Southeast Agri News - October 2012

Page 1

Celebrating

Issue No. 155

October 19, 2012

A Supplement to the Southeast Trader Express

Look Up, Way Up

The Richardson Pioneer grain elevator on the western outskirts of Estevan is increasing its capacity as evidenced by this photo taken from the back. The new concrete silo was going up at a pace of one foot per hour using on an around-the-clock construction schedule.

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Page 2

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Record breaking harvest assists kids The previous official record was 175 combines harvesting simultaneously on the same field, then it was 200 and then 208, so the farmers near Dalmeny and Saskatoon in central Saskatchewan wanted to make sure they would not only break the official or even unofficial records but be assured they set a new one. With that in mind, 249 combines took to a field of oats and broke the existing record and in the process, raised some serious money for Harvest for Kids thanks to sponsorships, advertising, donations and grain

A total of 249 combines took to a field near Dalmeny recently to take off a crop in one afternoon, setting a world record in the process. sales. The event was well documented to make sure the record would be ac-

knowledged. The last officially recognized combine group holding the Guinness world

record came from Ireland where 208 machines made their way through a field. The Canadian farmers set the new record on Oct. 6. Harvest for Kids, the benefactors of the effort and event, is a non-profit organization that focuses on community development programs directly linked with bringing hope to kids in the developing world.The organization’s projects include a major children’s program as well as micro-projects. The programs provide a safe place for children to experience things they may

not always get a chance to experience. The programs involve meals, games, crafts and other activities. The program is operated by village churches that operate weekly camps followed by a weekly followup program for the rest of the year. Children attend because they get exposure to specific things such as the meal, some crayons and an opportunity to play with actual sporting equipment. They also learn to read and write through activity booklets that are provided. Over 700,000 children have been helped since the program launched in 2003.

Micro-projects are the newest initiative to Harvest for Kids. In this sector, Harvest for Kids partners with local people in developing countries, mostly farmers, to empower them through business opportunities that might include mico loans and/ or assistance in starting a business or expanding an existing business. The new source of income provides growth opportunities within the community and individual empowerment while bringing projects to a sustainable state where they can then move forward on their own.

Wheat yields hiked a bit, canola results disappointing By Norm Park for Agri-news The crops are in the bins and the counting is continuing. What can be assured at this point in the process of tabulating this year’s agri-

cultural crops, is that there is more wheat in those bins, and less canola. With the northwest part of the province pretty well cleaning up the last vestiges of this year’s crop ... the latest sector to complete the harvest, it looks like the challenges

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But prices remain strong to offset yield losses that producers faced throughout the growing season have been overcome in many regions, but not without some negativity. High prices have offset most of those negatives, though. Wheat is almost doubled in price compared with last year and canola is also up from last year’s already healthy price. There was more land put into crops this year as well, especially in the southeast

area where the land last year was mostly taken out of production thanks to big flood conditions that prevented most farmers from even getting close to their land, let alone seeding it. Crop experts at Statistics Canada are suggesting that with the early harvest results being posted, there could be an eight per cent decline in canola output to around 13 to 13.2 million tonnes. This is not due to a decrease in

the number of acres seeded, but rather a decline in yield to about 28 bushels per acre, a 17 per cent drop in that category. In Saskatchewan alone, canola production will be down nearly 17 per cent to 6.1 million tonnes, as a result of the decline in yields to about 25 bushels per acre, which is much less than the average of 33 bushels. The lower yield defies the harvested area that was seeded into canola this year, a record 10.8 million

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Published monthly in Southeast Saskatchewan by the Prairie Newspaper Group., a subsidiary of Glacier Media. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your personal information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers. Our subscription list may be provided to other organizations who have products and services that may be of interest to you. If you do not wish to participate in such matters, please contact us at the following address: The Southeast AgriNews, Box 730, Estevan, Saskatchewan, S4A 2A6; or phone (306) 634-2654. For a complete statement of our privacy policy, please go to our Website at: www.estevanmercury.ca The Southeast AgriNews is owned and operated by Boundary Publishers Ltd., a subsidiary of Glacier Ventures International Corp. We acknowledge the financial support of the Government of Canada through the Publications Assistance Program toward our mailing costs.

acres, which was up nearly 10 per cent from 2011. Canola production dropped in Alberta too, down about 6.5 per cent to five million tonnes. Farmers there also seeded a record-setting 6.3 million acres into canola. Manitoba, on the other hand, anticipated a higher canola production level this year. In fact their early numbers indicate a 25 per cent increase in production to 2.1 million tonnes following a 30 per cent increase in the number of acres that had been seeded. Across the country, wheat production is expected to hit 26.7 million tonnes this year, up by 5.8 per cent from 2011 in spite of a decline in average yield from 44 to 42 bushels per acre. The harvested area increased about 10.4 per cent to 23.3 million acres. On the provincial front, Saskatchewan and Manitoba are showing increases in wheat production. Saskatchewan’s is up by about 7.2 per cent while in Alberta, wheat volumes will decline about six per cent due to a combination of a slightly lower average yield and a slight drop in the number of acres put into wheat this year. Barley production across the country will be about 8.6 million tonnes, an increase of nearly 11 per cent from last year and due primarily to an 15.7 per cent increase in acreage that was seeded into that crop, about 6.8 million acres. Barley yields did decline slightly, though, by about 4.4 per cent to an average of 58 bushels per acre.

Editor: Norm Park Publisher: Peter Ng Advertising Manager: Jan Boyle email: normpark@estevanmercury.ca 68 Souris Avenue, Estevan Phone: 634-2654 Fax: 634- 3934

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Page 3

Long Creek Railroad gets an official nod in southeast Sask The Long Creek Railroad, a shortline rail company located in southeast Saskatchewan became Saskatchewan’s 13th official shortline railroad with a launching party near the line’s transloading facility near Bromhead on Oct. 2. Highways and Infrastructure Minister Don McMorris was on hand to perform the official duties. He was accompanied by Long Creek’s president Glenn Pederson and other company and provincial officials. “To ensure Saskatchewan continues to grow, our government is proud to play a supporting role in growing an export-based economy through investments like shortline rail,� said McMorris. “Shortline railways provide shippers

with another option to move goods and reduce truck traffic on our highways. They also support economic development in rural Saskatchewan.� The provincial government has provided Long Creek Railroad with an $800,000 interest-free loan to assist in the purchase of the 66 kilometres of rail line from Canadian Pacific Railway. The company’s owners and a

bank loan taken out by the corporation matches that amount to enable the company to launch the business complete with their own leased locomotive. The province, McMorris said, has supported the purchase of short line railways by community groups, local stakeholders and local governments in the past by offering loans and advice. In an earlier interview, Pederson noted that Long Creek has an investor and ownership base of about 25 locally-based farmers/ producers. Long Creek Railroad employs two men, Bob Holden, a former maintenance foreman for CPR is general manager and he is assisted by Ric Boxell. “We have developed a business plan that will

Partnership agreement Farm Credit Canada (FCC) and Saskatchewan Agriculture have signed a partnership agreement recognizing Saskatchewan as the first province to become an official partner of Agriculture More Than Ever. The agreement was signed by Saskatchewan Agriculture Minister Lyle Stewart and FCC’s president and CEO Greg Stewart. Agriculture More Than Ever was an idea fostered by FCC as an initiative focused on promoting the industry and improving the perceptions of agriculture in Canada. “Our agriculture industry is an important economic driver in Saskatchewan and will play a large role in our future growth,� said Agriculture Minister Stewart. “Our producers are leading a promising, exciting industry and in order to keep agriculture growing, we need to promote its benefits to the public. Agriculture has a great story to tell and we can’t be shy about telling it.� Agriculture More Than Ever partners will work to promote the contributions made by farmers,

Saskatchewan Agriculture Minister Lyle Stewart (left) with FCC’s president and CEO Greg Stewart. ranchers and the industry to the economy, environment and health of people around the world. Through Agriculture More Than Ever, producers, stakeholders, industry leaders and others involved in agriculture provide information, dispel myths and tell success stories to improve public understanding of the industry. Agriculture accounts for one-third of Saskatchewan’s exports and onequarter of the jobs in the province. Last year, Saskatchewan became Canada’s top agri-food exporting province, with more than $10 billion worth of agri-food exports.

“Those of us involved in agriculture love what we do — challenges and all — and we need to be more vocal about why,� said FCC’s Stewart. “The way we portray agriculture has a direct and powerful effect on how the public views our industry. We want Agriculture More Than Ever to be the catalyst to get people talking about the opportunities and promising future that the industry has to offer. In fact, the future of agriculture depends on it if we want to attract the people, skills and investment needed to meet the growing demand for food globally.�

Visit us on the web!! www.estevanmercury.ca

focus on providing rail service to existing and future agribusiness and producer car shippers and the oil industry, said Pederson. “This has been a collaborative process and we’re thankful the government of Saskatchewan has provided us with support. We’re confident we’ll be able to move goods to port using a cost-effective approach.� The company began shipping oil through their transloading facility in September and intends to increase their activity in that part of the business as demands for the product continues to grow. They have signed a contract with Torq Transloading of Shaunavon to provide the oil loading service. “Canadian Pacific acknowledges the support of the province in assisting the Long Creek Railroad becoming the owner of this railway line,� said Jason Copping, Canadian Pacific general manager of Gateways and Government Affairs. “CP values our relationship with shortline operations across our network in helping to drive the North American economy and we are looking forward to working with the LCRR as the grain and oil markets grow.� The Long Creek rail stretches from the western edge of Estevan on to Tribune. The Ministry of Highways and Infrastructure provides assistance to

Getting the Long Creek Railroad officially underway recently with a launching ceremony near Bromhead, were, top: Glenn Pederson, president of the shortline rail company (left) and Saskatchewan Highways and Infrastructure Minister Don McMorris. Bottom, Wayne Carten, CPR representative (left) and Dallas Pederson, reeve of the RM of Souris Valley. shortline rail through a variety of cost-shared programs that include grants for feasibility studies and safety initiatives. The ministry also provided loan assistance toward the purchase of existing track when supported by a viable business plan. The 13 shortline railways in Saskatchewan now cover more than 2,000 kilometres of provinciallyregulated track.

Pederson said earlier that planning, discussions and negotiations between the investors and CP Rail began as early as 2008 and finally culminated with the first carload of crude oil loaded onto an assigned tanker car in midSeptember. The line will also be used extensively for the self-loading and shipping of crops by producers along the line.

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Page 4

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Plant life sciences pitch made to Estevan C of C members By Norm Park for Agri-news The importance of farming, its economic, environmental and social impact on Canada and its global partners was driven home by Janice Tranberg, vice-president, Western Canada for CropLife Canada during her visit to the Estevan Chamber of Commerce Oct. 10. Speaking to the chamber members during their regular monthly business luncheon, Tranberg said CropLife counts most of the major plant life sciences industries as partners and participants in their work. They work with the agricultural sector industries with stewardship programs as well as development of crop sciences to increase yields and crop quality. “We are cultivating a Canadian economy with biotech improvements that register on the bottom line,� said Tranberg. Agricultural ventures in Canada amount to $70 billion in economic activity yearly and directly and indirectly lead to two million jobs. In

fact, Tranberg added, it was difficult to name any component of Canadian life and business that isn’t affected or influenced in one way or another by agricultural products and activities. She pointed out that nothing comes manufactured that doesn’t have a link to agriculture and that it alone, is directly responsible for nearly nine per cent of Canada’s gross domestic production. “Farming is a business with large regional impacts, whether it be horticultural activities in British Columbia or field crops like grains, oilseeds or lentils on the Prairies,� she said. It’s a $17 billion business on the Prairies alone. CropLife activities lead to increased yields and with the world’s population expected to soon balloon to nine billion, yields on existing lands will need to increase 50 per cent by 2050, she said. The increased yields will, in turn, lead to more jobs with just under 100,000 projected to be added in Canada within the next few years. This business of agriculture will add an additional

$10 billion to the Canadian economy through pesticide developments and improved technology. Tranberg said on the environmental side, CropLife works in tandem with Ducks Unlimited to use technology that allows farmers to leave some of their more marginal land in a natural state. She added that no tillage practices improve yield from the land by as much as 22 per cent and are a huge conservation advantage since there is less topsoil loss. Capturing greenhouse gases and using them for alternative purposes is another area of environmental development that is undertaken by CropLife and its partners. The crop sciences industry is continually working towards providing more drought resistant varieties and reducing/eliminating soil salinity and pest pressures, she said. “The consumer benefits with better grains, fruits and vegetables coming to the table ... products that stay fresher longer, removal of allergenics. Technologies help farmers get freed up to do other

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Janice Tranberg things,� Tranberg added. The company executive went on to say that the green revolution in Canada actually began as far back as the 1940s and over the years, advancements in producer practices have saved over one billion people from starvation. There is the continual need to ensure product safety and therefore CropLife undergoes extensive safety reviews by the Canadian

Food Inspection Agency and Health Canada. Following the formula that leads them from pre-farm to on-farm and post-farm practices, CropLife contributes value, she said. Pre-farm provides economic value derived from research, formulating and distributing crop protection products and plant biotechnology. The on-farm mode

Stewart reappointed to top FCC job Farm Credit Canada (FCC) has reappointed Greg Stewart as president and chief executive officer for another 18 months, effective Jan. 1, 2013. The announcement was made by federal Agriculture and Agri-Food Minister Gerry Ritz. Ritz noted that FCC’s business of financing for the agricultural sector has

resulted in a growth to over 100,000 clients. Stewart has been at the helm of FCC since 2007 and has helped them establish record net income levels each year while growing the loan portfolio by $10 billion. Under his stewardship, FCC has consistently ranked in the Top 10 list of Canada’s Best Employers. One noted contribution to the commu-

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brings yield and quality gains as a result of using the products and technology and post-farm benefits include improved financial gains that come with the moving and handling of the crop that has been protected by the plant science products and improved technology. CropLife Canada is headquartered in Ottawa with regional offices in Toronto and Saskatoon.

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nities is the fact that FCC employees have collected over 6.5 million pounds of food for local food banks as part of their Drive Away Hunger campaign. The loan portfolios at FCC now sit at more than $24 billion with 19 years of consecutive growth as Canada’s leading agricultural lender. FCC provides not only financing but also insurance, software, educational programs and related business services for producers and agri-food business operations. FCC has their headquarters in Regina and is operated as a federal Crown corporation, reporting to Parliament through the minister of Agriculture and Agri-Food. Stewart came aboard FCC in 1987 and rose through the ranks to the point that by 2006 he was appointed chief operating officer which led to the presidency and CEO’s position the following year. Stewart is a graduate of the University of Manitoba and the Chicago Booth School of Business Executives Institute.

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Page 5

Farmland fetching higher Provincial wheat and prices to reflect current trends barley commissions By Norm Park for Agri-news Farmland in Saskatchewan is gaining in value in concert with increasing prices for farm-based commodities. The price of high-end grain-producing land in southern Saskatchewan has improved by 20 per cent or, an average range of between $1,200 per acre to $1,800, said a recent RE/MAX real estate report issued in early September. The average price in central Alberta ranges between $2,000 to as much as $4,500 per acre of nonirrigated land, the report indicated. That is a year-overyear increase of between 20 and 25 per cent. That means there are some Alberta producers now coming into Saskatchewan and buying up acreage in this province as a means to expand their operations, which, in turn, bolsters Saskatchewan’s price points. Other pressures on land evaluations come from the fact that producers who already own a substantial land base, now want to increase it in an era of rising prices for

cereal and other crops that grow so well in prairie soil. Canada is the world’s biggest canola producer and sixth biggest wheat producer. The report also proved out another trend and that is that while the number of farmers is shrinking, those who are staying on the land are farming larger tracts using bigger and technologically advanced machinery which makes it possible for each landowner to seed and harvest on larger scales. Since analysts now believe there will be a fairly steady increase in need for reliable food sources over the long haul with emerging middle classes in China and India, prices should remain pretty high or even reach higher with perhaps a few glitches on the way up to reflect immediate conditions or situation. It was not lost on the analysts either that there is increasing usage of corn, wheat and oilseeds in the production of biofuels, which helps balance the markets and allows producers to find markets for poorer quality crops. With severe drought embracing the American

Midwest, there is a growing concern of a world shortage of food which makes the Western Canadian land even more popular at this point. And even the droughtstricken land in the United States is increasing in value. In some instances, mergers and other land acquisition groups are getting together to purchase the land and then lease it back to producers. In some cases, out-of-province or out-of-Canada investors are amassing land bases and doing just that. Saskatchewan’s government has an identification regulation in place to ensure that their farmland remains substantially in Canadian hands through the Saskatchewan Farmland Security Board. That does not preclude Canadians from buying the land and holding it for foreign investors. The highest valued land in Canada, according to the RE/MAX survey was to be found in the British Columbia Fraser Valley where fruit and vegetable bearing acreage sells for between $40,000 and $60,000 per acre.

coming soon Saskatchewan’s Agriculture Minister Lyle Stewart, announced the creation of two committees tasked with establishing wheat and barley commissions in Saskatchewan. “Industry asked our government to help start this process to bring together key partners and work with them to put together a plan for the future of wheat and barley levies in our province,� Stewart said. “I am pleased the industry is coming together to help move this initiative forward.� Previously, wheat and barley checkoffs were collected by the Canadian Wheat Board. With new market freedom Saskatchewan producers will have an opportunity to direct how check-offs from

the sale of wheat and barley grown in Saskatchewan will be used for research and development through the new commission. “Saskatchewan is a leader in wheat and barley production and these commissions will help direct research to keep producers at the forefront of the industry,� Stewart added. The two committees will work with the ministry, the Agri-Food Council and a private consultant to help establish the commissions. These interim committees will remain in place only until elections are held for the boards of directors to run the respective commissions. It is expected that the wheat and barley commissions will be in place and operational by August of next year.

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SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Sask livestock resources lead to safe and healthy food October is Agriculture Awareness month. Now is the time to recognize and celebrate the important role agriculture plays in the province of Saskatchewan. Saskatchewan’s agricultural producers are safe, reliable providers of healthy animal-based food products. We care about the animals. We have an interest in caring. The livestock producers of this province are balancing the demands of providing a safe, reliable supply of meat and

poultry products with the importance of caring for and ensuring the well-being of the animals. They are supported in this work by government, industry and non-profit organizations with an interest in both healthy food production and animal welfare. For example, the Farm Animal Council of Saskatchewan (FACS) provides codes of practice, health and safety fact sheets and guidelines for animal welfare to livestock producers in Saskatchewan. It is a

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From the Sask Ministry of Agriculture member-based, industryled, non-profit organization with a long history of serving as the voice of producers to advance responsible animal care in the province. FACS supports producers of a variety of animal types — from beef and dairy cattle, pork and poultry to farmed bison, sheep, goats, deer and horses. They collaborate with industry experts, academic leaders and other professionals

to ensure the information they provide is accurate and timely. The FACS materials promote responsible animal welfare and provide valuable, practical information for producers, consumers, researchers and students. Through the support of organizations like FACS, Saskatchewan producers are leading the way in on-farm animal health and welfare. From livestock feeding and handling systems and

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nutrition management to facility design and herd health, provincial producers continue to ensure they employ safe, supportive animal husbandry practices based on sound research. Organizations like the Prairie Agriculture Machinery Institute (PAMI) help bring technological advancements in the areas described above to livestock producers. For example, PAMI’s Western Beef Development Centre (WBDC) offers specific focus on innovation and advancement in the beef cattle industry to help producers raise livestock sustainably and profitably. Partners in animal health research, such as the Western College of Veterinary Medicine (WCVM), help determine standards for when and what pharmaceutical support is required to ensure animal welfare. The WCVM is the premier centre of veterinary education, research and expertise in Western Canada.

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It carries out vital veterinary and biomedical research in relation to food animals, livestock production and management, animal welfare, public health, food safety and environmental health. Saskatchewan producers look to the guidelines provided by experts in animal health, like those trained through the WCVM, to help monitor animal health and ensure they treat only when required. Partners in industry, such as O&T Farms at Regina, contribute naturally enriching livestock feeds produced with high omega-3 values using legumes and oilseeds. Their livestock feeds are developed based on sound scientific research and nutrition studies that show the benefits to both animal nutrition and the human functional foods industries. Through the contributions of industry, research and non-profit partners like those described here, Saskatchewan producers are helping to feed the global population — which grows by an astounding 90 million people each year. Now that’s a good news story, a story worth celebrating.

Book Your 2013 Farm Auction Sales NOW!

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For almost 100 years 4-H Saskatchewan has helped young people develop friendships as well Ä‚Ć? ƚŚĞĹ?ĆŒ Ĺ˝Ç Ĺś ƉŽƚĞŜĆ&#x;Ä‚ĹŻ and taught them how to turn their dreams into reality.

Find out more: www.4-H.sk.ca or (306) 933-7727

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Agriculture More Than Ever Agriculture Minister Lyle Stewart and Farm Credit Canada (FCC) president Greg Stewart signed a partnership agreement Oct. 4 recognizing Saskatchewan as the first province to become an official partner in Agriculture More Than Ever.

Partners of the initiative will work to promote the contributions made by farmers, ranchers and the industry to the economy, environment and health of people around the world. Through Agriculture More Than Ever, producers, stakeholders, in-

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dustry leaders and others involved in agriculture provide information, dispel myths and tell success stories to improve public understanding of the industry. October is officially recognized as Agriculture Month in Saskatchewan.

Page 7

Room by Room

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1108 4th Street, Estevan Phone: 1-306-634-7311 Toll Free: 1-866-284-7496 Fax: 1-306-634-7332 Doreen Eagles, MLA

Honoring all the farm families in the South East!

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Page 8

SOUTHEAST AGRI NEWS, FRIDAY, OCTOBER 19, 2012

Saskatchewan signs on ... reluctantly Saskatchewan’s Agriculture Minister Lyle Stewart reluctantly signed on to the newest Growing Forward framework agreement on Sept. 14. Stewart joined with federal Agriculture and Agri-Food Minister Gerry Ritz and provincial colleagues in signing the Growing Forward 2 multilateral agreement. The new contract includes a 50 per cent

increase in funding for strategic initiatives such as research, water infrastructure and market development. In Saskatchewan it will mean $46 million per year from the federal government versus $30 million per year over the past five years. All business risk management programs such as AgriStability, AgriInvest, crop insurance and AgriRecovery will remain in

place, but there will be reductions to both AgriStability and AgriInvest. “The decision to sign the agreement did not come easily as we had opposed changes to AgriInvest after consulting extensively with our stakeholders,” Stewart said. “However, we are pleased funding for crop insurance remains unchanged and the increased investment in strategic initiatives such as research

and water infrastructure will benefi t our farmers and ranchers.” The new agreement will reduce the trigger for AgriStability coverage to 70 from 85 per cent of producer’s reference margin. Matching government contributions under AgriInvest will be reduced from 1.5 to one per cent of producers’ allowable net sales. However, limits on the funds producers can contribute to

and hold in their AgriInvest accounts will be increased substantially. The new agreement would have passed without Saskatchewan’s support because enough of the other provinces supported it. By signing the agreement, this province can now enter into negotiations with the federal government on specific strategic initiatives. “Our producers have

told us that research and innovation is critical as we work to grow our industry,” Stewart said. “The increase in funding for research, as well as for business development, irrigation and other areas, will play a big role as wel work to grow our industry and province. We look forward to consulting with our producers and industry on these strategic initiatives in the coming months.”

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