Buckle Up

Experts prepare for a volatile 2023

By Becky Zimmer

The 2022 growing season saw record highs for farmers across the country.

This wasn’t all good news, though. With record commodity prices came record input costs which has made for nervy times as farmers make marketing decisions for 2023.

The Farm Input Price Index for the second quarter of 2022 saw the biggest year-over-year increases of inputs across the country. Total input prices rose by 17.4 per cent and no province was safe from these increases. The Prairies saw the largest variable increases with Saskatchewan at a 21.5 per cent rise, Manitoba at 19.6 per cent and Alberta close behind at 19.2 per cent.

Two of the largest areas of increase were in fertilizer and fuel.

“Prices paid by farmers for fertilizer were up by over fourfifths (80.8%) in the second quarter of 2022 compared with the second quarter of 2021,” states the Index report. “Farmers paid nearly four-fifths (+78.5%) more for machinery fuel in the second quarter of 2022 compared with the same quarter in

2021, and more than triple (+211.0%) the 16-year low seen in the second quarter of 2020, at the onset of the COVID-19 pandemic.”

Things like commercial seed remained unchanged while pesticide and insurance saw a much smaller rise than fuel and fertilizer, but a rise nonetheless.

Even with this sticker shock for farmers, Desmond Sobool, manager of economics and principal economist with FCC, says the high commodity prices cancelled out these rises in inputs so farmers saw record high margins.

“We estimated the margins in 2022 were well above the fiveyear average in Saskatchewan. And then what we’re seeing for 2023 is continued increase in costs, however, at a much lower rate than last year.”

At a two per cent increase for fertilizer, a four per cent increase for fuel and overall a five per cent increase in Saskatchewan predicted for 2023, this is a much less dramatic increase than last year, says Sobool. Tracking input costs across the Prairies, the numbers are similar

Even with these increases, Sobool says they predict revenue margins higher than the five-year average. However, there are still global issues that are causing volatility in the markets, as well as supply chain issues.

“Things are still looking good, but this is where producers will have to really rely on utilizing risk management practices. They can’t be necessarily an expert in all areas, so you know, leveraging accountants and building collaboration with input resellers to be able to provide guidance on managing their business,” says Sobool.

With other global problems, such as severe drought in Argentina, Sobool says to expect high corn and soybean prices for the 2023 crop year.

“We’re seeing that increased demand for biofuels and renewable fuels,” he says. “There’s been recent announcements of additional crush capacity in the Prairies, so, for canola, that would be an area where there might be some marketing opportunities.”

Despite issues beyond the average farmer’s control, some will be able to lessen their fuel inputs, such as those situated close to processors, namely canola crushers, says Sobool.

Access has also been a challenge for farmers. Having a strong relationship with retailers and making sure they can supply what farmers need is going to be key as Sobool believes they can also advise on when to have some extra supplies available for next year.

The conflict between Russia and Ukraine is causing challenges as natural gas supplies have been disrupted. This has caused certain EU countries to shut down fertilizer production, which has driven up the global price. That does give Canada a chance to step in and increase production of potash to try and fill those holes in the market, he notes.

The Mississippi River is also at an all-time low so anyone relying on those fertilizer imports via the waterway will also see a disruption in that supply chain, but Sobool says that will have more of an impact in Eastern Canada rather than the Prairies.

With so much volatility, uncertainty and big decisions to make, the most rewarding part of Karen Fatteicher’s job is helping farmers “wade through those waters.” Working with clients at

So far for the 2023 growing season, Fatteicher is hearing a lot of optimism as long as those revenue margins still make sense. However, unlike other years where farmers could put down more inputs in certain areas to be on the safe side, they are needing to make those tough decisions and they need to make sense, both for their soil’s heath and wallet, says Fatteicher.

“Things like soil testing, fertility planning, your commodity marketing and even being on top of your agronomics in the field … you can’t cut your expenses and expect to continue farming in this environment. You still need to try and get the best crop you can,” she says.

Ag costs are going up in other areas as well, which are causing other issues for producers.

Machinery, farming supplies and building costs also increased in that second quarter, according to StatCan.

“If they want to grow their farms, [farmers] are still doing what they need to do, albeit they’re doing it with much more scrutiny,” says Fatteicher.

It is hard to be optimistic about those prices eventually coming down from such record highs, and Fatteicher doesn’t know what could happen that would tip those costs downward instead of continually rising or staying consistent over the coming years.

Made in Canada

New seeding technologies deal with curves

By Kristi Cox

Some seeding paths wrap around sloughs or irrigation pivots. Other curve balls take the form of hills and uneven ground. Come seeding time, these challenges require solutions. This year, Väderstad has added turn compensation to its current precision control system, and Pillar has a new disc/hoe planter that brings added size, contour capability and a new transport and storage configuration all folded together. These build on existing robust systems.

Väderstad introduces SCTx with turn compensation

Väderstad is a farm machinery company with manufacturing plants in Sweden, North Dakota and Langbank, Sask.

Väderstad’s Seed Hawk Air Seeder was developed in the early '90s, and its dual knife system was one of the pioneers for no-till in Western Canada. The independent opener offers precise seed depth, while the consistent seed-to-fertilizer placement ensures early season uptake of vital nutrients, all in a no-till application.

To understand how the new SCTx system works, we need to look at the anatomy of the Seed Hawk Air Seeder and the brains that control it.

The seed and fertilizer delivery through the Seed Hawk toolbar and the air cart are controlled by the iCon app from an iPad. The toolbar is divided into 10-foot sections that raise or lower depending on whether it’s delivering product or not. This system allows prescription mapping that co-ordinates with section control to apply variable seed and fertilizer rates, by location on the field and across the width of the toolbar. It uses GPS technology to follow the track of the machine, turning off sections if it detects overlap.

Rob Stone farms at Stone Farms, a 9,000-acre family-run operation near Davidson, Sask.

He uses an 84-foot Väderstad Seed Hawk XL toolbar and a 980 bushel icon Väderstad Seed Hawk cart. “It’s a valuable piece of equipment for us because of the sectional control and variable rate capabilities,” he says.

While equipment becomes more technical and digitalized, Väderstad is focused on keeping the system accessible. Most farmers are familiar with tablets and likely have one or more in their cab already.

“We have the wireless switchbox as well,” says Stone. “I still really like having a switch to manually shut things off.”

The tablet offer wireless connectivity with the machines, but Stone opts to wire them in.

“It’s just one little wire, whereas other ones have harnesses and cables in order to operate the system,” says Stone.

Arthur Ward, vice-president of Prairie Moon Acres near Hitchcock

DECADES OF RELIABLE RODENT CONTROL

CONSISTENT

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