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Note from the editor

Allison Finnamore

Among the articles in this week's FCC Express, we have one that takes a look at the latest Statistics Canada figures on estimated Canadian acreage. The information comes after a survey of thousands of farmers and gives some insight into the big picture of what you've planted this year.

As well, we have articles looking at some disease concerns in the field, and many more.

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


1. Alberta field crops off to a strong start

Much of Alberta has enjoyed ideal growing conditions with a combination of sunny, warm temperatures as well as days with showers.

"Pretty much the whole province has had anywhere from three to six inches of rain this spring, which is excellent for getting the crop started," says Alberta Agriculture crop specialist Harry Brook.

Conditions have been a little dry around the northern Peace River region, but generally, Alberta farmers have told him crops across the province look better for this time of year than they have in the last decade.

"The crops can't look much better," he says. "We're setting ourselves up for a large crop, potentially, as long as we continue to get moisture."

That said, farmers still need to be aware of disease and insect issues.

Stripe rust, while not at high levels in most areas -- one or two per cent, maximum, in most fields -- has appeared a couple of weeks early this year, possibly because it overwintered, according to Agriculture Canada plant pathologist Denis Gaudet. The cereal disease typically enters the province via wind, which blows it in from the Pacific northwestern United States.

Forecasts for cool, wet weather is not good news, as those conditions are ideal for stripe rust development. But Gaudet cautions against spraying, except in certain instances. Control measures should be considered for winter wheat, but many hard red and durum spring wheat varieties are resistant and may not require spraying. Alberta Agriculture's website provides additional information for stripe rust resistance ratings for individual varieties.

Provincial insect expert Scott Meers also warns farmers to monitor diamondback moths.

A second generation of the pests has been detected, and a third is probable. While third generation is not unusual, a fourth is. Alberta Ag had been warning of the possibility of a fourth, but cooler weather conditions have reduced the likelihood. Nevertheless, the possibility still exists.

"July and August, there's a lot of heat units that can be accumulated, so it is possible," Meers says.

Meers suggests farmers keep an eye on how the situation develops before spraying, as diamondback populations can be reduced by parasitic insects and diseases. But in the rare instance that extreme levels of diamondback moth larvae is preventing crops flowering, spraying is warranted, he says.

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3. EU eases glyphosate restrictions

Lentil growers won't have any worries about using glyphosate as a pre-harvest treatment this growing season.

The European Union has revised its maximum residue limit to 10 parts per million. It was only 0.1 parts per million last year after a shipment of organic lentils from Turkey exceeded the EU's tolerance level.

Glyphosate is a relatively inexpensive tool for weed management and crop desiccation. Last year, some growers opted to use another product which was more expensive.

"Many people who didn't want to take that risk of limiting where their lentils were going to be marketed chose to use Reglone at two or three times the cost of a glyphosate application," says Morgan Nunweiler, chair of the Saskatchewan Pulse Growers Board. "That resulted in $10 to 15 an acre in added costs."

About 10 per cent of Canadian lentils are sold to the European Union with an estimated market value of approximately $110 million a year.

Lentil growers can use the good news following yet another series of storms earlier this week in Saskatchewan.

Precipitation amounts varied, but some regions picked up another 30 to 60 millimetres of rain to round out a very wet June.

Nunweiler spent this week at the Canadian Special Crops Association convention in Montreal. International buyers and processors met with Canadian pulse and special crop processors and multi-national organizations. The international delegates were looking for updates on crop conditions. Some pea and lentil crops are doing well, but others in the wettest regions are struggling.

"We're dealing with excess moisture that's causing a lot of stress on some crops in important lentil growing areas," Nunweiler says. "In west central Saskatchewan, we are seeing a lot of drowned out areas. Excess moisture is consuming lots of acres and it's definitely going to have an effect on yields."

The moisture will increase disease pressure on peas and lentils. The first round of fungicide applications on early seeded crops will be happening soon, if it hasn’t started already. Farmers are scouting for diseases in later seeded crops. Fortunately, Nunweiler says the industry is in a much better position to handle plant diseases than a decade ago.

"The University of Saskatchewan Crop Development Center has developed varieties that have brought resistance to certain diseases like mycosphaerella blight and powdery mildew in peas as well as ascochyta blight and anthracnose in lentils."

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4. Ontario soybean farmers keep eye on nematodes

Farmers are keeping a close eye out for the soybean cyst nematode, an insidious pest showing up in most of southern Ontario's soybean-growing area this summer, sparked by the early growing season and relatively dry conditions.

Albert Tenuta, Ridgetown-based soil pathologist with the Ontario Ministry of Agriculture, Food and Rural Affairs, says over the past two weeks the nematode has been making its presence felt in Ontario's largest field crop. The white to yellow-brown cysts, which are less than one millimetre in diameter, "can be easily found on the roots of young soybean plants now."

Nematode feeding damages the plant's root system, preventing or inhibiting the uptake of water and nutrients. It's a particular problem in dry weather, when water is scarce to begin with.

Tenuta says producers need to look closely at their plants' roots. In many cases, SCN symptoms may not be obvious in a field until populations build significantly. Ultimately, they lead to dwarfed, stunted and discoloured roots with fewer nitrogen-fixing nodules. This can impact yield by as much as 25 to 30 per cent.

Scouting roots is important because above ground, signs of SCN symptoms are less obvious. Initially, producers may encounter no yellowing of the leaves, plant stunting or early maturity. In fact, damage is often confused or misdiagnosed as nutrient deficiency, flooding, herbicide injury, compaction, drought or root rot damage, says Tenuta. Yellowing of the leaf margins can resemble potassium deficiency symptoms, but adding potassium will not reduce SCN damage or eliminate symptoms.

Tenuta says areas of the field where above-ground SCN symptoms will most often occur include entrance points for equipment into the field, equipment and vehicle storage areas, tops of knolls, compacted headlands and along the fence row where wind-blown soil tends to accumulate.

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5. New feed system hatched

The Canadian hatching egg industry is expected to achieve improved flock uniformity and increased chick production with a new precision broiler breeder feeding system.

The Alberta Hatching Egg Producers is developing the system. In a news release, the AHEP says the system provides the right amount of feed to the right bird at the right time, with the goal of keeping birds fit and reducing waste.

The system is expected to improve production by taking the guesswork out of feed allocation, which could potentially reduce labour and management inputs, while increasing environmental benefits through improved feed efficiency and a reduction in manure production.

The hatching egg producers house all their birds in free-run facilities, and this precision feeding technology will further enhance an already welfare-friendly environment for the birds, the group states.

"We are very excited to be working with the hatching egg industry on this innovative project," said Dr. Martin Zuidhof, the project leader at the University of Alberta. "It is exciting to see over 20 years of research come together in a way that promises so much benefit for the poultry industry and the birds themselves. We are pleased with the investments of government and industry partners that are moving this worthwhile initiative forward."

Funding of $240,000 through the Canadian Agricultural Adaptation Program is assisting with the development of the feeding system.

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6. Richardson to increase canola capacity

Richardson International is set to become one of Canada's prime canola processors, following the announced expansion of its crushing plant in Yorkton, Sask.

Richardson Oilseed, the company's canola processing division, will increase crushing capacity at the Yorkton plant by 25 per cent to 3,000 tonnes per day, up from the present daily peak rate of 2,400 tonnes.

The expansion will enable the plant to process one million tonnes of canola seed annually, compared to its current capacity of 840,000 tonnes, the company says.

Construction will begin this fall. The company expects to finish work by late 2013.

When complete, the expansion will make Richardson the third largest canola crusher in Canada behind Bunge and Cargill and ahead of Archer Daniels Midland, says Pat Van Osch, vice-president and general manager of Richardson Oilseed.

Based in Winnipeg, Richardson opened its $170 million Yorkton facility in June 2010. The company has another canola crushing plant in Lethbridge, Alta. with a daily capacity of just over 1,200 tonnes.

A growing worldwide demand for canola oil, which shows no sign of slowing down, is the prime reason for the expansion, Van Osch says.

"From a global perspective, there's strong vegetable oil demand, and for canola oil itself, we're also seeing strong demand within that global segment."

Richardson's announcement comes as Canadian producers look forward to a possible record canola crop this year. Growers in Ontario, Manitoba, Saskatchewan, Alberta and British Columbia were expected to seed over 18 million acres of canola this spring, the most ever.

Canada's canola production has more than doubled over the last 10 years. In 2002, producers harvested just under nine million acres of canola.

"Canola has been a great success story and everybody in the industry should certainly be proud of that accomplishment," Van Osch says.

The Canola Council of Canada credits the wholesome image of canola as one reason for the growth in production.

Canola oil is low in saturated fat, rich in vitamin E and a good source of omega-3 fatty acids. Its high level of unsaturated fats may reduce the risk of cardiovascular disease.

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7. Program to help extend the growing season

New Brunswick farmers are working to extend their growing season.

The season extension infrastructure program is now available for small fruit and vegetable growers for partial funding for season extension infrastructure.

Claude Berthélémé, organic production development specialist for the New Brunswick Department of Agriculture, Aquaculture and Fisheries, explains that infrastructure includes heated and unheated greenhouse and walk-in tunnels typically six feet tall and above.

"Floating row covers and mini tunnels are not eligible," Bertheleme says. "Caterpillars or high tunnels, that would be examples of things we can help with."

Funding is available for up to 35 per cent of eligible costs, to a maximum of $7,500.

Alain Rousselle and Eva Rehak have produced certified organic mixed vegetables on Alva Farm in Saint-Maurice, N.B., since 2010. They applied to the program within days of its launch in early June. The plan is to expand their existing 22-by-16-foot greenhouse an additional 40 feet.

"We will do a few greens this fall and are also having winter shares this year so people will get a few greens before their root vegetables," Rehak says. "In the spring we will put carrots in earlier before we put in tomatoes and other crops. We will have the advantage of adding at the end and putting in earlier."

The Atlantic Canadian Organic Regional Network applied to the provincial department of Agriculture, Aquaculture and Fisheries seeking the development of such a program on behalf of all growers.

"There is an increasing demand for New Brunswick produced food," says Theresa Richards, ACORN executive director. "This program strengthens one of the means of meeting this demand by extending the growing season, and therefore local product availability."

ACORN co-ordinator Tegan Renner says the province's organic producers have identified season extension as a key priority to build sector capacity.

"Heated greenhouses provide year-round production opportunities while unheated greenhouses and high tunnels can provide two to three additional months of production at both the start and end of the growing season," Renner says. "There is great opportunity in extending the season to generate greater revenue and increase marketing opportunities, but the upfront costs can be prohibitive.

"By providing up to 35 per cent government contribution, this program makes season extension technologies more accessible for growers."

Full details about the program are at: http://bit.ly/MZmKpK.

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8. Labour market a growing challenge

Generally, finding good employees in the agricultural sector can be difficult no matter where you are in Canada. But for employers in the primary and processing sectors in Alberta, the problem is shaping up to be long term.

In a province where the unemployment rate is below five per cent, recruitment is a big challenge, says Alan Dooley, agricultural labour recruitment specialist with Alberta Agriculture.

The industry, typically located outside the big cities, can't pass on its costs yet is forced to compete with the lure of big salaries offered by oil and gas and construction companies.

"It's definitely a seller's market when it comes to labour," Dooley notes.

As part of their Workforce Development Program, Alberta Agriculture offers grants focused on retention and recruitment. Dooley says retention is key to solving the problem.

The program's retention component is aimed at providing employers with resources to compete for employees in the tight market by tapping into outside expertise to review, improve and develop strategies unique to their business.

Dooley says the focus is broad and can apply to producers of all sizes. It can be as basic as doing an exit interview to find out why an employee is leaving, providing better job descriptions or learning how to deal with various multicultural issues in the workforce.

Fifty per cent of eligible fees paid to a third-party consultant will be funded by the program up to a maximum of $25,000 for costs incurred to March 2013.

On the recruitment side, the province offers a grant to provide travel assistance for employers or commodity groups recruiting on behalf of their industries, to find workers outside of Alberta and internationally.

Although individual employers may qualify, Dooley says it can be more efficient for a commodity group to organize a trip to interview a large number of applicants and then share the information with members.

The grant will cover 50 per cent of eligible travel expenses, including airfare plus half of a per diem rate of $400 per person outside Canada and $200 per person in Canada, to a maximum of $25,000.

For more information check www.agriculture.alberta.ca. Look for Workforce Strategy under the Business Management section of Programs and Services.

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9. On-farm energy alternatives investigated

Work has started on a study looking in to alternative ways to generate on-farm energy.

GreenBug Energy Inc. of Norfolk County, Ont. will develop and install a hydro-electric device designed to harness energy from existing dams on farms.

The company will operate a test site for its farm-scale Archimedes Screw Micro Hydro System in the remnants of an old mill beside an existing low-head dam. This high-tech auger-like device, mounted inside a hollow pipe, is built to rotate using the force of the water current and power a dynamo to generate approximately 60,000 kilowatt-hours of renewable energy. The company says this is the first farm-scale system in the country.

In a news release, the federal government states that until now, low-head dams have not been used for hydro-electricity due to a lack of cost-effective technology. The use of seasonal water flows could provide farmers with the opportunity to better assess and evaluate the waterpower potential of their own dams. If expanded on a larger scale, the system could allow hundreds of farms to reduce their energy costs by taking advantage of the water flows on their properties, states the government.

"There are many existing low-head dams across Canada owned by farmers that are well suited to this new technology," says Tony Bouk, vice-president of GreenBug Energy Inc.

Federal funding of $52,000 through the Canadian Agricultural Adaptation Program will help with the test system.

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10. Market Focus - StatsCan acreage update

On Wednesday morning, June 27, Statistics Canada released its updated 2012 Canadian acreage estimates based on a survey of 25,000 farmers taken from May 28 to June 7.

Based on what I see in the numbers, I do not believe the data will trigger price leadership or be a game-changer. That's because a) numbers do not incorporate the effect of late season wetness on final acreage tallies; b) yield change is often far more important than acreage change on final production numbers; and c) the weather situation in American Midwest right now factors far more in determining price direction than what is occurring on the Canadian Prairies.

The following table is a recap of Statistics Canada's acreage report for the period ended June 7, 2012. Pre-report expectations are provided for comparison purposes. Figures are in millions of acres.

Link to Statistics Canada's acreage report.

Canola 

Producers in the Prairies reported a record area of 21.273 million acres seeded to canola, up by 2.4 million acres or 12.8 per cent from last year. This is the sixth consecutive annual record for canola area, and within the range of trade expectations. But again, might yet be revised slightly lower in subsequent reports given "intended" acres that did not get seeded in eastern Saskatchewan and western Manitoba due to wet conditions.

Wheat

Farmers reported 23.8 million acres seeded to wheat, up by 2.3 million acres or 10.9 per cent from 2011. This increase is mainly a result of higher acreage seeded in durum and hard red spring wheat.

For a second consecutive year, Prairie farmers reported an increase in durum. The acreage seeded to durum increased 17.3 per cent to 4.7 million acres in 2012, up from 4.0 million acres in 2011. However, this number is down from the 5.1 million acres reported in StatsCan previous report in April.

Barley

Canadian farmers reported seeding 7.365 million acres of barley in 2012, but that is down from 7.968 million reported in the April report. Makes me wonder if growers were becoming discouraged by the lack of malt barley pricing opportunities for new crop.

Dry Peas

A bit of a surprise here. Dry Peas are higher than expected at 3.495 million acres, up from the 3.3 million reported in April and 50.1 per cent higher than the paltry 2.3 million acres in 2011.

Oats

Acreage for oats is below trade expectations at 3.074 million acres. This finally provides some real evidence that growers were backing away from oat plantings given the poor price offerings relative to other cropping options. I wonder if now end-users are going to wake up to the fact supplies will be contracting further in 2012-13?

Lentils

This is a surprise given the sluggishness of the lentil market of the past year. StatsCan revised its lentil acreage estimate higher to 2.610 million acres, up from 2.460 million in the April report and the 2.570 million of 2011. It looks like the burdensome supply of lentils will extend for another year at least.

Soybean

Farmers in Manitoba reported seeding 52.2 per cent more soybean acres in 2012. The numbers came in at 875,000 acres, which exceeded the record of 575,000 acres set in 2011.

In Ontario, soybean area increased by 210,000 acres, or 8.6 per cent, to 2.7 million acres. This surpassed the record area of 2.4 million acres set in 2010 and equalled in 2011.

Meanwhile, Quebec farmers reported a slight decrease in soybean area of 19,800 acres, or 2.7 per cent, to 721,500 acres.

Corn

Ontario farmers reported seeding 2.3 million acres of corn for grain in 2012. This area exceeded the record of 2.2 million acres set in 1981.

Quebec farmers planted 1.0 million acres of corn for grain, up 13.4 per cent from the 2011 area of 882,200 acres.

Manitoba farmers reported a record corn for grain area of 300,000 acres, up 66.7 per cent from 2011. The previous record of 225,000 acres was set in 1981.

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.

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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 2012, Farm Credit Canada