Farming For Tomorrow March April 2024

Self-Sufficiency is Top Priority for Spud Plains Farms

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Seeding

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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

New Approach Needed for Producer Payment Security

Producer payment security is not a top-of-mind issue for producers until a grain buyer runs into financial difficulty and they aren’t paid for their delivered grain. Even if you think this will never happen to you, the current system is still costing you money. There should be a better way.

In simple terms, grain buyers are required to buy insurance for grain on which payment to the producer hasn’t been made. Administered by the Canadian Grain Commission, this security is meant to compensate producers when a buyer is unable to pay.

Let’s consider the recent example of ILTA Grain, a company with state-of-the-art assets in Saskatchewan. In this particular case, security was adequate to pay eligible producers. However, some producers with deferred grain cheques were not compensated.

Producer payment security only applies for 90 days from time of delivery or 30 days from issuance of a cheque. Once your deferred cheque is more than a month old, you’re out of luck.

If you’re a producer that defers grain cheques, that first month is costing grain companies money. Yes, they have the use of your money, but this is also an unpaid bill for which they have to purchase insurance.

Some buyers, particularly in the pulse and specialty crop business, purposely delay payments and that’s always a worrisome prospect.

Producers delivering canary seed to ILTA were also out of luck because, at that time, canary seed was not an eligible crop under the Canada Grains Act. That omission has now been rectified.

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The 90 days from time of delivery restriction almost caught me a number of years ago. I delivered kabuli chickpeas to a processor/buyer with the understanding that the small seven-millimetre seed would be delivered back to me for planting with the larger sizes being sold.

Naturally, this was all going to take some time. Eventually, I got the seven-millimetre seed, but imagine my surprise when I asked about payment for the balance and was told the company could not pay. Luckily, I was just within the 90-day delivery window and received full compensation through the Canadian Grain Commission.

While the payment security system seems to work if you’re within the timelines, it’s costing grain companies a lot of money. Guess who ultimately pays that cost through reduced grain prices?

Insurance of all kinds is getting more costly and interest rates are higher than they’ve been for a long time, so the expense is a big deal even though producers don’t directly see the cost.

Over the years, various other methods of providing payment security have been studied and discussed, but nothing has changed. Here’s an idea for a better system. The concept came about after talking to people at the Canadian Grain Commission (CGC) about possibilities.

The CGC has a surplus of over $130 million, built up by setting fees and underestimating grain volumes a number of years ago. What if $40 million of that was used for a contingency fund; seed money to start a payment security program that wouldn’t be entirely based on buying private insurance?

Observers say a contingency fund would require federal

Large established grain companies do a lot of volume, but are typically secure financially. Most of the financial failures over the years have come from pulse and specialty crop companies. Feed grain buyers such as hog barns have also had failures.

legislation, but this could be done without opening up the entire Canada Grains Act, which has been in a state of perpetual delay and would be quite a can of worms.

Grain buyers would all have to contribute a small amount each year to build the fund and replenish it in the event of payments. The biggest problem may be finding an equitable way to determine grain buyer contributions.

Large established grain companies do a lot of volume, but are typically secure financially. Most of the financial failures over the years have come from pulse and specialty crop companies. Feed grain buyers such as hog barns have also had failures.

It would take a lot of discussion to make all the details palatable, but it should be a lot less expensive way to provide payment security. And it would be a good use for some of the surplus CGC funds.

Scott Shiels

Scott 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.

Seeding Plans Come Spring

Well, it seems like we have survived another Prairie winter, and spring is nearly upon us! And while this winter started out dry and warmer than average, we definitely had our share of cold and snow through the latter part of the season.

Even with the increase in snowfall in early 2024, there is still a lot of concern surrounding moisture levels going into seeding. Many areas experienced more rainfall at harvest last year than they would have liked, but that didn’t do much to compensate for the lack of precipitation last growing season. Due to the uncertainty surrounding moisture levels, I do think we can expect to see some weather premiums coming into play in the new crop pricing if things don’t significantly improve once the crop is established.

Throughout the winter, global instability has been the norm. This unrest has led to many markets moving in unusual ways, but it seems especially true of the grain markets. When countries like Ukraine and Russia, both large global exporters, are at war, one would expect there to be a short supply of crops prevalent there, leading to higher prices domestically for ours. However, it seems like just when we have some trend lines moving the right way, they allow some grain shipments out of Eastern Europe which disrupts the opportunity.

The other conflict, near the Suez Canal, has definitely disrupted the shipping lanes in that part of the world as well. These events, while not always directly affecting physical products, can cause extra costs to be incurred by the interested parties, and those costs get passed back down throughout the literal food chain. So not only for the sake of the humanity involved, agriculture in North America really needs to see an end to both of these ongoing sagas.

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By this time of year, we are normally a lot further sold to the food companies than we currently are. Fingers crossed we start to see that pick up so we can get back to market before all the crop goes in the ground.

Here at home, we have been waiting for the tighter than normal supply levels to finally start impacting prices in a positive way. However, with what appears to be more recessionary spending habits occurring south of the border, the market continues to feel heavy and bearish. U.S. corn, soybean and wheat futures continue to dwindle lower, and recent crop reports have been quite friendly to the winter wheat crop, not necessarily the farm-gate prices.

As the calendar pages turn, generally we are looking for pricing opportunities on the coming crop, but this year, they have been slow to be released to the producer. As an ingredient manufacturing company, we have also noticed that the large food companies have been slow to come to the table and book their supplies. By this time of year, we are normally a lot further sold to the food companies than we currently are. Fingers crossed we start to see that pick up so we can get back to market before all the crop goes in the ground.

For many producers, there is not a lot of wiggle room when it comes to seeding plans. A few acres in or out of one thing and into another is pretty normal, but this year, I think we will see some larger shifts than normal, especially if prices remain in the range they are in. While it is relatively easy to switch between wheat, oats and barley, the past couple of decades have left many producers heavily reliant on canola as their main staple crop. With new crop prices for canola as soft, or maybe softer than many other crops, my question is: how much swing could we see in those acres? While in many regions there are options like soybeans or, dare I say, flax, to switch out to, there is a pretty significant area that really doesn’t offer much of an option into those crops. If canola prices don’t rally before seeding, it could be very interesting to see where the acres end up, and where that takes prices come fall.

Until next time…

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.

Is There Profit in 2024?

As the mercury drops, so do grain prices. The only word I have is: wow! Virtually all crops have lost a significant amount of value since the summer of 2023.

As I am not a marketing expert, I will not try to figure out why these prices are dropping. Based on commentary from marketing experts, I also believe most of them are surprised to see the decline in prices.

When prices of grain and oilseeds first began to drop, there was a sense of comfort knowing that fertilizer prices were also coming down. Then fertilizer started to rise again in the fall of 2023, but grain prices kept going down. As we sit in the beginning of 2024, the price drop in commodities will not be offset by the reduction in inputs. If I look at my little operation, the cost of nitrogen fertilizer for an acre of canola in 2023 cost me $142/acre and in 2024, my cost will be $98/acre. Based on a 40-bushel crop, the revenue will drop at least $120/acre, whereas my savings are only $44/acre. These calculations are based on UAN 28-0-0 2023 price $731/tonne, 2024 price $505/tonne, 2023 canola price $17.25/bushel and 2024 September Canola price $14.25/bushel. You can put your own numbers in to determine the effects of the price changes.

As fast as prices go down, they can also rebound and come back up so it is too early to cry wolf and sound the alarms. Although, we need to look at planning for the 2024 year and the only real numbers we have are these low grain prices. Some questions you should start asking: What will the gross margin be for 2024 and will it be enough to cover your fixed costs? Can you lower the fixed costs? Can you survive a cash loss?

Your gross margin is your gross revenue less fertilizer, chemical and seed expenses. You need to work out what this will be per acre for each of your crops. You may want to shift some acres based on these numbers. I understand that if lentils make more money, you cannot seed the farm to lentils, or if oats lose a bit of money, you cannot abandon your long-term rotations, but perhaps you can tweak your plan to increase revenue. This exercise will also allow you to see which crops bring in the cash required to pay the rest of the bills.

Lowering fixed costs is tough. If you have three quad tracks and three drills, I am going to assume that is because you need three to get the job done. On paper, it looks good to sell one unit and reduce the payments, but reality will dictate that you need these units. You can terminate some employees, but will that even move the needle enough to make a difference? How will the work get done if you are short staffed? The irony is that when times are tough, you need crops to be amazing, which means timely seeding, timely spraying and timely harvest. All of that takes labour and machinery.

Smoulder® pre-seed herbicide was devised on the Prairies to control the most difficult weeds before seeding wheat and barley, including Group 2, 4 and 9 resistant biotypes of kochia.

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You may be able to extend amortizations on long-term debt to lower payments. You need to be cognizant of the existing terms of your mortgages. If you have two more years of 3.5 per cent interest on a land mortgage, I would not recommend refinancing that deal at today’s rates.

Land rent is another fixed cost that has dramatically increased the past few years. This is based on supply and demand, but the question that remains is whether this will continue. The anticipation to pay $100/acre, $125/acre, $150/acre was driven by canola that was worth over $20/bushel and wheat at $14/ bushel. These rent numbers do not equate with the price of grain today. The price of land rent will not go down unless the demand for the land reduces. Perhaps we will see defaults on rent payments. These situations would lower the price.

Take a look at loan payments and leases to determine when they will end. Perhaps you have some big payments in 2024, but they will be gone in 2025.

The most important exercise you can do to improve your fixed costs is to understand them. You need to know historically what they have been and what they will be for 2024. Line items like repairs can be difficult to predict, but most items will be fixed and those that are not can be estimated from previous years. Do not go blind on this part of your operations; know your costs and understand them. If you know your fixed costs on your farm are $350/acre, you can start to manage them accordingly. If a change in equipment will lower this by $30/ acre, you may want to consider it. If a change will only lower the cost by $2/acre, it may not be worth it.

Once you know your fixed costs, you can start to look at the impacts of a lower gross margin caused by commodity price declines. If you have a fixed cost of $350/acre and your gross margin will achieve $350/acre, then you can skate through the year knowing you will break even from a cash perspective. If your fixed costs are $350/acre and your gross margin is only $250/acre,

It is not the end of the world if your farm loses cash in 2024. Remember that in your cash outflow are principal payments and leasing costs that are reducing debt.

then you need to determine the impacts of this. You will either have to reduce your fixed costs by $100/acre or you will have a cash loss. If your previous years have been sufficient to build up working capital, then you will need to measure to see if you have enough. If your farm has $1 million in working capital and you are expecting a $100/acre cash loss on your 8,000-acre farm, then you will be able to survive as your cash loss will be $800,000 but you have working capital of $1 million. The basic math for that situation shows this cannot be a year-over-year practice. If your farm is going to lose cash, it can only do it for so long.

It is not the end of the world if your farm loses cash in 2024. Remember that in your cash outflow are principal payments and leasing costs that are reducing debt. Most farms made a lot of money in the past couple of years if they had some rain. There will be excess cash to get through 2024. If low commodity prices persist against higher fixed costs, there will be repercussions in 2025 and beyond.

Do a budget for the year. Be realistic with yields and grain prices. Do not forget to include owners’ drawings. If it shows a loss, prepare for it. Talk to your partners to ensure everyone understands the situation. Talk to your banker. Make a list of all the ideas that will help you get through this tough situation. The more options there are, the more likely there will be true solutions.

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It Starts with a Seed, and a Seeder

By Becky Zimmer

Agricultural technology is forever changing, whether to address old issues with new solutions or to constantly improve new ones.

For machinery companies, improvements are ongoing, but research and development can get expensive. Dick Friesen, president and general manager of Pillar Lasers Inc., notes product development is an important way to keep moving forward, even within smaller companies.

“It’s not that we’re developing just for the sake of having something new. We see the needs of the different farms that we’re on,” says Friesen. “When there’s room for improvement, that’s the start of trying to figure out how to do it.”

There are a few features that Ken Coles, executive director of Farming Smarter, looks for when analyzing seeding technology and he has some familiar names on his own machinery. Especially given the drought cycle Prairie farmers are dealing with right now, finding the right depth and seed placement means the most when setting up a crop for success.

“It’s your first chance to set yourself up for the most optimal yield and conditions that you can get in there,” he explains. Seeder openers have been the main focus of Coles’ research over the years. Finding the best ones will depend on the soil types and the environment, he notes, but will ultimately be decided by each individual farmer.

“You can have one opener that works great on a sandy soil and then another one that does better with clay and closing. And then the conditions itself are important too.”

Friesen believes the release of Pillar’s DH and Stealth Flex series with their MKIII double shoot openers has meant some vital improvements, even from series to series. Harvest practices have changed over the years and beyond minimumtillage and no-till practices growing in popularity, Friesen is seeing farmers leaving more and more stubble in the field, as much as three feet high with stripper headers. This means more moisture collection during the winter months but more debris to manage come seeding time. New seeding

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“After talking to a lot of agronomists, they talk about how there’s a lot of fertilizer just sitting in the soils everywhere in the Prairies because of compaction and because of side banding. The roots just never reach that because it’s a dry year… With this, the concept is to break the soil open, put the fertilizer down, like tinkle down the five inches, then close it up, put seed down and pack it down.” - Mark Van Deursen

technology and designs have had to adapt to this, and Friesen believes this is where the Pillar seeders have really shone with better clearance and debris management.

“A few years ago, we had that big snowfall and it just flattened unharvested wheat fields. It can seed straight through that stuff and do it where you’re still getting precise fertilizer placement.”

Lemken has been bringing the Equalizer minimum-till tine seeders into Canada since buying the South African company last January. They have been testing Equalizer machinery on the Prairies, including a field test at Ag in Motion last summer, and have been seeing some good performance results for how these machines work with Canadian soils.

According to Mark Van Deursen, area sales manager for Lemken in Alberta and Saskatchewan, additional residue cutters are aggressive at clearing a path through the stubble, but so far, debris management hasn’t been an issue.

According to the brochure for the Equalizer tine seeder, their tines are semi-independent and hydraulically controlled to “clear smaller obstacles without disturbing seed placement. When a large obstacle is encountered the unit as a whole will trip and clear the obstacle to avoid damage to the unit,” but built-in dampeners will allow a “controlled return of the tine after tripping.”

While there is no masterful golden rule when it comes to the best possible seeding system, Coles – through analysis of precision agricultural practices – is finding benefits from machines that put priority on the seed placement first, with a secondary focus on fertilizer placement.

Good seed placement also comes with the best possible contact between the seeder and the ground, says Coles. Walking axles are nothing new for the DH series with that being a feature on the centre panel.

However, Pillar has made that a prime feature throughout

their SF series, including on the winged sections. This has improved contouring and weight distribution over rough or hilly terrain throughout the machine, says Friesen.

He explains the fertilizer is placed an inch-and-a-half below and about three quarters of an inch over from the inchand-a-quarter disked seedbed, exactly where it needs to be in one pass.

Tests are still being done across the industry on the best fertilizer placement in the field.

Van Deursen says the Equalizer machines have been digging a little deeper than most seeding models he’s seen, but there are a few good reasons for that minimum tillage. Trying to cut into the hardpan soil to benefit both seed and fertilizer, the theory is that roots will have a better chance of finding nutrients and moisture and more encouragement to go downward, especially if you can cut away that hardpan.

“We rip it a little bit deeper, but still with minimum disturbance,” he says. “You can work up to five, seven inches deep if you want to if the moisture is there or even if your topsoil is there just to be able to place the seed in moisture so you have quicker and better germination.”

While there are many different ways of applying fertilizer and more and more testing is going into what will provide the best yield, Van Deursen says Equalizer is testing vertical application with their machines. Even though they are still examining the effectiveness of this practice, Van Deursen says he can see it becoming more and more common in the future.

“After talking to a lot of agronomists, they talk about how there’s a lot of fertilizer just sitting in the soils everywhere in the Prairies because of compaction and because of side banding. The roots just never reach that because it’s a dry year…. With this, the concept is to break the soil open, put the fertilizer down, like tinkle down the five inches, then close it up, put seed down and pack it down.”

CROSS-SPECTRUM HERBICIDES CHECK EVERY BOX FOR CEREAL GROWERS

With countless herbicide products on the market, it can be daunting for cereal growers to determine the combination that best suits the needs of their crops, weed spectrum and rotation.

Cross-spectrum herbicides have become increasingly popular in Western Canada over the past decade as farmers look for more convenient ways to control weeds that typically affect crops in their soil zone, without having to sift through herbicide guides and product labels.

Checking all the boxes for cereal growers, cross-spectrum herbicides from Corteva Agriscience™ deliver grass and broadleaf weed control in a powerful all-in-one solution. Designed for the widest possible weed spectrum coverage, overlapping control and tested for compatibility, they are packaged at optimum mixing rates for peak convenience and effectiveness.

Four reasons to take a cross-spectrum approach:

1. Worry-free performance – Corteva cross-spectrum herbicides are proven to perform across Western Canada, providing effective control of the toughest grass and broadleaf weeds in wheat and barley.

2. Convenient packaging - Designed with compatibility and convenient packaging top of mind, all-in-one cross-spectrum herbicides save wheat and barley growers valuable time during the busy spray season.

3. Ease-of-use – In addition to combatting problem grass and broadleaf weeds, the all-in-one solution keeps it simple for the spray crew, allowing for quicker refills and reducing the potential for error.

4. Flexibility – Wheat and barley growers who use Corteva cross-spectrum products have the flexibility to customize with their preferred phenoxy partner (MCPA or 2,4-D).

Corteva cross-spectrum herbicides leave no box unchecked. For more convenience and flexibility with overall improved weed control performance, talk to your local crop protection representative today and make the best weed control decision for your wheat and barley.

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“Not everybody wants to spend a million dollars these days on a seed drill combination. So this way, for $300,000, you have a 40-foot drill with most of the options on it and still have state of the art or something unique.”

- Mark Van Deursen

Seeder widths have also been a major discussion point over the years, especially as Prairie operations and machinery sizes continue to grow.

Pillar’s DH series runs from 30 to 60 feet while their Stealth Flex model runs up to 71 feet. Farmers can seed 55 acres an hour at about six to 6.5 km/hour with the largest SF model, but part of the challenge with a machine that wide has been safely transporting it from farm to field and back again.

Easily folding up the unit to 16 feet with a forward fold no wider than the tractor, Friesen says this is the first air seeder he knows of with this folding style. But since this leaves farmers managing a longer unit, rear wheel steering capabilities allow for better manoeuvrability into and out of narrow rural approaches. Once folded, the row openers are now to the outside for easy maintenance. The low maintenance of Pillar seeders is something Friesen takes pride in.

For Van Deursen, giving farmers options has been an important part of offering a range of machine widths, up to 80 feet. Equalizer has also brought in 40-foot options for testing in different soil types, but also to target smaller farm operations.

“Not everybody wants to spend a million dollars these days on a seed drill combination. So, this way, for $300,000, you have a 40-foot drill with most of the options on it and still have state of the art or something unique.”

No matter the company, Coles says there are plenty of equipment developers that have the right ideas when it comes to seeding capabilities and nutrient management. Companies are also doing a great job of continually testing and improving their machinery, he adds.

At the end of the day, seeder choices come down to on-farm logistics and what works for each farmer. The best source of information will be the dealers themselves.

CORN MANAGEMENT TANK MIX

Start Clean, Stay Clean:

Using Laudis®, Pardner ® and Roundup ® for Complete Weed Control in Corn

An effective weed control strategy is a critical step on the road to high yields. As weeds like volunteer canola, wild buckwheat, kochia and lamb’s-quarters continue to steal corn yields, getting out ahead with a targeted weed control strategy can be the difference between a bumper corn yield and a disappointing outcome.

Make sure you have all your bases covered. If you’re growing corn in Alberta, Saskatchewan or Manitoba, consider spraying Laudis herbicide tank-mixed with Pardner herbicide and Roundup herbicide on all your corn acres for complete in-season weed control

Available in Manitoba already with a label expansion recently approved for Alberta and Saskatchewan for the 2024 season, Laudis herbicide provides excellent control of tough broadleaf weeds like volunteer canola, wild buckwheat, kochia and lamb’s-quarters. With its Group 27 active ingredient, Laudis is a useful tool for managing weeds.

“Laudis is an excellent choice for resistance management,” explains Colette Thurston, a Central Alberta–based market development agronomist with Bayer, “but even with a Group 27, smart stewardship to delay resistance is important. That's one reason I recommend spraying Laudis tank-mixed with Pardner and Roundup.”

Pardner is a Group 6 herbicide, which controls kochia, lamb’s-quarters, wild buckwheat and many more weeds. Roundup is a tried and trusted herbicide option widely used for broad spectrum weed control. Together with Laudis and Pardner, this is an outstanding tank-mix in corn.

Bayer market development small plot weed control trials over the past three years have shown that applying Laudis tank-mixed with Roundup and Pardner in a two-pass program, following a pre-emergent application of Roundup Xtend® herbicide with VaporGrip® Technology, has an efficacy rate of over 96%.

“The results speak for themselves,” says Brett Hilker, a market development representative with Bayer, based out of Calgary. “I know I am going to recommend Laudis, Pardner and Roundup for a lot of local farmers. If you’re growing corn, you really should consider it.”

This tank-mix delivers top performance in weed efficacy for applications on post-emergent corn (in-crop), too. Laudis, Pardner and Roundup has an average control of 92%, which provides very strong weed control for just a single pass application. When paired with a pre-emergent application of Roundup Xtend, it’s one of the most effective ways to make sure you achieve full season weed control.

If you’re planning to grow corn in 2024, consider spraying Laudis, Pardner and Roundup for complete control of stubborn weeds so your fields can start clean and stay clean

“We’ve seen a quick burndown and excellent control of hard-to-kill weeds such as kochia, wild buckwheat and volunteer canola. It’s definitely a product we will use next year,” says André Poulin of Greenbelt Farms, Wainwright, Alberta, who participated in a research authorization program in 2023.

Bayer is a member of Excellence Through Stewardship ® (ETS). Bayer products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Bayer’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. These products have been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from these products can only be exported to, or used, processed or sold, in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for these products. Excellence Through Stewardship ® is a registered trademark of Excellence Through Stewardship.

ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready ® Technology contains genes that confer tolerance to glyphosate. Glyphosate will kill crops that are not tolerant to glyphosate. Bayer, Bayer Cross, Laudis ®, Pardner ®, Roundup Ready ®, Roundup Transorb ®, Roundup Xtend ® and VaporGrip ® are registered trademarks of Bayer Group. Used under license. Bayer CropScience Inc. is a member of CropLife Canada. ©2024 Bayer Group. All rights reserved.

CULTIVATING SELF-SUFFICIENCY

Self-Sufficiency is Top Priority for Spud Plains Farms

By Angela Lovell

Over the past 25 years, Paul Adriaansen has focused on making his farm operation at Wellwood, Manitoba, as self-sufficient as possible. Having to rely on outside custom operators in the past taught him that having control of processes in-house saves time, money and means that jobs are completed the way he wants them done.

“It becomes your priority as to what gets done,” he says. “Whether it’s the pilot for the sprayer plane, or the sprayer operators, you get a lot better job done because you can take them out to the field, show them what to do and have those conversations about how it should be done. There is almost nothing that leaves the farm and we find that we are doing a lot better job now in all aspects of the operation.”

Two decades of growth

The year that Paul Adriaansen was born, his dad, Tony, began growing potatoes to supply the new Simplot processing facility that had just been built in Carberry, Manitoba. Adriaansen was raised on the farm along with his seven siblings, working alongside five of them and his dad until splitting off on his own. Leaving in 1999 with 800 acres, he set up his base four kilometres from the home farm.

Adriaansen’s Spud Plains Farms is still based in Wellwood, but today encompasses 20,000 acres spread out over three different areas of the Westman region of Carberry and Rivers, and south of Shilo. On average, the farm grows around 6,400 acres of potatoes (including seed potatoes), 3,500 acres of corn, 2,500 acres of rye, 3,000 acres of wheat, 4,000 canola acres and around 600 acres of green feed mustard each year.

Currently, the farm employs around 50 full-time, year-round staff, a number that can go as high as 120 or more during the growing season. The conglomerate includes an in-house agronomist, pilot for the aerial spray plane, operators for all the equipment (including ground sprayers and Valmar spreaders), full-time mechanics, electricians and a carpenter who handles all on-farm building construction and maintenance work. As potato seed growers, they also bring on an additional 20 employees in the spring just to handle the 400,000 bags of potato seed that all need cutting, treating and grading.

“The biggest change on our farm was when I stopped doing everything myself and started empowering managers and agronomy teams,” Adriaansen says. “Everything was getting done right, in a timely manner, and I was not just relying on what I knew. For example, our agronomy team talks to other agronomy teams and we know what’s going on in the industry. They are bringing a wealth of information with them. We also have good quality staff because we can keep them busy year-round instead of just seasonally.”

Spud Plains Farms encompasses 20,000 acres today.

“When I started farming, there was very little land available, so we started buying marginal land and turning it into cropland. We have done that to at least 10,000 acres of our land. That helped us to expand.” - Paul Adriaansen

Adding other enterprises

The farm even stores and blends its own fertilizer on-site, having purchased an old Cargill facility for that purpose about seven kilometres south from the main yard.

“We purchase bulk fertilizer, liquid and dry, and do all the mixing and spreading ourselves,” Adriaansen says. “We have enough storage capacity to handle a full year so we can pre-buy. Typically, we’re buying our fertilizer for the next year in July and that way we can control the price and buy when it’s cheaper, but we had to be able to take it home in those big volumes to make it all work.”

Adriaansen also operates a custom land development business from the farm that has contributed significant income over the years. It began, like most of the more diverse enterprises, out of necessity.

“When I started farming, there was very little land available,

so we started buying marginal land and turning it into cropland,” he says. “We have done that to at least 10,000 acres of our land. That helped us to expand.”

Although Adriaansen doesn’t use custom operators much anymore, he has done his share of custom work over the years from combining to building construction, but these sidelines always started because of a need on the farm.

“We started doing buildings largely to increase our buying power. We do everything for our operation first, and then justify the investment by doing some custom work,” he says. “We don’t do buildings for people anymore because we don’t have time for it, but in the beginning, we brought a lot of income to the farm with custom work, so that also helped us grow.”

With an eye to the future, and well aware of the challenges of recruiting employees to rural areas, Spud Plains Farms also supports employees to get their journeyman certification. It

Spud Plains Farms encompasses 20,000 acres today.

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currently has two mechanics and an electrician in training on the farm.

A few growing pains

Growing a farm to the size of Spud Plains hasn’t come without some challenges along the way, but Adriaansen has never been afraid to invest in technology, even if the learning curve has been steep at times.

“You have to embrace it, not get frustrated and want to walk away,” he says. “You have to see the value in it.”

Ultimately, technology has helped the farm be more efficient and facilitated its expansion.

“Initially there was a lot of work on our end to get equipment working and steering properly, to get variable rate mapping right, using the sprayer technology and so on,” Adriaansen says. “Now we rely on all the record keeping from the tractors, combines and other equipment; and just the fact that everybody’s got a cellphone in their pocket saves a lot of miles.”

Advances in irrigation systems have also been crucial to the farm’s success.

“Irrigation has changed the world,” he says. “Getting the irrigation right and quitting growing on the dryland corners; we didn’t realize how much money we were spending in those corners for nothing, so it has improved the economics.”

That doesn’t mean that Adriaansen plunges into every new venture that comes along. He weighs every decision and everything has to justify the price tag.

“I have to see how it’s going to earn its keep,” he says. “I’m looking at land prices and interest rates now, and I was going to build a potato storage this year, but I walked away from the idea. It did not make sense anymore.”

Keeping a close eye on the numbers and not overstretching resources has always been Adriaansen’s mantra.

“If you spend a lot of money on something, and you can do it cheaper, then it just becomes an anchor around your neck,” he says. “Then you’re not able to take advantage of the next opportunity if you’ve already spread yourself too thin.”

And Adriaansen believes there are always opportunities presenting themselves, especially in agriculture.

“There’s always new opportunities,” he says. “There’s no reason you can’t build businesses that also complement the farm. But you have to do things well. I’ve always based how this farm is doing by how good a job we do of actually getting harvest done in a timely manner, how the crops we’re pulling

The farm employs around 50 year-round, full-time staff which can expand to 120 over the growing season.

Griffin, Kim, Paul, Victoria and Teal proudly display their top 10 McCain Potato Grower award.

in compare to the neighbours, the quality, grower profile, etc. And of course, debt management is important.”

Preparing for the next generation … and the next Adriaansen and his wife, Kim, have three daughters, Johanna (28), Teal (26) and Victoria (24), who have all graduated from post-secondary education. Their son, Griffin (20), is currently completing his agriculture diploma at the University of Manitoba. All except Johanna are already working, and plan to stay on the farm.

Currently, they are busy learning how to do all the various farm jobs from planting potatoes, harvesting and running equipment to working with the agronomist or in the shop welding and maintaining equipment. It’s part of the process of preparing them for eventual management roles and allows them to figure out what areas they are most interested and comfortable in.

“Our children who are staying on the farm are treated the same as any other employee. Their status, wages and everything is based on their capabilities and dedication. If they want it, they have to work for it,” he says. “They have lots of opportunities and are well paid. What’s the rush to make them shareholders or whatever? I see the farm as generational wealth; not just for them. Hopefully, their kids can work on the farm and this can be a security blanket for generations to come. And they don’t necessarily have to work on the farm, it can support the off-farm children as well. I try to treat the kids as equal as I can whether they farm or not.”

“What people don’t understand is farmers have always looked for sustainable ways in agriculture. Almost all farmers I know are in it for the next generation and want to leave the land in a more productive and healthier state.” - Paul Adriaansen

Adriaansen’s primary goal for the short term is to aggressively pay down debt and consolidate.

“We’ll still add pieces of land if it fits into the operation, but we are focusing on upgrading equipment and storage now,” he says. “We are always open to new crops, and new ways of farming. What people don’t understand is farmers have always looked for sustainable ways in agriculture. Almost all farmers I know are in it for the next generation and want to leave the land in a more productive and healthier state. We want to get better cropping systems, put more back into the land than we’re taking from it, and make the whole operation more efficient by filling all the gaps.”

Spud Plains Farms’ yard in Carberry, Man.

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Crop Insurance: What to Consider

By Lisa Kopochinski

Those in the agriculture industry – particularly in Alberta –will tell you crop insurance is extremely important. The risk of hail damage has long been considered the largest threat for Prairie farmers. Much damage can be done to crops in a relatively short time. However, as you move west to east, the incidence and severity of hail generally decreases.

“Alberta has traditionally had more hail events in terms of severity, and this is what is taken into account with hail insurance,” explains Bruce Lowe, executive vice president of Ag Direct Hail Insurance, one of the largest straight crop hail insurers providing coverage across the Prairies. “Farmers in Alberta tend to pay higher rates as compared to Saskatchewan and Manitoba on average.”

As for what farmers can expect regarding costs this upcoming season, Lowe anticipates that crop hail insurance rates should stay somewhat in check in 2024.

When asked what large-scale factors could impact crop hail insurance ratings, Lowe replies, “Reinsurers around the world are keenly aware of the increase in weather-related risks. Worldwide catastrophic weather events such as hurricanes, tornadoes and wildfires can certainly impact the risk appetite and rating for crop hail insurers here in Canada.”

Paul Kuntz, a financial consultant with Wheatland Financial, and an insurance advisor with Global Ag Risk Solutions (GARS) in Yorkton, Sask., says while farmers may not pay more for insurance this year, the most likely scenario is that they will have less coverage for their premium dollars.

“The cost may not change, but coverage will decrease. For instance, if the farm is located in an area that has experienced multiple years of drought, there will be lower coverage and higher premiums. It’s difficult to say what the cost increase will be as these premiums are set as per

individual farm yield history.”

Purchasing Crop Insurance

When purchasing any type of agriculture insurance, several factors need to be considered, such as what the financial needs are for coverage. Jeff Morrow, president and CEO of the Saskatchewan Crop Insurance Corporation (SCIC), says insurance needs are very specific to the individual producer.

“Crop insurance is a federal-provincial-producer cost-shared business risk management program that helps producers manage production and quality losses. Support for this program is provided by the Governments of Canada and Saskatchewan under the Sustainable Canadian Agricultural Partnership.”

Premiums are cost-shared: 60 per cent by the federal and provincial governments and 40 per cent by the producer. The full cost of program administration is funded by governments and is at no cost to producers.

“It is important to consider factors such as the type of the operation (grain/oilseeds/pulses, livestock or a mixed operation), the maturity of the operation (new versus established farmer), risk tolerance of the operation, plus a variety of other factors that will impact the type of insurance coverage required,” says Morrow.

Kuntz notes there is a fair amount of support from the federal and provincial government regarding insurance, but it is specific to the provincial crop insurance agencies, and also the AgriStability program. However, while the government subsidies for insurance are a great help, Kuntz says they do not allow the producer any flexibility with other insurance products.

“If the farmer wishes to purchase private insurance – such as hail insurance – there is no help for the farmer. I do not think more money needs to go into the crop insurance industry

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“Advances in technology on certain crops such as canola (which has made it more resilient to hail damage) has reduced the cost of insurance significantly – about 40 to 50 per cent from where it was 10 years ago.” - Bruce Lowe

from the government. There needs to be choices by the farmer to decide where they want their subsidy to go.”

If the farmer decides they want to buy hail insurance and not government administered crop insurance, Kuntz thinks the government should then pay 60 per cent of that private insurance premium. Private insurance will be able to react to farmers’ needs quicker, thereby increasing coverage options.

Understanding Crop Hail Insurance

When it comes to crop hail insurance, it is best to start with a description of what it entails. Crop hail insurance provides coverage for damage and destruction by hail and fire. Additionally, crop hail insurance policies also include an additional endorsement for fire damage.

This type of insurance protects the livelihood of farmers, who are often at the mercy of sudden weather events. Crop hail insurance is a niche insurance product as hail has the unique ability to destroy a significant part of a planted field while leaving the rest undamaged.

Lowe says if a farmer receives hail on early-season canola, the recovery rate is high if it hasn’t flowered.

“As you move through the season, the damage caused by hail to a ripening crop intensifies. Take peas, for example. Any late-season hail event on peas is going to shell them out and you’re looking at substantial losses. This holds true for many crops we insure.”

He adds that the industry does have surcharges, which are applied to certain crops. “You might have a base rate of three per cent. This means that for every $100 of coverage that a farmer would like per acre is going to cost $3.”

The crop insurance industry applies surcharges to the basic rate, depending on crop type. For example, there is an extra 1.5 surcharge on lentils because they are more susceptible to hail damage, especially in the later season. Effectively, this will increase the cost of coverage from $3 to $4.50 for the same $100/acre of coverage.

“Advances in technology on certain crops such as canola

(which has made it more resilient to hail damage) has reduced the cost of insurance significantly – about 40 to 50 per cent from where it was 10 years ago,” says Lowe. “And, that is good news for farmers.”

As for hail insurance costs, he says farmers must consider many factors when determining their desired level of coverage.

“Some farmers may choose to insure their crops for input costs only. Other farmers may decide to insure their crops at a level that reflects the market value of their crops. Certainly, commodity prices also play a role in the coverage decisions. Most importantly, they’re looking at their own personal financial situation to decide what the best option is for them.”

Kuntz adds that hail insurance is a specific peril insurance, and the benefit is that it can cover a wide range of hail damage.

“If you have general crop insurance that guarantees yield, smaller losses will not be covered. If you have 2,000 acres of wheat and 150 acres is damaged by some insurable peril, and the other 1,850 of wheat does very well, you will not be in a claim because the insurance provider will take the total bushels grown and average them across the whole wheat acres.”

However, for private straight crop hail insurance, Kuntz notes, “If 10 acres of your 2,000 acres of wheat receives hail damage, you will be compensated for that loss. The other benefit is you can insure each field individually. Some fields can have $0/acre of coverage and other fields can have $400/acre of coverage. Payouts are usually quick and easy. Payments from private insurance also do not affect AgriStability payments, whereas provincial crop insurance program payouts will reduce the claim.”

At the end of the day, he says farmers sell their grain for cash to pay their bills.

“Farmers need to know what the cash outflow costs are to run their farm. This includes their expenses, loan payments and owner drawings. If possible, farms would want to be covered for that amount.”

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.

A Date with Resistance

Winter is the traditional time for researchers to present their results at meetings. I usually attend three types of meetings. The first is the scientific kind, where academics share their latest findings. These meetings often show preliminary results of research currently in progress and are a great way to see what type of work is being funded and undertaken.

The second meeting type is trade shows. These are geared towards farmers and showcase equipment and inputs. I enjoy these as well, but it’s harder to find the new things. Of course, there are the high-profile product launches, but one really needs to stop and have some detailed discussions with vendors to find out what they are really up to and which direction they’re headed.

The last type of meeting is the most common: the farmer meeting organized by a local retail where customers gather for hospitality and information. This is where business connections are cemented.

It’s important to attend all three types of meetings to better understand what information is trickling down to the end user.

The academic meetings are very diverse, but have for many years been dominated by studies on pesticide resistance. For herbicides, in particular, the news has been alarming. Herbicide resistance is growing and spreading. It has been for 40 years, actually. Not only are there always new weeds exhibiting resistance to another herbicide mode of action, the resistant weeds themselves are spreading. New arrivals in a region are pre-loaded with resistance that originated elsewhere.

This is not news. Since the first case of herbicide resistance was documented in 1957, the number of resistant weeds has grown linearly in Canada and abroad. The growth has been slow enough to not cause any panic. So far, we’ve been able to dodge the bullet by adding modes of action to the tank mix. But time is running out. New herbicide modes of action are not being

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developed. The last new MOAs relevant to Canadian ag (Groups 2 and 27) were introduced in 1982.

One of the most important developments for combating early cases of resistance was herbicide tolerant canola, soybeans and corn. These crops allowed the use of the Group 9 (glyphosate) and Group 10 (glufosinate) to remove some selection pressure off the Group 1 and 2 products, for which resistance was already widespread across Canada. We gained over 15 years of weed control success with these new rotation options.

But the reprieve came to an end with the arrival of glyphosate tolerant waterhemp, marestail and ragweed in Eastern Canada, and kochia and waterhemp in the West. These are the result of overuse of glyphosate. The pressure on glufosinate to retain control of these weeds has increased tremendously. In fact, this reliance may contribute to rotations in which that herbicide can be used more frequently, which is another story altogether.

Why is resistance so important? Because it’s a one-way street. It only gets worse. Since there is no fitness penalty in resistant weeds, resistant and non-resistant biotypes of any weed respond the same way to agronomic practices. In other words, it’s impossible to reduce the proportion of the resistant seedbank in soils. Once you have resistant weeds, you’ll never not have them. And every time you use herbicides, you apply selection pressure for more resistance.

Sure, you can reduce the size of the overall weed seedbank with cultural practices. But the resistant proportion stays the same, and with herbicide use, will continue to grow.

The solution to herbicide resistance is not to add more modes of action to the tank mix. That practice, while a stopgap, will ultimately lead to more resistance. The solution to herbicide resistance is to not use herbicides.

And that’s where the other two types of meetings come in.

We aren’t talking about the resistance issues enough at the meetings that matter. Instead, we talk about input sales.

Sure, all farmers know that resistance exists. Our surveys tell us that it occurs in some way or other in most fields. Do you have kochia? It’s glyphosate and Group 2 resistant. Resistance to Group 4 is growing. Group 14 resistance exists.

But resistance is not considered a problem until it’s widespread in a field and can’t be ignored any longer. By then it’s too late to prevent it, the cat is out of the bag. And because it’s a one-way street, whatever level of resistance (percentage of resistant biotypes in a specific weed) we have when we notice it, that level of resistance will never get lower, much less go away.

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We need to have the courage and foresight to act against herbicide resistance while we still can. And that means increasing our use of cultural controls. Anything else is putting our head in the sand.

At some point, switching to another herbicide mode of action won’t be an option because that weed will soon be resistant to that MOA, too.

At that point, all we have are cultural controls. Are we ready for that?

And yet, at trade shows and local retail meetings, we talk about products that get around resistance, new mixes, new timings. Stopgaps.

We should instead be talking about how to delay resistance through agronomy. Like short-term forage rotations, shown to reduce the overall level of weed populations at the end of their cycle. Or selection of annual rotations, cultivars,

seeding dates and seeding rates that reduce the reliance on herbicides. Or cover- and inter-crops or under-seeded canopies.

I was at a spray technology conference in January and asked a chemical industry representative about their thoughts on cover crops. He said they were keen on them and had even purchased a seed company producing them recently. He noted cover crops serve many useful functions and may open opportunities for supporting herbicide stewardship and efficacy. It’s a future strategy.

When the herbicide manufacturers start investing in cover crops, you know they no longer believe herbicides are the only answer to resistance. Sure, we may eventually get a new mode of action. But with metabolic resistance growing, how long will such a new MOA be useful?

Change is difficult. A friend who worked in the social sciences once told me that most people won’t change until they are forced to by some sort of crisis. And they’ll first deny the existence of the crisis. By the time they’re ready to confront the issue, much irreversible damage will already have been done, whether it is to one’s health or to the health of their agronomic program.

We need to have the courage and foresight to act against herbicide resistance while we still can. And that means increasing our use of cultural controls. Anything else is putting our head in the sand.

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.

Integrating Seed Destruction

Integrated weed management has frequently been described as using many tiny hammers to try to win the war on weeds. While weed management is typically reliant on herbicides, once a weed sets seed, herbicides are unlikely to provide a positive return on investment. Managing weed patches separately, through mowing, baling or tillage, is not a fit on every acre, and a lack of time points to harvest as the next best opportunity to address weed seed issues. The concept of using a hammer mill or impact mill to destroy weed seeds is not new. It’s a strategy that’s been frequently employed in Australia, especially with herbicide resistant weeds, and is slowly being integrated on farms in North America.

Whether it is a volunteer crop or weed seeds, there is no doubt that dropping straw will concentrate weeds in a row, and yet, chopping and blowing the chaff in a wide swath simply distributes seeds from patches to wider areas of the field. Rather than dispersing seeds, growers have been employing different tactics to collect, concentrate and more recently destroy weed seeds. The collection of weed seeds may prevent spread across the field, but these relatively low-cost options then require further management. The additional time and effort make these techniques challenging to implement, regardless of costs.

The evolution of stationary seed mills to tow-behind carts and finally to integrated hammer and impact mills that utilize the combine’s power to destroy seeds while harvesting provides an increased level of efficiency.

Dr. Breanne Tidemann, with Agriculture and Agri-Food Canada in Lacombe, began investigating seed destruction and patch management options in 2014 in Western Canada. Her research has demonstrated that seed mills are very effective (greater than 90 per cent) at destroying the viability of various sizes of weed seeds, as long as they enter the mill. In a study published in 2017, Tidemann et al. achieved greater than 97 per cent control of kochia, green foxtail, cleavers and wild oat seeds in barley chaff with a cage mill. Additional research in Australia and the U.S. with various impact mills has shown overall weed seed kill levels are typically above 95

Tammy Jones B.Sc., P.Ag

per cent in several crops including canola, wheat and soybean. One thing that has reduced this kill level is the moisture content of the chaff. As moisture content increases, there is a reduction in destruction. The declines have been relatively small, with one study showing a four per cent reduction in more challenging weed seeds such as rigid ryegrass.

A key to the success of this strategy is ensuring that the maximum number of weed seeds are retained on the plant and put through the combine to enter the mill. Dr. Tidemann suggests that the impact mill efficacy could be improved with swathing the crop. While 56 per cent of wild oat seed is retained on the plant at the time of swathing, seed retention drops down to less than 20 per cent if waiting to straight cut wheat. As an example, if there were a smattering of wild oats in a patch, perhaps 100 plants in an acre that survive the in-crop herbicide, swathing and using a weed seed destructor could see the seedbank returns lowered to 600 future wild oat plants versus almost 1,800 wild oat seeds in that acre with a straight cut operation. Crop density, wind intensity and the difference in crop maturity in comparison to the wild oat maturity will all impact on seed shed. Another way to optimize the impact of a weed seed destructor is to select earlier maturing crops, or more competitive crops that delay weed maturity, to maximize seed retention on the parent plant.

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In reality, this weed control method (with or without swathing) is unlikely to destroy every weed seed in the field, but even a 30 per cent reduction in seed will reduce future weed problems. Modelling conducted by Tidemann et al. (2016) assessing the potential effects of harvest weed-seed control on wild oat estimated that 80 per cent of the wild oat seeds would need to enter the seed mill to prevent an increase in the wild oat population. Meanwhile weeds like kochia, lamb’s-quarter and green foxtail retain more seed on the parent plant resulting in more seed destruction. Unfortunately, they also produce significantly more seed than wild oat, so 80 per cent reduction of 25,000 seeds on a kochia plant would leave 5,000 viable seeds to manage.

An anticipated barrier to entry is the initial investment in a seed destructor which is estimated to be about $100,000. This cost has decreased as more manufacturers enter the market space. In addition, the incorporation of the apparatus is becoming less burdensome as some combines are being manufactured with the option of a seed mill or at least the space to mount the seed mill. Unlike the early seed mills which required hydraulics, the mechanical versions of the mill tend to be more energy efficient and provide lower maintenance costs. The actual cost per acre to operate a seed destructor is a challenge to pin down due to different costs of machinery at the manufacturer level and differences in operating costs at the farm level. Case studies in Canada and Australia have shown costs to be in the $6 to $7 per acre range.

If the cost per acre seems too high for every acre on the farm, Tidemann has been brainstorming on other ways to make this strategy more feasible. Instead of outfitting every combine on the farm with a seed mill, perhaps this could be used on just some of the most problematic acres. This could mean an investment in one combine with the mill, while operating others that are not equipped. Or an equipment sharing situation, where the resource is shared. Or perhaps, an entrepreneur will begin a custom weed seed destructor business to harvest the problem areas on many fields. Since the seeds are destroyed as they exit the combine, this would mean that seed spread is not an issue.

The ways to accomplish seed destruction will continue to be researched. Developing strategies are investigating the use of blue light and heat to impact seed viability. In an integrated weed management system, seed destruction appears to have good potential for a positive return on investment, especially for problematic weeds that are otherwise quite expensive to control. Unlike pre-harvest and post-harvest weed control that typically utilize herbicides, in-harvest weed control with an integrated weed seed destructor is an opportunity to integrate a new “mode of action” to crush weed seeds.

Canola chaff before and after going through the HSD.

Image taken in Australia of what was left of a ryegrass seed post mill.