Farming for Tomorrow January February 2022 by OT Communications

$7.95

January / February 2022

ENTREPRENEURS IN AGRICULTURE

Entrepreneurial Drive Runs Deep

Family carries on farming tradition, returns to manufacturing roots creating solutions for fellow farmers

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YOUR FAMILY, YOUR FARM, YOUR FUTURE

What’s your transition plan? You’ve worked hard to get to where you are. By planning for succession, you can transition your farm on your terms, leaving nothing to chance. See how prepared you are for your future with our online assessment tool:

MNP.ca/Legacy

Bob Tosh, PAg., FEA | Farm Management Consultant | 306.664.8303 | bob.tosh@mnp.ca MNP.ca

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© 2022 Bombardier Recreational Products Inc. (BRP). All rights reserved. ®, TM and the BRP logo are trademarks of BRP or its affiliates. In the U.S.A., products are distributed by BRP US Inc. BRP reserves the right, at any time, to discontinue or change specifications, prices, designs, features, models or equipment without incurring obligation. CAN-AM OFF-ROAD VEHICLE: Some models depicted may include optional equipment. For side-by-side vehicles (SxS): Read the BRP side-byside operator’s guide and watch the safety DVD before driving. Fasten lateral net and seat belt at all times. Operator must be at least 16 years old. Passenger must be at least 12 years old and able to hold handgrips and plant feet while seated against the backrest. SxSs are for off-road use only; never ride on paved surfaces or public roads. For your safety, the operator and passenger must wear a helmet, eye protection and other protective clothing. Always remember that riding, alcohol and drugs don’t mix. Never engage in stunt driving. Avoid excessive speed and be particularly careful on difficult terrain. Always ride responsibly and safely.

If I could have stored my fertilizer last fall

the savings would have covered

the costs of my bins,

and then some.

-said the farmer who had to buy fertilizer last spring

Take control of fluctuating fertilizer prices with Meridian SmoothWall Multi-Purpose Bins. Meridian SmoothWall Multi-Purpose Bins have allowed farmers to take advantage of seasonal savings, avoid spring lineups & road bans, and offered versatile fertilizer, seed & grain storage for decades. Meridian Multi-Purpose Bins feature the industry’s best coatings. Meridian’s premium powder coating has a far superior salt-spray rating than liquid paint and is specifically designed for storing corrosive materials such as fertilizer. Meridian bins retain their value more than any other bin and are easily relocated. To learn more, contact your local Meridian dealer today. © 2021 Meridian Manufacturing Inc. Registered Trademarks Used Under License. (10/2021)

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Entrepreneurial

Drive Runs Deep By Natalie Noble

A Farmer’s Viewpoint

Renewable Diesel Will Have Major Impact by Kevin Hursh

High Input Costs

Peak? What Peak? by Jeff Melchior

Round Rooms

Looking Back to Plan Ahead

Grain Market Analysis

Those Wily Weeds

by Scott Shiels

by Tammy Jones

Successful Sprouts

Pesticide Shortages in 2022

Seeds Canada

Spraying 101

by Jaclyn Krymowski

by Tom Wolf

How to Be Financially Boring

We’re Back in Business

Farming Your Money by Paul Kuntz

Agri-Trade

by Natalie Noble

On the Right Side

by Vincent Cloutier

Sustainability

Farm Transition

by Natalie Noble

KEVIN HURSH 8

PAUL KUNTZ

SCOTT SHIELS

TAMMY JONES

TOM WOLF

RENEWABLE DIESEL WILL HAVE MAJOR IMPACT | A FARMER’S VIEWPOINT

Renewable Diesel Will Have Major Impact Renewable diesel is poised to change the complexion of agriculture, similar to what happened with ethanol nearly 20 years ago. Kevin Hursh, P.Ag. Kevin Hursh is one of the country’s leading agricultural commentators. He is an agrologist, journalist and farmer. Kevin and his wife Marlene run Hursh Consulting & Communications based in Saskatoon. They also own and operate a farm near Cabri in southwest Saskatchewan growing a wide variety of crops. Kevin writes for a number of agricultural publications and serves as executive director for the Canary Seed Development Commission of Saskatchewan and the Inland Terminal Association of Canada (ITAC). Twitter: @KevinHursh1

The ethanol boom in the United States started picking up steam in the early 2000s. Eventually about 40 per cent of the giant American corn crop would be used for ethanol production. This, on top of escalating international demand for grain, propelled all grain prices higher starting around 2008. Canada also got into the ethanol game, although in Western Canada wheat was the usual feedstock rather than corn. The industry was underpinned by ethanol fuel mandates and government support programs. Ethanol production capacity has been largely stable in both countries for many years. Subsidies have been removed and in the U.S. there’s an almost constant conflict over ethanol policies. From the fantastic profitability of the early years, it’s now often an economic struggle for ethanol plants to remain viable. Ethanol production will decline as gasoline consumption drops. Electric vehicles are expected to become the norm in the years ahead, at least for cars and light trucks. So why is renewable diesel set to boom when ethanol is in decline? And what will that mean to western Canadian agriculture? First of all, it’s important to note that renewable diesel is not the same thing as biodiesel. Renewable diesel comes entirely from vegetable oil and it’s a 100 per cent replacement for regular diesel. 9

A FARMER’S VIEWPOINT

To meet carbon reduction strategies, demand for renewable diesel is expected to skyrocket. Demand is already growing in the U.S, particularly in California. New facilities are under construction across the U.S. In Canada, demand will be propelled by the Clean Fuel Standard that is expected to be finalized in the near future. No Canadian facility currently produces renewable diesel, but a number of facilities are proposed, including a large Federated Co-op facility adjacent to the Co-op Refinery Complex in Regina. While gasoline and therefore ethanol consumption is on a declining path, large trucks and agricultural equipment will continue to rely on diesel for a long time. It’s more difficult to switch these applications to electric. It’s even more difficult to convert airplanes and ocean-going vessels, but there’s a big push to reduce carbon emissions from these sources. Renewable diesel is viewed as an answer. This is where canola has an advantage. It has a lower carbon footprint than other vegetable oils courtesy of our direct seeding practices and crop rotation with pulses. The prospect of billions of litres of renewable diesel produced by the facilities being built across Canada has in turn spurred a flurry of new and expanded canola crushing plants. To be fair, canola oil demand for food uses is also high, but renewable diesel is a large additional demand. A 50 per cent increase in Canadian canola crush capacity is anticipated from the announcements made by Richardson in Yorkton, Cargill and Viterra in Regina and Ceres Global at Northgate. If they all proceed as planned, that new capacity will be in place within the next five years. For farmers, more competition from canola buyers bodes well, but the jury is still out on whether canola production will expand in Western Canada to meet the new demand or whether domestic processing will result in a corresponding decline in the export of raw seed. My guess is that a bit of both will happen. Any way you look at it, this is a big change in the overall demand picture as well as the flow of grain. Regina will suddenly become a magnet for canola. Tanker car shipments of oil and renewable diesel will increase as will canola meal exports. It’s always disconcerting when demand is created through government policy. Government policies created the ethanol boom which is now ebbing. Renewable diesel is the new golden child. It’s spurring untold hundreds of millions of dollars in investments and will have a major impact on agriculture in the years ahead. 10

Publishers

Pat Ottmann & Tim Ottmann

Editor

Trevor Bacque

Design

Cole Ottmann

Regular Contributors Kevin Hursh Tammy Jones Paul Kuntz

Scott Shiels Tom Wolf

Copy EditorS

Nikki Mullett Nerissa McNaughton

Sales

Pat Ottmann pat@farmingfortomorrow.ca 587-774-7619 Nancy Bielecki nancy@farmingfortomorrow.ca 587-774-7618 Chettan Chahal chettan@farmingfortomorrow.ca 587-774-7601 /farming4tomorrow /FFTMagazine /farming-for-tomorrow /farmingfortomorrow WWW.FARMINGFORTOMORROW.CA Farming For Tomorrow is delivered to 90,720 farm and agribusiness addresses every second month. The areas of distribution include Manitoba, Saskatchewan, Alberta and the Peace region of B.C. The publisher does not assume any responsibility for the content of any advertisement, and all representations of warranties made in such advertisements are those of the advertiser and not of the publisher. No portion of this publication may be reproduced, in all or in part, without the written permission of the publisher. Canadian Publications mail sales product agreement no. 41126516.

TOUGH WEEDS IN CANOLA? STRIKE BACK WITH A LITTLE ‘TUDE.

Get a new mode of action pre-seed for a new level of certainty.

To help maximize your canola’s yield potential, you need to put the smackdown on weeds early. Certitude® herbicide is the pre-seed solution that controls challenging weeds like volunteer canola, and it sharpens glyphosate’s performance on other difficult broadleaf weeds. Certitude is also the first Group 27 chemistry for canola production, making it an ideal tool for helping to ensure the sustainability of your farm. We’ve stepped up our game. Now it’s your turn. Visit agsolutions.ca/pre-seed to learn more about Certitude and the rest of the BASF pre-seed herbicide portfolio, including Smoulder™ and Voraxor™.

Always read and follow label directions. AgSolutions and CERTITUDE are registered trade-marks of BASF; and SMOULDER and VORAXOR are trade-marks of BASF; all used under license by BASF Canada Inc. © 2021 BASF Canada Inc.

GRAIN MARKET ANALYSIS | ROUND ROOMS

Round Rooms Scott Shiels Scott grew up in Killarney, Man., and has been in the grain industry for more than 25 years. He has been with Grain Millers Canada for five years, doing both conventional and organic grain procurement as well as marketing for their mills. Scott lives in Yorkton, Sask., with his wife Jenn. www.grainmillers.com

This has turned out to be a very interesting year to be writing about the grain markets, that’s for sure. Following a record drought for much of the northern Plains and the western Canadian Prairies, we have consistently broken grain price records since before the combines rolled. Trying to figure out where things are going to go, or where they will top out finally, is like trying to find the corner of a round room. Demand for grains around the globe continues to be very strong as no matter what people need to eat. We have existed in a world supplied with cheap food for decades, but that is certainly going to change in some parts of the globe. While not all commodities, beef for example, are bringing a bigger return to the producer, grains certainly are. However, at the grocery shelf, everything is priced higher, leaving us all wondering who is making all the money. The price of a good ribeye steak today is about $28/lb., a far cry from what the farmer receives. Others expressed concern that the price of oats increasing from $4 to $10 is going to make oatmeal unaffordable. While the correlation of the numbers could suggest that oatmeal will skyrocket, and in the same respect, everyone will have to mothball their deep fryers due to the price of canola oil going through the roof, this simply won’t be the case. When it comes right down to it, the raw grains that go into most of the foods we eat only make up a small percentage of the final cost of the product. Transportation, processing, packaging, more transportation, warehousing, and then finally getting to the store shelf where staff and corporate costs get added, all play into the final cost of groceries on the shelf. What does all this have to do with grain markets you may ask? The total cost to the consumer has a limit, as do the costs of raw products to the millers and processors. When the consumer says, “that’s too much” and switches to a cheaper option, big food companies then say to companies like ours, “that’s too much” and look elsewhere. When that happens, millers and other processors have to take a look at what they pay the farmer and consider alternative sources for our raw materials. This is where the imports come into play in the North American milling market. Right now, millers in the U.S., and possibly in Canada, are actively engaged with countries all around the world looking for cheaper and plentiful options for grain. Normally Canada is not an importer of commodities that we can actually produce, but after this year’s drought, there is no such thing as normal anymore it would seem. As we go forward, keep a close eye on the weather, as improving moisture conditions from the winter’s snow will have a major impact on crop potential for 2022. The other thing to watch closely are the new crop prices, which will be popping trying to encourage acreage swings to replenish stocks. If we start to see and hear about big swings to specific crops, prices for those commodities will drop or adjust accordingly. Until next time…

TOUGH WEEDS IN CANOLA? STRIKE BACK WITH A LITTLE ‘TUDE.

Get a new mode of action pre-seed for a new level of certainty.

To help maximize your canola’s yield potential, you need to put the smackdown on weeds early. New Certitude® herbicide is the pre-seed solution that provides exceptional control of challenging weeds like kochia and volunteer canola, and it sharpens glyphosate’s performance on other difficult broadleaf weeds. Certitude is also the first Group 27 chemistry for canola production, making it an ideal tool for helping to ensure the sustainability of your farm. We’ve stepped up our game. Now it’s your turn. Visit agsolutions.ca/pre-seed to learn more about Certitude and the rest of the BASF pre-seed herbicide portfolio, including Smoulder™ and Voraxor™.

SEEDS CANADA | SUCCESSFUL SPROUTS

Successful Sprouts Seeds Canada wraps up its first year By Jaclyn Krymowski

In February 2021, Seeds Canada announced they had officially “sprouted” after being planted by four organizations—the Canadian Plant Technology Agency, the Commercial Seed Analysts Association of Canada, the Canadian Seed Institute and the Canadian Seed Trade Association. Now working as a unified force, Seeds Canada aims to support the growth of the national seed sector, both domestically and internationally. The scope of its policy and advocacy includes plant breeding innovation, value creation, enforcing plant breeders’ rights, international trade and seed regulatory modernization. Contributing to these efforts is a dedicated staff and a membership drawn from all corners of the Canadian seed business. As a significant lynchpin for the whole agriculture value chain, the organization recognizes the importance of advancing the seed sector. They also aim to provide the best possible services and professional development to their members and clients. Since its formation, the newly minted team has been hard at work to bring enhanced advocacy and a strong voice to the seed sector. Now, Farming for Tomorrow checks in with the organization to see what has unfolded in these early months. Looking back on this first year, Ellen Sparry, general manager for C&M Seeds as well as Seeds Canada’s executive committee 14

“We’re starting to see different thoughts coming forward through the board and member meetings. I think what that does is makes a more cohesive industry. [One] where we understand the full scope of what we do and how we can bring that forward to Canadian farmers.” - Ellen Sparry president, believes its collaboration is helping bring affordable, genetically superior seed to the membership, farmers and overall economy. “We’re starting to see different thoughts coming forward through the board and member meetings,” she says. “I think what that does is makes a more cohesive industry. [One] where we understand the full scope of what we do and how we can bring that forward to Canadian farmers.”

SEEDNET

Coaldale, Alberta

Farmers Growing for Farmers SeedNet’s vision is to be a different kind of seed company. Wholly owned by farm families operating in southern Alberta and with decades of experience, their long-held knowledge of growing, processing and selling seed makes the company responsive and flexible to the needs of the farming community. As SeedNet’s motto, “Farmers Growing for Farmers,” states, each grower strives to provide the highest quality seed to all farmers. Our seed-grower network carries varieties of cereals, pulses, special crops and hybrid fall rye.

SeedNet has a network of grower dealers located throughout the prairie provinces that are ready to serve your operation. Visit www.seednet.ca and search the dealer page for a seed grower near you with the variety you need. For access to higher generation pedigreed seed of SeedNet varieties, contact the office at 403-715-9771 or email office@ seednet.ca today!

SeedNet’s lineup of exclusive varieties is continuously growing. This spring, SeedNet is launching three new varieties into prairie fields. First to note is the durum that is winning in the fields: AAC GoldNet. Its high yield and excellent disease package make it a winner. Next, AB BrewNet is a 2-row barley with many opportunities in the malting market with its high yields and large kernels. Finally, CDC Simmie Red Lentil has been grown in Saskatchewan for several years, but this year other provinces can take advantage of it’s high yields. 15

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SEEDS CANADA | SUCCESSFUL SPROUTS

“By bringing [us] together in such a diverse industry it allows us first to listen to each other and build consensus and recognize where bottlenecks exist in systems and regulations. [It gives us] a clearer picture of what we can do as a seed industry.” - Chris Churko Chris Churko is the CEO of FP Genetics and sits on the Seeds Canada board of directors. He is also chair of the business services steering committee. Like Sparry, he has a lot of optimism about their recent accomplishments despite still being such a young organization. Ellen Sparry was named Seeds Canada’s first executive committee president. Seed regulatory modernization has been a major focus under her leadership. Sparry is also the general manager for C&M Seeds. Images courtesy of Seeds Canada

Early accomplishments and focus It was a five-plus year journey to the full launch of Seeds Canada from its initial conception. Moving past all the behind-the-scenes work dedicated to setting up solid infrastructure to now being fully operational has felt like a dream, according to Churko. He points to the organization’s inaugural AGM, held July 9-16, as the embodiment of this feeling. At the event, seed industry members came together with government representatives and stakeholders to discuss shared issues, priorities and potential solutions. While held in a virtual format, it still offered attendees the first opportunity to interact and engage under the Seeds Canada umbrella. “We managed to put together an organization … and start building on new policies and keeping the existing policies moving,” says Churko. “A lot of new ideas [were] being shaped by members … really taking that dream from years ago and starting to see it come together and germinate which really has been rewarding.” Chris Churko, FP Genetics CEO has been involved with Seeds Canada since its early development. He sits on the board of directors and heads the business services steering committee.

Another major focus over the year has been seed regulatory modernization, one of the biggest topics facing the seed industry overall according to Sparry. She says they continue to strive to bring meaningful change to the current regulatory framework.

WWW.LINDGRENFARMS.CA Jordan & Jennifer Lindgren 306-594-7644 jordan@lindgrenfarms.com Ian Abbott – Seed Plant Manager 306-594-7766 ian@lindgrenfarms.com Varieties available this year:

PEDIGREE & COMMERCIAL SEED  CUSTOM SEED CLEANING & TREATMENT

HARD RED YELLOW PEAS SPRING WHEAT AAC Chrome AAC Viewfield AAC Leroy OATS AAC Alida VB CDC Arborg CDC Landmark VB AAC Elie AAC Magnet

LINDGREN SEEDS Located in Norquay, Sask., Lindgren Seeds is owned and operated by Jordan and Jennifer Lindgren. Jordan and Jennifer take great pride in being able to continue their century family farm. They are passionate about maintaining the family aspect in the ever-changing corporate farm environment. Family and agriculture are the most important aspects of their lives. The Lindgrens have four children who are all active participants in all farm activities. Lindgren Seeds works diligently at producing high quality varieties as well as maximizing production on their farm. They do this by using field-scale trials to determine which varieties, genetics, products and practices work best on their farm. This also allows them to compare different varieties to get a true comparison. The Lindgrens place importance on educating themselves and in sharing this information with fellow farmers and customers.

Norquay, Saskatchewan They have increased their pulse acres, AAC Chrome yellow peas provided great standability, harvestability and yield this growing season. Arborg oats also performed well in its stand ability and production. Jordan and Jennifer plan to continue to challenge and expand their knowledge of ways to improve their farming practices so they can continue to produce high-quality pedigreed seed. They are dedicated to ensuring that they will maintain a family atmosphere on their farm while continuing to educate and share their passion for agriculture. Lindgren Seeds prides itself on continuing to test new varieties and provide their customers with a great quality seed.

This past 2021 season Lindgren Seeds produced: six hard red spring wheat varieties; AAC Viewfield, AAC Leroy, AAC Alida VB, CDC Landmark VB, AAC Elie and AAC Magnet. AAC Viewfield and AAC Leroy were at the top for yield this season. 19

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“I’m really, really proud of the work that the board and the staff have done so far to get us operational and also to keep policy files moving forward. We’re really looking forward to the full potential that Seeds Canada can offer, and we are getting that in the next couple of months.” - Ellen Sparry Part of this effort includes working on a summit to do some benchmarking on what the industry’s regulatory vision is and how they can better add value throughout the change. “As we move forward, there are still other policy files that have come forward,” she adds. “The plant breeding innovation is an ongoing discussion and the VUA (variety use agreement) is still very much a key topic.”

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Overall, Sparry feels that in this short span of time, Seeds Canada is already well establishing its place as a facilitator and leader for the seed sector. “I’m really, really proud of the work that the board and the staff have done so far to get us operational and also to keep policy files moving forward,” she says. “We’re really looking forward to the full potential that Seeds Canada can offer, and we are getting that in the next couple of months.” During its AGM, Seeds Canada executive director Barry Senft shared that optimism, asking members to take the enthusiasm from the meeting discussions and turn it into action. “We have a busy year ahead,” he said in a press release, “but we have tremendous momentum and dedicated members and partners. Let’s harness that energy as we move the discussions had at this meeting forward into action and progress.”

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Virtual challenges Beginning amidst the fallout of COVID-19, Seeds Canada is still working through its fair share of related challenges. Sparry says she especially can’t wait to meet in person again, an opportunity that will hopefully present itself before her term ends next summer.

SEED GROWER 33 varieties of Certified seed: wheat, oat, barley, lentil, pea, ﬂax, chickpea

PULSE BUYER pea, lentil, chickpea, dry edible bean

PROCESSOR chickpea and edible bean exporter

seed@mcdougallacres.com www.mcdougallacres.com 306-693-3649 Moose Jaw, SK

MCDOUGALL ACRES McDougall Acres is a fourth-generation family farm near Moose Jaw, Saskatchewan that has been around since 1917. The operation has seen many successes over the years and has evolved with the times to meet and exceed consumer demands. In 1975, McDougall Acres incorporated and began growing pulse crops in the ’80s, followed by a pedigree seed in the ’90s. To condition their own seed, a grain cleaning facility was built in 2000 and so began the exporting of lentils.

Moose Jaw, Saskatchewan

From seed treatment and seed cleaning and colour sorting, McDougall Acres is a pedigreed seed establishment that also provides pulse ingredients to pet food companies, and supplies chickpeas and edible beans into the domestic human consumption marketplace. Contact them today for competitive pricing, discounts on combined cleaning and colour sorting, and to learn more about the launch year seed specials in place.

In 2007 and 2008 the seed cleaning equipment was upgraded to increase capacity and reliability. At that time, the main yard was also expanded to accommodate the construction of a warehouse and new truck route. The progressive farm operation became a pet food ingredient supplier in 2013. Four years later, the need for expansion came and a second processing plant with additional grain storage capacity was established. Today, the SQF certified food business employs more than 30 full-time staff and continues to upgrade their equipment, improve their systems and increase storage at their facility. 21

“We are still trying to work through developing our strategic plan,” she says. “It’s going well, but that is a difficult thing to do when you can’t fit in a room with people.” Churko agrees, adding that working together across the country makes planning difficult. But the leadership, members and staff holding up the organization have persevered. He believes this is due to the solid foundation Seeds Canada was built upon years ago.

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Fedoruk Seeds Ltd.

Growers, Processors and Retailers of Pedigreed Seed Wheat, Barley, Oat, Pea, Faba Bean, Soybean and Flax Seed

Kamsack, Sask Phone: 306-542-4235 E: mike@fedorukseeds.com W: www.fedorukseeds.com

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“That’s certainly keeping things moving forward, but it’s been a struggle in the [virtual] environment,” he says. “I’m pretty happy with the way people have managed to interact, you know, take a few extra steps to make sure we get to know each other on a personal level.”

A bright future A unique strength that Seeds Canada has is a diverse membership representing the different sectors of the seed industry. Churko says that the level of expertise among staff and members has empowered them to quickly reach a satisfying consensus on major industry issues and priorities. He, like Sparry, also believes that the focus on seed regulatory modernization is especially important for farmers and other professionals in the seed industry. “It’s a once in a lifetime opportunity for us to make some meaningful change,” he says. “We start to deal with issues of value capture and those sorts of things.”

Prairieview Seeds Wadena, Saskatchewan

CONTACT

Address: PO Box 848, Wadena, SK S0A 4J0 Cell: 306-338-8087 Office: 306-338-3756 Email: prairieview@xplornet.ca

SEED VARIETIES CWRS: AAC Wheatland VB Wheat, AAC Starbuck VB Wheat Malt Barley: CDC Bow Barley 2Row, CDC Fraser Barley 2 Row 22

Green Peas: CDC Raezer Peas, CDC Forest Peas

Above all, he says that where Seeds Canada really has positioned itself well, compared to other historical seedrelated organizations, was the ability to recognize seed’s importance in the agricultural value chain. “But it’s not the only part of the value chain,” he says, “and our ability to work with other players and in the value chain going forward will truly deliver value to farmers. They want to grow crops, they want to access markets and seed is an important part of that.” And to make that vision possible, Churko observes, it means that the seed sector must be able to deliver both innovation and quality. The work of the past year is only the beginning of opportunities and successes to the benefit of the entire seed sector. “I think when you look at our ability to understand and interact with the value chain going forward,” he says. “I really believe the opportunities are somewhat endless for Seeds Canada to play a major role in continuing to deliver success to Canadian farmers.”

HOW TO BE FINANCIALLY BORING | FARMING YOUR MONEY

How to be Financially Boring Paul Kuntz Paul Kuntz is the owner of Wheatland Financial. He offers financial consulting and debt broker services. Kuntz is also an advisor with Global Ag Risk Solutions. He can be reached through wheatlandfinancial.ca.

I joke with my livestock clients that they are financially boring, and also that this characteristic is a good thing. The reason I say that is not to diminish the significance of a livestock operation. I say it to describe the stability in their operation. In a cow-calf operation, each year a cow has a calf. She never has six calves. Sometimes she has two and sometimes she has none, but mostly, she has one calf. If the operation sells at weaning time, it will have a 550- to 650-pound calf. The calf will not be 200 pounds nor will it be 900 pounds. The same number of calves at about the same weight are marketed each year. It is very predictable. So, I like to joke with those producers and call that financially “boring.” Grain operations on the other hand are the exact opposite. Sometimes canola yields 40 bu/ac and the next year 20 bu/ac. Sometimes we sell it for $10/bu and sometimes $20/bu. These massive swings can cause chaos on the financial side of a business. If you are tasked with managing the finances of a business like this, it can be daunting. When your operation struggles financially, there is a lot of stress on the management side. The options you have are usually limited. Cash will be tight so marketing will be done to gather cash and pay bills. Your list of payables will decide when and how much grain you market. Your hands are basically tied, which is stressful, but it also leaves fewer decisions to be made. There are certain producers out there this year that are going to have a record year financially because of high grain prices and the fact they were able to harvest a crop. These producers need to implement financial management strategies that make them boring. You may be one of the lucky producers that have more than enough grain to sell to pay your bills. You will have flexibility regarding how much grain to sell and when. If you are trying to market your crop for the highest price available this crop year, you will drive yourself crazy. Every day there are new bids coming out and records are being set every week. When you sell canola for $20 and tomorrow it is $21, it seems like a mistake. This is very hard on the decision-making process. This is where the financially boring approach comes in. If you have more than enough grain to sell to pay your bills and you have no external pressure on you, a basic plan will assist you. Here are my tips for creating a plan during these tumultuous markets: Step 1: Determine when you want the inventory gone. When do you want the bins empty? Do you need them for fertilizer this spring? Do you need them to store seed? Do you want to babysit grain inventory for months on end? Step 2: Determine when you do not want to haul grain. Do you want to haul in January when it will most likely be the coldest? Do you want to get away for part of the winter? Are you calving cows during the winter? When will seeding start? Does that tie up trucks or staff? 23

FARMING YOUR MONEY | HOW TO BE FINANCIALLY BORING Take these two basic steps and reverse engineer the marketing plan. If you have 100,000 bushels to sell and you want the bins empty by March 31 and you do not want to haul in February because you are going to Mexico, then this leaves December, January and March. Sell and deliver 33,000 bushels in each of those months and carry on. This method may not get you the absolute highest price per bushel. You may not have bragging rights at the coffee shop about $29/bu canola. There comes a point where you need to focus on other aspects of your farm. Just make a decision and go on to the next task. You cannot expend all of your energy researching if CWRS will hit $15/bu. Your farm was most likely profitable at $7/bu for wheat. Just take the win and sell at $11. The financial model for all grain farms is the same: Produce as much grain as you can for a reasonable cost, then sell it for more than that cost. Then rinse and repeat. As a financial consultant I would rather have my client spend a week learning about soil health and agronomy than on market analysis. Feed barley might be $15/bu next year or it might be $5/bu. If you are a feed barley producer, you should focus on growing a lot of it. Although Mother Nature has the final say what your yield will be, as a producer you have more influence on the production than you do with the price. If you have a successful grain operation that has made money over the years, I recommend you do what you have done in the past. If you typically market your grain by year end, then do

that. If you typically sell your grain later in spring and summer, then do that. Do not upset the apple cart chasing markets. It is very tempting to do that, but it will drive you crazy with not a lot to show for it. Running a business is sometimes referred to as managing a group of systems. You have a system to get seeding completed. It starts with creating a seed plan that goes to a field plan, there is seed to procure or clean, there is fertilizer to plan for, the equipment must be prepped and then you do a burn-off and the drill hits the field. This system gets tweaked each year but mostly stays the same. If it accomplishes the desired goal, then it was successful. You have a system for harvest and for calving and all the operations. Managing the finances should be done the same. Sometimes there is big curve ball thrown such as a very small crop. Sometimes it is a good crop with good prices. Keep to the same system. That is what you would do for your seeding operation – sometimes there are great conditions and in 15 days you are done seeding; sometimes there are many rain delays and you are only 50 per cent done June 1 and you have to make adjustments. Keep to the system. Paralysis of analysis is not a good outcome for your grain marketing. Make a plan, adjust if necessary, execute the plan and move on. Once you are done selling grain, only look at new crop prices, don’t focus on old crop. If this seems too much, hire someone to market for you. There are lots of great companies out there that will do it for you.

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COVER STORY | ENTREPRENEURIAL DRIVE RUNS DEEP

ENTREPRENEURIAL

DRIVE RUNS DEEP Family carries on farming tradition, returns to manufacturing roots creating solutions for fellow farmers By Natalie Noble Photography by Jasmyn Jones, Meadow & Moss Photography In 1918 Arthur (Art) Wildfong, traveled west to Saskatchewan from Ontario as part of a threshing crew. Although likely not yet on his mind, this journey would soon change his family’s destiny for generations to come. Settling down to start a farm near Craik, Sask., Art soon met and married his now-wife Ella. As they started their family, they created a legacy of bold farmers, talented manufacturers and a spirit of entrepreneurialism that carries through today. “Art and Ella were the first generation of our family here,” says Art’s great grandson, Russell (Russ) Wildfong, who farms that original farmland and runs Wildfong Enterprises along with his sister Danielle and their father Rick. “We’ve fixed up their original homestead and an employee lives there now.” Russ and Danielle’s grandfather Bert was Art and Ella’s third child. In 1947, Bert joined his brother Vern to combine down in the U.S. Years later, Rick would carry on his father’s custom combining tradition, with Russ and Danielle joining for a couple of summers during their university studies. “It’s so much fun, you’re on the road and meeting new people,” says Russ. “It’s also challenging at times moving five trucks and big equipment down the highway.”

larger than us, and others about half our size. I’d describe it as ‘manageable,’” says Russ. That manageability speaks to the sensible practicality Russ takes to both his farm management and his business. At one point, Bert had farmed many acres in Canada and down in Colorado during a popular ‘80s trend that saw Canadian farmers buy up U.S. farmland. As inflation rates spiked, Russ says it became a debacle. “So, if anything, we’ve actually shrunk our acreage over the years from where our apex was,” he says. “We’ve also gone down to one air seeder. We find it easier to focus on and manage one seeder running more hours.” They also run one sprayer and three combines, avoiding shiny new iron and opting for used equipment they can more practically maintain on their own. “With these new combines, you can still lose an entire day unplugging them or doing software repairs,” says Russ. “When you get these expensive pieces of equipment, you want them to operate smoothly, not to be unplugging and fixing them all the time.”

In addition, Bert built up his own farm near Craik and added satellite farms in the Riceton and Rouleau areas. He also ventured into the manufacturing business, a tradition Rick and Russ continue today with Danielle’s marketing expertise. “Grandpa Bert started building concaves and combine parts in the late 1970s. He formed Harvest Services and ran that until 1995,” says Danielle. “His manufacturing business succession was to transition the business to its key employees and it’s still running.”

While Russ sees the logic in larger farms challenged with securing seasonal help using newer combines that are easy to run, because he has the capacity to maintain his own equipment on the fly, the heavy price tag doesn’t make sense on his farm. “I think the price of a new combine is outrageous,” he says. “Maybe I’m just stubborn but I’m not willing to pay that. The last round of combines we bought close to new was very expensive and we spent years paying them off. Two of them burnt down and one was a lemon I had to trade in on a different brand. That aggravates me to no end when I feel like I’m being taken advantage of.”

Today, Russ and Rick farm 10,000 acres of red lentils, yellow peas, spring wheat and canola. “In our area, we have guys a lot

And the equipment will last a lifetime with the right set of hands keeping them in tip-top shape.

ENTREPRENEURIAL DRIVE RUNS DEEP TITLE | COVER | SECTION STORY

The third, fourth and fifth generations on the Wildfong family farm near Craik, Sask. are a close knit group who share a love of farming and an entrepreneurial spirit that spans over a century. 27

COVER STORY | ENTREPRENEURIAL DRIVE RUNS DEEP

When Art Wildfong traveled West across Canada in 1918, settling near Craik, Sask. and marrying Ella, they created a legacy of bold farmers, talented manufacturers, and a spirit of entrepreneurialism the family exhibits today.

“Everything we develop is with the farmer in mind. That’s our goal: to make our customer’s day and life a lot easier while getting their performance up.” - Russ Wildfong “Russell is an engineer. He designs and fixes pretty much anything on the farm,” adds Danielle. “We pay very close attention to our fixed costs and keep them lower than average. We don’t see the need for new iron. It becomes one of the biggest problems for farms when fixed costs get too high, especially when they buy too much equipment. We have the capabilities to make used equipment run like new.” In the small community of farming, it doesn’t take long for people to notice what’s going on over the fence. As neighbours took note of the ways Russ was upgrading his equipment, they soon had requests for him to build them parts, too. Just like that, the Wildfongs were back in the manufacturing business and Wildfong Enterprises was born. 28

Back in business In 2014, Russ scored his first official sale and started making concaves for customers. Launched as an ad-mail campaign, a brochure was sent out to Saskatchewan farmers. The uptake was so phenomenal they struggled to keep up with orders. “It was a learning experience,” says Danielle. “You want to get the word out and supply as many people as you can, but we had a bottleneck when it came to getting the steel and enough help.” A good problem to have, but a problem nonetheless when a bright idea turns out to be on everyone’s wish list. “We were figuring it out,” adds Russ. “We had to build the workspace for welding at the same time we had to design everything from scratch. When Harvest Services sold, I was only nine years old and I had no idea how any of it worked.” Two shops that originally housed Harvest Services in Bert’s day were repurposed into a new manufacturing and packing space. The shop foreman and journeyman welder, Wade Tait, is a B-pressure welder and CWB level 1 welding inspector who does phenomenal work, according to everyone at the farm. “He’s an ex-pipeline worker with years of experience, a natural leader in this position and we fluked out finding him,” says Russ. “We also like to hire high school students to run the

ENTREPRENEURIAL DRIVE RUNS DEEP | COVER STORY wires in the concaves, build the display cans, paint products, and help out with shipping.” That first year of business was solely spent overcoming growing pains. “Our number one rule is we will not sell anything without a warranty,” says Russ. “I built so many concaves that had a design flaw, any money I made was totally used up replacing them in the second year. I learned from my mistake, we got through it, and we didn’t have one upset customer at the end of it.” Most customers are like-minded farmers who believe in keeping good used equipment around with easy fixes rather than investing in new equipment every couple of years. “The majority of my customers are trying to get the most out of what they have,” says Russ. “Everything we develop is with the farmer in mind. That’s our goal: to make our customer’s day and life a lot easier while getting their performance up.” While the concaves practically sell themselves with repeat and referral customers, Russ says their business model showcases the entrepreneurial nature the Wildfong family has exhibited over generations. “Danielle tries to get us more focused on how we do things,” he says. “Rick is the visionary and I integrate systems at the farm to ensure it runs smoothly while he travels and does market development and sales. I recently started doing radio ads, which in Saskatchewan are really effective. They get to a broader audience and I really saw a bump in sales with consistent radio ads.” While the main driver in creating the business was to keep employees who could work year-round, the other big return has been helping farmers who experience difficulties with their combines and don’t know where to turn for affordable help. “When they call to say these concaves are working great for them, that means a lot,” says Russ. “My grain cart operator dropped off a set of concaves last fall and the cheque came in the mail with a note thanking us for excellent service. Things like that put a little pep in our step and confirm we’re doing a great job. We’re making things better for people and making their lives easier just like we set out to do in the beginning.”

Coming home The Wildfong family’s path to this successful business may have been destined, but it wasn’t exactly direct. Danielle credits Rick for encouraging both siblings to make their own journey. “Our dad is very passionate and will always take a stand for what he believes in,” she says. “He’ll inspire you to follow your dream and he certainly did that for us.” Russ’s plan involved working in the energy sector with a one-year stint in the field and behind a desk at the Canadian Natural

Last fall, Danielle Wildfong made a tech pitch to Connexus Credit Union’s Cultivator program in true farmer style from the combine – a virtual continuity and succession planning binder families can use in real time to connect all the players involved in their process. 29

COVER STORY | ENTREPRENEURIAL DRIVE RUNS DEEP

“Our generation sometimes forget to ask what Mom and Dad want. Did anyone ask them? I work hard to understand and relate to the founders of the farm. I want to protect their retirement and ensure they really think about what they want before diving into a transaction.” - Danielle Wildfong Resources (CNRL) head office in Calgary, Alta. He quickly realized it was not for him, returning home to work the farm. Danielle took the business track, eventually leading up to her current and meaningful farm consulting and coaching business, Your Legacy Coach. “Earlier on, I traveled a lot in business development for an agtech start up, presenting and attending farm shows,” she says. Aligning with her desire to help is a widespread need across Prairie farm families for support to initiate and facilitate the tough conversations. “A lot of people tell me they don’t know how to have these conversations,” she says. “I saw great opportunity in working with farm families on their continuity planning, helping them to see it as a process rather than a one-time event. I’ve created a three-phase process to handle continuity and implement a system to ensure transparency and accountability across the enterprise.” At the foundation of her work is a priority to protect relationships on the farm. “Relationships are the new bottom line of farms,” says Danielle. “We don’t always think on those terms but 60 per cent of times a farm falls apart, it’s due to lack of communication. Seventy per cent of times the farm’s wealth transference fails is because of lack of planning, follow through and general communications issues. We cannot change people, but we can work on changing our relationships.” It’s also important to her that the younger generation tell their parents what they appreciate about their parents and why. “Our generation sometimes forget to ask what Mom and Dad want. Did anyone ask them?” says Danielle. “I work hard to understand and relate to the founders of the farm. I want to protect their retirement and ensure they really think about what they want before diving into a transaction.” Throughout the process, Danielle also connects with the family’s lawyer and accountant, acting as the general contractor to keep things on track and communication lines open. “My core values—transparency, intimacy and connection—run through every aspect of my business,” she says. “Connecting with people, and connecting them to the right people, energizes and motivates me.” Learning is a constant pursuit for Danielle so she recently completed her Family Enterprise Advisor designation (FEA) 30

course, working with accountants, investment professionals and learning from top family enterprise consultants. While she continues working with farm families across the Prairies, Russ credits Danielle for her organizational and marketing skills at Wildfong Enterprises. He adds one more talent to the list, “She’s also very tech savvy.” In fact, Danielle’s latest pursuit involves a tech pitch she made in true farmer style from the combine last fall to Connexus Credit Union’s Cultivator program, the Agtech Accelerator. “I proposed a virtual continuity and succession planning binder families can use in real time to connect all the players involved in their process,” she says. “I’m building an online platform to write down plans, communicate and track progress. Sometimes it’s easier for us to write things down first before discussing them.” Danielle still farms, too, running combine for harvest each year at her partner’s grain farm near Leask, Sask., a couple hours’ drive north of Craik. “We live on small lake 15 minutes away from his family’s home farm,” says Danielle. “It’s a whole other world north of the Palliser Triangle. We enjoy snowmobiling, fishing, flying and family time at home and in the field.” Meanwhile down in Craik, Rick and Debbie are happily enjoying their growing family as Russ, his wife Beth and their two children are just a mile away. Every great farm family has a central force behind them and this one is no different. The Wildfongs unanimously agree that in this case, it’s Debbie, who taught at the local school for 40 years and now teaches at Saskatchewan Polytechnic in Saskatoon, Sask. “She kept us running all these years and continues to cook for everyone during seeding and harvest while working full time,” says Danielle. “She’s the hardest worker on this farm and we all attest to that.” Down the road, Russ and Beth are raising their two children, Art, 5, named after his great-great grandfather and grandfather, and Claire, 3, on Bert and Reg’s original farm from 1950. Russ’ wife Beth comes from an entrepreneurial family herself and has taken over her family’s real estate development business. “Beth has a strong business acumen that keeps me on topic and focused. She supports me in keeping the farm running smoothly,” says Russ. “We’ve spent a lot of time teaching our children the values and stories of our elders. It’s important to continue their legacy.”

ON THE RIGHT SIDE | FARM TRANSITION

On the Right Side Smart handling of non-farm assets makes for a smooth farm retirement transition By Natalie Noble

Once upon a recent time, a farming couple visited their accountant’s office to find the value of their farm had risen to many millions of dollars as land and asset values rose. Maybe the wife joked she’d like to stop clipping coupons while her husband said with a laugh, “We still don’t have any more cash than before.” But what happens if this couple is not dependent on the farm for cash and they’re ready to retire? More importantly, how did they reach the point of transitioning out of the farm without relying on a payout or residual income? It starts with the realization that in light of its multigenerational transfer, farming is a business like no other. “There is significant value in the farm’s underlying assets and the gains in those assets don’t transfer to its cash flow,” says Allison Henkell, tax partner with BDO Canada. “All of the value is sitting in land and assets, it hasn’t been realized yet, and it may never be realized as the farm continues to be passed on to future generations.” With that notion, Bob Tosh, farm and family business advisor with MNP’s Consulting group, says cash is rarely the barrier or differentiating approach to the farm’s transition as it’s unusual to see the next generation required to buy their parents out. Instead, the farmer in the position to transition out independently has likely put efforts into creating off-farm revenue over the years. “We see plenty of farmers who have been really successful and put a lot of money away. They have savings, investments, RRSPs and all these strategies to ensure

“All of the value is sitting in land and assets, it hasn’t been realized yet, and it may never be realized as the farm continues to be passed on to future generations.” - Allison Henkell they no longer need farm income,” says Tosh. “On the other side, there are farms where everything goes right back into the farm and there’s nothing other than the farm to pull from.” By building up non-farm assets, farm parents can use them to fund their retirement and also more easily answer the fair versus equal question between farming and non-farming children. “If the only asset a family has is the farm, and they have three children, one of whom will continue farming, there are going to be challenges in how to be fair to other two while allowing the farming child the autonomy and resources to go on farming,” says Tosh. When farmers have worked to grow the farm’s value and prioritized accumulating non-farming assets such as RRSPs, investments, properties and life insurance policies, it’s much easier to sit down, evaluate the estate and plan the transition. 31

FARM TRANSITION | ON THE RIGHT SIDE

As farmers become increasingly successful and start paying down their debt, they start to accumulate cash. If they keep that cash and any other marketable securities they’re buying with that cash in the farm corporation, they’re not considered farm assets.” - Allison Henkell

BDO tax partner Allison Henkell says when farmers move investment assets over to a holding company in a tax efficient way, they’re building their retirement and often contributing to their non-farming children’s inheritance. Image Credit: BDO

Central to that smooth transition is clearly understanding what constitutes a ‘qualified’ farm so farm assets can transition to the next generation without incurring tax. In the case where the farm is an incorporated entity, it must be kept ‘onside.’ “Think of the farm corporation as a box. Ninety to 100 per cent of what’s in that box has to be primarily farming. If more than 10 per cent of it isn’t, that box carries a tax burden,” says Tosh. As farmers become increasingly successful and start paying down their debt, they start to accumulate cash. “If they keep that cash and any other marketable securities they’re buying with that cash in the farm corporation, they’re not considered farm assets,” says Henkell. “This puts a farm that should be eligible to gift to the next generation offside. It’s now a taxable transaction and they cannot use their capital gains exemption.” Also of critical importance is the fact that agri-business is not considered farming. Assets such as elevators, grain dryers, seed cleaners and even land rental do not fall under the definition of farming if they’re used more than 10 per cent for customers. Including these items in the farm corporation can void the ability to gift it. “When farmers start to accumulate farm equipment and use it outside their own farm for custom work, such as custom combining or grain drying, that may not be a farming asset and it can put you offside,” says Henkell. Instead, agribusiness and land rental can be folded into a separate business, but the implications are important. “Agribusiness qualifies as a small business corporation and owners can use the CGE on it, but they can’t gift it intergenerationally,” says Henkell.

MNP’s Bob Tosh sees plenty of farmers who have been successful and put good money away. “They have savings, investments, RRSPs and all these strategies to ensure they no longer need farm income,” he says. Image Credit: MNP LLP

As farming parents gain wealth, the best way to protect it is to place it into a holding account or other non-farming company. It’s a process called ‘purification’ where the farm company is kept onside by removing non-farm assets periodically. “[This] allows the farmer to take some of the farm’s investment

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FARM TRANSITION | ON THE RIGHT SIDE

“If the parents die and leave the shares all within one company to more than one sibling … dividing it up according to the family’s wishes may not be possible anymore. They’ll end up owing money or shares back and forth and it’s so much messier at that point.” - Allison Henkell assets – what the outgoing generation has earned and is entitled to – and move it across to the holding company on a tax efficient basis,” says Henkell. “The holding company becomes the parents’ retirement income and an inheritance for any non-farming children. It can also lend money back to farm on an interest-bearing basis, be invested in the stock market, own rental properties, or have other uses.” Because life is never guaranteed, it’s essential farm families and advisors keep their farm company qualification current, continuously working to purify it. “After it’s been dealt with once, the accountant will recognize if it again nears becoming offside and will alert the farmer to move non-farming assets and cash out of the company, either by paying down debt, taking a draw or moving it to a holding company,” says Tosh. Farmers ready to transition out of the farm can start with a deep exploration into what they will need to live comfortably over decades of retirement, including accounting for any ‘what ifs.’ They may have to purchase off-farm property and a vehicle outside the corporation for the first time. It’s also critical that farm families have a good understanding around

who actually owns the farm and its various assets and how they plan to transition each. In too many cases, a will indicates the farm property is meant to be transferred to an individual while the farm is actually owned by a corporation. “You cannot tell the corporation what to do in your will with a property that is technically owned by the corporation and not the farmer,” says Henkell with a warning. Henkell also suggests farmers avoid lumping siblings into a corporation. Imagine having two brothers, their wives, and eventually their children all impacted by the corporation. The next transition must then address having cousins involved. Instead, should more than one sibling want to continue farming, Henkell suggests parents themselves split the farm, ideally according to commodity should they have livestock and cropland with each sibling preferring one or the other. Although the recent passing of Bill C208 made it easier to split a farm owned by two siblings, the process remains easier at the stage the parents have the control. When the parents split the farm, the value of each portion is not a factor. Should the siblings be placed in the corporation together, each must end up with 50 per cent of the actual value. “Remember, when thinking about that value, in most cases it doesn’t matter because no one intends to realize that value unless they sell out,” says Henkell. “If the parents die and leave the shares all within one company to more than one sibling … dividing it up according to the family’s wishes may not be possible anymore. They’ll end up owing money or shares back and forth and it’s so much messier at that point.” Finally, everything comes down to having a strong plan in place and ensuring all necessary documents are in alignment. Something as easy as neglecting to update the will according to the transition plan can undo all that work, wasting precious time and money. “Communicate and plan up front,” says Henkell. “And keep asking the questions until you understand everything.”

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HIGH INPUT COSTS | PEAK? WHAT PEAK?

Peak? What Peak? Industry leaders say even one more disruption in the fertilizer supply chain could cause nutrient prices to climb even higher By Jeff Melchior

Experts agree: high fertilizer price are here to stay for a while and there’s no guarantee we’ve seen the peak of the so-called “perfect storm” of worldwide events driving four-figure fertilizer prices. In fact, one more disruption in the supply of the key macronutrients used to fertilize (or in the case of phosphatedependent glyphosate, protect) Canadian crops could drive prices even higher. Most of the data points to prices at best staying still or at worst escalating, says a leading market analyst. “We know they’re going to remain elevated. Every day there seems to be another demand or supply issue,” says Ryan Furtas with Alberta Agriculture, Forestry and Rural Economic Development. And even if the supply chain caught a break today (China reopening its nitrogen exports to the world, for example), it might be too late to have much of an impact over the coming months due to lag in the supply chain. “We’re getting closer and closer to the spring season. If prices went down somewhere it would still take time to import it and 36

it wouldn’t be here on time for the spring,” says Randy Brehaut, senior leader of product and sales with Independent Crop Inputs in Taber, Alta. “But prices would really have to fall and I really don’t see that happening at all.”

A literal and figurative storm The road to $1,300 urea and $1,200 phosphate (the approximate wholesale prices Brehaut says he has been taking) has been a long time coming. It started with high commodity prices but continued with, among a host of other COVID-19-related disruptions, prohibitive natural gas and coal prices. That hampered production and caused several fertilizer plants in Europe to lock their doors. Here in Canada, the sum result was fertilizer prices failing to correct through their usual summer “reset” in which they take a dip during that low-consumption time of the growing season. That meant already high prices going into the fall when farmers usually start thinking about ordering their spring supplies.

PEAK? WHAT PEAK? | HIGH INPUT COSTS

“We were selling urea at the end of the season for $625 when the price usually goes down to $400 or $425,” says Brehaut. “That’s why no one was eager to buy up front.” But then things got worse. In August, China, the world’s largest phosphate producer, suspended both urea and phosphate exports in an effort to retain them for its own needs. Hurricane Ida ripped through Louisiana, in the process destroying a key fertilizer plant, creating a ripple effect in its local supply chain (Louisiana also happens to be where fertilizer prices are set for North America). The energy crisis in Europe worsened. In November, Russia decided to enact fertilizer export quotas to help ensure domestic supply. A harsh winter is one factor that could drive up fertilizer prices even more, says Furtas. “If it’s a hard winter in some spots that can create more natural gas and coal demand, which doesn’t bode well for fertilizer prices.” Clyde Graham, vice-president of Fertilizer Canada, encourages producers to work closely with their retailers to ensure they get the product they need. Image credit: Fertilizer Canada

Low-input crops an option, but high commodity prices tempt In the meantime, the best thing crop farmers can do to minimize their spring fertilizer investment is follow evergreen agronomic practices such as soil testing for reserve nutrients. Many agronomists also recommend adjusting their spring planting to include less nutrient-greedy crops such as peas. Whether farmers choose to go that route, however, is another question. Historically strong prices for nutrient needy but high-value crops such as canola will drive many farmers to chase premiums regardless of expensive inputs, says Furtas. “We have extremely high crop prices for canola and wheat and some guys are going to want to take a stab at those once-in-a-lifetime prices,” he says. Those commodity prices show no sign of coming down, which may be the only good news for farmers, says Brehaut. Fertilizer and grain prices tend to work in lock-step with each other, meaning if one is high the other tends to be high as well. As long as farmers have enough nutrients in the soil, enough fertilizer for their needs or, more likely, a combination of both, they will have the edge over many farmers in the world who may simply not plant a crop.

Randy Brehaut, senior leader of product and sales with Independent Crop Inputs in Taber, Alta., says fertilizer prices didn’t “reset” last summer due to high commodity prices, meaning those prices were already high before Hurricane Ida and other major disruptions hit in the late summer and fall. Image credit: Independent Crop Inputs

“A good point for our producers is that there will be a shortage of production in the world and that should hold the pricing of their commodities up,” says Brehaut. When it comes to soil testing, Furtas warns against being too dependent on soil nutrient data alone. 37

HIGH INPUT COSTS | PEAK? WHAT PEAK?

“I’ve told a lot of customers to buy as they’re going along just to secure the product and lock in pricing. I think there’s been a lot of emotional buying or non-buying. Guys were saying ‘I’m not going to pay that amount; I’ve never paid that amount’ but I think everybody’s come to reality now.” - Randy Brehaut Depending on this coming spring’s weather, growers may wind up needing more fertilizer than they think. “If you’re relying on residual nutrients, a wet spring or high precipitation could cause you to lose some of those available nutrients.”

Order and lock now In any event, most farmers will need some amount of fertilizer and perhaps their best bet is to lock in their supplies and prices for spring as soon as possible, says Brehaut. That way, retailers will more likely have their supplies on hand when they need them. “No matter where you buy, book it so retail can plan for it and they won’t run out. If it’s not planned for, chances are you’re going to be disappointed.” Furtas says retailers in general are being cautious for that very reason. “They’re just not overselling. They’re unsure of their supplies or just don’t want to get caught promising one thing and not delivering. They’re not selling anything they can’t get 100 per cent access to. They’re making sure that if you want 500 tonnes of urea it’s pretty much a guarantee and then they’ll go on from there.” Something else farmers can do to help both themselves and retailers is buy fertilizer now if they can and take it home, perhaps making an application or two if conditions allow in order to take some of the pressure off spring applications. “I think they’re in a little bit better position if they can take storage and possession of it,” says Furtas. “That helps retailers so they can sign up for some more and fill their warehouses.” Clyde Graham, vice-president of Fertilizer Canada, agrees farmers should be working on a fertilizer strategy with their retailers. “I think this is a time when farmers should be in close contact with their agri-retailers. Agri-retailers are the best source of information for farmers about the fertilizer market but I also think that now would be a good time for growers to pay particular attention to their fertilizer application programs,” he says. “It’s always good to make decisions based on facts. I think soil tests and other ways of determining soil fertility are really good things to be doing on a regular basis.” 38

Large farmers need to hustle An important thing to keep in mind is that operation scale makes a difference in a producer’s ability to get the supplies they need, says Furtas. In short, the bigger your operation, the more strategic you’ll need to be. “For an 1,800- or 1,900-acre farmer it’s easier to duck in there and get what he or she needs as opposed to the larger guy,” he says. “When you need a larger volume you probably need to be a little more proactive.” Brehaut has been recommending a graduated buying approach to his customers. “I’ve told a lot of customers to buy as they’re going along just to secure the product and lock in pricing. I think there’s been a lot of emotional buying or non-buying. Guys were saying ‘I’m not going to pay that amount; I’ve never paid that amount’ but I think everybody’s come to reality now.”

B.C. landslides This story was submitted for publication shortly after landslides in southern B.C. devastated rail transport and shut down the Port of Vancouver in mid-November. Furtas said he did not expect the rail outage to have much of an impact on fertilizer supply in Western Canada. Of the key macronutrients in commercial fertilizer, Canada only imports phosphate to a large degree, with most of that coming from the U.S. As far as export is concerned, there will likely be some pain for Saskatchewan-based potash manufacturers trying to get their product to port. Some Alberta sulfur companies could also experience export headaches, said Furtas. “Other than to the U.S. there aren’t a lot of nitrogen exports. That could change I guess but nothing’s really going west and beyond, it’s usually just going south.” Otherwise, one of the few ways the Canadian fertilizer manufacturing industry could be hurt is if there are special imported materials required to produce a given fertilizer, he said. “I think we do most of the business here at home so it should be okay on that front to some degree.”

LOOKING BACK TO PLAN AHEAD | THOSE WILY WEEDS

Looking Back to Plan Ahead Tammy Jones B.Sc., P.Ag Tammy Jones completed her B.Sc. in crop protection at the University of Manitoba. She has more than 15 years of experience in the crops industry in Manitoba and Alberta, with a focus on agronomy. Tammy lives near Carman, Man., and spends her time scouting for weeds and working with cattle at the family farm in Napinka.

A year in review is a great way to prepare for the next growing season. Some supply issues in 2021, combined with the growing conditions, resulted in cost-cutting measures, innovative tank-mixes (using up part-jugs/cases/drums), and the use of certain herbicides that may have been stored for a while. Many of those same tactics may be necessary in the next growing season and careful planning this winter could help reduce some of the frustrating situations. So here are a few key learnings from 2021. Science evolves. Just this year (2021), triallate and other Group 8 herbicides were reclassified as Group 15 herbicides. While the active ingredients haven’t changed, there is now more knowledge about how the products function in the plant and thus the change in herbicide classification. That won’t change how the products are used, but when choosing products based on herbicide rotation or looking at utilizing multiple modes of action, this reclassification may become a factor. The label is the law. Health Canada regulates pesticides under the authority of the Pest Control Products Act. The label is developed using the most current evidence-based scientific approaches to protect the health and environment of all Canadians including the applicator. As science evolves, labels are updated and the most current label is the law. The old label attached to the product that has been in the back of the (climate-controlled) shed for the past three years may not reflect the current registration of a product. Planning to use those older products is smart and economically prudent but taking a few moments to obtain and review the current label is also smart. The online Pest Management Regulatory Agency (PMRA) Label Search tool allows anyone to access product information by searching the available Product Information Elements, or the full textual content of the entire label collection. Off-label recommendations run a risk because they aren’t a registered use pattern. While the PMRA tank-mix guidelines have allowed for unlabeled tank mixes based on specific criteria, checking with the product manufacturer for guidance and support is the best way to optimize product performance and minimize risks. If a tank mix isn’t supported by the manufacturer, the user (or anyone who makes the recommendation) assumes the risk associated with poor product performance. 39

THOSE WILY WEEDS | LOOKING BACK TO PLAN AHEAD

Is it the “same?” Many herbicides are marketed under different names and package sizes through different companies. Co-packs and co-formulations may contain the same active ingredients, but the active ingredient concentrations and formulations can vary. Tank mixes of products with different concentrations may not result in the highest level of weed control. Those tank mixes can also impact on everything from the required rainfast period to the recommended tank clean out procedures. Mixing co-packs and co-formulations even from the same brand, that contain the same ingredients, is not always possible, because of the other components (surfactants, compatibility agents, carriers) in the formulation. It may take more work but using up one product with a partial fill of the sprayer and then switching to the next part tank is often a better use of time and product. Formulation matters. With supply challenges, it’s tempting to think that all products with a specific active ingredient are interchangeable, but the formulation impacts on when, where and how the specific product can best be used. An easy example is 2,4-D acid. A quick survey of the PMRA website indicates well over 100 products utilizing 2,4-D are registered for use in Canada. A much more thorough review of 2,4-D, published in Weed Technology in 2016, indicated that there are more than 50 2,4-D products labeled for use in the United States. And that’s not counting all the products where 2,4-D is combined with other herbicides. 2,4-D acid is typically formulated as an amine (usually dimethylamine salt) or an ester (ethylhexyl ester). While both of these liquid formulations have an amber colour, their properties are very different. For instance, 2,4-D DMA salt is very water soluble (see Table 1), and by comparison 2,4-D ester is not very water soluble at all (the difference is measured in millions of

milligrams per litre). This same concept applies to glyphosate, glufosinate and many other active ingredients. Product formulations are designed for specific applications on specific crops, and surfactant load, sequestering agents and other invisible formulation components that help ensure product performance may be negatively impacted by being mixed or used in wrong way. Table 1. Properties of 2,4-D Amine and Ester (Source: 2,4-D Technical Fact Sheet. National Pesticide Information Center)

2,4-D AMINE SALT

2,4-D ESTER

Water soluble (depending on Soluble in petroleum oils (water water pH the range is 320,000 solubility is 0.0867 mg/L) to 6,663,000 mg/L) Less potential for vapour movement

Better penetration of the waxy cuticle of a leaf

Rainfast interval is approximately 4-8 hours

Rainfast interval is approximately 1 hour

Weather events, supply challenges and labour shortages are just a few of the reasons to start planning now for innovative weed control solutions for the 2022 growing season (don’t forget tillage, seeding rates, crop competition, hand weeding and more). These external factors are likely to impact the overall supply of herbicides and timely availability as well as the economics of weed control. 2021 had some similar challenges and prompted questions about utilizing older formulations and creating unique tank mixes of various iterations of the same product. Asking key questions now should save frustration during the spraying season.

PESTICIDE SHORTAGES IN 2022 | SPRAYING 101

Pesticide Shortages in 2022 Tom Wolf, PhD, P.Ag. Tom Wolf grew up on a grain farm in southern Manitoba. He obtained his BSA and M.Sc. (Plant Science) at the University of Manitoba and his PhD (Agronomy) at Ohio State University. Tom was a research scientist with Agriculture & Agri-Food Canada for 17 years before forming AgriMetrix, an agricultural research company that he now operates in Saskatoon. He specializes in spray drift, pesticide efficacy, and sprayer tank cleanout, and conducts research and training on these topics throughout Canada. Tom sits on the Board of the Saskatchewan Soil Conservation Association, is an active member of the American Society of Agricultural and Biological Engineers and is a member and past president of the Canadian Weed Science Society.

We’ve had dire warnings about possible pesticide shortages and price hikes for 2022. More expensive products mean that use volumes may be reduced by pure supply and demand economics. But if the products we need simply won’t be available, we have a tougher challenge. It’s time to think about conserving pesticide. But first, what’s behind the product shortage? The reasons for the shortage are many-fold and came together in a perfect storm. Starting about 2017 or so, pesticide manufacturers tried to reduce the overall inventory of products to improve logistical efficiencies. That effort was rewarded in 2019 when a wet spring in the U.S. dramatically reduced seeded area to a low of 165 million acres. The resulting lower demand again provided incentives to reduce inventories. At the same time, U.S. trade sanctions against China in the form of tariffs impacted production and shipment of many active ingredients to U.S. markets. When COVID-19 happened, it affected both production and shipping of many goods, including pesticides. Container shipment costs increased sharply and the ability to move them to and from ports was hampered. This then coincided with record seeded area in the U.S. of 180 million acres in 2021, creating higher than usual demand. By that time, very little flex remained in the system. Then, two further events occurred. Hurricane Ida forced a shutdown of Bayer’s Louisiana glyphosate plant. And China, in late 2021, legislated a temporary 90 per cent reduction of yellow phosphorus production in Yunnan Province in anticipation of the 2022 Olympic Winter Games. With phosphorus as a fundamental ingredient in glyphosate, glufosinate, and certain fertilizers, this loss of production places significant strain on many products. The usual habit by farmers of returning unused pesticides to the retailer also became less common amidst shortage news, adding difficulty to planning inventories and demand. It’s safe to say products will be more expensive and possibly impossible to obtain. Here are some things to consider to minimize the impact. 1. Grow crops that require less pesticides. Crops which have good genetic resistance to insects and disease will be more likely to cope without a protective spray. Certain crops are inherently competitive early on and give less time and space for weeds to become established. Remember that the relative time of emergence is important for crop yield loss from weeds. If crops emerge before weeds, they have the upper hand and will maintain higher yield potential. Crops that can be seeded early will prevent weeds from occupying that niche. 41

SPRAYING 101 | PESTICIDE SHORTAGES IN 2022 2 . Use agronomic tools that favour good seedling establishment. The usual advice of seeding into a warm, firm, moist seedbed, should we be fortunate enough for the weather to cooperate, applies here. Although seed costs will likely be higher, there is value in higher seeding rates to help outcompete weeds. 3 . Sample the spray water source and have it professionally tested. After a record drought, aquifers are low and surface waters have receded. Water quality will probably not be the same it has historically been. Use water conditioners to reduce effect of hard cations and bicarbonates. Ammonium Sulphate (21-0-0-24) at one per cent w/v is a general treatment, harder water may require up to three per cent. 4 . Do not use untested mixes of pesticides with specialty foliar fertilizers. These may impact herbicide performance, or worse, result in an incompatible mix. 5 . Use the lowest label rate of product that is relevant for the pest you’re trying to control. Many products have a range of rates depending on the weed species and stage. Scout your fields and take advantage of the lower rate option if you can. 6. Spray herbicides early. It’s been shown that crop plants can sense the presence of weeds before they compete for resources, causing a physiological adjustment that results in irreversible yield loss. The shorter the time that weeds and crops co-exist, the better. Also, smaller weeds are easier to control. Weeds that escape this early application will need to compete with an established crop and won’t thrive or impact yield as much. 7. It’s not advisable to reduce product rates from the one recommended on the label. Although label rates contain a margin for poor conditions, the risk of selecting for polygenic resistance exists. Polygenic resistance occurs when some weeds happen to be slightly more tolerant to the herbicide than the rest of their cohort. These weeds may survive a lower rate and go on to produce seeds. Thus, their offspring will increase in relative abundance and with further such selections in subsequent generations the tolerant weeds eventually dominate. 8. Apply the spray as uniformly as possible. Make sure the spray nozzles are within a five per cent flow rate tolerance along the entire boom. If the set is older, consider a wholesale replacement. But the biggest enemy of uniform deposition seems to be turbulence created by wind and driving speed around the tractor unit. Slower wind and travel speeds help somewhat. Variable deposition means that some regions receive up to 50 per cent more than 42

intended, and others receive 50 per cent less. This means weeds in the lower deposit regions may survive the application. The more variable the application, the higher the rate that is needed for acceptable control. 9. Use finer sprays whenever the tank mix contains a contact mode of action product (e.g., Group 1, 6, 10, 14, 15, 22, 27) or targets grassy weeds. Both situations require smaller droplets for best performance. The use of finer sprays may mean fewer hours in the day when drift is acceptable, and as a result, investment in efficient tendering and cleaning as well as overall time management pays dividends. 10. Make efficient use of the product in the tank, preventing waste. The amount of product being discarded can range to over 10 per cent of the total needed to treat a field, but this can be reduced to three per cent with the proper steps. The following are areas where improvement is possible: 10a. Prime the boom efficiently using sectional shutoffs or,

better yet, a recirculating boom. These can be primed without any spray leaving the nozzle or boom ends. 10b. Measure the spray mix of the last tank accurately,

minimizing leftover. Consider the AccuVolume system that weighs the tank contents to the closest gallon. Tanks can be filled with the exact amount, and rates can be adjusted as the leftover becomes apparent on the last passes. 10c. Invest in individual nozzle shutoffs to improve sectional

control resolution. These are part of any Pulse Width Modulation system but can also be obtained as air-actuated valves that are very affordable. Such capability is necessary for recirculating booms. 11. Consider an optical spot spray system such as the WEEDit Quadro, the Trimble WeedSeeker, or the John Deere See & Spray Select, available for 2022. These systems are “green on brown,” meaning they selectively spray just weeds in a burnoff or chemfallow. This can save about 70 per cent of the spray depending on weed density. More such systems are on the way, some even offering “green on green” that selectively identifies weeds among a crop. The return on investment of these systems is directly related to the pesticide cost, meaning in a year with high pesticide prices they pay off faster. Pesticide shortages will not be fun. Unfortunately, their appearance coincides with higher fertilizer prices, meaning crop establishment will need to overcome that factor as well. But there are tools to minimize the impact if we’re willing to implement them. Just as necessity is the mother of invention, scarcity is the father of conservation.

WE’RE NOT

DONE UNTIL YOUR WEEDS ARE.

Our Performance Support Guarantee ensures it. The Advanced Weed Control program from BASF is the definitive solution that helps growers manage the toughest weed challenges with confidence. Because in addition to cleaner fields and resistance management, our Performance Support Guarantee offers hassle-free support in the unlikely event of weed escapes1. And for the first time ever, the program is now available for canola. To learn about the new innovations we have in store for all crops in the 2022 season, visit agsolutions.ca/AdvancedWeedControl or call AgSolutions® Customer Care at 1-877-371-BASF (2273).

• CL E A N E R F IE L DS • R E S I S TA NCE M A NA G E M E NT • P E R F O R MA NCE SUP P O RT G UA R A NTE E

When recommended products are used up to labelled guidelines

Always readand andfollow follow label directions. Always read label directions.

AgSolutions are registered trade-marks of BASF; and andInc. VORAXOR trade-marks of BASF; AgSolutions and is a CERTITUDE registered trade-mark of BASF, used under license bySMOULDER BASF Canada © 2021 are BASF Canada Inc. all used under license by BASF Canada Inc. © 2021 BASF Canada Inc.

SECTION | TITLE AGRI-TRADE | WE’RE BACK IN BUSINESS

We’re Back in Business AgriTrade 2021 led industry with return to large in-person ag events By Natalie Noble

After farmers and agri-businesses spent a long year-and-a-half waiting to get back together, Agri-Trade Equipment Expo sent the message that the industry is back in business. “After not being able to gather in person and in public for events, we saw incredible effort put into this event, not just by the show organizers but the exhibitors too,” says Krissy Fiddler incoming show manager. “The blood sweat and tears of getting prepared to go back into live Agri-Trade and then being able to see the success and the business happening face-to-face really solidified that reason we have these trade shows and how important they are to this industry.” As the latest equipment, products and technologies were showcased, farmers and agribusiness professionals flocked to the sold-out expo presented by Farm Credit Canada and held at Red Deer’s Westerner Park last November. “This year we had attendees from throughout Alberta, Saskatchewan, British Columbia and Manitoba,” says Fiddler. “In addition to our Canadian visitors we had buyers from Ireland, Italy, Germany, Russia, Scotland, South Africa, the United States and Mexico.” Always a fan favourite, the Ag Innovations Competition saw the top five finalists compete with their ground-breaking product and technology innovations. This year the competition received the highest number of farmer’s choice votes to date. “That area was jam packed and producers were really engaged to see these new innovative products,” says Fiddler. “Our grand prize $25,000 winner and the farmer’s choice were the same company, RC Farm Arm. We’re really pleased that all of the contestants did an amazing job and we congratulate RC Farm Arm and their wireless tractor control innovation on winning that grand prize.” 44

“The blood sweat and tears of getting prepared to go back into live Agri-Trade and then being able to see the success and the business happening face-to-face really solidified that reason we have these trade shows and how important they are to this industry.”- Krissy Fiddler Experiencing the energy at the show and considering exhibitor feedback, it’s clear to see just how important Agri-Trade and face-to-face business relationships are to the ag community and getting business done. More than 475 exhibitor booths filled the show’s indoor space including equipment displays, service providers and the latest technologies with $250 million in direct equipment sales scored at the event. Perhaps most exciting, the live event signals that other large Canadian ag shows should continue to follow suit. “Knowing now that we’ve built a platform for any agriculture events moving forward means a lot,” says Fiddler. “We were the first major agriculture show in Canada to kick off since the pandemic. We are excited to have all of the other shows in our industry use our platform as a template to work off. We saw great success and we can’t wait to build on that success.” Next year, Agri-Trade 2022 will be back stronger than ever Nov. 9-11, 2022.

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SUSTAINABILITY

Sustainability Socially Responsible? Absolutely. By Vincent Cloutier

Vincent Cloutier With nearly 20 years of experience in the Canadian agri-food industry, Cloutier is a member of National Bank’s Agriculture and Agri-Food team. Having served in recent years as Senior Economist at La Coop fédérée (now Sollio Groupe coopératif) and Director of Economic Affairs at Les Éleveurs de porcs du Québec, he specializes in international trade and agricultural policies. A graduate in agronomy and agri-food management from Laval University and a four-time participant in the prestigious Harvard Agribusiness Seminar, Cloutier supports National Bank’s agricultural and agri-food financing teams with his expertise in business environment analysis.

ESG: Environmental. Social. Governance. Three letters for three words that embody corporate social responsibility, now an integral part of doing business across all sectors, including agriculture. This acronym involves pressure on fertilizer use, pesticides and water withdrawals among many other issues. How is Canadian agriculture doing in these areas? Well, in the simplest terms, Canada is performing very well. The OECD (Organization for Economic Co-operation and Development) compiles numerous data illustrating the performance of countries with respect to the environmental footprint of agricultural production. The evidence is clear: whether it is pesticide use, water withdrawal or nutrient balance (nitrogen, phosphorus), Canadian agriculture is consistently among the best. In addition to a rigorous regulatory framework, this picture is the result of the attention that the agricultural community pays to public concerns.

Constant pressure, which will intensify However, despite the progress made, it would be dangerous to believe that ESG pressures will peak in the near future. Canadian agriculture must serve as a springboard to encourage progress not only domestically, but also abroad. We are a leader and must act like it when we discuss agricultural practices. This is a two-pronged situation, but one where both sides stand to win. On one hand you have a consumer base that is increasingly interested to know more about where their food came from and how it was made. On the opposite side, you have tens of thousands of farmers who stand to gain premiums in the marketplace for unique production methods. Over the past year, many agri-food companies have become involved, investing significant amounts of money. Look no further than a company such as McCain Foods which said by 2030 all of its production will come from spuds that are produced with 100 per cent regenerative agricultural practices. Over the past few decades, water protection has channeled most of the environmental pressures on agriculture. There is no doubt that in the coming decades, air protection will gain in importance as the fight against climate change crystallizes itself as the single-largest issue of this generation. An unavoidable trend, despite the extreme complexity of an international consensus on the means to implement (Glasgow was the most recent demonstration). As a corollary, the carbon footprint of goods produced and consumed will be scrutinized more than ever before. Given the ESG performance of Canadian agriculture, we stand to gain by producing the food that feeds our population at home and beyond. Moreover, while land and freshwater are globally valued assets and resources, there is pressure at home, both economic and moral, to use them. The challenge is to stay ahead of the curve and to keep meeting the highest standards.

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