The crop condition assessment program has started for 2009.

The remote sensing satellite with geographic information systems and web mapping technologies provides timely, objective cropland and pasture monitoring information on a weekly basis for Canada's entire agricultural region, along with the northern half of the United States.

Agriculture and Agri-Food Canada, through the National Land and Water Information Service and the National Agroclimate Information Service, has partnered with Statistics Canada to provide the application free of charge. The Canada Centre for Remote Sensing, part of Natural Resources Canada, has also contributed by providing software for processing the input satellite data.

Initial readings of the 2009 season show growing conditions above normal for the southern central portion of the Prairies. However, conditions at the outer fringes of the Prairies still seem to be affected by cold temperatures and late spring snowfalls.

In general, the actual growing conditions are similar or above normal for agricultural areas east of Manitoba. The impact of this spring's Red River flooding in Manitoba is also visible in the maps.

Federal officials say satellite imagery is received every Monday afternoon from early April until mid-October. Weekly updates are made to the web application within minutes of receiving the satellite data.

Current conditions are compared with the 22-year average, which allows easy mapping of areas under stress such as drought, flooding or snowstorms. Other products include thematic maps and data in graph and tabular format for four types of different geography layers, from the census agriculture region to the township level. The entire 22-year historical database is included in the application.

The program also included an experimental spring wheat yield forecast for the Prairies that will be updated in July. The forecast model uses historical yield estimates and current satellite image data to estimate crop yields in near-real time.

The crop condition assessment program is available at www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=22-205-X&lang=eng. The web application can be downloaded at www26.statcan.ca/ccap/start-debut-eng.jsp.

A harsh winter has caused considerable bud damage to British Columbia's wine grapes in the Okanagan and Similkameen regions.

Some young vines have also been damaged, says an official with the province.

Larry Plett, general manager of the production insurance branch of the provincial agriculture ministry, says some shoots can die after opening if there is damage to the vine below. Also, bud break is weeks later than normal this year, so there's uncertainty about how extensive the damage is.

Plett says his office has received damage claims from grape growers, as well as from some soft fruit growers in the south.

Cherries and apples appear to be okay, he says, but stone fruit crops from the Similkameen appear to be light. Damage to all crops is still being assessed, he states.

The last two harsh winters and late springs in the Okanagan have discourage the most optimistic of grape growers and wine makers.

 "We've been spoiled by 20 years of good winters," says grape grower Doug Sperling, who comes from a pioneer Kelowna farm family and remembers the cold winters of the 1950s and 1960s.

The coronation table grapes, a variety developed at the Pacific Agri-food Research Centre, faired well over the winter, says Sperling. But, it's a different story for the Gewürztraminer wine grapes and the pinot noir varieties, he says.

"It's a very uneven bud break. It varies throughout the vineyard," Sperling says.

The surge in investment in B.C.'s young wine industry in recent years means there's also been an increase in the vulnerable varieties planted. Sperling says he's hearing that varieties such as merlot and syrah grown in the southern part of the valley are disasters.

Mission Hill Family Estate winemaker John Simes isn't using language that strong, but he admits he's concerned. The cold winters and short summers make this a very challenging place to grow grapes, he says.

"All it takes is a blip of Arctic air in November to hurt the vines. This is a young industry and we're trying to do everything. But we're using sensitive varieties like syrah, and we have to plant hardier varieties," Simes says.

With a mix of somewhat vulnerable viniferas, Rod King's 40-acre Naramata vineyard appears to have come out of winter relatively unscathed.

"The goddess of grape vines can be very cruel," King says. "We see all these shoots growing along the fruiting wire, but once we get into hotter weather, they could wilt and die and the trunk split open as it dehydrates. The damage was done but it doesn't show up right away."

They work from sun up till sundown flitting from one job to the next without stopping for coffee breaks or demanding overtime. They produce food for themselves and for us.

They are honeybees and, according to Heather Clay, chief executive officer of the Canadian Honey Council, the population of these tireless workers has declined by 35 per cent in Canada in recent years. But that's only an average.

"Some areas have lost up to 60 per cent of their honeybees," Clay says. "We've lost hundreds of thousands of colonies.  It's grim."

She says if losses continue at this rate, the outcome will be catastrophic for the industry. Replacement bees are available from Australia and New Zealand, but that's an expensive option.

"We can't afford the replacement stock," Clay says, "It doesn't make economic sense. We have to rely on ourselves to keep up our honey bee stocks."

Splitting a strong colony to start a new one can weaken both the old and new hives, says beekeeper Paul Gregory of Manitoba's Interlake district. Weaker colonies produce less honey, especially in cool weather because the bees are busy keeping the brood warm instead of foraging.

Beekeepers across the country are frustrated by the fact that the decline in the honey bee population remains a mystery. 

"We're not sure what it is that's causing the loss of honeybees," Clay says.

Mite viruses, vulnerability to insecticides and overwintering attribute to some losses, but Clay says there is no reason why the honey bee population continues to fall as fast as it is.

Gregory, who has 1,100 hives, says he's noticed some bee viruses are faster acting then they use to be.

"A treatment that worked last year may not kill this year's virus," he says.

One problem with the new strains of virus is they dehydrate bees so fast, the usual visual signs like excess excrement don't show up at the hive. Bees die away from the colony and the beekeeper has no idea there's a virus in the hive.

Gregory predicts that if cool spring weather persists, Manitoba's colonies will become weaker and honey yield will fall by about 10 pounds per hive. With 80,000 colonies in the province, about 800,000 pounds of honey could be lost.

With beekeepers across the country facing the same challenges, it may not be long before Canadian consumers will begin to feel the pinch. 

The federal government has set aside a new pool of money to help agriculture producers turn ideas and technologies into viable market opportunities. A total of $158 million has been allocated for the Growing Canadian Agri-innovations Program.

The government says the money can be accessed by the agriculture industry, including farm groups, for the development of new products or production methods. It's designed to help producers and processors build strong business cases to attract private sector investment for their new ideas.

"For example, future demand for canola is increasing and that means we have to start researching new crop rotations and production processes to make sure Canadian farmers can make the most of growing opportunities," says Agriculture Minister Gerry Ritz.

While the federal government says farm groups and industry can start applying for the funding, the Canadian Federation of Agriculture wants projects to be approved quickly.

"CFA looks forward to a speedy review of applications and roll-out of funding. Many farm groups have been busy developing their research strategies for several months, and need assurance that these funds will be delivered quickly to allow them to plan their budgets," says a CFA news release.

Grain Growers of Canada have advocated for additional agriculture research funding and say this is an important first step. Executive Director Richard Phillips says this will help attract private investment to newer, exciting projects. However, he adds it doesn't address the need for more base agronomic work.

"When the private sector goes to invest in research, they are looking for a return on investment," Phillips says.

"They (Agriculture Canada research scientists) are going to do base agronomic research, and maybe the projects won't be quite as sexy, so to speak, as developing something like specific health end uses where you're going to have a private sector partnership."

GGC says they are working with a number of other farm groups across the country to develop a proposal with the hope the federal government will consider doubling the funding for current Agriculture and Agri-food Canada research operations. That plan is expected to be released soon.

In the meantime, farm groups can begin analyzing whether the new program will work for them as the application process is expected to start soon. Details are at www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1238590129098&lang=eng.

The Manitoba Cattle Producers Association has decided to take an active role helping producers age verify their livestock.

"In today's global marketplace, it's becoming more important for producers to be knowledgeable about the changing standards in the cattle industry and age verification will give producers a leg up in the market place," says Jay Fox, chairperson of MCPA's production management committee.

MCPA hired a full-time field representative to assist producers with the age verification process, which involves entering the herd's birth information into the Canadian Cattle Identification Agency's database.

"With U.S. markets requiring all imported cows to be age verified, and with Alberta requiring all calves to be age verified by 2010, MCPA is proud to build on industry-led initiatives in regards to age verification, to be able to provide necessary resources for Manitoba producers," Fox says.

The Manitoba Livestock Marketing Association is helping with the effort by giving the new field rep a place in the province's auction marts to meet with producers and conduct the age verification process.

"If we can get age verification up in Manitoba, it's going to help. Currently we're running with about 14 per cent of the calves being age verified, and that's not enough. We need to get that up higher, otherwise we could loose some of our markets," says Rick Wright, administrator of MLMA.

Wright points out that Manitoba is a net exporter of cattle with the two biggest markets -- Alberta and the United States -- demanding more cattle with the proper age certification.

"In the future, what I think we're going to see is . . . the non-age-verified calves will be discounted (when sold) rather than a premium being paid," Wright says.

The field rep to help cattle producers age verify their herds is expected to be in place by the fall.

Canada's agri-retailers want the federal government to share the costs of upgrading security at their sites -- and at least one group is putting their support behind the retailers.

With increased security concerns over the use of agriculture fertilizers and chemicals for the creation of weapons and illicit drug production, the Canadian Association of Agri-Retailers says its members are "at a high risk of being targeted by these sinister elements" and need to upgrade security at their sites.

"Canadian agri-retailers are prepared to do their part, but should not be expected to shoulder the entire burden of shielding the sector from terrorist penetration," says David MacKay, executive director of the Canadian Association of Agri-Retailers. "Public safety is a primary responsibility of the federal government, and we need their help to secure the products that are critical to Canada's agricultural economy."

MacKay says in the United States, agri-retailers have access to enhanced tax credits and grants for security upgrades like perimeter fencing, computer access controls, video surveillance and security lighting.

"Agriculture is a global market and Canadian producers now find themselves at a competitive disadvantage because they must pick up the tab for security costs that have nothing to do with crop production," MacKay says.

Richard Phillips, executive director of Grain Growers of Canada, says a national security protocol should be established and funded by the federal government -- otherwise, grain producers will continue to pay the price.

"Forcing the agri-retail sector to bear the incremental costs of security upgrades will result in upward pressure on input prices which inevitably must be paid for at the farm gate -- something that will not sit well with grain, pulse and oilseed farmers," Phillips says. "Our government needs to help protect Canada's investment in agriculture by ensuring we remain globally competitive."

MacKay points to industries like the marine sector where federal assistance is available.

"When it comes to security, you have to be careful that you don't lock the doors while leaving the windows open," he says. "And with the U.S. securing its agri-retail facilities, Canada may be exposed as the weak link in terms of implementing common-sense anti-terrorist measures."

Ottawa-based Iogen Corporation has selected a former Saskatchewan pulp mill as the site for a possible cellulosic ethanol plant where it will turn cereal straw into a clean-burning biofuel.

Iogen has signed a letter of intent with the Government of Saskatchewan and forest product company, Domtar, to develop what it says is a first of its kind cellulosic-based ethanol plant and bioenergy facility at the former Prince Albert pulp mill site. The facility has been closed since April 2006, and is owned by Domtar.

The proposal also includes the development of a power plant that would produce green electricity from forest and ethanol plant residues.

Under the agreement, Iogen will conduct a further analysis of the project before making an investment decision. If the final investment decision is positive, Royal Dutch Shell would also become a partner.

Iogen officials estimate purchasing the straw  -- worth $12 million to $15 million dollars annually -- from area producers.

"A project like this is not only a potential win-win for our forest industry and area farmers, but it also showcases new technology and new approaches by a leading Canadian energy company," says Saskatchewan Minister of Energy and Resources Bill Boyd.

Although no official price tag has been given for building the plant, some estimate it could be anywhere from $250 million to $400 million. Iogen is expected to complete its analysis and make a final decision in the next six to eight months.

Safflower growers in southern Alberta have a potential new market for their product following the announcement by Calgary-based Botaneco Specialty Ingredients Inc.

Botaneco develops and supplies the global market with oleosome-based ingredients used in personal skin care and dermatological products. Oleosomes are the natural oil carrying structures derived from safflower seeds.

Andrew Baum, Botaneco's president and CEO, says the company currently buys its safflower from sources in California.

The company will establish a growing program for specialized safflower seed production to secure a source close to the Calgary manufacturing plant. Baum says the company has set up test plots in the area south of Highway 3 and hopes to enter commercial contracts with producers for the 2010 growing season.

The region is already a proven producer of other varieties of safflower for the bird seed market.

Baum says the project will give Canadian producers access to global markets in the United States, Europe and Asia by adding substantial value to their product. He sees the potential for demand to increase to "tens of thousands of bushels" over time.

Botaneco will receive $3.6 million in repayable funding from the federal Agri-Opportunities Program.

Statistics Canada reports that farm commodity prices fell 0.9 per cent in March compared to March 2008, and as the crop index fell, it offset growth in the total livestock and animal production index.

StatsCan released the Farm Products Price Index earlier this week.

It reports the total crops index had a 12-month decrease of 18.3 per cent, as prices were down for grains, oilseeds and specialty crops. After the crops index reached a high of 155.3 in June 2008, production increases that year partially replenished global stocks, which contributed to the decline in the crops index to 124.3 in March 2009.

The prices producers received for livestock and animal products in March were 16.5 per cent higher compared with March 2008, continuing the growth in year-over-year prices since June 2008. A depreciating Canadian dollar relative to its American counterpart helped support higher cattle and hog prices.

The total index (1997=100) increased from 117.2 in February to 117.8 in March. The month-over-month gain was the result of a 2.3 per cent advance in the total livestock and animal products index, which more than offset a 1.1 per cent decline in the crops index.

Prairie weather issues are increasingly under trade consideration.

Cooler than normal Prairie-wide weather -- plus dryness in western regions and wetness in the east -- has gained some market traction on ideas that yield potential this year may have already been compromised. And a frost event experienced in central Alberta and Saskatchewan overnight Monday and into Tuesday morning caught the attention of traders.

A couple of new record low temperatures were established in a number of the grain and oilseed-growing regions of Alberta that night. I suspect damage potential was minimal for oilseed and cereal crops, but that is difficult to quantify at this time. Weather, though, remains a point of increasing concern should present conditions persist for the various regions identified as potential problem areas.

Planalytics is predicting a cool summer for the United States' Northern Plains and the Midwest, presumably extending north to Canada as well.

The business weather firm says it is closely tracking two events that are providing a foreshadowing of things to come this summer. One is the transition from La Niña to El Niño. The other is the major eruption of a northern latitude volcano, Mount Redoubt in Alaska, in late March. Planalytics says both indicators suggest it will be cooler than normal across much of North America.

They say solar sunspot cycles are also a factor influencing the summer outlook. Solar eruptions (bursts of energy or coronal mass ejections from the sun) tend to occur around or near sunspots.

The company says the sun has been very quiet for the past two years with little evidence of sunspots. In fact, Planalytics says, you would have to go back to the 17th and 19th centuries to find a similar period with fewer sunspots. According to Planalytics, the earth was cooler during these quiet periods in the past.

It's far too early to be concerned about this yet. But if crop development remains behind normal in a cool summer environment, crops both in Canada and the U.S. may be more vulnerable to frost late in the season as the virtual lack of sunspot activity argues for colder rather than warmer temperatures this summer and into the autumn.

Precipitation
The absence of precipitation in the western regions of central Saskatchewan and areas of central Alberta has already dampened optimism for 2009 production prospects. The lack of moisture in near-term forecasts was also painting a worrisome crop outlook.

"Some of those areas in question have not received any substantive precipitation since the end of the last growing season," says Bruce Burnett, director of the Canadian Wheat Board's weather and crop surveillance department. "Essentially, there was no moisture received during the fall, winter and early spring period."

Burnett says it is very important that some rain falls soon in those areas in order to get the crops emerged and growing. According to precipitation maps provided by Agriculture Canada, less than 40 per cent of normal precipitation has fallen in the driest areas of Saskatchewan into the bottom half of Alberta during the April 1 to May 31 period.

The western third of Saskatchewan and the remaining regions of Alberta have only received 40 to 60 per cent of normal precipitation. Maps from Agriculture Canada covering the Sept. 1, 2008, to May 28, 2009, timeframe show record dryness in a region straddling the area located along the Alberta-Saskatchewan border in the central regions of the provinces. Moisture in the areas surrounding the record dry locations has also been extremely low, with the map indicating precipitation at less than 10 per cent of normal.

"Producers have already begun to see the impact of no rain in those regions given the very spotty emergence of the crops," Burnett says.

Also, temperatures over the past week have significantly warmed up in those areas, drying out any remaining topsoil moisture, he says.

The regions located next to the districts suffering from the lack of rain are also becoming a great concern, Burnett says.

"Some of the surrounding areas had some good sub-surface moisture levels to work with, but with the warmer readings and the absence of significant rain, those water reserves are also now being depleted quickly," Burnett states. "It's at the point where western Saskatchewan and Alberta are in critical need of rain."

Mike Jubinville of Pro Farmer Canada offers information on commodity markets and marketing strategies. Call 204-654-4290 or visit www.pfcanada.com to find out more about his services.