Ready for the green economy? See how some ag entrepreneurs find value by including the environment in the bottom line. Read the Knowledge Insider.

Note from the editor

Allison Finnamore

You can contact us with story ideas or comments at allison@finnamore.ca.


1. Grain being rushed off Manitoba farms

The Canadian Wheat Board is putting the wheels in motion to help producers in Manitoba's Red River Valley move grain off the farm, before this spring's forecasted flooding begins.

The program will assist affected producers who may be in danger of losing their accepted, on-farm grain due to forecasted flooding in the portion of the Red River watershed from Emerson to Morris.

Additional rail cars will be allocated to elevators at Morris, Agassiz and Letellier to clear space in elevators so that affected producers can deliver their accepted Series A and B grain. In a news release, the CWB says it anticipates moving this grain from the end of March to the middle/end of April.

Producers with at-risk grain can call the CWB at 1-800-275-4292 to register for early movement. They need to indicate their preferred delivery company/station, tonnes affected and bin locations.

The Manitoba government's Spring Flood Outlook, released Feb. 22, says there is a significant potential of spring flooding in the Red River Valley. Given average weather, flooding levels would exceed those in 2006 but be lower than 2009 flood levels. The Red River Valley is unique, in that it is an extremely wide floodplain with significant grain storage.

back to top | print article | forward to a friend

Finance new or used equipment. Get your loan through a participating dealer with one call. Learn more.

2. Continued drought forecast for Okanagan

A small amount of snow over the winter, coupled with last year’s drought in the Okanagan Valley, means even farmers may have to operate under water restrictions this coming season.

Last year, water to some valley orchards was shut off because growers used more than their allotment of water before the end of the growing season.

In the South East Kelowna Irrigation District the main reservoir, McCulloch Lake, didn’t fill last spring. Users began to draw it down even earlier than usual because of record dry June weather.

Water users in the district are all on meters, including the irrigation connections. The district meters out water on an allotment, based on the parcel size, crop and soil type.

 Early last year, growers were warned that supplies were low. They were told that to conserve water, each allotment would be reduced by 20 per cent.

The allotment system began in 2001. In 2003, a metered rate was instituted and penalties were added for users who exceeded their allotment. That included the ultimate penalty of having their water cut off.

“It’s a community water system,” South East Kelowna Irrigation District manager Toby Pike says. “Everyone gets their fair share. Otherwise they’re taking someone else’s water.

“Because of the Agricultural Land Reserve, prices for water are reasonable, but no one has a right to abuse the system,” he adds.

However, there were complaints from some growers that lack of sufficient water prior to the apple harvest could have serious consequences on the quality of the crop and the health of the trees.

Without a snowpack that is 24 per cent higher than normal this year, water managers forecast that reservoirs for the valley’s water utilities likely won’t fill again this year. So far, this year’s snowpack is below last year’s level in many parts of the watershed. And more than 80 per cent of the winter’s snow has already accumulated.

In addition, most of the lower-elevation snow melted earlier than usual. That means the actual water which will flow off higher elevations during runoff this year is expected to be less than normal.

Denise MacDonald, chair of the B.C. Fruit Growers’ Association’s water and environment committee, has warned growers that drought management plans will have to be prepared for every watershed in the Okanagan and Similkameen Valleys. She advises growers to make sure they are part of that process.

“Last year’s extremely dry summer, following on a winter when many reservoirs, including Okanagan Lake, didn’t fill, was a warning to everyone,” she says.

The water resource has to be managed on a sustainable basis, by not drawing down storage supplies beyond what can be refilled each year.

“It’s critical that we prepare before a drought situation is in full swing,” MacDonald says.

back to top | print article | forward to a friend

3. CWB introduces new marketing tool

Grain producers have a new online tool to help manage grain sales.

The price pace calculator, introduced by the Canadian Wheat Board on March 15, provides growers with one more source of information for managing business.

The calculator will help growers decide which producer payment option they prefer to use to help them price and pace the sale of their grain.

The idea to create the calculator for farmers came after CWB posted price pacing information in the Feb. 22 and Feb. 25 Pool Return Outlooks.

“We’re trying to take steps to enhance pricing information for farmers,” CWB media relations manager John Lyons says.

CWB efforts to bring more price pacing information to farmers won’t stop here, Lyons adds. Future producer payment options information will also include adjustment factors.

A CWB note on the calculator page cautions growers that the price pace calculator is only one of many tools available to help growers develop their own sales plans. It doesn’t provide pricing advice, just information to help growers arrive at a decision that’s a good fit for their personal circumstances.

“Growers should find their own comfort level,” Lyons says. It’s up to the grower to study price variations and decide how much risk they can manage.

Chuck Fossey and his three brothers grow 3,600 acres of grain every year. Fossey says it’s great to be able to see how much of the next grain crop has been priced and sold to export. That information will help growers decide which product to sell into the various payment options that are available with the CWB.

According to Lyons, even if a grower doesn’t choose one of the existing PPOs, the price pace calculator can help make sales decisions. Used along with the PRO, the calculator tool will give growers an indication of how stable or volatile the market may become while the PRO will give them an indication of how stable prices have been, Lyons explains.

Fossey says the combination of information assists farmers who prefer to take an aggressive stance when selling their grain to manage their personal risk.

He adds it will take some time to determine how useful the calculator will be but it does satisfy growers’ demands for access to more marketing information.

back to top | print article | forward to a friend

4. P.E.I. producers get reprieve on electricity rate increase

The Island Regulatory and Appeal Commission delayed a billing change that would have seen electricity costs to Prince Edward Island producers jump 30 per cent beginning April 1.

The regulatory agency oversees the privately owned electric utility Maritime Electric, which supplies power to Islanders. In 2008, it approved a plan to eliminate block pricing in rural areas this year.

Maritime Electric argues most other power companies have already eliminated the practice since it rewards large energy consumers and runs counter to efforts to lessen the carbon footprint of electricity generation.

The block pricing system offers a reduced rate to 3,400 rural Islanders who use more than 2,000 kilowatt hours per month.  Farming operations make up close to 60 per cent of that total.

The change seemed to slip by unnoticed by both the provincial government and the farming community. Mike Nabuurs, the executive director of the P.E.I. Federation of Agriculture, credits a senior citizens group lobbying against the increase with alerting their organization about the change. Nabuurs then asked the provincial government about it, which prompted a call from Energy Minister Richard Brown asking the regulatory agency to review the decision.

Before that process kicked into high gear, Maritime Electric filed an application to put the change on hold until public hearings can be held on the issue. Nabuurs says his group will make a presentation during a hearing calling for the block funding to be reinstated permanently.

Nabuurs adds he is frustrated such a major change almost happened without any consultation with the agriculture community. For large electricity users like potato farms that require ventilation for proper storage, the changes could have increased their monthly bills between $8,000 and $20,000 per year depending on the size of the operation.

“We are already paying among the highest electricity costs in the country,” Nabuurs says. “Farmers just couldn’t have afforded this given the state of the economy and the situation facing our industry. We are very close to seeing agriculture disappear in this province.”

The district director of the National Farmers Union shares the same frustration. Elwin Wyand says it is another indication of the declining economic and political power of the farming community.

“It’s like we don’t even matter anymore,” he says. “They didn’t even bother trying to consult us.”

Wyand says his organization hasn’t decided if it will make a presentation at the public hearing.

back to top | print article | forward to a friend

5. Wildlife program changes

Starting April 1, the Saskatchewan Crop Insurance Corporation increases its role in wildlife damage prevention, control and compensation.

SCIC's expanded role builds on similar compensation available to producers and ranchers. SCIC is creating greater efficiencies in its program delivery. It is adding this suite of wildlife initiatives to help producers get timely responses for their wildlife compensation and protection needs.

For livestock compensation, producers will receive compensation for either death or injury of cattle, sheep, goats, bison, horses, domesticated hogs, elk, fallow deer, llamas, donkeys, ostriches, emus, chickens, ducks, geese, turkeys and other less common species.

Compensation will be provided for death or injury caused by coyotes, bears, cougars, lynxes, foxes, eagles and wolves and producers. Ranchers will be compensated for 100 per cent of livestock deaths caused by predators and up to 80 per cent of livestock values for veterinary costs for injured animals.

Compensation will be determined based on market prices and will include a minimum of $400 for calves, $40 for sheep and $30 for goats.

For fall-winter grazing, compensation will now be provided for wildlife damage to crops and feed used for swath, bale and corn grazing. As well, producers will be compensated 100 per cent for crop damaged by wild boars.

The previous compensation limit of $5,200 has been removed for wildlife damage to stacked feed in a yard site.

The SCIC will play a larger role in the overall prevention of wildlife damage by taking over administration of the existing Saskatchewan Livestock Predation Program. The program is in place to manage problem predators and educate producers on predation issues. 

For more information, contact 1-888-935-0000.

back to top | print article | forward to a friend

6. New program for farm saved flax seed

The Flax Council of Canada has announced revisions to its domestic stewardship program allowing producers to use farm saved seed subject to strict sampling and testing procedures.

The changes were prompted by test results released earlier this month by the Crop Development Centre that found extremely low indicators (below 0.01 per cent) of Triffid on a limited number of breeder seed samples.

Producers now have the option of using their own non-pedigreed seed for 2010 provided it has been tested using the same rigorous procedures applied to certified seed tested for Triffid.

Representative hand-screened samples of two kilograms from a lot not exceeding 20 tonnes must be submitted to a Flax Council of Canada approved seed testing laboratory.

There is an effective zero tolerance for the presence of Triffid in any sample. Only planting seed that has tested negative -- that is, no detection of any level of Triffid -- can be used for 2010 seeding.

Any seed testing positive for Triffid must not be cleaned or planted. Commercial cleaners may require an initial test prior to cleaning a flax seed lot.

Producers must retain their negative lab reports in order to be allowed delivery into the European Union market. Testing of the harvested crop will also be required prior to delivery.

The Flax Council stresses the need to follow these strict procedures in order to meet the stringent requirements of the EU, which is Canada’s single largest importer. Markets that accept Triffid-positive seed are extremely limited.

Detailed testing procedures together with a list of the Flax Council's approved labs are accessible at www.flaxcouncil.ca.

back to top | print article | forward to a friend

7. Varroa mites blamed for honeybee deaths

A University of Guelph biologist has confirmed varroa mites caused the majority of the mysterious honeybee colony die-offs over the last couple of years.

Typically, beekeepers anticipate losing about 10 per cent of their hives over the winter months. In the past few years average losses have crept up.

About one-third of Ontario’s colonies died off in the winter of 2006-2007, with another third dying off the following winter. Some producers reported hive losses as high as 90 to 95 per cent and some beekeepers’ colonies were completely eliminated.

At the onset of his study, Ernesto Guzman, a professor at Guelph University’s School of Environmental Sciences, said there were about 10 different potential causes for the winterkill and that while none of them could be ruled out, his work would focus on the varroa mite and a newer microscopic parasite called Nosema fungus.

To undertake his study Guzman examined 408 commercial colonies in six southern Ontario counties. 

In fall 2007, spring 2008 and early summer 2008, Guzman counted the number of bees in the colonies and weighed the colonies to gauge food reserves. He also tested the bees for varroa mites, tracheal mites and the Nosema fungus.

Guzman says his research study found that parasitic varroa mites were responsible for more than 85 per cent of the honeybee colony mortality in Ontario. He added too-sparse beehive populations in the fall and insufficient winter food reserves also played a role.

“We’re pretty sure we’ve solved a great deal of the mystery,” Guzman says.

The Ontario Beekeepers’ Association, the Ontario Ministry of Agriculture, Food and Rural Affairs, the Natural Sciences and Engineering Research Council and the Inter-American Institute jointly funded Guzman’s research for Cooperation on Agriculture.

“We’ve identified the problem, now it’s coming up with the treatment,” OBA president Tim Greer says.

Based on his study results, Guzman recommends beekeepers follow a strict mite treatment regime, feed their bees enough sugar syrup and avoid splitting colonies too late in the season.

At the time of the Ontario colony losses, Colony Collapse Disorder had been reported as responsible for the collapse of thousands of bee colonies across 24 states in the United States.

Greer says the effects of systemic pesticides on bees do not appear to be a major problem in Ontario, where beekeepers practice the Integrated Pest Management program. That means there is no build up or resistance to treatments because this protocol sees beekeepers vary hive treatments over time.

Guzman is continuing his research, studying genetic techniques to learn more about honeybee infections and ways to help breeders develop better bees.

back to top | print article | forward to a friend

8. Midge tolerant wheat now available

Three new varieties of midge-tolerant wheat are now available for Prairie farmers hit hard in the past by orange blossom wheat midge.

Trent Whiting of SeCan says the new wheat offers three main benefits. First is the prevention of an estimated $36 per acre of damage. This equates to about $40 million in annual losses caused by downgrading and yield reduction.

Second is the reduced reliance on insecticides, which do not discriminate between good and bad insects. Third is the provision of more flexibility in crop rotations and seeding dates.

The midge tolerance comes from a single gene -- Sm1 -- that has been moved into spring wheat varieties using traditional plant breeding techniques.

When the midge begins feeding on the seed, the gene elevates the level of phenolic compounds. These naturally occurring organic acids cause the midge larvae to stop feeding and starve to death.

The acids are not triggered if the midge does not feed on the seed. If the midge activates the acids, they are reduced to normal levels by maturity and do not affect the quality or food value of the grain.

Tolerance based on a single gene can become ineffective over a short time period, so producers must maintain an interspersed refuge system with the refuge variety evenly distributed throughout the field. This helps prevent the build-up of a virulent midge population. Without this system, tolerance could break down within 10 years.

Whiting says it is critical to retain the trait as long as possible. To do this, producers buying the seed must sign a Midge Tolerant Wheat Stewardship Agreement limiting the use of farm-saved seed to one generation past certified seed. More information is at www.midgetolerantwheat.ca.  

back to top | print article | forward to a friend

9. Farm safety template released

A farm safety and health plan template is now available through the Agriculture, Food and Rural Initiatives department in Manitoba.

The template can be customized to individual farms. It helps identify and control hazards, create emergency preparedness plans, identify safety and health responsibilities for people working on farms, conduct inspections, develop safe work procedures for all tasks and identify the causes of injuries.

The template, along with information on training sessions, sample programs and technical assistance for the Safe Farms Check Program, is available at www.manitoba.ca/agriculture/farmsafety or 1 800 282-8069, ext. 2315.

back to top | print article | forward to a friend

Take the FCC Farm Safety Quiz. Planning for safety can boost your bottom line. Learn how.

10. Market Focus - Nitrogen market update

While the fertilizer markets have been relatively stable through the second half of 2009 and into early 2010, fertilizer prices are displaying some strength as we move through early 2010; more so on DAP prices, which have risen.

Global urea prices finished 2009 on a slightly positive note. This trend is expected to continue into at least the first quarter and perhaps the first half, of 2010.

The industry found 2009 a difficult year as it de-stocked high priced inventory and farmer use declined. However, with prices now more stable and with a positive tone, re-stocking could lead to further gains in the next few months.

Constraints with natural gas supply in the Former Soviet Union and Eastern Europe, solid demand out of Latin America, needs in the U.S. itself (next corn crop) and inventory re-stocking should underpin prices. In April and May, prices could push above the January highs as requirements peak for Northern Hemisphere summer crops and Southern Hemisphere winter crops.

The price of natural gas is an important component in the cost of making urea and natural gas prices are still historically cheap at present. In 2009, the cost of making urea in many countries was falling. However, 2010 has a different outlook -- supply constraints in some locations could lead to the possibility of rising natural gas prices.

The general expectation from an international point of view is that urea prices will remain on a firming trend into April/May and thereafter stabilize again. With natural gas still cheap, there is less pressure from rising production costs, although Gazprom is expected to raise prices for Ukrainian producers.

The element to watch will be natural gas prices in various parts of the world. While they are low now, rising oil prices could eventually feed into higher natural gas prices and potentially higher urea prices.

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.

back to top | print article | forward to a friend

Disclaimer

The editor and journalists who contribute to FCC Express attempt to provide accurate and useful information and analysis. However, the editor and FCC cannot and do not guarantee the accuracy of the information contained in this report and the editor and FCC assume no responsibility for any actions or decisions taken by any reader of this report based on the information provided in this report.

This report is protected by copyright and is intended for the personal use of the subscriber only and may not be reproduced or electronically transmitted to other companies or individuals, in whole or in part, without the prior written permission of FCC. The views expressed in this report are those of the authors and do not necessarily reflect the opinion of the editor or FCC.

Copyright 2010, Farm Credit Canada