Issue No. 161
April 19, 2013
A Supplement to the Southeast Trader Express
How High’s The Water Mama?
Just like the old country and western tune said “it’s five feet high and risin.’� The Souris River is once again swelling to above normal runoff rates through southeast Saskatchewan. Although flow levels have not reached flood stage levels this spring, it appears the flow in an area at Woodlawn Regional Park near Estevan that was devastated by the 2011 flood indicates that this year’s runoff is not too far below those conditions. PLUS (/,*,%/( &267&2 0(0%(56 5(&(,9( $1 $'',7,21$/
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SOUTHEAST AGRI NEWS, FRIDAY, APRIL 19, 2013
WIT emerges on positive side after two difficult crop years Claude Carles, president of the Weyburn Inland Terminal, announced March 20 that the company had after-tax consolidated earnings of $2.083 million in fiscal 2012 on sales of $150.4 million, even as the company recovered from two consecutive years of localized flooding and adapted to the open grain marketing environment. While grain volumes were lower in 2012 until the new crop was harvested, a strong spring in the crop inputs business as farmers looked to maximize production after two consecutive years of reduced seeded acres was positive for the company. “As a local, producer driven company, WIT understood that the environmental challenges of 2010 and 2011 were simply obstacles to overcome. We have built financial stability to allow us to withstand those types of years, and we will continue to move forward with a positive attitude and a con-
tinuing focus on building a strong, successful producer-owned company,� Carles said. WIT also announced that the board of directors approved a semi-annual dividend of 15 cents per common share, and preferred A shareholders will receive $3.20 per share. The dividend was to be paid on or before April 12, 2013 to shareholders of record as of March 28 of this year. “Most of our shareholders are also our customers, and we depend on their support,� said Carles. “This semi-annual dividend payout of approximately $819,000 is a way to pay them back for their continuing support.�
“Even with 25 per cent of a normal crop in the fall of 2011, our oilseed program and our commitment to blending our customers' grain to improve the grade resulted in our ability to maintain a significant grain shipping program through 2012,� said Rob Davies, WIT's chief executive officer. “Our staff has worked hard to provide strong grain marketing options not only in oilseeds, but in cereal grains as well.� Production stability for the ethanol business at NorAmera has improved significantly over the past several months,
however high feed stock prices affected profitability in 2012. “Our many diversification efforts have given us the ability to balance good and bad years with average WIT profitability over the previous five years of $3.016 million,� said Davies. WIT continues to work towards a positive future in agriculture, they said, It supports students, customers and local communities and organizations in southeast Saskatchewan with donations to these various groups and items exceeding $84,000 in 2012. WIT said they believed in a solid foundation for the business going forward as the world's population continues to grow and demand more, better quality food. WIT, a shareholder-owned and farmerdirected company was started in 1976 with its main terminal located on the CP Rail Soo Line at Weyburn.
New wheat classification system being touted Critics claim it’s a sellout to the big boys Another offshoot from the recent abandonment of the Canadian Wheat Board as the sole marketing agent for Prairie wheat this past year has surfaced compliments of the Western Canadian Wheat Growers Association (WCWGA). The association is proposing a new wheat classification model which, it claims, will give Prairie farmers greater and faster access to new wheat varieties. “The new model, patterned after the wheat classification system implemented in Australia in 2011, would preserve the very best of today's wheat class system and yet give seed developers greater opportunity to bring new wheat varieties to market,� the WCWGA said in a
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But at least one critic has termed the WCSGA plan as a sellout of Canadian farmers and the plan would further destroy the Prairie advantage in the marketplace. Under the proposed model, seed developers would register a new variety and then submit the variety to three years of quality testing. After that, a wheat classification panel would determine whether the variety meets the quality parameters of one of Western Canada's existing wheat classes, such as Canada Western Red Spring or Canada Prairie Spring. However, the decision on whether to introduce a new variety to the marketplace would rest solely with the seed developer. A seed developer would be permitted to bring a registered variety to market in advance of classification providing the variety is sold as feed, or on a speculation basis, ensuring farmers and buyers have imediate access to the best new varieties. “We need to build on the advantages of our present variety registration system and work toward giving Prairie farmers even faster access to new genetics,� said Levi Wood, president of the WCWGA. “This new classification model will give wheat seed developers a much more transparent and predictable registration process.� The wheat growers are also proposing that merit testing of disease and agronomic traits no longer be a precondition for registration. Instead they are proposing that a voluntary, industry-led performance trail system be
implemented, similar to the system in place for canola. “This new model will attract much-needed investment in wheat breeding research in Western Canada,� added Wood. Stewart Wells, a former Canadian Wheat Board director and a member of the advisory board to the Canadian Agrifood Policy Institute, said merit-based approval is the main advantage of the present variety registration system. “Removing merit based testing for disease and agronomics simply means the introduction of hundreds of inferior varieties that will amount to the dumbing-down of the Canadian production system,� Wells said. The proposal being made by the WCWGA would move the Canadian system closer to the United States system, thereby destroying Canada's existing advantage over the U.S. when it comes to marketing, Wells said, adding that the same people are calling for an end to outward inspection when grain is leaving Canada, thereby circumventing the Canadian Grain Commission completely. By proposing the new classification system, Wells argued the Wheat Growers are not representing farmers' interests, but rather those of the big agricultural conglomerates. “The people who benefit from destroying the variety and shipping advantages are the same people who fund the wheat grower activities — commodity companies and their Conservative friends in Ottawa,� Wells said in conclusion.
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SOUTHEAST AGRI NEWS, FRIDAY, APRIL 19, 2013
Page 3
Progress being made on community pasture transition Asset dilemma cleared, but leasing costs remain a concern Saskatchewan Agriculture Minister Lyle Stewart announced further options were being made available to help federal community pasture patrons assume operation of their community pastures. Stewart said on March 28, “We have been 100 per cent clear from the start that patrons of these pastures are the priority for our government. We have been talking to and meeting with patrons on a regular basis and we are working to be flexible in order to make this transition a success.� Patron groups will have the opportunity to either lease or purchase their pasture. If a patron group chooses to lease, the provincial government will offer a 15-year lease term. In addition, the provincial government will provide use of fixed assets to patrons at no cost, provided patrons perform regular maintenance. These assets include fences, dugouts and cattle handling facilities. Patrons also have the option to purchase these improvements at zero per cent interest over the term of their lease, if they wish to do so in order to gain equity. The announcement was welcomed by the Community Pasture Patrons Association (CPPAS). But the group which represents 1,100 pasture users from 36 community
pastures, said Saskatchewan producers will still be paying more for the use of community pastures than their counterparts in either Alberta or Manitoba. Stewart noted in his media release that the sale of assets to patrons posed a significant increase in costs in some pastures and the federal government has indicated they will be transferred to the provincial government at no cost. Funding of up to $120,000 per patron group is also available to assist with the costs of establishing legal entities, developing business plans and accessing training. Ten federal community pastures, including one in southeast Saskatchewan, will transfer to the provincial government and to patron operations for the 2014 grazing season. The remaining pastures will be transferred to patron operation by the 2018 grazing season. “Patrons have been working with the province toward assuming operations of their pastures,� Saskatchewan Cattlemen'sAssociation director and federal pasture patron Larry Grant said. “We appreciate the flexibility and options being provided to make this transition successful.� “The majority of patrons are also pasture managers and environmental stewards on their
own ranches and recognize this is an opportunity for them,� Saskatchewan Cattlemen's Association director and pasture patron Howard Toews said. “We recognize and appreciate the province's commitment to patrons, as well as the time, effort and flexibility allocated to assist with this transition.� “Cattle producers have proven their environmental stewardship, are the best managers of land and are best suited to make decisions regarding the future of these pastures which they have been grazing for decades,� said Harold Martens, president of the Saskatchewan Stock Growers Association. “We know this transition is a significant process and we appreciate the provincial government's commitment to working with patrons to make it a success.� The province said it will continue to work with patrons on the transition and will continue to supply updated information through their local Saskatchewan Agriculture regional offices and at the website www.agriculture.gov. sk.ca/community-pasture-transition The announcement about the federal government's intention to discontinue the community pasture program was made after the 2012 federal budget. The program had been managed by the Prairie Farm Rehabilitation
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Stock growers mark centennial in June The Saskatchewan Stock Growers Association (SSGA) will be marking a very important anniversary this June. The organization is celebrating its 100th anniversary, making it the oldest functioning agricultural organization in the province. The stock growers will be acknowledging this event in style from June 9 to 11 in Moose Jaw at their annual general meeting. The yearly get together this year carries the Riding for the Brand moniker. The meeting and convention events will
be staged at the Moose Jaw Exhibition Company Convention Centre on Thatcher Drive East. The first day of the convention will see ranch rodeo events in the Gomersall Arena starting at 1 p.m., followed by a barbecue and barn dance at the Schmitz Barn at 5 o'clock. The 100th annual convention is slated for Monday, June 10 beginning at 9 a.m. and that will be followed by a banquet beginning at 7 p.m. Tuesday, June 11 starting at 9 a.m., the 100th annual meeting will be held to set the path for the next 100 years.
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Administration (PFRA) since the 1940s. The 62 pastures in question in Saskatchewan represent about 1.6 million acres that are now being transferred back to the province. â&#x20AC;&#x153;Making these assets available at no charge is very important step towards making these pastures viable for patrons,â&#x20AC;? CPPAS said, noting they had representatives at 34 meetings of pasture patrons where the importance of fixed assets was seen as a major concern. â&#x20AC;&#x153;The decision on the assets removes an important cost,â&#x20AC;? said Ian McCreary, CPPAS chairman. It appears now as if the one major remaining issue will be the actual leasing cost arrangements since the proposed Saskatchewan rate exceeds the lease rate that will be paid by pasture users in Manitoba andAlberta. McCreary said the numbers needed to be reviewed again since there are still several costs associated with the transactions that CPPAS members are still discovering. Some CPPAS members are suggesting there should be a delay in plans to sell or lease the first 10 pastures from the 2014 grazing season deadline to ensure that the 75-yearold program that is of importance to many producers undergoes the transition process as efficiently as possible.
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Page 4
SOUTHEAST AGRI NEWS, FRIDAY, APRIL 19, 2013
CCA fighting American COOL proposal Canadian Cattlemen's Association (CCA) representatives accompanied Canada's Agriculture and Agri-Food Minister Gerry Ritz to Washington on April 9. The purpose of the visit was to advocate for legislative amendments required for the United States to come into compliance with its World Trade Organization (WTO) obligations regarding country of origin labelling (COOL). CCA president Martin Unrau and director of government and international relations John Masswohl, undertook direct advocacy with key industry allies in D.C. The
representatives presented the CCA position that the U.S. Department of Agriculture (USDA) proposal of March 8, 2013 fails to bring the U.S. into compliance with its WTO obligations and instead increases the level of discrimination and cost to livestock producers in Canada and Mexico. â&#x20AC;&#x153;The USDA's proposal has put the U.S. on a path toward Canada implementing retaliatory tariffs on U.S. exports,â&#x20AC;? said Unrau. â&#x20AC;&#x153;We appreciate the strong support for retaliation voiced today by Minister Ritz and the commitment to international Trade Minister Ed Fast and
the government of Canada on this difficult trade issue.â&#x20AC;? The only way the United States can be in compliance with the WTO is to amend the COOL legislation to allow either a single mandatory label for all meat processed in the U.S. or to allow for voluntary labelling. Until this outcome is achieved, the CCA will continue to work with its allies in the U.S. and with the government of Canada to pursue retaliatory or compensation options through the WTO. The CCA made a written submission to the USDA proposal prior to the April 11 deadline.
Elm pruning To reduce the risk of Dutch elm disease (DED) pruning of elm trees is prohibited throughout Saskatchewan from now until August 31, the time of year when the beetle that spreads the disease is most active. Fresh cuts from pruning can attract elm bark beetles and increase the chance of infection. Proper pruning helps keep trees healthy and is encouraged before and after the annual ban period that begins April 1 each year. The removal of dead and dying elm wood through pruning also helps to reduce beetle breeding habitat and control the beetle population. Proper and timely disposal of the pruned wood is also essential to keep DED from spreading. Throughout the
year, including the ban period, prompt removal of infected elms is critical to effective disease management. Under provincial regulations, commercial pruners of elm trees are required to have taken a recognized training program or be under the supervision of someone who have. Improper pruning techniques can contribute to the spread of many tree diseases, including DED. Because of the risk of spreading DED, transporting or storing elm firewood is illegal. Any elm wood should be disposed of promptly using the method and locations chosen by each municipality. More information regarding DED may be obtained by phoning 1-800-SASKELM (1-800-727-5356).
Goose Pairing
This pair of geese were making their way out of the snow encrusted landscape at Woodlawn Regional Park last week, perhaps seeking more water or a more preferable nesting site as they, too, wondered what happened to the spring of 2013.
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