It Starts with a Seed
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A Farmer’s Viewpoint Structuring Your Family Farm as a Joint Venture by Kevin Hursh
Grain Market Analysis Organics as an Option by Scott Shiels
Seed Growers 2024 Was a Good Year for Seed Growers by Lisa Kopochinski
Nerissa McNaughton
Spraying 101
Makes for a Good Spray Application? by Tom Wolf
Safety
Smoke in the Distance: Combine Fires by Braden Hursh
Those Wily Weeds
True Millennials: Horsetails by Tammy Jones
AgriStability Right for Livestock? by Paul Kuntz
KEVIN HURSH
TOM WOLF
SCOTT SHIELS
PAUL KUNTZ
TAMMY JONES
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
Structuring Your Family Farm as a Joint Venture
If you have a sizable farm involving several families, there are many advantages to each family having its own farm corporation and running the farm as a joint venture.
My thanks to Allyn Tastad of the Saskatoon accounting firm HTH CPAs for having the patience to explain this to me. I met and interviewed a farming family that Allyn has set up in a joint venture. I won’t use their names in this article, but this is based on their farm.
The first thing to know is that a joint venture is not a legal entity for filing tax returns so organizing in this fashion is best accomplished with a separate corporation to hold all the machinery and grain storage. This corporation is where all the income arrives and all the farm expenses are paid before paying out remaining profits to each of the family corporations.
Let’s say the farm involves Mom and Dad who are gradually retiring, as well as two sons, each with a family. We’ll call the farm corporations Momdadco, Son1co and Son2co. The farm corporation for holding machinery and grain bin assets and reporting farm income and expenses can be EquipmentCo.
In many farming situations, Mom and Dad own most of the machinery and bin storage, and ways must be found to transfer these high-priced assets to the next generation. With those assets transferred to EquipmentCo, Mom and Dad receive a promissory note and preferred shares. These preferred shares would qualify for the capital gains exemption if purchased by Son1co and/ or Son2co. New tax rules under Bill C-208 now allow the exemption for this sort of family transfer. Previously, it was only available in arm’s-length transactions.
Profits from EquipmentCo can be distributed to the other farm corporations in agreed upon percentages. For instance, Momdadco may take 20 per cent with Son1co and Son2co each taking 40 per cent. The allocation can be adjusted as the farming situation evolves.
With profits split three ways, each farm corporation can stay under the $500,000 small business tax threshold if the EquipmentCo is set up properly. The tax rate at 11 per cent for Momdadco, Son1co and Son2co is a major advantage, since more of their farm profits can be reinvested.
There are also other advantages.
First, with three farms being run as a joint venture and with the use of EquipmentCo, the farm can purchase inputs like fuel, fertilizer and crop protection products in greater volumes often
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achieving a discounted price. Meanwhile, greater volumes of grain can be sold, and that can sometimes command a better return.
Second, since EquipmentCo holds the books and records and is the “sink” that captures all farm receipts and expenditures, the majority of the farm accounting is done within this one entity.
Third, since it holds all the equipment and related debt, this is no longer disproportionately on Mom and Dad. In these joint ventures, the EquipmentCo is paid first, with what’s left allocated to the remaining co-venturers.
Fourth, with Mom and Dad continuing to share in the farming profits, and since this is active farming income, their tax rate is about one-half of what it would be if they rented out their land. Land rent is considered passive income and taxed at a higher rate.
Fifth, Mom and Dad may be able to crystalize their lifetime capital gains exemption on the shares they receive for the transfer of their equipment to EquipmentCo. This allows them to receive a significant amount of tax-free money.
Finally, with all the family corporations sharing profits, it no longer matters whose land is seeded first or harvested first or has the most lucrative crops. Decisions are made to benefit the farm as a whole, because once the equipment costs are paid, the remaining farm profits are distributed based on their pro rata share.
In our farm family example, Mom and Dad also have a nonfarming daughter who they want to treat fairly. To do this, they’ve incorporated a company we’ll call RetireCo, which is controlled by Mom and Dad but owned by the non-farming daughter. Profits from their farming company are pushed into RetireCo on a tax-free basis.
RetireCo provides a retirement income to Mom and Dad, with surplus income being moved to the non-farming daughter and her family. In this way, the joint venture farm structure also facilitates estate planning.
With record farmland values, it is becoming more common for some farmland to be left to the non-farming sibling, who might decide to set up their own farming corporation and participate in the joint venture. This might be the best investment the non-farming sibling ever makes. Without this sort of structure, many active farmers may lose land to their non-farming sibling.
Setting up a joint venture with numerous corporations comes with a price tag and it can take some time to fully understand the structure. However, the benefits can greatly outweigh the time and expense. It can allow farm families to steer their family farm in the right direction.
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A TRANSFORMATIVE PROJECT OWNED
Scott Shiels
Scott Shiels grew up in Killarney, Man. and has been in the grain industry for 30 years. He has worked with Grain Millers Canada for 10 years and manages procurement for both conventional and organic oats for their Canadian operation.
Scott is an elected board member for Farm and Food Care Saskatchewan and sits on several other committees on both the organic and conventional sides of the oat industry. Scott and his wife Jenn live on an acreage near Yorkton, Sask. Find out more at www. grainmillers.com.
Organics as an Option
I am going to head in a little different direction this time, and talk a little about the market and the growing opportunities in the organic agriculture sector.
Over the past decade and a half, since the 2008 major economic downturn, the Canadian organic agriculture industry has experienced some significant changes, not the least of which has been a large reduction in the number of producers certified to produce organic crops across the country. With sales of organic food products still maintaining their market share, the industry has been forced to look to imports to fill in the gaps left by the production shortage domestically. This shortage opens up a tremendous opportunity for producers who may be interested in transitioning land into organic production, as prices and demand opportunities are very strong.
With the current push into regenerative agriculture, producers are being presented with an array of options on the production side that could easily take them from conventional ag into the organic world. Currently, there is still a 36-month wait time between last application of chemicals or synthetic fertilizers and your first organically certified crop, but with crops like oats that don’t require a lot of inputs to produce a decent crop, producers have options that can help them through the all-important transition years.
Beyond just looking at the transition years, the market opportunities are vast for organic grains and oilseeds such as oats, wheat and flax, and legumes such as peas, lentils and soybeans. Prices range from double conventional in crops like oats, to triple and more for crops like flax!
Here on the Prairies, we have numerous buyers, processors and millers for organic crops, giving producers many local value-added options for marketing their crops. We also have three major organic certification bodies located on the Prairies, giving producers a personal and hands-on experience with their certification process. When you have local offices that you can call for advice or help, it certainly gives one a much more positive feeling inside.
Most of the large organic buyers also buy conventional crops, which gives producers the opportunity to really dig deep into their options and look at what they can do moving forward. With organic acreage decreasing and demand continuing to grow, the future looks bright on the organic side of our industry.
I chose this topic for my article to get you thinking about organic as an option on your farm. Not that we want to push producers one way or the other, as we are one of those buyers big on both sides of the industry, but there is a ton of support and opportunity right now for producers to transition to organic and like they say, there is no time like the present.
Until next time…
WE’LL STAND STRONG TOGETHER.
The ag industry is built on a solid foundation of resiliency and resolve. AFSC is proud to work alongside producers every day ... and we look forward to helping grow the ag industry now and in the future.
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Every seed starts a story.
Farming grows stories. When the rain comes or doesn’t, with the belly laughs over coffee and the late nights lit by flashlights over an old tractor… every year becomes a tale to be retold.
We help good stories grow with the highest quality seed backed by committed retailers and years of research in yield, disease resistance, maturity and grain quality.
Start writing the next chapter for your operation. Make it a great one. Find a retailer near you.
2024 Was a Good Year for Seed Growers
New varieties have worked their way through, and prevailed
By Lisa Kopochinski
When speaking to seed growers across the Prairies, it is clear that 2024 has been a fairly good year. While there were highly variable weather conditions overall, new varieties have worked their way through, and prevailed.
Chris Barker is the executive director of the Saskatchewan Seed Growers’ Association (SaskSeed). He says growers’ plans have proven to be more broadly productive under current conditions than the older varieties on the market.
“Like every other part of the ag sector, seed growers are challenged by high inflation, which has increased costs while the market has put pressure on the price side,” Barker notes, “So, while 2024 will go down as a good year, stability in the weather conditions and market forces could have made it a much better year. The highlight of the year for our growers has been seeing the new genetics for breeding programs prove their worth in the field.”
Kelly Chambers, executive director of Alberta-British Columbia Seed Growers, says the quantity of the 2024 seed crop was as variable as the weather across not only Alberta, but Saskatchewan and Manitoba as well.
“Some areas of central Alberta received less rain than usual as the seed was filling out, leading to lighter than usual seed and lower production. However, other areas in the province,
“Like every other part of the ag sector, seed growers are challenged by high inflation, which has increased costs while the market has put pressure on the price side.”
- Chris Barker
and many pedigreed seed acres in Alberta’s irrigated south, will help compensate, leaving the province in good shape for pedigreed seed supply. Markets are more likely to dictate what crop types and varieties are the bestsellers.”
Jennifer Seward, executive manager at Manitoba Seed Growers’ Association, agrees and adds the only difference is Manitoba’s soybean seed component.
“We have more seed soybeans than Saskatchewan and Alberta, and that is simply a factor of commercial producer cropping plans on a regional/geographic/growing condition perspective. Saskatchewan has more special crops like lentils,
MCDOUGALL ACRES GRAINEX
McDougall Acres is a Century family farm from Moose Jaw with a legacy spanning four generations. Established in 1916, our farm has witnessed the evolution of agriculture in the region, embodying a tradition of excellence, resilience, and commitment to the land and community. As a trusted seed grower and distributor, McDougall Acres takes pride in offering a diverse portfolio of over 30 meticulously selected varieties, including wheat, durum, barley, oats, peas, lentils, chickpeas, and flax. Our approach is straightforward and impactful: we don’t just recommend seed; we share the ones we’ve personally tried and found to excel in real-world farming conditions. McDougall Acres is a reliable partner, offering insights and guidance grounded in three decades of no-till production.
December 2024 marks a significant milestone for McDougall Acres. We are excited to introduce our customers to McDougall Acres Grainex Inc., a reimagined company committed to providing our customers with the same knowledge and experience from Seed > Producer > Market. We are the same family-run and operated
company with a different operating name and logo. As we embark on this new chapter, we are confident that McDougall Acres Grainex will continue to thrive and deliver exceptional value and service.
McDougall Acres holds a distinguished position as a leading Canadian exporter of chickpeas to Europe and Asia. Upholding the highest food safety standards, including industry certifications, an extensive sampling and testing program, supplier evaluations, and awareness, we ensure that the quality of our products meets and exceeds market expectations. Additionally, McDougall Acres plays a crucial role as a pet food ingredient supplier, actively purchasing pulses yearround. Our commitment to supporting growers and maintaining a reliable supply chain for our partners underscores our dedication to fostering a thriving agricultural community. Whether you are seeking the newest seed variety or looking to market your pulses, McDougall Acres is a committed partner in your farming success.
“Early moisture this year buoyed everyone’s expectations. However, excessive heat and dryness during the last half of the growing season stole some of that anticipated yield. The newer crop varieties recently released to seed growers have tolerated the highly variable growing conditions better than many of the old standbys.”
- Chris Barker
durum wheat and mustard, and Alberta has larger acres of barley and a large hybrid canola seed production component. Manitoba sees greater soybean production and in 2024, this was Manitoba’s phenomenal crop.”
Seward adds that record yields resulted from a very wet spring, which evolved into a dry summer and fall – ideal for soybeans. “And while we anticipate soybean seed demand to remain steady in Manitoba as we look ahead to the next few years, wheat remains the common and most grown crop type for all three provinces. That trend hasn’t changed for several years.”
The biggest issue for seed growers this year has been the weather, which, in Saskatchewan, continues to be a primary challenge with different regions of the province each having their own set of challenges.
“Early moisture this year buoyed everyone’s expectations,” says Barker. “However, excessive heat and dryness during the last half of the growing season stole some of that anticipated yield. The newer crop varieties recently released to seed growers have tolerated the highly variable growing conditions better than many of the old standbys.”
While there are likely to be tight seed supplies in some areas, he says the network of seed growers throughout the province will ensure that producers will be able to access high-quality pedigreed seed of the newer more resilient varieties.
When asked what he thinks 2025 will have in store for growers, Barker says the only prediction he can make is that the weather will be a surprise.
“Events we haven’t anticipated will impact agriculture and the seed industry. However, I do think 2025 will be better than 2024. The seed sector is undergoing a regulatory review process with the Canadian Food Inspection Agency (CFIA). We are in the process of building a next-generation seed system that will be more efficient and responsive to the changes in technology and market forces that are shaping the ag industry.”
He adds that new varieties coming out of breeding programs and into the hands of seed growers are proving themselves in the field.
“Whatever the weather brings and the market demands, seed growers will be better positioned to supply producers with quality certified seed.”
Looking ahead to the next few years, Seward anticipates soybean seed demand to remain steady in Manitoba.
“Wheat, however, remains the common and most grown crop type for all three provinces, and that trend hasn’t changed for several years,” Seward points out. “Spring wheat
(hard red spring) will continue to be the dominant juggernaut crop for Western Canada. In Manitoba we’re seeing trends pointing at more fall seeded cereals (winter wheat and fall rye) for various reasons, from marking options and genetic advancements to agronomic and production benefits. Oats are also popular and will continue to be an important crop for seed production.”
When asked what advice or suggestions SaskSeed can provide that could help seed growers, Barker stresses the importance of growers engaging with their producer customers and reminds everyone that they are not selling seed.
“You are selling a whole package of genetic traits designed for maximum productivity and marketability. The newest varieties will maximize profitability for the producer when grown under appropriate management. Seed growers have seen how these varieties respond under different field conditions for several years before they are available to their customers.”
He also encourages growers and producers to engage with the association. Every year, SaskSeed publishes its annual seed guide with the latest information on crop varieties that producers need to consider in order to make the best
decisions for their farms.
Seward adds, “The regulatory certification agency in Canada is the Canadian Seed Growers’ Association (working with CFIA), of which all the provincial branches are affiliated. We work in tandem with the Canadian Seed Growers’ Association (CSGA), but also independently. Our growers are proud of the level of quality that the Canadian seed system provides, and many hang their hats on the value of the ‘blue tag.’
“Furthermore, pedigreed seed sales include a platform for future variety and genetic advancements for western Canadian farmers, which keeps Canadian Ag products competitive on a global stage.”
Perhaps Chambers sums things up best by saying the great thing about Canada’s regulatory system is that unless the harvested seed crop meets all the quality parameters of certified seed, it cannot be sold as certified seed.
“Seed test results must confirm high germination (in the 90th percentile for most crop types). A physical crop inspection and proper isolation confirm that the crop has maintained its genetic purity. The final product is delivered cleaned.”
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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.
The True Millennials: Horsetails
Field horsetail and scouring rush seem to be two of the most complex, challenging weeds to identify and control. It’s not because they are new; in fact, these two weeds are part of an ancient plant group that has been in existence for about 400 million years.
Horsetails became quite dominant in the world about 230 million years ago and as such, contributed significantly to the formation of coal deposits. The ability of these “dinosaur” weed species to persist speaks of their ability to survive variable conditions.
There are more than 15 species from the Equisetum weed family that continue to exist.
Horsetail family plants are perennial, consisting primarily of leafless stems, spread by spores or creeping rhizomes and having a relatively high silica content.
Scouring rush is quite distinct. Each stem is a sturdy, single, hollow, green leafless tube that seems like nature’s version of Lego because it breaks apart at the nodes of the stem and can be rebuilt. Field horsetail has a similar hollow main stem, but there are whorls of very fine but solid branches coming out at each node that resemble needles or very thin leaves. Both weeds are quite rough to the touch, due to the silica in the stem.
Reading through the literature, there are several options identified as potential controls for horsetails. Extensive tillage, improving drainage and adjusting soil pH are three common cultural control suggestions.
As with any perennial weed, tillage may make the problem worse by distributing the rhizomes and tubers, allowing new colonies to form. If the tillage operation allows the tubers to dry out for 14 days, a study by C. Weber from 1903 suggests that the tubers will no longer germinate. However, if the tubers were submerged in water, they could survive for more than 40 days. While tillage can reduce above-ground plant material and the vigour of the weed colony, the rhizomes are able to grow as deep as 1.5 metres (5 feet).
A study by V. Wagner noted that a 10-centimetre (4-inch) piece of rhizome kept in a controlled environment could produce 64 metres (210 feet) of rhizome in one year. There were no studies that provided a recommendation on how often to till in order to eliminate these weeds, but there was the suggestion that it would require several years of tillage to make an impact.
It is frequently noted that there is a strong association of horsetails with moist habitats like wetlands, field margins and
Horsetails became quite dominant in the world about 230 million years ago and as such, contributed significantly to the formation of coal deposits. The ability of these “dinosaur” weed species to persist speaks of their ability to survive variable conditions.
Chemical control of horsetails is also challenging. The lack of leaf surface to absorb herbicide and the tough silica stem are significant barriers. Studies from New Zealand, Ontario and Washington all indicate that herbicide efficacy can be quite variable. A New Zealand study from 2010 indicated that the
Opening night reception on January 27
Keynote addresses from Michele Payn, Bill Wirtz & Drew Lerner
Forward thinking sessions for today's farmer
Valuable networking opportunities to foster fresh ideas & meaningful connections
PRECISIONPAC® APPLICATION INNOVATION
Customized Weed Control, Just for Your Fields
Farmers know that no two fields are exactly alike. That’s where PrecisionPac® Application Innovation by FMC steps in, giving you custom herbicide blends that are specifically made for your field’s unique needs. Think of it as weed control, made personal. PrecisionPac® herbicides take the guesswork out of choosing the right blend, offering a convenient, waste-reducing solution that’s built for efficiency.
Customized Blends, Right Where You Need Them
PrecisionPac® doesn’t believe in a one-size-fits-all approach to weed control. Instead, it can create up to 26 different herbicide blends, each one made to tackle the specific weed spectrum in your field. Your PrecisionPac® herbicide blend comes packaged in a small, easy-to-carry bag with the field name or number right on it.
Save Time, Money and a Whole Lot of Effort
We know that time is precious, especially when there’s a season to make the most of. PrecisionPac® herbicide blends are pre-measured by the PrecisionPac® machine, so you don’t have to worry about measuring or dealing with leftovers. Just grab your custom PrecisionPac® bag, add it with your other tank-mix partners and you’re ready to roll. It’s as easy as that.
And it’s not just about convenience. Because PrecisionPac® delivers what each field needs – there’s no wasting product. You pay for exactly what you need, nothing more, nothing less. It’s not only good for your bottom line but also helps promote a more sustainable way of farming.
Right Product, Right Rate, Right Acre
The PrecisionPac® approach can be summed up in one powerful phrase: “Right product, right rate, right acre.” Each herbicide blend is crafted to deliver exactly what your field needs, whether you’re battling tough, resistant weeds or just prepping your fields before planting.
Why Growers Love PrecisionPac®
1. Customizable Solutions: PrecisionPac® lets you pick exactly what you need, based on your field’s acreage or sprayer tank size. It’s weed control, on your terms.
2. Cost-Efficiency: You’re not paying for extras you don’t need. PrecisionPac® helps you keep costs down by giving you precisely the weed control each field requires.
3. Timesaving: No more messing around with measuring multiple herbicides. Just grab your PrecisionPac® herbicide blend at your local retailer, and you’re ready to hit the field.
4. Improved Weed Control: Many PrecisionPac® herbicide blends work with multiple modes of action, giving you stronger resistance management and weed control results.
5. Expert Support: With PrecisionPac®, you also get the support of knowledgeable retailers and FMC expertise. They’re there to help you find the best herbicide blend for your crop and weed spectrum, simplifying the whole process.
Tomorrow’s Farming Today
Less waste, less handling and no excess product left behind –compact bags and precisely measured blends by PrecisionPac® make it a sound choice for weed control that fits your farm’s values, as well as your needs.
So, if you’re ready to take weed control to the next level, ask your local retailer about PrecisionPac® herbicides. It’s not just about weed control — it’s about creating a solution that’s right for you, right down to the last acre.
Scan to learn more about PrecisionPac® herbicides or visit: ag.fmc.com/ca/en/products/precisionpac-pre-seed-herbicides
Canadian farmers, which keeps
The research indicated that the addition of an organosilicone surfactant was more beneficial than an alcohol-based surfactant or an organosilicone plus nonionic surfactant blend. Furthermore, the research indicated that daytime treatments were more effective than nighttime treatments.
chemical control of field horsetail required rates that were expensive and impractical to apply over large areas (dichlobenil and picloram), while other treatments resulted in no significant difference from the untreated, despite receiving three herbicide applications over a period of two years (aminopyralid and MCPA). Similarly, in Ontario, M. Cowbrough and P. Sikkema found that glyphosate rates needed to be very high in order to impact horsetails; almost six times higher than normal field rates.
The upside to glyphosate, as compared to some of the other chemicals suggested, is a greater flexibility for crop options after application. With that in mind, D. Lyon’s weed research team at Washington State University assessed the impact of surfactant and time of day on the efficacy of glyphosate for scouring rush control. The research indicated that the addition of an organosilicone surfactant was more beneficial than an alcoholbased surfactant or an organosilicone plus nonionic surfactant blend. Furthermore, the research indicated that daytime treatments were more effective than nighttime treatments.
But wait … the suspected reason for the improvement in glyphosate with the organosilicone surfactant is the most fascinating hypothesis! Researchers attribute the improved glyphosate activity to stomatal flooding (the herbicide enters the weed through the open stomata). More research will be needed to determine if stomatal flooding helps improve herbicide efficacy enough that glyphosate rates can be adjusted and be effective as well as economical.
The take-home message of all this: even though there has been weed research on horsetails since the early 1900s, there are no easy answers for control. These plants have survived drastic periods of change and are likely to persist for many more millennia.
SeedMaster Board of Directors Appoints Allan Wiens as New Chief Executive Officer
Wiens to succeed retiring CEO Don Henry
Emerald Park, Sask. (November 19, 2024) – SeedMaster, the developer and manufacturer of no-till seeding technology driven by precision, has announced Allan Wiens as the company’s new Chief Executive Officer, effective December 2024.
“Allan Wiens has lived and breathed agricultural manufacturing throughout his professional career, making him the right person for the job as our new CEO,” said Larry Hilworth, Board Chair at SeedMaster. “We are looking forward to ushering in the next era of SeedMaster with him at the helm.”
Wiens is an 18-year veteran of the agricultural equipment industry in Canada and the United States. His career has spanned roles in product strategy and development, sales, marketing and aftermarket support at Deere & Company and Brandt Group of Companies. He graduated with a degree in Agribusiness from the University of Manitoba and holds an Executive MBA from the University of Iowa Henry B. Tippie College of Business. Wiens last held the position of Vice
of Companies before moving on to his new role at SeedMaster.
“I’m excited to join the innovative team at SeedMaster, especially as the company prepares to enter an exciting new phase of growth,” said Wiens. “I look forward to collaborating with the board, the team, and our dealer network to build on SeedMaster’s strong legacy of partnering with farmers to help them unlock the full potential of their operations.”
Wiens succeeds Don Henry who has served as CEO since 2020. Henry will be retiring at the end of the year after a brief transition period with Wiens.
“The Board of Directors would like to wish Don Henry and his wife Jill a happy and healthy retirement and a huge thank you for his great contributions,” said Hilworth. “Off the back of Don’s leadership and vision these past four years, SeedMaster will continue to be a strong leader in seeding precision moving forward.”
CDC director Curtis Pozniak is working hard with his dedicated team to improve existing crop varieties and provide resistance against constantly evolving disease and insect challenges.
IT STARTS WITH A SEED
Crop Development Centre brings choice and value to western Canadian producers
By Angela Lovell
Take a glance through your provincial seed guide and you will see a lot of crop varieties with the initials CDC before their name. In fact, those guides have contained more than 500 CDC varieties over the past 23 years since the Crop Development Centre (CDC) at the University of Saskatchewan in Saskatoon first began developing new crop varieties. Since its inception, the aim of the CDC has been to help producers across Western Canada add more value to their operations.
The CDC is partly funded by producers’ checkoff dollars and has estimated its breeding programs return $11 for every dollar invested. That return rises to a whopping $37 per dollar invested in pea, lentil, chickpea and dry bean breeding, which was, and remains, an area of focus that has made Saskatchewan a major world exporter of these crops. Overall, from 1991 to 2015, the CDC increased producer profitability by $3.8 billion.
Jake Leguee doesn’t need to see the statistics to know the benefit the CDC has brought to his farm near Fillmore, Saskatchewan.
“Our farm’s profitability and long-term success depends on our ability to generate profit on all the crops that we are growing,” Leguee says. “In the past, wheat was often just a rotational crop around our other more profitable crops like canola, flax and lentils; we didn’t expect to make a lot of money
on the wheat specifically. What we have seen from the impressive changes in yield potential, disease packages, standability and all of the other traits that are going into these newer varieties is that spring and durum wheat are now just as competitive, if not more competitive, than some of the other crops in our rotation. It’s really helped make the backbone of our farm’s crop rotation profitable on its own, so we aren’t just growing these crops to grow the other ones.”
Leguee is also chair of the Saskatchewan Wheat Development Commission – a member, along with Manitoba Crop Alliance and Alberta Grains, of the Canadian Wheat Research Coalition that administers producers’ checkoff dollars to fund the work of the CDC, Agriculture and Agri-Food Canada and other university research programs across Western Canada through core breeding agreements. So, he understands the value of CDC’s work from a number of angles.
“Farmers need to know that the investment we are making is paying off and the numbers speak for themselves,” he says. “It’s because of the work that the CDC and the other organizations do, that we are able to have a healthy, competitive system for developing the best varieties for our farms. If we didn’t have the CDC, farmers would have less options to choose from to help them make a profitable rotation work on their farms and be successful for the long term.”
The need for innovation
Providing more options for farmers and adding value to the crops they grow has been the CDC’s mandate since the start, but today there is a growing focus on improving existing crop varieties for yield, of course, but also to provide better resistance against constantly evolving disease and insect challenges, and finding more end uses – leading to potential new markets – for the crops producers grow.
“It’s equally important to find new uses for the crops that we already grow,” says Curtis Pozniak, director of the CDC. “But it is equally important to our mandate to improve existing crops and to advance minor crops that might fit well into western Canadian agriculture.”
Finding new uses for different crops is part of the work done at the CDC’s Grains Innovation Lab, which is partially funded by producers and other industry partners, as well as the federal and provincial governments.
“The Grains Innovation Lab is a collection of scientists and technical teams who focus specifically on evaluating our breeding material for things like end use quality, nutrition, composition of the product and functionality of the product,” Pozniak says. “An important part of the breeding process is ensuring the varieties we release have a quality profile that’s in demand and that fits with the variety registration process. So, in wheat, for example, we look at protein content, grain density, seed plumpness, but also milling and baking qualities, and things like how much flour is produced and what are the properties of that flour. Is it good for noodles, or bread, or pasta? That whole team is critical to supporting the plant breeding activities of the centre.”
Over the years, the CDC has also done a lot of work on optimizing genetic potential with agronomy solutions of many different crops to ensure yield potential is realized in producers’ fields under various conditions.
“For example, in the early days, the CDC worked on zero-till agriculture and optimizing production for winter wheat so that the crop can survive our harsh winters,” Pozniak says. “That combination of genetics and sustainable production systems is a big footprint that the CDC has.”
Many highlights
Scientists working on plant breeding programs at the CDC have been recognized for their contributions to Canadian agriculture with many awards over the years, including the Order of Canada and Queen Elizabeth II Diamond and Golden Jubilee medals.
Highlights of the CDC’s work over the years – and there are many – have been the development of new lentil varieties such
Curtis Pozniak, director of the CDC.
Jake Leguee understands
benefits the CDC has brought to his farm near Fillmore, SK.
“Farmers are critically important in supporting the plant breeding research that we do at the centre. They have a voice in the priorities, the objectives and the targets of our plant breeding program. Working with producers is critical. They are the ones who are most invested in the product we develop, so being in tune to their needs is what drives our work at the CDC.”
- Curtis Pozniak
as CDC Maxim and CDC Greenland. In Western Canada, 99 per cent of all lentils grown are CDC varieties. Almost 50 per cent of barley acreage grown across the Prairies and nearly 40 per cent of commercial durum wheat varieties are CDC varieties. Canada represents nearly 60 per cent of global durum wheat trade.
The CDC produced the world’s first hairless canary seed variety, and Canada now exports around $100 million worth of this crop worldwide.
CDC researchers also led an international consortium that decoded multiple wheat genomes, and were part of international teams responsible for sequencing the genomes of other crops like lentil, pea and chickpea.
A unique collaboration
What makes the CDC unique is its integration with the department of plant sciences and the College of Agriculture and Bioresources at the University of Saskatchewan, which allows it to combine science with conventional breeding techniques and advanced technologies.
“The CDC is very connected to foundational research, developing and validating new tools, and creating new knowledge that then flows that foundational idea all the way to a variety that makes its way into the farmer’s field,” Pozniak says. “We do a lot of work on developing new technologies that support plant breeding activities. Obviously, sequencing the genomes of the crops that we work with has been foundational in that we now have a genetic blueprint of our plant breeding programs. This helps us understand the genetic diversity that we have available to us and allows us to be more efficient in our breeding programs.”
The CDC’s technology isn’t just about genomics though. It also employs digital phenotyping technologies, like using highdensity precision cameras that allow the team to visualize research trials in a way they never could before.
“That generates a lot of big data that we then need to computationally analyze and use to make decisions on
selecting the best material,” Pozniak says. “The plant breeders at the CDC have always done a good job at integrating conventional breeding with modern breeding technologies and that’s been the key to our success.”
Producers have a strong voice
Ultimately, everyone who works at the CDC – the scientists, technical teams, students, post-doctoral fellows and research associates – understand that the main focus of what they do is the farmer.
“Farmers are critically important in supporting the plant breeding research that we do at the centre. They have a voice in the priorities, the objectives and the targets of our plant breeding program,” Pozniak says. “Working with producers is critical. They are the ones who are most invested in the product we develop, so being in tune to their needs is what drives our work at the CDC.”
Plant breeding is never finished. There is a constant need for improvement, whether that’s pushing the yield envelope, developing ways to deal with emerging or evolving pathogens or insects, or staying ahead of changing quality profiles to meet the needs of end users. As it has over the past 50-plus years, the CDC is gearing up to meet the changing needs of Canadian agriculture and bring producers more value in the years ahead.
“One of the things that we have done recently at the CDC is to develop a growth plan, looking at the work that we want to do moving forward which again, focuses on the needs of our growers,” Pozniak says. “There are a number of high-priority diseases that have become problematic in wheat and barley, like fusarium head blight and root rot in pulse crops. Breeding targets and priorities are dynamic and we have to adapt to that. Plant breeding is a long-term venture. It takes eight to 10 years to develop a variety, so we need to continually have an eye on the crystal ball to focus on what will be important, not just now but in the future. This forward-looking approach defines what our priorities are going to be, and we start working on that today.”
Making the Leap from Procrastination to Planning
Start with the “why”
By Nerissa McNaughton
Succession planning. We can all agree that it’s important and without it, the future of the farm falls into disarray. However, it’s far easier to imagine the cosy scene of the second, third or even fourth generation taking over than it is to bring it to fruition. Succession planning means time, money, professionals and sometimes very hard decisions that cause a lot of tension. For those reasons, the trend is to procrastinate the process.
That, however, is a mistake.
What if there was a way to get over the fear and frustration and to stop putting the process off until time or a medical emergency forces your hand?
MNP, one of Canada’s most recognized professional services firms, is passionately dedicated to the success of Canadian farmers. Trevor MacLean is a partner with MNP’s agricultural team and the national leader of their TransitionSMART services located in Lethbridge. In addition to providing customized solutions for clients, his articles and frequent guest appearances on podcasts provide ready access to those looking for bite-sized information that is easy to understand and follow. A podcast episode, From Farm to Legacy: Building Family Enterprises with Trevor MacLean, is available on podbay.fm.
With recent StatCan data showing that the average age of
Canadian farmers is now 56 years old, but only 12 per cent of those farmers have a written succession plan, the need for action is clear; and, according to MacLean, it doesn’t have to be complicated.
“The length of your succession plan will depend on how many actors are involved in the transition. However, when printed, it can all fit into a binder.”
Typically, a succession plan will cover many topics that farm families many not have contemplated, but due to the complexities and dynamics involved, it will need to be inclusive in order to have peace of mind and comprehensiveness for everyone.
MacLean notes the typical elements of a plan and once broken down, these elements can be easily started, managed and updated as necessary:
• A business plan (typically 3-5 years), estate plan, ownership transfer plan, contingency plan;
• A unanimous shareholder agreement or other agreement depending on structure;
• Copies of lease or rental agreements;
• Annual financial statements, banking agreements,
insurance details;
• Training and knowledge transfer (grooming plans); and
• Governance documents (policies, guiding principles, job descriptions, service contracts, etc.).
Another sage piece of advice that he offers in Farm Succession Planning: The Role of Your Executor and How to Set Them Up for Success is to appoint an executor – now – to help facilitate a smooth transition upon the death of the owner/key person.
“To fulfil this duty effectively, the executor must have access to pertinent information about the operations well before being activated to take control. Sharing your knowledge now will give you the peace of mind you’ve set your executor up for success and will ensure they’re not left with a mess if an unexpected situation crops up,” MacLean emphasizes.
As with breaking down the steps to start succession planning, he offers the following questions to start the process with an executor, reminding farmers to never assume the lawyer or accountant has all the information the executor will need. Professionals tend to operate in silos, where an executor needs a broad view of the entire plan and the owner’s wishes.
Discuss with the executor:
• What assets do you currently own?
• When did you buy your assets?
• What did you pay for those assets?
• If you inherited assets, when were they transferred to you and what are their value?
• What do you think your operation is worth?
• What is the estimated fair value today of your land and farm operations?
• Who do your assets go to upon your death?
However, MacLean knows that this is not the full picture. While some second-generation farmers are eagerly waiting in the wings, anticipating their turn at the helm and happy to make the transition happen, many others have no interest in maintaining the family farm, or are just as put off as their parents by how complicated succession planning can be. Today’s farms face much different challenges than previous generations, including the rise of technology, greatly increased costs, stiff competition from mega farms and much more.
For farmers without willing heirs or families concerned about the legacy, connecting with MNP is a viable solution. Eschewing the “one-size-fits-all” mentality, MNP knows that each farm, each farmer and each heir – be it in the family or an outside interest – is completely unique. Farmers don’t need to have a plan in mind to start the process with MNP. The willingness to have a discussion is enough for MNP’s professionals to step in with a guiding hand, working side-by-side with their clients to make the process workable over time and at a sustainable comfort level.
Farm Credit Canada (FCC), a federal Crown corporation, reports to both the Canadian population and Parliament via the minister of agriculture and agri-food. FCC provides a variety of resources to over 100,000 customers by leveraging a team of more than 2,500 employees from 103 offices across Canada.
FCC Advisory Services offers a complimentary program to assist farm families in navigating their transition journey. The service includes informal discussions to identify transition goals, gap analysis and recommendations for next steps. It provides resources and connections to a network of professionals for executing transition plans. While it doesn’t offer formal transition plans or technical advice, it focuses on pre-transition planning and improving communication with existing advisors.
Valerie Panko, business advisor, FCC, knows the struggles farmers face when it comes to succession planning.
“Transition is one of those things that most people will do once in their lifetime. Since it is not something that is done very often, many don’t know where to start. Additionally, often all you hear about are the horror stories, the negatives and the challenges. I feel like succession gets a bad reputation because a lot of people consider it private and don’t talk about it, and when they do, it’s about the negatives. That would discourage anybody!”
Panko points out that while it is an involved process and there are often challenges, getting started and remaining focused eases the way.
“There are two parts involved in transitioning. The why and the how. The how often gets the most attention –implementation, lawyers, accountants, tax and estate planning. But to me, the why is the part that helps clarify a lot of the roads to the how. It’s about understanding what you want out of the transition.”
She clarifies by saying, “If you go to an accountant or a lawyer and you just say, ‘hey, I want to transition,’ and you don’t have really clear ideas for what you want to see in your
Valerie Panko, business advisor, Farm Credit Canada.
Trevor MacLean, partner with MNP’s agricultural team and national leader of TransitionSMART.
transition, they’re probably going to lean into their area of expertise. It’s tax, if it’s estate planning, whatever it is, they’ll lean into that. However, the catch is that the plan may not fit the unique situation and family that you are if you haven’t taken the time to uncover what that is and be able to say, ‘here are some of the things I want to see happen in my transition, and here are some of the things I don’t want to see happen.”
Panko stresses that without a clear definition of your own why, it is very hard for technical advisors to provide the support that meets your unique objectives.
“I always say it’s a really, really important thing to break it down at the beginning between the why and the how and get clear on what you want, hopefully before you wade into the pool.”
While some find that once they take the plunge into the pool, the process is far less daunting than feared, Panko knows it is best to be prepared for some uncomfortable moments.
“I’m not going to sugarcoat it,” she says. “I think people need to understand that there is no silver bullet for the biggest challenges. Some transitions are hard. Some have a difficult
family dynamic. However, no matter how hard, no matter how easy, once you start and you take that first step, it’s a little bit easier to keep the ball rolling, and I believe that momentum plays a big role in transition planning. It is taking some steps, learning some pieces, and that will lead you to the next – and once you realize that it’s doable, you also realize that it is not impossible.”
FCC is willing to help all farm families and businesses, not just customers, take those first steps.
“Our goal is to take away some of the mystery of it and to get people teed up in terms of what we sometimes call a pre-transition conversation. A big part of our mandate is to be that first step for people.”
Succession is a big step and often one filled with uncertainties, but a future without a plan is not the answer. Start by identifying your why and let that lead you to the how. When it comes to the how, there are many resources and advisors ready to help. Break it down into bite-sized pieces and before you know it, a plan is in place and peace of mind follows.
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.
What Makes for a Good Spray Application?
With all the talk about features of new sprayers, we can sometimes lose sight of the basics of spray applications. Let’s pare it back down to the basics. What needs to happen for a spray to be effective?
Application Triangle
Before we get into the details, it’s wise to recall the “application triangle.” Also known as the “three Es of application,” it considers three goals:
1. Efficacy
2. Efficiency
3. Environment
Efficacy is at the top. Pest control is the reason we spray. Why bother if you don’t ensure it works?
Efficiency is second. We need to get efficacy without unreasonable costs. For example, grain farmers spray most products at 10 gallons per acre (GPA), not 100 GPA because it’s impractical to haul that much water. A sprayer needs to cover enough ground per day to get everything treated at the right time.
Third is the environment. The first two goals can’t come at an environmental cost. We need to manage drift and runoff. We need to dispose of waste safely. That may take time.
The point of this triangle is to reinforce that you can’t have all three maximized. You want good efficacy and good drift control. That means both the finest sprays and the coarsest sprays are probably not a good idea. If you choose something in between, a bit of extra water is needed to make that work, and that decreases efficiency.
The Recipe
Droplet Size: Droplet size controls most factors. The finer the spray, the more droplets produced, resulting in better coverage. However, these small droplets are susceptible to off-target movement (drift) and evaporation. Coarse sprays have better control over drift and evaporation, but come at
the cost of coverage. For this reason, the industry has settled on something in between: the ASABE (American Society of Agricultural and Biological Engineers) “coarse” spray. Not too coarse, but not too fine, it’s the Goldilocks principle in action.
Conclusion: Use intermediate spray qualities for the majority of the work, in most cases ASABE coarse to very coarse.
Swath Uniformity: This parameter is harder to measure but can still be guided by some basic observations. A deposit along the boom with high peaks of deposit quantity but also low valleys is wasteful. In order to get control in the valleys, we’d need to apply more product. The peaks, on the other hand, have an abundance of product already, meaning rates should be reduced. But we can’t, because of the valleys.
Better uniformity is achieved by paying attention to nozzle condition and boom height. We need a certain amount of overlap from nozzles. When the boom sways up and down, the overlap changes. Too much overlap is OK for uniformity; it just causes more drift and other displacement. But too low is a problem because with insufficient overlap, we get striping. The rule of thumb is to operate nozzles at 100 per cent overlap, where the pattern width is twice the nozzle spacing and the edges extend to the middle of each adjacent pattern.
Booms can also yaw, which describes the movement forward and backward. When a boom yaws forward, it is going faster than the tractor unit and under applies. As it yaws back, it over applies.
Conclusion 1: Pay attention to the boom on your machine and invest in technologies that minimize sway and yaw, and that maintain low, desired heights.
But it’s more complex than just boom stability. Wind, travel speed and machine-induced turbulence can displace sprays. Slower speeds are beneficial to a good spray job. They don’t just reduce turbulence and drift, they also improve boom stability by allowing the boom to adjust better to changing conditions.
Conclusion 2: Use the slowest practical speed given a day’s workload.
Water Volume: Hauling water is time and energy consuming, creating an incentive to use the lowest amount of water possible.
The constraints on water volume are simple. The less water applied, the fewer droplets created. Pesticide products differ in the droplet density required, but we can agree there is a
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threshold droplet density below which performance suffers. The power of smaller droplets is very handy here, because even a small reduction in droplet diameter has an effect on droplet numbers.
Again, we strive for some middle ground. We avoid using droplets that are so small they may harm the environment, or product efficacy (though they rarely do). We accept the need for a reasonable water amount to make our intermediate, “coarse” sprays work well. And we recognize that the single most powerful way to improve canopy penetration is water volume.
It’s also important to note that higher water volumes improve tank mixability, create fewer problems with pulse width modulation (PWM) valves and improve uniformity. Thankfully, modern sprayers have sizable tanks, so the productivity penalty for higher volumes is less than it has traditionally been.
Conclusion: Intermediate water volumes, and those that match the canopy requirements, are key to benefiting from modern low-drift style nozzles.
Specialty Nozzles: While an average low-drift flat fan nozzle is truly the workhorse of modern spraying, there are situations where specialty nozzles can make the spray more effective. The best example is the use of forward-angled, or twin-fan sprays, for fusarium head blight (FHB) control. In some canopies, swept back tips can be useful for improving canopy penetration, as they counteract the forward movement of the boom and create a more vertical trajectory for the spray. Of course, the ultra-coarse sprays that were introduced for dicamba in Xtend-traited soybeans are highly effective in reducing drift, and can be used with any product to extend a spray day into windier conditions when necessary.
Conclusion: Use either coarser or angled nozzles to allow the job to be done on time or to improve targeting in mature canopies.
Spray Pressure: As long as we use hydraulic nozzles in which spray pressure determines the atomization and pattern formation process, that spray pressure will be critical. This is true for conventional systems in which pressure controls flow rate, but also in PWM systems where that task is given over to duty cycles. In both systems, pressure controls droplet size and spray pattern. Therefore, an intermediate pressure is key to proper nozzle operation.
Conclusion: Operate nozzles in the middle of their advertised pressure range to secure optimal performance and adjustment flexibility.
Logistics: Most gains in acres per hour can be found in better logistics. On any given spray day, a significant amount of time is spent on tasks that compete with sprayer operation: filling a sprayer, refilling a tender system and cleaning the sprayer between crops. The improvements that have proven most effective are investments in tendering systems, continuous cleaning systems, recirculating booms, wider booms and larger tanks. All of these changes, except in most cases the larger tank, can be implemented on your existing sprayer.
Logistics plays a fundamental role. We’re not necessarily talking about getting done faster. We might use the time gains to treat more acres at the agronomically correct time, or to drive slower, realizing the benefits of lower, more stable booms, less wear and tear, less drift and less deposit variability.
Conclusion: Document time spent on all spray-day tasks and improve those that take away from potential productivity.
All the tools for a better spray job are available to any applicator. It is mostly a question of evaluating one’s values and making modest adjustments to align with your intended outcomes.
Black Smoke in the Distance: Combine Fires
By Braden Hursh
Sometimes we see it from miles away in a neighbour’s field. Sometimes we see it while we sit in the truck parked in the headlands waiting for the next load of grain. And sometimes we do not see it at all. That plume of thick black smoke trailing behind us, growing larger by the second. Combine fires are a terrifying occurrence during harvest, and in the dry, relentless heat, the question is not if there will be a fire, but when and where.
During the marathon of harvest, the ability to keep moving is essential. Many farmers have the dangerous tendency to push both their machinery and themselves to the brink during these periods and when you add the heat and dry conditions to an already volatile situation, mistakes can be made, machinery can fail and bad luck can strike.
Although there is often a feeling among farmers that combine fires are happening more frequently than they used to, the statistics do not support that claim. Nor are fires happening with newer combines more frequently than older models. Blair McClinton, farm segment director at SGI (Saskatchewan Government Insurance), states that it is not necessarily the machinery being more prone to fires than in the past, but instead it is the conditions they are operated in.
Any machinery operating during the autumn months has a higher risk of fire.
“If you were to tell me that there’s going to be three weeks of 35 C weather in August and September, I will guarantee you that there will be an increase in combine fires,” says McClinton. “A million-dollar-plus brand-new combine can burn up just the same as a $200,000 10-year-old combine.
It’s the simple fact that you’re dealing with the operation of a very complex machine with lots of moving parts, and lots of hot spots in an environment where you have lots of combustible material.”
Any piece of machinery that operates on a farm could become hot or have a mechanical issue that could lead to a fire, but it is the conditions that the machines operate in that dictate how severe the fires can be and how fast they can spread. The longer a piece of machine runs for, paired with maintenance, conditions and what kind of preventative measures are made, dictate the chance and severity of fires.
Total Losses
Lee Carpenter – Hanley, Saskatchewan
On the windiest day of harvest 2024 in Hanley, Saskatchewan, Lee Carpenter’s 2006 John Deere 9660 STS was harvesting barley when it suddenly caught on fire. The fire started without warning in the combine’s engine. Thankfully, the operator noticed the smoke in their rear-view mirror and quickly stopped the machine and evacuated. Five minutes later, the entire combine was engulfed in flames and both the combine and header were complete losses.
Like with nearly all rural fires, it is preparation, neighbours and volunteer firefighters that can prevent a problem from getting so much worse.
“We had a water truck and disc in the field, otherwise it would have definitely gotten away from us,” says Carpenter. “We couldn’t be more thankful for the help of the neighbours and Hanley volunteer firefighters.”
“Dad had mentioned that there was a big pile of black smoke behind us, and I didn’t realize it for another half mile, and then I turned around and booked it back to the field. When I got back, the combine was completely on fire. Luckily, my worker got out and was OK, but the combine was a total loss and I also lost 75 acres of wheat.” - Nick Wiens
He adds, “We were lucky that we had purchased a second combine a couple weeks back. The plan for the year was to run two combines, but we had to make due with one combine for the remainder of harvest.” The Carpenters were back combining in their second outfit the same day as the fire. They still are not sure what caused the fire.
Nick Wiens – Herschel, Saskatchewan
Nick Wiens is a grain farmer located about six miles north of Herschel, Saskatchewan. During harvest 2024, Wiens’ hired hand was harvesting wheat in their 2021 John Deere S780 with a different brand header. Wiens and his dad were driving back to their yard when his dad noticed smoke in the distance.
“Dad had mentioned that there was a big pile of black smoke behind us,” says Wiens, “and I didn’t realize it for another half mile, and then I turned around and booked it back to the field. When I got back, the combine was completely on fire. Luckily, my worker got out and was OK, but the combine was a total loss and I also lost 75 acres of wheat.”
Getting the fire under control was a team effort. Wiens’ father
called 911 immediately and then neighbours quickly began to show up with water trucks and a sprayer with a firefighting attachment. They also called the rural municipality (RM) office, who got the word out quickly. The volunteer firefighters, stationed in Rosetown, SK, arrived in 35 minutes. Wiens says, “I was really impressed with how quickly they got here; 35 minutes is blazing fast for anything rural. They are the reason it didn’t spread beyond the 75 acres we lost.”
When the insurance adjuster came to assess the damage, it was decided the roller bearings on the feeder draper were to blame for the fire. According to the adjuster, this roller bearing problem was a known issue with that particular header and they would be using Wiens’ insurance claim as evidence in an ongoing court case.
Getting back rolling for Wiens’ farm was thankfully not an issue. “It was very easy because Western Sales has a loaner program when you buy combines through them and you do the certified maintenance inspections (CMI),” says Wiens. “If your combine is out of commission for more than 24 hours, they’ll find you a loaner and bring it out to you free of charge.
Our fire was on a Saturday and we were combining again by Monday. We hadn’t even filed our insurance claim yet.”
After going through the combine fire, Wiens’ biggest piece of advice to other operators is to make sure everyone knows what to do if they see a fire. “I had a brand-new worker,” says Wiens, “and the only reason they knew what to do was because we kept saying to him ‘If you see a fire, get the heck out of there and don’t worry about the combine because that thing will light up and trap you faster than you can blink.’ Remember, you’re more important than your machinery. We have insurance to get a new machine, but we don’t have insurance to get a new you.”
Conclusion
Combine fires are a terrifying reminder about the dangers of farming and how quickly a situation can get out of hand. But when black smoke rises, the most important thing to remember is that a combine can be replaced, but you cannot. In part two of the Combine Fires series, we will examine prevention, planning, community strategies and insurance considerations.
Paul Kuntz
Paul Kuntz is the owner of Wheatland Financial. He offers financial consulting and debt broker services. Paul is also an advisor with Global Ag Risk Solutions. He can be reached through wheatlandfinancial.ca.
Is AgriStability Right for Livestock?
I have written about AgriStability in the past and spoke of its benefits to producers. Because of the design of the program, I have never thought that it could play a part in a cow/calf operation. I am now rethinking this position.
My experience with AgriStability and livestock producers dates back to 2003. In May of that year, BSE was detected and our border with the U.S. shut down to trade. This caused the markets to collapse. Producers held on to their market livestock in hopes prices would return. Cull cows and bulls became worthless. Local auction marts had no buyers for these animals, so they were shipped to other auction marts to be sold. In many cases, the producer was given a bill because the price received was not enough to cover the trucking.
This disaster left farmers in a position where they desperately needed financial help. The government directed farmers to AgriStability.
At the end of 2003, farmers began filling out their forms for AgriStability. It soon became clear that no support was forthcoming. AgriStability uses accrual accounting to measure income and expenses. Through 2003, very few animals were sold. As cull cows and bulls were worthless, farmers did not sell. As market livestock values fell, farmers held back every heifer and only sold what was absolutely necessary. The ending inventory of all cattle producers ballooned. Every cattle farmer had more animals at the end of 2003 than at the beginning. AgriStability is slow to react to prices changes, so they used pre-BSE prices for all inventory values. This math made it look that not only were these farms not in a claim, they were actually doing quite well. Nothing could be further from reality. This event led a lot of us to believe that AgriStability was not for cattle producers.
Another reason why the design of AgriStability favours grain farmers is because production is rarely affected in livestock farming. In grain farming, your canola can yield 55 bu/acre one year and the next year 20 bu/acre, all with the same management practices, but a change in rainfall. With livestock, each year a cow gives you a calf. Some time you get a set of twins and sometimes the calf dies, but you
The spirit of intention behind AgriStability is to make your operation as financially successful as it was in the past. Your level of coverage is based on your farm’s financial performance.
never get 10 calves from a cow. Production rarely changes. The events that change a livestock operation financially are the reduction in market prices or an increase in feed costs.
AgriStability triggers a payment when your margin falls below your reference margin. This drop must be 30 per cent before anything kicks in. The 30 per cent drop is drastic and this is what keeps most people from being in a claim. Although these barriers have not changed, here is why I believe the program may work for livestock producers.
The spirit of intention behind AgriStability is to make your operation as financially successful as it was in the past. Your level of coverage is based on your farm’s financial performance. If the past five years have been mediocre, this program will make sure your future financial performance is mediocre. But if your past five years have been exceptionally great, then this program will make sure you are exceptionally great going forward.
It was around 2015 that feeder cattle and culls shot up in value. Prior to this event, a 500-pound steer might have brought you $800-$900 at best. During 2015, the prices shot up so that a 500-pound steer was bringing $1,500-$1,800. It was a great time and producers did very well. The cattle industry was grateful and quickly explained these prices were needed to be sustainable and everyone felt like this was the new price of beef. It was not. This lasted for about 18 months and prices began to slide back. By the end of 2016, that 500-pound steer was worth $1,000.
The reason I mention this is because we are currently in a strong market for livestock. The industry is saying that the price of cattle today needs to be at this level to be financially sustainable. The industry is saying there is a shortage of beef and this will continue for quite some time as the cow/calf herd will not grow a lot over the next year or two. I agree with all of this, but I have seen this movie before. Often prices go up for no good reason and they also go down for no good reason.
Right now, cattle producers are making good money and so
I hope the current livestock market stays where it is and then goes higher. Unfortunately, history tells us a different story. You can use AgriStability to maintain your margins going forward. It is something to look at.
they should. This higher income will create a high-reference margin. This could give producers a good level of coverage from AgriStability. You will not need a disaster to put your farm in a claim. In the past months, that 500-pound calf will bring a price of over $2,000. If you sell calves for $2,000 each for a few years and then the price goes to $1,000, you will most likely trigger a claim. This is why I am more positive about AgriStability for cattle producers.
To get into AgriStability, you need to call your local office and enrol before April 30, 2025 to be covered for the 2025 production year. The information required will include your year-end inventory numbers going back six years. You need to have good inventory numbers. If your accountant is preparing an accurate financial statement for you each year, you should have that information. If your accountant just prepares your tax return, you will need to find these numbers on your own.
Relatively speaking, AgriStability insurance is cheap. From a livestock perspective, there is not a lot of insurance options available to you. You have the Livestock Price Guarantee program and that’s about it.
If you have had a decent 2023 year and a good 2024 year, I think now is the time to look into AgriStability. You can enrol using your most recent three years (2024/2023/2022) or you can use your most recent five years with an Olympic average where the highest year and lowest year are removed.
I hope the current livestock market stays where it is and then goes higher. Unfortunately, history tells us a different story. You can use AgriStability to maintain your margins going forward. It is something to look at.
