The last few weeks have seen a large increase in the number of crop hail claims, especially in Alberta and Saskatchewan.

The Canadian Crop Hail Association reports that Alberta has seen a dramatic rise in claims from less than 100 to over 600. The main cause of the jump in claims was a storm on July 12 that hit south Drumheller, Strathmore, Standard, Rockyford, Hussar and Langdon with golf ball size hail combined with the threat of tornadoes.

The association states in a news release that although the total number of claims remains below average, this situation could change quickly in a province that traditionally experiences one of the highest rates of hailstorms in the country.

In Saskatchewan, claims are well above average for this time of the year. By mid-July claims exceeded 3,200 compared to about 1,650 filed by this time last year and up from about 650 only two weeks ago.

Two large storms at the beginning of July left a trail of damage across parts of the province, the association states. On July 1 areas south of Swift Current, an area in the southeast from Balcarres to Yorkton and Langenburg, as well as around Estevan were hit.

The next day saw another large storm generate claims from Consul in the southwest to Kelvington in the northeast of the grain belt.

Saskatchewan was also affected by the July 12 storm that moved in from Alberta, affecting northwest parts of the province including Macklin, Luseland, Senlac and Denzil.

Manitoba claims remain well below average to this point with a total of less than 400 compared to about 230 a couple weeks ago. Storms on July 13 from south of Darlingford to south of Roland were the main cause of the increase.

In many areas extremely wet conditions are hampering hail adjusters when they attempt to inspect damaged crops. Some producers have been assisting with ATV’s or four-wheel drive vehicles to help with access to saturated fields.

Agriculture producers will now be able to make their AgriInvest deposits at participating financial institutions.

The deposit notices are currently being mailed out. Federal government officials say moving AgriInvest accounts closer to producers will allow flexibility to keep track of funds more easily and earn a competitive interest rate on deposits.

Producers must open an account at their local financial institution and make their 2009 AgriInvest deposit by the deadline indicated on deposit notices to receive a matching contribution from governments.

Existing funds currently held by the federal government will be transferred to the producer’s AgriInvest account held at their financial institution. A withdrawal from an AgriInvest account through the financial institution can be made at any time.

AgriInvest is a federal business risk management program. It's designed to help farmers manage small income declines. Annual deposits are based on a percentage of allowable net sales and farmers receive matching contributions from governments.

The program is delivered by Agriculture and Agri-Food Canada in all provinces except Quebec where it is delivered by la Financière agricole du Québec. In Quebec, deposits will continue to be held by la FADQ.

 The creation of a new public-private investment fund that makes $75 million in risk capital available to young Quebec farmers is being hailed in agricultural circles across the province.

"It sends a strong signal to all young people who are passionate about agriculture but who don’t have the family or financial wherewithal to go into business by themselves -- and they are many," says Frédéric Marcoux, president of the provincial young farmers’ federation.

The new Fonds d'investissement pour la relève agricole, or FIRA, features three equal partners -- the Quebec government, the Desjardins financial institution and the pension fund of the Fédération des travailleurs du Québec, the largest union in Quebec.

Each of the partners will put $25 million into the fund, which will be administered by the province’s farm credit agency, the Financière agricole du Québec. The program will begin in the fall and is part of the Quebec government’s ongoing efforts to restructure and revitalize the province’s strong but subsidy-dependent agricultural sector.

The new fund will make up as much as a half-million dollars available to 35-and-under farmers who present a strong business plan aimed at buying a new farm or revamping an existing family farm.

"This is the biggest boost to young farmers in the past 30 years in Quebec," Marcoux says.

He adds the fund is the fruit of four years of lobbying by the province’s young farmers’ federation and its parent body, the Union des producteurs agricole, Quebec’s big farmers’ union.

Diane Parent, one of Quebec’s leading academic experts on the social dynamics of farming in general and the issue of farm succession, also applauded the new fund.

"It’s very interesting," she says. "Many young people want to farm but they don’t have the chance because financially, it’s just too big. Maybe this new fund will help them realize their dream."

Pulse buyers from more than 20 countries spent several days in Saskatchewan earlier this month.

It was the largest international attendance ever at the Canadian Special Crops Association Annual Convention. The meetings provided information about special crops, but many were more interested in the field tours. News of record precipitation in parts of Saskatchewan this spring had travelled to their countries and they wanted to see the situation first-hand.

Gordon Bacon is the CEO of Pulse Canada.

"The comment was made that Canadian weather is all the talk in India because as the biggest supplier, what goes on here is of great interest," he says.

Exporters took their customers to various parts of the province to look at pea, lentil and chickpea crops. The Saskatchewan Trade Export Partnership and the Saskatchewan Pulse Growers sponsored a tour.

Murad Al-Katib is president of Saskcan Pulse Trading, one of the largest pulse exporters in the province. He says buyers want to see what is truth and what is rumour regarding any moisture damage to crops.

"You are seeing the international people spending a lot of time in their cars seeing our wonderful province. They are out doing their own field inspections, forming their own views," he says.

Al-Katib is optimistic about pulse production, despite the record rain in northeast and east-central Saskatchewan. That's because there are some very good looking crops in west-central regions, which grow a lot of lentils and peas.

"Overall, when we balance the gains in the Kindersley, Rosetown and Swift Current areas with some of the losses in the east, the overall supply is still going to be very strong when we add carry-in stocks," says Al-Katib. "We are going to have a very viable supply this year, barring any unforeseen weather circumstances, such as an early frost or continued rain at harvest."

Bacon agrees with the assessment, but says growers still have plenty to watch and worry about including plant disease and harvest weather.

"I am sure there are a lot of farmers who are thinking ahead to having to swath or put crop down on wet land and how quick it is going to dry," Bacon says. "Frankly, until we have the crop in the bin, we are not going to know how all of this weather we've already had is going to affect either production or quality."

Severe July and August storms are another concern. The Canadian Crop Hail Association says more than 2,500 claims were filed in Saskatchewan during the first two weeks of July. The year-to-date total exceeds 3,200, more than double the number of crop hail claims submitted by the same time in 2009.

Poultry producers in Nova Scotia are buying into a new poultry processing plant slated to open in Kentville in the spring of 2012.

And they are putting their wallets behind the buy-in by investing $23 million in the $46-million project.
 
Maple Lodge Farms -- the largest privately owned poultry processing company in Canada with primary poultry processing operations in Brampton, Ont. and St. Francois, N.B. -- will provide the other half of the funding.
 
The new plant will process chickens and turkeys from N.S. and Prince Edward Island.
 
The news was welcomed by poultry and chicken producers in N.S. where approximately 45 per cent found themselves without a provincial processing plant after Maple Leaf Foods closed its plant in Cunard, N.S., in 2007. Since then, the producers have sent the majority of their product to Maple Lodge’s processing plant in St. Francois. The balance went to the ACA Co-operative plant in New Minas, N.S.
 
Along with the funds, the producers have committed to shipping their product to the new plant, which will have modern, efficient equipment and design. Maple Lodge Farms will provide national marketing reach for the processed product.
 
The Nova Scotia Poultry Industry Strategic Planning Committee represents chicken and turkey producers in N.S. In a joint announcement released by the committee and Maple Lodge Farms, committee chair Ian Blenkharn says the industry is excited about the venture, pointing out it brings sustainability to the farmers and employees of the region's poultry industry.

"We have been working with Maple Lodge and the chicken and turkey farmers in Nova Scotia and P.E.I. to find a long-term solution for a profitable processing industry," he says.

A nationwide watch is on for the advance of another pest enjoying a now-favourable environment in the formerly hostile north.

The western bean cutworm, an insect which starts its life in corn before going onto dry beans and snap beans, is appearing this summer in Ontario and southern Quebec in record numbers.

Tracey Baute, Ridgetown-based field crop entomologist with the Ontario Ministry of Agriculture, Food and Rural Affairs, says traps in southern Ontario revealed more than 1,200 western bean cutworm moths in July. Last year at this time, just four moths were trapped.

It's even worse in Michigan, where almost 3,800 moths have been trapped.

According to Baute, warmer weather owing to climate change, as well as undisturbed no-till environments, could be why this pest -- which was formerly restricted to the more southern corn-growing regions in the United States like Nebraska and Colorado -- is taking up its new residence.  

"The moth seems quite comfortable here, with our sandy soils, corn and dry bean crops," says Baute, author of the Baute Bug Blog, dedicated to emerging insect pest issues. "Anywhere in Canada corn is grown is at risk."

In response to the threat, Baute's counterparts in western Canada are likewise placing traps to determine the cutworm's movement up through the midwest.

She's urging all farmers to get out and scout for egg masses and larvae. Eggs are laid on the top four or so leaves, usually on the upper surface. The larvae are not cannibalistic and survive in great numbers, meaning one egg mass can spark a large infestation in the field.

Baute says of everything they've learned about the moth from the southern U.S., little applies here.

"We're having to learn as we go," she says. "The control thresholds are all different here than they are in the south. It's a brand new experience." 

Researchers have found corn should be sprayed if five per cent of the plants surveyed have egg masses. YieldGard Bt corn is not effective against the insect. That means the larvae must be controlled before they enter the ear and are protected from spray.

"It's a lot easier to find the eggs in corn than it is in dry beans," Baute says. "The moths are at their peak flight right now, so now is the time to scout and spray if threshold is reached.

A change in the billing system that threatened to add hundreds of dollars to the monthly power bills of Prince Edward Island farmers has been turned down by the regulatory body that controls electricity prices.

The two tiered system means farmers and other large rural customers pay a lower price for all the electricity they use over 2,000 kilowatt hours per month. Maritime Electric was seeking permission to abolish the distinction and have all rural customers pay the same rate.

In fact, the Island Regulatory and Appeals Commission did give the utility a green light to do just that in 2008, and the system was scheduled to come into effect April 1 of this year.

However, a campaign by the farm community and other impacted groups resulted in the move being put on hold until a new set of public hearings could be held.

The P.E.I. Federation of Agriculture, National Farmers Union and Dairy Farmers of P.E.I. all appeared before the commission. They argued Island farmers already pay significantly higher electricity bills than their counterparts in the rest of the country and would have no way of recouping the additional cost at a time when the agriculture industry is facing a major financial crisis.

Although this hurdle has been cleared, both the National Farmers Union and the P.E.I. Federation of Agriculture concede the issue is far from over. Maritime Electric had been asking for a review of all its rate categories and the commission agreed. That means the issue will be evaluated as part of the larger review scheduled for completion by the end of 2011.

Edith Ling of the National Farmers Union in P.E.I. is worried what that review will bring

"It is something we have to watch very closely," she says. "The elimination of the two-tiered rate structure would cost many producers thousands of dollars every month -- with no way to recoup those costs, they would come directly out of the bottom line of family farming operations."

Federation's executive director John Jamieson says long-term efforts to reduce energy costs and consumption need to be stepped up. Jamieson says agriculture has been proactive on that front and "our members are having energy audits completed and are utilizing the new provincial program that assists farmers in implementing energy solutions on farm."

Both say the fact three farmer organizations appeared at the hearings saying essentially the same thing was no doubt a major factor in the commission’s decision.

Nova Scotia agriculture producers remain less than enthusiastic about using biosolids on their fields, despite more stringent testing measures introduced this spring by the provincial government.

Biosolids are a soil amendment produced from municipal wastewater.

Nova Scotia revised its guidelines for application of biosolids in March 2010.

Department of Environment spokesman Bruce Nunn says the major changes mean testing is more intensive for contaminants such as dioxins, furans and fire retardants. As well, "treatment plants producing biosolids face more stringent quality standards and require environmental approvals from the Department of Environment."

He adds that "only Class A biosolids -- the highest quality material --can be used on farms."

The additional testing measures may be designed to ease public fears about the safety of biosolids on agricultural land, but the province's producers are taking a wait-and-see approach.

Richard Melvin, president of the Nova Scotia Federation of Agriculture, says the issue is "a bit of a lightning-rod issue."

"We do recognize that it is a legal product to use, so we can't tell farmers not to use it. But we aren't out beating a drum recommending it," he says.

The federation's policy on non-agriculture waste products recommends against their use. It notes its use "can create public perceptions that may not be conducive to the industry's focus on food safety; therefore the federation does not encourage the use of non livestock generated waste as a soil amendment on agricultural land."

"Really, at the end of the day, it's a customer decision," says Melvin, who grows cauliflower and spinach in the Annapolis Valley, about 165 kilometres northwest of Halifax.

"In terms of fresh produce, major retailers like Sobey's and Atlantic Superstore have sent us documentation to sign off on that we do not use biosolids in the production of fresh produce."

Melvin says as far as he knows the only Nova Scotia farms using biosolids employ them in forage production.

Rob Sampson is president of biosolids manufacturer N-Viro Systems Canada. He says the company's Nova Scotia plant produces 25 to 30 tons of Class A material a year. All of it is sold within the province at a cost to producers of $30 to $40 a ton applied.

"If we were to get all the biosolids from the region and produce a product from that we would barely be able to cover 0.2 per cent of the farmland," he says. "People think we're burying the province in this stuff -- but the amount you could fit in the bucket of a front-end loader is what you would put on an acre."

While the government and the manufacturer are confident in the safety of biosolids, Melvin says producers will continue to monitor the situation.

"We're going to continue to refine our policies. We want to get expert advice and take into account the concerns that are out there. We have a lot of intelligent people who sift through this information and come up with recommendations. My goal is to make sure the process is as informed as it can be," Melvin says.

The Alberta pilot for the Cattlemen's Young Leaders Development Program is now accepting applications for its first phase.

Co-ordinated through the Canadian Cattlemen's Association, the CYL combines industry-specific training with formal and informal mentorship opportunities for producers age 18 to 35.

Program co-ordinator Jill Harvie says the project aims to tap into the expertise and experience of industry leaders to foster a new generation of beef producers. The new producers will be armed with the knowledge and business sense to carry the industry into the future, she says.

Six Alberta producers will be selected to participate in the pilot, which will run from August to December. The full national roll out is scheduled for January 2011.

Applicants can choose from two mentorship streams. The professional program targets pre, post and current college and university students interested in a beef related profession, such as marketing, animal health or research.

The industry leader mentorship is tailored to active producers with leadership potential. Participants will be paired with a board member from the CCA or Alberta Beef Producers. They will have the opportunity to share in key discussions at the provincial, national and international level.

Harvie says the response from potential mentors has been tremendous, but she stresses care will be taken in getting the right fit.

'The program will be as flexible as possible so the participant and the mentor can decide on the events and forums they want to attend,' Harvie says. 'It will give them a taste of what's out there. If we can match them up with their strengths and interests then they are more likely to stay in the beef industry.'

Participants who exhibit excellence in completing the program will be eligible to apply for international events including conferences, farm tours and round tables.

Applications are due by July 31. Forms are available at www.cattlemensyoungleaders.com. Contact Harvie at harviej@cattle.ca for more information.

Cash flaxseed prices have rallied massively higher over the past four to six weeks, quickly surging up to the $13 a bushel area for both old and new crop delivery -- that’s up almost $5 a bushel, or more than 60 per cent, in such a short period of time!

Like many other Prairie crops, this market is expressing heightened anxiety regarding intended flax acres that Saskatchewan and Manitoba did not get into the ground, thereby trimming production potential for 2010. Market sentiment is developing that Canadian flax production is poised to be at maximum 600,000 tonnes, with some ideas down as low as 500,000 tonnes. Last year, Canada produced 930,000 tonnes.

It appears end-users have suddenly taken notice that old crop supplies are being deleted faster than expected this year as Chinese demand has partly taken up some the European buying slack (albeit earlier in the season and at lower prices) and 2010 production is certainly going to come in much lower than originally expected.

Back last fall, following the European embargo on Canadian flaxseed imports, trade thinking (mine included) was that old crop carryout could balloon this year to a very burdensome 400,000 to 500,000 tonnes. These days, I’m thinking old crop carryout as of July 31 will be down more towards the 250,000 to 270,000 tonne level. And now with the wet weather threatening new crop production, flaxseed supplies are going to tighten significantly.

With the new reality in flaxseed, there is the real prospect that new crop 2010-2011 Canadian carryout could erode further -- down towards 100,000 to 150,000 tonnes -- and that’s getting pretty tight. Carryover stocks of Canadian flaxseed in 2008-2009 was 227,000 tonnes.

In the winter, PFCanada was not too fond of the immediate flaxseed price outlook given the continued uncertainty of our trading relationship with our primary EU buyers. So without at least a $2 a bushel premium of flax over canola, I didn’t quite see the economic justification for growing flax.

But I did think, and stated here some time ago, that growers of flax should look for the far deferred market -- spring 2011 when supplies could tighten and perhaps some premiums for seed sales could offer some improved pricing.

As a result, PFCanada has held off entirely on any new crop forward pricing on flax -- waiting for a better opportunity -- and now it is coming up upon us, albeit much earlier than I anticipated.

There has been no resolution or progress on the trade difficulties with our primary buyer the European Union on the Triffid issue. So that remains a concern. But for now, markets are responding amazingly bullish to Canada’s emerging flax supply constraints for 2010-11.

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.