orthodoxy. 00:37:03.849 --> 00:37:06.369 It's not just academic theory anymore. The real 00:37:06.369 --> 00:37:09.010 world performance data. Too compelling to ignore. 00:37:09.480 --> 00:37:12.219 reveals the huge gap between theory and reality. 00:37:12.420 --> 00:37:15.300 When you truly calculate the total costs, economic, 00:37:15.539 --> 00:37:18.019 social, environmental, including hidden subsidies, 00:37:18.280 --> 00:37:21.079 social disruption, environmental externalities, 00:37:21.219 --> 00:37:23.920 Canada's supply management system emerges with 00:37:23.920 --> 00:37:27.059 demonstrably superior outcomes across every meaningful 00:37:27.059 --> 00:37:29.820 metric, financial health, price stability, environment, 00:37:30.099 --> 00:37:32.719 rural communities, total economic efficiency. 00:37:33.079 --> 00:37:35.280 So the article's conclusion is a challenge. A 00:37:35.280 --> 00:37:38.320 clear challenge to industry leaders. policymakers, 00:37:38.699 --> 00:37:41.000 demand honest accounting of total dairy system 00:37:41.000 --> 00:37:43.380 costs, question the assumptions underlying your 00:37:43.380 --> 00:37:45.579 industry's policy positions, and ask that fundamental 00:37:45.579 --> 00:37:48.059 question. If your current system requires constant 00:37:48.059 --> 00:37:50.260 government bailouts to prevent widespread failure, 00:37:50.420 --> 00:37:52.960 is it really a free market at all? It's a powerful 00:37:52.960 --> 00:37:55.900 call for re -evaluation based on evidence, comprehensive 00:37:55.900 --> 00:37:58.539 cost benefit, not just ideology. So, final thoughts 00:37:58.539 --> 00:38:01.000 for you listening. As you plan your future, consider 00:38:01.000 --> 00:38:04.699 your farm's viability. The Bullvine article suggests 00:38:04.699 --> 00:38:07.159 the Canadian model, or at least its core principles 00:38:07.159 --> 00:38:09.820 of managed supply and stability, offers a clear 00:38:09.820 --> 00:38:12.400 roadmap, a path for sustainable dairy policy 00:38:12.400 --> 00:38:15.099 in this increasingly volatile world. The data, 00:38:15.139 --> 00:38:17.239 as we've unpacked, is pretty clear. The comparisons 00:38:17.239 --> 00:38:19.900 are stark. They demand attention. The choice, 00:38:20.000 --> 00:38:23.340 ultimately, is yours. But remember that provocative 00:38:23.340 --> 00:38:26.000 closing line from the Bullvine article. Every 00:38:26.000 --> 00:38:27.880 day you delay addressing systemic instability 00:38:27.880 --> 00:38:30.500 is another day your operation remains vulnerable 00:38:30.500 --> 00:38:33.039 to forces that Canadian farmers learned to manage 00:38:33.039 --> 00:38:37.099 decades ago. Good for thought. Definitely. It's 00:38:37.099 --> 00:38:39.400 like choosing proven genetics, right? Tested, 00:38:39.400 --> 00:38:42.059 refined across multiple lactations, diverse environments, 00:38:42.239 --> 00:38:44.000 delivering consistent, predictable performance. 00:38:44.460 --> 00:38:46.840 Choosing that over those flashy new bloodlines. 00:38:47.019 --> 00:38:49.960 The ones that look great on paper. Exactly. Sky 00:38:49.960 --> 00:38:52.780 -high numbers promised, but untested in the real 00:38:52.780 --> 00:38:55.519 world. Long haul, under varied conditions. It's 00:38:55.519 --> 00:38:58.239 about building a robust, resilient herd. And 00:38:58.239 --> 00:39:00.239 a resilient business. Something to chew on as 00:39:00.239 --> 00:39:02.320 you consider your next move, right? We definitely 00:39:02.320 --> 00:39:04.380 encourage you to revisit this Bullvine article. 00:39:04.460 --> 00:39:06.360 Think about how these insights apply to your 00:39:06.360 --> 00:39:09.489 farm, your future. next time, keep digging for 00:39:09.489 --> 00:39:11.889 those deep insights. That's a wrap on today's 00:39:11.889 --> 00:39:14.889 episode of the Bullvine Podcast. And if you're 00:39:14.889 --> 00:39:16.590 not questioning everything you thought you knew 00:39:16.590 --> 00:39:19.190 about dairy markets right now, you weren't paying 00:39:19.190 --> 00:39:22.690 attention. Here's your bottom line. When total 00:39:22.690 --> 00:39:25.309 economic, social, and environmental costs are 00:39:25.309 --> 00:39:28.010 honestly calculated, Canada's supply management 00:39:28.010 --> 00:39:30.750 system demonstrates superior outcomes across 00:39:30.750 --> 00:39:33.809 every meaningful metric. Farm financial health, 00:39:34.010 --> 00:39:37.519 price stability, environmental performance, and 00:39:37.519 --> 00:39:40.519 total economic efficiency. While free market 00:39:40.519 --> 00:39:42.840 systems require tens of billions in taxpayer 00:39:42.840 --> 00:39:45.239 bailouts and create environmental disasters, 00:39:45.880 --> 00:39:49.019 Canada's managed system provides stable incomes 00:39:49.019 --> 00:39:51.179 and world leading environmental performance. 00:39:52.300 --> 00:39:54.559 The question isn't whether supply management 00:39:54.559 --> 00:39:57.719 works. The data proves it works better than any 00:39:57.719 --> 00:40:00.719 alternative. The question is whether you'll have 00:40:00.719 --> 00:40:02.739 the courage to challenge your own assumptions 00:40:02.739 --> 00:40:05.739 about what makes a dairy system truly efficient. 00:40:06.570 --> 00:40:10.170 Here's your homework. Go to thebullvine .com 00:40:10.170 --> 00:40:14.170 and read the full analysis. Calculate your operation's 00:40:14.170 --> 00:40:17.710 exposure to price volatility. Ask yourself how 00:40:17.710 --> 00:40:20.110 much guaranteed pricing 12 months ahead would 00:40:20.110 --> 00:40:22.710 change your investment decisions. And then ask 00:40:22.710 --> 00:40:25.230 your fellow farmers, your industry leaders, and 00:40:25.230 --> 00:40:28.110 your politicians this fundamental question. If 00:40:28.110 --> 00:40:30.309 your current system requires constant government 00:40:30.309 --> 00:40:33.329 bailouts to prevent widespread failure, is it 00:40:33.329 --> 00:40:36.699 really a free market at all? This is the Bullvine 00:40:36.699 --> 00:40:39.079 Podcast, where we believe the most radical thing 00:40:39.079 --> 00:40:41.300 you can do in a chaotic world is choose stability. 00:40:42.400 --> 00:40:45.260 Just like choosing proven genetics over flashy 00:40:45.260 --> 00:40:47.619 new bloodlines that haven't been tested across 00:40:47.619 --> 00:40:52.460 multiple lactations. Until next time, keep challenging 00:40:52.460 --> 00:40:55.380 the conventional wisdom, keep demanding honest 00:40:55.380 --> 00:40:59.280 answers, and remember, every day you delay addressing 00:40:59.280 --> 00:41:02.489 systemic instability. is another day your operation 00:41:02.489 --> 00:41:05.289 remains vulnerable to forces that Canadian farmers 00:41:05.289 --> 00:41:08.210 learned to manage decades ago. Thanks for listening, 00:41:08.289 --> 00:41:10.989 and we'll see you next time on the Bullvine Podcast.