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Note from the editor

Allison Finnamore

Since Growing Forward, Canada's agriculture policy framework, expires on March 31, 2013, plans are now underway to develop Growing Forward 2 so it's ready for implementation on April 1, 2013.

Agriculture and Agri-Food Canada states that preliminary discussions between federal, provincial and territorial governments and stakeholders have identified two broad objectives for Growing Forward 2 -- to develop domestic and international markets and trade, and achieve adaptability and sustainability. Innovation and infrastructure have been identified as ways to meet these objectives.

But there are still many details to be worked out, and Agriculture and Agri-Food Canada, together with its provincial and territorial partners, is seeking input from farmers across the country. Meetings start next week and a list of locations and dates is available at http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1298647293136&lang=eng&src=fcc. Since space is limited at these consultation meetings, you're asked to save your seat by using the online registration form link at the website noted above.

More information on Growing Forward 2 is available at http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1294780620963&lang=eng&src=fcc.

And a note about this week's Express - Mike Jubinville's Market Focus is taking a break this week and will return next week.

Your comments, questions and story ideas are always welcome. You can contact me at allison@finnamore.ca.


1. Spring flood prep underway

No one is building an ark -- but spring flooding preparations are well underway in Saskatchewan.

There are four areas of significant concern, as illustrated in the Saskatchewan Watershed Authority's latest spring runoff forecast map released Thursday.

The first area covers nearly all of east-central Saskatchewan. Well above normal spring run-off is anticipated in a wide area from Elbow to the Manitoba border and from Weyburn to Tisdale.

The second largest region is on the western side of the province, including Leader, Kindersley, Rosetown, Spiritwood, Prince Albert and the area north of Saskatoon.

There are two smaller pockets in the southwest looking at well above normal run-off -- south of Cypress Hills and the Gravelbourg area.

The cold winter has meant very little snow has disappeared, setting the stage for a potential quick melt when the temperature rises in the spring.

"There are areas with more than four inches or 100 millimetres of water in the snow," says Doug Johnson from the Saskatchewan Watershed Authority. "That may not sound like much, but when you start translating over the basin, that's a fair amount of water,"

Many sloughs and low-lying areas are already full after record breaking amounts of rain last year, he adds.

The provincial government has established a $22 million Emergency Flood Damage Reduction Program. After only two weeks, 92 communities, 13 rural municipalities and 70 individual farm homeowners have signed up.

The program is not intended to be used for the protection of farmland, but will cover the entire cost of technical assistance, including engineering advice. The program will also cover 85 per cent of the cost for berm construction on farmsteads and country residences. Municipalities will get 75 per cent of the cost back for berm construction, diversion channels or channel improvements. The government will pay for half of short-term flood control measures, including sand bagging, removing snow from channels and steaming frozen culverts.

Flooding was the number one topic of discussion at the Saskatchewan Association of Rural Municipalities convention in Saskatoon this week. When making plans to deal with excess water, adjacent rural municipalities are trying to develop the best strategies without impacting each other, according to David Marit, SARM president.

"When there is too much water, nobody wants it. When there is not enough, everybody wants it. We just have to be able to work together, and I think you will see some good co-operation this year."

The Saskatchewan government used the SARM convention as an opportunity to announce a $500,000 pilot program to limit flooding damage caused by beavers. Rural municipalities will administer the one year program and decide what percentage of funds is used to destroy dams and reduce the beaver population.

The Canadian Wheat Board has heard from about 50 Saskatchewan farmers interested in moving on-farm grain in at-risk areas before flooding occurs.

"We have cleared out some elevator space in most of the flood risk areas and are preparing to send out letters to farmers who have registered, further advising them of the advance call that we want to get out in the next couple of weeks," says Maureen Fitzhenry, CWB spokesperson.

The Saskatchewan SPCA is also encouraging farmers and ranchers to make plans for potential spring flooding. Muddy or washed out roads could impact access to livestock. The location of feed supplies should also be evaluated.

To view the recent Saskatchewan Watershed Authority report, please visit: http://www.swa.ca/WaterManagement/MonthlyForecast/ProvincialForecast.pdf.

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2. Anthrax precautions issued

As summer approaches, the Canadian Food Inspection Agency has issued a reminder to livestock producers in the Prairie provinces to take the necessary precautions to protect animals from anthrax this summer.

The naturally occurring disease can have a devastating impact on cattle, sheep, goats, horses and bison. The spores that cause the disease are known to exist in the soil across the Canadian prairies. They generally surface during the summer months, when heavy rainfall and flooding is followed by hot, dry temperatures.

"Given the recent and predicted climatic conditions, the risk of anthrax is poised to elevate this summer," says Dr. Brian Evans, chief veterinary officer and chief food safety officer for Canada.

"We encourage all livestock producers in the Prairies to speak to their veterinarian about having their animals vaccinated, especially if their herd is in an area where anthrax has been found before."

While vaccinating livestock is the best protection against anthrax, the CFIA also recommends producers avoid giving hay that was cut close to the soil or feed that had contact with soil to non-vaccinated animals. The CFIA also recommends producers thoroughly clean and disinfect equipment and footwear that may have had contact with contaminated soil, and wash clothes worn when tending to sick animals separately from the rest of the household laundry.

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3. Cheese standards upheld

The Dairy Farmers of Canada is happy with a recent ruling by the Federal Court of Appeal concerning the validity of the Government of Canada’s 2008 federal compositional standards for cheese.

“We didn’t doubt that the federal government had the right to regulate,” says Therese Beaulieu, assistant director of strategic communications for the Dairy Farmers of Canada.

Beaulieu explains that two cheese processors brought forward the appeal because they felt the government was overstepping its rights and should focus on food safety, not standards.

“The court found these standards would increase consumer confidence and ensure fair and efficient market competition,” Beaulieu says.

Compositional standards for food products, such as cheese, describe basic requirements so that these food products have a uniform composition and meet consumers’ expectations. The compositional standards for cheese came into effect on Dec. 14, 2008, and apply to cheese marketed in import, export or interprovincial trade.

Beaulieu says prior to the revisions, there were two different regulations -- one from Health Canada and one from Agriculture and Agri-Food Canada -- that used different words to describe what could be used to produce cheese.

“There was some ambiguity to what they could use,” she says. “The new standard aimed to solve the conflict between the two. Now there is one regulation, one industry standard.”

The revisions require that cheese derive a minimum amount of its casein from fluid milks and ultra-filtered milks rather than from other milk products. It must also have a whey protein to casein ratio that does not exceed that of milk. As well, the casein content derived from milks must meet or exceed the percentages of the total protein content of the cheese, dependent on the variety.

Beaulieu says the Dairy Farmers of Canada is pleased with the ruling “because we think cheese standards should live up to consumers’ expectations.”

Since the revised regulations were put in place in 2008, cheese consumption has increased and there are more cheeses in Canada -- over 600 different kinds, says Beaulieu. There is no known link, however, to the increase in variety of cheeses to the introduction of the new regulations.

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4. Historic chicken deal inked between Ontario and Quebec

Almost two years of negotiations aimed at finding common sense solutions for the supply and transportation of chickens for processing paid off in a recent historic deal between Ontario and Quebec.

“We are very pleased to have arrived at a solution that addresses this critical industry issue,” says Murray Booy, chair of the Chicken Farmers of Ontario.

His Quebec counterpart, Martin Dufresne, calls the agreement “a big step towards increased efficiency and a stimulant for the growth in the production of chickens in Quebec.”

Under the terms of the agreement, Ontario and Quebec will each create new processor allocation systems that guarantee delivery of chickens grown in a province to processors in that province.

The agreement is still being studied and fine-tuned by regulatory bodies in the provinces but industry groups expect the agreement to be implemented later this year.

Industry stakeholders are confident the new systems will bring an end to a long-standing and costly industry practice of interprovincial transportation of live birds for processing.

Data from the Chicken Farmers of Canada’s annual report for 2009 indicates that in 2009, Ontario brought in roughly 40 million kilograms of live-weight chicken and shipped out 38.5 million kilograms. Meanwhile, Quebec shipped in 50 million kilograms and shipped out some 40 million kilograms.

“The agreement meets the needs of the marketplace and strengthens the supply management system,” notes Reg Cliche, chair of the Association of Ontario Chicken Processors.

The deal between Ontario and Quebec comes as the long-running dispute in New Brunswick heats up again. The dispute is between Nadeau Poultry and its parent company, Ontario’s Maple Lodge Farms, and Groupe Westco and its Quebec-based partner, Olymel.

Nadeau, the only chicken processor in the province with a slaughtering facility, accuses Westco and Olymel, an alliance that controls 90 per cent of poultry production in the province, of violating provincial supply rules and killing jobs by shipping birds out of New Brunswick for slaughtering at Olymel’s facilities in Quebec.

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5. Pullet producers seek autonomy

Canada's pullet growers want their own voice.

Pullet growers have previously relied on their representation through egg producer organizations, mostly because pullet growers are also egg producers and there's an obvious connection between the sectors. But since egg organizations are mandated to only represent egg producers, the pullet growers feel their voices are being lost, the group explains in a news release.

"As an industry, we cannot rely on the good graces of the egg organizations to represent us,” says Andy DeWeerd, chair of the newly formed Pullet Growers of Canada, formerly the National Pullet Growers Association.

“The time has come for pullet growers to have their own voice on such issues as cost of production, disease control, HACCP programs and housing standards, among many others. Being an autonomous agency will give PGC the required legal powers to make decisions on these issues, on behalf of pullet producers across the country.”

To gain autonomy, the Pullet Growers of Canada is seeking Part 2 Agency status under the Farm Products Agencies Act. That process includes holding consultation meetings across the country with pullet producers and egg organizations.

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6. Crop insurance deadline nears

Manitoba producers have until March 31 to apply for a new AgriInsurance contract, or to make crop or coverage selection changes for the 2011 crop year.

"Manitoba has experienced its fair share of extreme moisture conditions in the past and producers know all too well the challenges these events present to families and communities," says Stan Struthers, Manitoba's Minister of Agriculture, Food and Rural Initiatives. "We are in a strong position to meet the potential challenges of the spring, but we are asking producers to do the same and consider their options through AgriInsurance."

Manitoba Agricultural Services Corporation's insurance programs include:

  1. insurance for more than 60 crops;
  2. a variety of forage insurance options including: coverage for the establishment of forages, tame hay insurance for alfalfa, alfalfa grass mixtures, perennial grasses and clover;
  3. forage restoration for insured forage acres damaged by excess moisture and flooding that need to be re-established
  4. forage seed insurance for alfalfa, pedigreed timothy and tall fescue; and
  5. establishment coverage for strawberries and saskatoons and coverage for vegetable crops

Recent improvements to AgriInsurance include a 50 per cent increase to the forage restoration benefit and forage establishment insurance, bringing the coverage to $60 per acre.

Excess moisture insurance coverage remains a basic feature on all AgriInsurance contracts, with an option for producers to buy a higher-dollar coverage or remove the standard five per cent deductible. In 2010, producers received over $27.5 million in excess moisture insurance claims, the second-highest payment in the history of the Excess Moisture Insurance Program.

"We want to encourage them to continue using insurance as the first line of protection against losses," Struthers says.

Every year, efforts are made to enhance existing insurance programming or introduce new programs to support Manitoba producers, the minister says. The Pasture Days pilot program insures the summer grazing period and is continuing into its second year and, for the first time, an overwinter bee mortality insurance program will be introduced.

Under AgriInsurance, premiums for most programs are shared 40 per cent by participating farmers, 36 per cent by the Government of Canada and 24 per cent by the Province of Manitoba. Administrative expenses are paid 60 per cent by Canada and 40 per cent by Manitoba.

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7. Pork producers get green light

A new management regulation for hog production in Quebec should help make the province’s pork industry leaner and more competitive, producers say.

“This is excellent news for pork producers and Quebec pork production,” says Jean-Guy Vincent, a hog producer and president of the Fédération des producteurs de porcs du Québec. “We have accomplished a major phase of our work plan and we’re indicating to the government that pork producers are collectively taking care of themselves.”

The new regulation, called Balanced Production Management, was built over the past three years by the FPPQ and pork industry stakeholders. The provincial food marketing board approved it earlier this week after several months of study.

Under the new regulation, producers will be paid less if they go over the quota allotted to them by their assigned slaughter house. The reduced rate will apply only to the over-quota hogs.

Last year, Quebec’s 3,800 hog producers supplied the roughly 18 processing facilities in the province with 7.6 million live animals.

According to Natalie Hansen, the FPPQ’s director of communications, the new regulation is part of the federation’s efforts to counter the production surpluses that have helped to keep hog prices low, resulting in huge deficits in Quebec’s farm subsidy program, called ASRA, and public calls for radical changes or the scrubbing of that system.

“We want to prevent surpluses and manage production in the best possible way so that producers get the most money they can for their animals (and) processors get the hogs they need when they need them,” she says.

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8. Ginseng growers get boost

Efforts to brand and sell Canadian ginseng in Asian markets are paying off.

Trade shows, promotions and advertising programs, along with improved customer relations, have all contributed to a favourable selling market in the prime Asian market, where Ontario ginseng commands a premium price.

Now, to make further gains, particularly in Hong Kong, mainland China and Taiwan, the federal government has announced $63,000 in support to Ontario's ginseng growers.

Marvin Karges, executive director of the Ontario Ginseng Growers Association, says the federal contribution allows his association to "brand (the) product, engage new customers and develop promotional strategies for Ontario ginseng in Asian markets."

Karges says the potential for more sales is strong, given the decreased number of growers, product availability and demand in the markets. Indeed, Canada's ginseng exports reached $95.3 million in 2009, about $25 million more than the previous year and surpassing the United States as the leading North American ginseng exporter.

A key, says Karges, was co-operation, working with governments and trade commission offices to determine barriers to Asian trade and how to change it.

"We had to have people in the marketplace, knowing the problems and working towards these same goals of public awareness and market access,” he says in a message to growers. "After all this effort, I am happy to say, we are seeing the benefits of our labour."

MP Diane Findlay, who announced the support, says helping Ontario ginseng growers better promote Canadian ginseng in international markets benefits the entire value chain and stimulates the local economy. She calls ginseng "a great example of how an industry is able to take advantage of emerging markets and continue to drive (the) economy."

Ginseng is promoted as having medicinal powers, particularly for diabetes and cancer prevention.

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9. Cervid and sheep producers stand to benefit

Alberta cervid and sheep producers stand to benefit from two new traceability programs aimed at improving support to animal health, public health and food safety.

As pioneers in livestock tracing, the Alberta cervid industry has championed the application of strict traceability requirements for over 15 years, says Glenda Elkow, chair of the Alberta Elk Commission.

The introduction of the new cervid identification and registration program is intended to encourage further industry compliance with the Livestock Industry Diversification Act.

The Act requires all elk, mule deer, whitetail deer, reindeer and moose born on Alberta licensed cervid farms from 2009 to 2011 to be double-tagged with Alberta Agriculture and Rural Development approved ear tags and reported to the Cervid Farming System.

Any farmed cervid license holders who meet the double-tag requirement and who annually register their animals in the CFS will be eligible for a payment of $6 per calf.

Beginning this month, current license holders will receive a direct ARD mail-out of a pre-populated, customized application form. Once the information has been verified and the form completed, it should be returned to ARD for processing.

Total program payments for cervids are estimated at $90,000 over three years, to be distributed among the 344 licensed cervid farms in Alberta.

The electronic identification and reporting program for sheep is aimed at encouraging industry members to adopt radio frequency identification ear tags as the primary means of animal identification.

According to Phil Kolodychuk, chair of the Alberta Lamb Producers, the new technology should help producers improve flock management and increase productivity.

Sheep producers who tag lambs born between Dec. 1, 2010 and Nov. 30, 2012 with Canadian Sheep Identification Program approved RFID ear tags and submit an application form indicating the number of lambs tagged in a given lambing period will qualify for reimbursement of up to $3 per tag.

Additional information is available at www.ablamb.ca. Total incentive payments for sheep are estimated at $900,000 over two years, to approximately 1,900 Alberta sheep farms.

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10. Bean gene project find its targets

First came human genome mapping. Now, it’s over to beans.

As molecular biology and advanced plant breeding tools become more accessible and affordable, scientists everywhere are gaining the ability to determine the genetic make-up of agriculturally significant species, including beans.

With this knowledge, they can, for example, see the genetic make-up of plants or varieties that have natural resistance disease or drought, and select for varieties that possess important genetics.

That’s the thrust of an $11-million, three-university project led by Peter Pauls at the University of Guelph -- to map the genetic makeup of dry beans, such as white beans and kidney beans.

Pauls, chair of Guelph’s Department of Plant Agriculture, says he and his colleagues are targeting genes that help beans resist common bacterial blight, a significant bean plant disease, as well as genes that code for nutraceutical content and protein quality.

“We already know there are multiple genes that code for resistance to bacterial blight,” Pauls says. “The genome project will help us separate the individual genes and evaluate their contributions so we can combine them on a novel way and have long-lasting, effective, disease resistance in the field.”

Ontario’s dry bean sector generates $100 million a year. Worldwide, dry beans are an $11-billion industry. But they can be difficult to grow, and research is the key to developing a better understanding of them, says Marinus Bakker, chair of the Ontario White Bean Producers Marketing Board.

“That’s how we’ll grow this industry,” he said at an event at the University of Guelph announcing the launch of the research project. The project is supported by the Ontario Ministry of Research and Innovation, and several other sponsors including the Ontario White Bean Producers Marketing Board, the Ontario Coloured Bean Growers Association, Agriculture and Agri-Food Canada, Hensall District Co-operative, SeCan and Pulse Canada.

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11. Study underway on P.E.I. migrant farm workers

While migrant workers have been a fact of life for the agriculture industry in many parts of the country, it's a trend still in its infancy in Prince Edward Island.

Yet more Island farmers are being forced to turn to migrant workers since the pool of local workers is getting smaller.

Pieter Ijsselstein says that's due to a growing number of  prospective Island workers are lured away by what they perceive as better opportunities in other sectors of the economy or in other parts of the country.

The University of Prince Edward Island masters of business administration student is doing his thesis on the issue. He's conducted some preliminary interviews with producers over the last several months and is now conducting an online survey of the industry.

He says his research so far indicates many Island workers view agriculture as “unprofitable.” Since much of the work in the industry is seasonal, Ijsselstein says many producers have told him social programs such as employment insurance often act as a disincentive to attracting local workers.

He explains most of the migrant workers who come to the province are governed by the federal Temporary Foreign Workers Program and most of the workers are from Mexico or the Caribbean.

Ijsselstein says he hopes to shed some light on the demand for migrant labour over the next three to five years, and identify issues like language and skill development.

For producers, he says the primary issue is to have the workforce they need to ensure they will be able to plant and harvest their crop. Ijsselstein says there are some issues for the employer regarding skill development, adding it can be a challenge to get the same worker back year after year.

“Obviously that is preferable from their point of view since the worker is proven and is familiar with the farm’s operation,” he says.

The graduate student notes a 2003 study by the P.E.I. Agricultural Human Resource Development Council indicated seasonal work is much more important to farmers in this province in comparison to other jurisdictions. The study notes the number of seasonal paid work weeks on P.E.I. farms in 2000 was 50.3 per cent of the total paid weeks, whereas seasonal work represented only 35.3 per cent of the total work weeks nationally.

However he notes a comprehensive human resource strategy for the agricultural industry will have to be developed.

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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.

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Copyright 2011, Farm Credit Canada