Last fall, Theresa Zuk and her husband Jason did something not many Canadian beef producers would have considered a few years back. They expanded their breeding herd by 30 per cent.
 
Why would a young farm couple in their mid-30s take such a chance in an industry battered by economic and trade woes over the last eight years? Because they believe the sector is finally on the mend, and the future appears bright once again, says Zuk, who farms near Arborg, Man.
 
“We’re looking forward to growth in the beef industry now that prices have turned around. That‘s the major factor for optimism,” she says.
 
Zuk is not the only one who feels that way. Optimism about the future has never been higher among Canada’s beef producers, according to a recent Farm Credit Canada survey.
 
FCC’s fifth annual national Vision Panel survey, released Jan. 17, found 79 per cent of the nation’s cattle producers feel their businesses will be better off five years from now. Manitoba producers topped the optimism scale at 87 per cent.
 
Just over half of all beef producers (51 per cent) say they plan to expand, diversify or both, the FCC survey reports.
 
It’s an amazing turnaround for the industry, considering only 38 per cent of beef producers surveyed in 2009 felt they were better off than they had been five years earlier. That figure now is 76 per cent.
 
Beef isn’t the only sector in which producers are bullish about the future. Optimism among farmers and agri-businesses is high virtually across the board, the survey, conducted in the fall of 2011, reveals.
 
A full 80 per cent believe their farms or businesses will be better off in five years, up from 76 per cent in 2010. Seventy-seven per cent of producers say they are better off today than they were five years ago, compared to 67 per cent in 2010. More than half (58 per cent) plan to expand or diversify in the next five years.
 
“The results are great news,” says Greg Stewart, FCC president and CEO.
 
Stewart notes, though, that farmers’ also expressed caution, as their positive outlook is tempered by factors beyond their control, such as the weather and unpredictable economic conditions.
 
Doug Chorney, president of Keystone Agricultural Producers, says strong prices for grains and livestock were reasons for a general mood of optimism among farmers during the recent Manitoba Ag Days, the province’s largest agricultural trade show held annually in Brandon.
 
“I thought it was very upbeat,” Chorney says.

Do you know when to sell?

Kevin Stewart explores how following season price trends can help you get the most for your ag commodities.

Watch more FCC learning videos on our multimedia page 

Industrial wind power’s “invasion” of rural Ontario must stop until more is understood about their effects, says the Ontario Federation of Agriculture.

President Mark Wales issued a strongly worded news release last week calling for the suspension of industrial wind turbines based on issues with setbacks, noise and cost of wind-generated power.

“We have always been concerned with the price paid for wind power and the fact that it is not dispatchable  -- it is not stored for use during peak demand periods, making it highly inefficient,” Wales says. He adds that Ontario’s Auditor General noted the same in his annual report last December.

The federation has long supported renewable energy production as a way for farmers to generate additional income, and perhaps save money on energy costs. Likewise, the province has thrown its support behind renewable power with the Green Energy Act.

Wales says the federation will continue campaigning for green energy because Ontario needs a reliable, affordable source of energy that respects concerns for noise, community involvement and price.

But industrial wind power doesn’t fit that description, Wales says. Municipal input is missing from industrial wind turbine projects, alienating the rural population and ignoring competing community needs and policies, he says.

“Most disconcerting of all is the impact wind turbines are having on the relationships across rural communities,” he says. “When wind developments come to a community, neighbours are pitted against neighbours. The issue of industrial wind turbine development is preoccupying the rural agenda and tearing apart rural communities."

The federation is asking the province to immediately suspend any further developments until farm families and rural residents can be assured their interests are protected.

The Philippines' market is now open for Canadian exports of live cattle, sheep and goats, says Agriculture and Agri-Food Canada Minister Gerry Ritz.

The Philippines imports $9 million annually worth of cattle and nearly $300,000 of sheep and goats. Canadian producers now have the ability to compete for sales in this market, government officials say. This new market access further strengthens the trade relationship between Canada and the Philippines. The Philippines is an important commercial market for Canada, officials say, importing more than $235 million worth of Canadian agricultural and agri-food products in 2010.

Last week, the federal government announced that Canadian beef under 30 months of age can re-enter the South Korean market.

Low inventories and a new promotion program could make 2012 a comeback year for Canada's slumping potato industry, officials say.
 
Final 2011 numbers issued last week by Statistics Canada show that national potato output fell by five per cent from the previous year, to just under 91.9 million hundredweight.
 
Canada's potato production is now 11 per cent lower than it was in 2008 when producers harvested 103.6 million hundredweight of spuds.
 
In Manitoba, Canada's second largest potato-producing province after Prince Edward Island, spring floods, a summer drought and an early frost resulted in an eight per cent drop in production last year, despite more seeded acres.
 
Manitoba's potato acreage, which peaked at over 100,000 acres in 2003, was down to a mere 70,000 harvested acres in 2011, according to Statistics Canada.
 
A recession-battered North American economy and a strong Canadian dollar, which hurts exports, are cited as the main reasons for the decline.
 
But there are signs that markets could start to pick up again this year.
 
The overall drop in production has resulted in low stocks and a predicted shortage of carry-over potatoes by July, says Gary Sloik, general manager of Keystone Potato Producers Association, which represents the province's growers.
 
Manitoba processors may have to import early potatoes from Washington state to make up for local shortages from the 2011 crop, Sloik says.
 
Meanwhile, North American demand is slowly beginning to increase again and fast food restaurants are launching new advertising campaigns for French fries, he says.
 
As a result, potatoes may be on a recovery track this year, Sloik says.
 
"Production will probably rise somewhat in 2012,” says Sloik. “We will need more potatoes in order to bring things back into a balanced supply."
 
Sloik says another long-term boost to the industry is a new North American potato research and education initiative which began last year. Funded by processors and growers in the United States and Canada, the program seeks to study and promote the health benefits of potatoes to consumers.
 
The recent drop in acreage isn't entirely due to economic and agronomic factors, says Brian Wilson, a Manitoba Agriculture, Food and Rural Initiatives potato specialist.
 
Growers today are getting more potatoes from fewer acres because of improved crop management. Surveys show enhanced practices are giving producers higher volumes per acre without actually planting more seed, says Wilson.

"If your market doesn't change and you increase your efficiency, the number of acres goes down."

Producers, and others in the agriculture and agri-business sector, have a new bilingual online tool that brings together information on federal, provincial and territorial programs and services that specifically apply to them.

Spear-headed by Agriculture and Agri-Food Canada, AgPal links producers directly to all AAFC, Farm Credit Canada and Nova Scotia's programs and services, as well as those of Ontario's Growing Forward program.

AAFC and its provincial partners heard of the challenges producers constantly faced when looking for information about the various types of assistance offered by the different levels of government for the agriculture sector. The web-based discovery tool was designed to put all of the information at producers’ fingertips.

To find information, producers simply go to the AgPal website (www.agpal.ca) and fill in a couple of information tabs such as where they operate, and what they need assistance with. The tool will then collect and list all of the programs available, first, in their province and then in the country and with FCC.

For example, a producer in Ontario who is aware energy prices are going up in 2013 could look for programs and services that would help reduce energy consumption on the farm. The farmer would select Ontario, environmental and energy management and farmer from the information tabs and all of the programs relevant to that would be listed.

There are already plans to expand AgPal to include even more agriculture-related information such as education, training and research, as well as expand the number of provinces taking part.

To learn more about AgPal go to www.agpal.ca.

Manitoba Agriculture is launching a new Manitoba Biomass Energy Support Program that will provide up to $400,000 in grants to fund the program's two components.

According to Jeff Kraynyk, manager with Agri Energy, the program's key demographic targets are farmers and smaller industrial users such as hog farmers and greenhouses who may be using coal or some other source of fuel to heat their premises.

The capital component targets biomass users and processors who develop high-quality, renewable biomass products for use in combustion heating systems. Funds of up to $50,000 are available to upgrade infrastructure to manufacture or consume biomass fuel.

The consumer support component provides grants of up to $12,000 to coal users to help offset the price differential between coal and biomass products from Jan. 1 to March 31, 2012. Farmers currently using coal in their operation will qualify for this incentive.

This is part of the province's move to ban coal use for space and water heating (effective Jan. 1, 2014) and to promote the use of renewable biomass energy.

Funding for the program is forecast to rise to $1.5 million later in 2012, based on revenue projections from the emissions tax on coal (effective Jan. 1, 2012).

Agricultural residue such as wheat and flax straw, oat hulls and corn stover, which are often treated as waste, are considered eligible biomass under the program. Purpose-grown crops such as switchgrass and willow or poplar crops also qualify.

Manitoba Agriculture estimates the province generates three to five million tonnes of biomass each year over and above amounts used for soil management and livestock.

Applications are due by March 9, 2012. Check the website at www.gov.mb.ca/agriculture and look in the bottom left-hand corner for “Manitoba Biomass Energy Support Program”.

The province has also announced increases to the 2012 AgriInsurance program. This includes an additional excess moisture insurance top-up option of $15 per acre, and an increase in forage establishment insurance from $60 to $70 per acre.

The forage restoration benefit also rises from $60 to $70 per acre and provides coverage for excess moisture damage to forage crops. More information is available at local offices of the Manitoba Agricultural Services Corporation.

The aviation industry wants to reduce its carbon footprint and a new oilseed　grown on the Prairies may be part of the answer.

Brassica carinata is an industrial oilseed crop, also known as Ethiopian mustard. Carinata has high levels of erucic acid and a high oil content, making it ideal for many industrial uses like　biodiesel or as a　renewable fuel source for jets. Agrisoma Biosciences, Agriculture and Agri-Food Canada and Mustard 21　are working together to commercialize the crop.　　　

"The biojet industry is really looking for non-food oils sources, like carinata," says Patrick Crampton, vice-president of business and product development for Agrisoma.　"The International Air Transport Association has stated a goal for the whole global industry of carbon neutral growth past 2020. By 2050, they want to be back to the carbon emissions that the industry had in 2005, despite 45 years of growth in air traffic."

The certification group for the airline industry is ASTM International. It has certified and approved biojet fuel for　up to a 50 per cent blend rate. Crampton says there has been more than 900,000 gallons of biojet fuel produced from various feedstock sources. This includes camelina, jatropha and some food oils. The American military has tested biojet fuel on its Navy and Air Force planes.　Several major airlines are also doing multiple commercial test flights.　

Last year, 50 acres of carinata was grown at three locations in a pilot project in Saskatchewan. The seed was crushed　in the fall and　the oil shipped to Honeywell UOP for processing into biojet fuel. It will be used in the first jet test flights this year.

Agrisoma was talking to farmers about　2012　contracts at a producers` meeting earlier this month. The goal is to have 5,000 to 10,000 acres of production. Each producer will only grow one quarter section so the acreage can be spread over a　larger area. The payment　will be $12.50 per bushel on farm with a new crop incentive of $40 per acre.　The company plans to have between 30 and 50 grower contracts finalized by March.

Carinata needs heat to mature and does not do well in cool, wet weather. The semi-arid crop tolerates heat and drought better than canola, making it a good match for southern Saskatchewan and Alberta. It has been in the Agriculture Canada breeding program for a number of years and researchers have made progress in reducing time to maturity.

"Ag Canada has done a lot of work over the last fifteen years taking the days to maturity from 21 days over an Argentine canola down to five to seven days longer than a mid-season Argentine canola," Crampton says.

Another advantage over canola is　that it can　be straight combined, saving the producer time and money.

"The work that we have done shows it is probably the most shatterproof brassica species out there. It has a little bit fleshier pod and it stands up very well," Crampton says.

New Brunswick producers and woodlot owners interested in keeping their land in sustainable, healthy production for future generations may want to check out the nearest Community Land Trust information session.

The New Brunswick Community Land Trust is currently hosting a series of information sessions concerning conservation tools available to do just that.

The main tool being presented is working land conservation easements which allow landowners to maintain ownership and production of their land while protecting all or part of it from certain development and/or activities such as subdivision or clear cutting, regardless of who owns the property in the future.

“We want to conserve it, not take it out of production,” says Zach Melanson, project coordinator of NBCLT, explaining once the NBCLT holds an easement, it does so in perpetuity.

Working land conservation easements are voluntary agreements that are created jointly between the land trust and the landowner based on the landowner’s values and what they want to see done with the land.

“It starts with the individual saying what they want to conserve,” says Melanson. “If someone has a strong belief they will know going forward they have protected something they value and that people for generations will be able to use that land.”

Community Land Trust information sessions have already taken place in Baie Verte and Cocagne. The rest are scheduled to take place Feb. 2 in Cormier Village, Feb. 9 in Sackville, Feb. 15 in Moncton and March 1 in Memramcook.

The information sessions are being held to let producers and woodlot owners know that the conservation easements exist. There will be workshops held in the future about financial considerations and estate planning as well as conservation easement creation.

For more information on the Community Land Trust information sessions, NBCLT and working lands conservation easements, visit www.nbclt.com.

Industry, government and the University of Guelph are coming together in Ontario to create a multi-million-dollar livestock research centre designed to emphasize sustainable animal agriculture systems.
 
Swine, beef and poultry are being cited as potential commodities for studies at the new Research and Innovation Centre, which will be built at the current site of Elora Research Station in Elora, Ont.
 
But dairy is the first group that’s stepping up to the plate to get involved.
 
“This represents a firm commitment to collaborative research with our industry, government and university partners,” says Bill Emmott, chair of Dairy Farmers of Ontario. Indeed, research has been a strong part of Canada’s dairy industry for decades; gains in dairy genetics, milk production and animal health have been significantly driven by research.
 
Such advancements prompted the creation of the research and innovation centre, which will be owned by the Agricultural Research Institute of Ontario and operated by University of Guelph, under its partnership agreement with the Ontario Ministry of Agriculture, Food and Rural Affairs.
 
“This world-class facility will position Ontario at the forefront of innovation and technology development in agri-food, particularly for livestock research,” says Rich Moccia, the university’s associate vice-president (strategic partnerships). “It’s an excellent example of the power of university, government and industry collaboration.”
 
The timing of the new facility comes when research sponsors elsewhere, such as the United States Department of Agriculture, are cutting back on support. At the same time Ontario’s agriculture minister Ted McMeekin was making the Elora research facility announcement at the Dairy Farmers of Ontario annual meeting, the USDA was trying to figure how it to manage closing 259 regional offices and cutting $150 million from its budget. 
 
“We are the envy of other jurisdictions with our partnerships,” says ARIO chair Stewart Cressman. “Modernizing our research infrastructure with partners from government, the University of Guelph and industry is the only way we can work towards a prosperous, productive economy fuelled by the quality foods that our innovations yield.”
 
Indeed, agri-food is one of the leading economic drivers in Ontario, contributing $33 billion to the province’s gross domestic product and sustaining more than 700,000 jobs. The dairy industry alone contributes $5.5 billion to Canada’s GDP and 73,000 jobs.
 
Construction of the first phase of the new livestock research complex, involving both new facilities and renovations, is expected to begin later this year.

The new milling wheat, durum and barley contracts began trading on the ICE Canada Futures trading platform this week, the first time since 1943 milling wheat futures have traded in the Winnipeg market.

Admittedly, futures trade has been slow to start this week, but pricing on the new milling wheat contracts has so far been established in a range of $257 to $260 a tonne on the new crop October milling wheat contract and $264 to $265 a tonne on the December contract. Those prices worked out to be in the area of $7 a bushel, which seems about right given the trend in the broader wheat markets.

Durum wheat also saw its first activity, with trades in the October contract reported in the $258 to $260 a tonne range.

The initial prices in both commodities were said to be in line with the world market and should provide a good benchmark moving forward, especially if liquidity is able to build.

The new barley futures also saw some modest activity, with about 60 contracts traded between the October and December futures to the time of writing Wednesday morning. The new October and December barley futures ended at $171 and $175, while the old western barley contracts closed at $212 and $215 for March and May.

My first impression: the light volume for the first two days of trade has to be viewed as a bit of a disappointment. Such activity should reinforce skeptic’s concern that these contracts may not lead in the price discovery process, rather follow cash markets and American wheat futures for arbitraging purposes. But it’s only been two days. We should reserve judgment for a month at least.

Tony Tryhuk, manager of the Commodity Trading Division at RBC Dominion Securities says it may take a bit of time for the milling wheat, durum and barley contracts on the ICE Canada platform to gain some momentum.

"I think that as time moves forward and as grain companies start signing forward contracts, the volume and open interest in these futures will increase with the bid/ask spread also tightening."

Also, in travelling back earlier this week from a farm meeting in Trochu, Alta., I had the opportunity to chat with ICE Canada president Brad Vannon. He notes that the new milling wheat, durum and barley contracts are based far out on the October and December contracts, and not on a nearby month.

"If the new contracts were based on a nearby March 2012 listing rather than October 2012, I think you would have seen a lot more participant interest from the start," he says.

Others in the industry say the uncertainty from the ongoing court cases surrounding the end of the Canadian Wheat Board's single desk may be discouraging traders from entering the market right away.

But Vannan says the new futures contracts were generating considerable interest from many potential market participants including grain companies, commission houses, speculators, farmers and international industry participants in Europe and the U.S. So given some time, he strongly believes they will catch on and daily trading volume will rise.

Daily price limits for the new milling wheat and durum futures contracts is set at $20 per tonne. The barley daily limit is set at $10 per tonne.

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.