Farming For Tomorrow September October by OT Communications

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KEVIN HURSH TOM WOLF 09 A Farmer’s Viewpoint Seeking Solutions to Major Farm Concerns by Kevin Hursh 39 CanolaCanola Update: What Can Growers Expect? by Lisa Kopochinski 12 Grain Market Analysis Finding a Home for Excess Grain by Scott Shiels 49 From the Farm Do Farmers Really Need Nitrogen Fertilizer? by Jake Leguee 14 Farming Your Money Interest Rate Frenzy by Paul Kuntz 52 Spraying 101 Labels: How can They be Better? by Tom Wolf 58 Those Wily Weeds Why Optimize Pre-Seed Herbicide in the Fall? by Tammy Jones 20 Soybean Acres Return of the Soybean by Craig Lester 61 Interprovincial Farm Expansion Crossing Borders by Janice Tuff 66 Bank on Better Business Unspeakable times by Vincent Cloutier 6 SCOTT SHIELSPAUL KUNTZTAMMY JONES 28 By Natalie Noble EvolutionOrganic 67 By Natalie Noble CDCWorld-ClassCelebrates50 years

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Seeking Solutions to Major Farm Concerns

Farming and ranching are not fair. Just ask the ranchers from Mankota, Saskatchewan that lost 28 head of cattle to a lightning strike in July. What bad luck. What an unexpected loss. What the heck should you do to protect against that sort of weird event?

Government bureaucrats tell us we need to adopt practices that will make us more resilient, but producers are already far more inventive and adaptive than the pencil pushers in ivory towers. It’s also not fair that interest rates and inflation keep increasing. Every producer has stories about farm equipment parts with atrocious price tags.

Twitter: @KevinHursh1

God, grant me the serenity to accept the things I cannot change, Courage to change the things I can, And wisdom to know the difference.

Producers sometimes battle on social media platforms about whether it’s worse to be too wet or too dry. Largely your biggest nemesis depends on where you farm. Living with weather anomalies is just part of being a producer. It’s one of those things you can’t do much to change, but with producer input, crop insurance programs continue to be improved.

Serenity Prayer by American theologian - Reinhold Niebuhr

SEEKING SOLUTIONS TO MAJOR FARM CONCERNS | A FARMER’S VIEWPOINT

Or just ask farmers in Manitoba with flooded land who were forced to seed late or could not seed many acres at all. Or farmers in parts of western Saskatchewan that missed too many rains and therefore face another year of below average yields. Mother Nature can be miserable.

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 publicationsagriculturalandserves as executive director for the Canary Seed Development Commission of Saskatchewan and the Inland Terminal Association of Canada (ITAC).

A FARMER’S VIEWPOINT Flea beetles, grasshoppers, gophers and herbicide residues can

you

without

There was actually a movement back in the days of terrible grain prices to have a worldwide cutback or moratorium on production by grain producers to force world prices higher. Needless to say, this never gained much momentum.

I suspect things aren’t as rosy for packing plants as they appear on the surface, but it would be instructive to have a comprehensive understanding of packer and retail profits. It would also be useful to uncover any potential collusion among the major packers.

My wish is more small abattoirs doing custom cutting and serving local markets. If regulations were streamlined and simplified, might local abattoirs flourish thereby improving margins for producers?

Meanwhile, crop prices can be so volatile that always double guessing the market, regretting many of your marketing decisions. Not that many years ago, the Canadian Wheat Board handled all of our wheat, durum and export barley sales. CWB marketing decisions and the prices garnered were widely criticized. Everyone was in the same boat, albeit without much of a paddle. Now we all have the opportunity to screw up our own marketing on all the crops we grow and that’s the way the vast majority of producers prefer it. Central desk marketing is never coming back.

of the publisher. Canadian Publications mail sales product agreement no. 41126516.Scott Shiels Tom

The or in part, the written permission Wolf kick in the Some of this it

comes at a cost.

publisher does not assume any responsibility for the content of any advertisement, and all representations of warranties made in such advertisements are those of the advertiser and not of the publisher. No portion of this publication may be reproduced, in all

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We can’t change the weather. We can’t do much about macroeconomic conditions. We’re too individualistic to embrace central desk marketing. We need to accept the conditions we can’t change, but it’s also reasonable to explore options on the problems for which we should have some influence.

There’s a danger of becoming too jaded and pessimistic. No use tilting at windmills, but it’s worth exploring rational responses to the uncertainties over which we have some control. Sometimes you don’t know what can be changed or improved until you try.

10 Publishers Pat Ottmann & Tim Ottmann Editor Natalie Noble Design Cole Ottmann Regular Contributors Vincent Cloutier Kevin TammyHurshJones Copy EditorS Nikki NerissaMullettMcNaughton Sales Pat 587-774-7622chloe@farmingfortomorrow.caChloe587-774-7618nancy@farmingfortomorrow.caNancy587-774-7619pat@farmingfortomorrow.caOttmannBieleckiMacEachern/farming4tomorrow/FFTMagazine/farming-for-tomorrow/farmingfortomorrow WWW.FARMINGFORTOMORROW.CA Farming For Tomorrow is delivered to 90,720 farm and agribusiness addresses every second month. The areas of distribution include Manitoba, Saskatchewan, Alberta and the Peace region of B.C.

can be managed, but

For cattle producers, a major source of unfairness is the difference between what producers get for their beef and what consumers pay at retail. The common perception is that the big packing plants are making out like bandits.

Paul Kuntz

Many cattle producers have long believed additional packing plants would create valuable competition thereby driving up cattle prices. However, industry observers say medium-sized packers have a hard time competing since they lack economies of size. Many packing plant start-ups have tried and failed over the years.

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Until next time…

GRAIN MARKET ANALYSIS | CONTRACT ROLLOVER

Scott is a newly 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

Markets that mere months ago were at all time record highs have come down significantly, but prices still sit well above levels historically seen. One thing I reiterate daily to my customers is they need to remember that old saying, “the best cure for high prices is high prices.” It’s a true statement. While it is true there really is a tight supply of all grains on a global scale, prices like we were seeing six months ago are simply not sustainable. All of us in the agriculture industry realize that input and fuel costs continue to climb, but in order for grain prices to rebound to recent record levels, we would have to experience a crop disaster again, and that would only benefit the lucky ones who manage to avoid said disaster.

We’ve been on quite the marketing rollercoaster when it comes to grains this year, and there doesn’t appear to be much of an end to the ride anytime soon.

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.

With harvest upon us, it’s time to evaluate what you can and cannot store, and to look at the market options for the grain you absolutely need to move. While harvest is not usually the best time of year to sell for the highest prices, the fact remains that if all your storage is full, you have a good – maybe even great – crop coming off. Finding a local market for the excess grain you cannot store is not always an option. Many line grain companies today are dictating that their elevators only handle specific grains at harvest. These will be the crops that are most easily shipped and enable the elevator to continuously turn over stocks and generate revenue for the parent company. What this can mean to producers is you may find yourself looking farther afield for homes for your excess grain. More often than not, it is bulky, higher yielding crops like oats and barley, or specialty crops like peas, flax, or lentils, you are trying to find a buyer for. Opportunities to market directly to end users with milling oats, malting barley or those marketed towards new pulse protein processing plants – try saying that one fast 10 times – continue to grow on the Canadian Prairies. With that growth comes the chance to deal directly with the end user of the products you grow. At the end of the day, the line grain companies and trading companies are all selling their products to these places, so if you can reach out and get your foot directly in the door with an oat mill, malt plant, flax mill or pulse plant, there will be an opportunity to add some margin to your bottom line.

Finding a Home for Excess Grain

I realize this is not always convenient due to the proximity of your farm to these facilities, but most of them will offer picked up pricing on your grain and have trucks handle the hauling for you. The other thing I have learned in my 30 years in this business is that unlike the large line grain companies, most of the end use mills are looking to build relationships with customers who can become long term business partners. These partnerships work to benefit both sides financially, and to provide a stable synergy for years to come.

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Paul Kuntz

What a difference one year can make regarding the interest rate market. In summer and early fall 2021, rates were low and the market was stable. Since then, rates have gone up continuously. How high will they go? When will they begin to go down? How will this affect your farm? What can we do to lessen the effect of rising rates? These are the questions producers have.

Interest Rate

Frenzy FARMING YOUR MONEY | INTEREST RATE FRENZY

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 wheatlandfinancial.ca.through

The Bank of Canada’s website has abundant historical data available. It allows us to look at the last time inflation rose and interest rate hikes were used to combat it. Around 1987, inflation was around 4.3 per cent, while the Bank of Canada’s overnight rate was 7.3 per cent and the prime lending rate was 9.25 per cent. By the early 1990s, inflation had risen to as high as 6.9 per cent. That period of time held our most recent highest interest rates. The overnight rate went up to 13.8 per cent and prime went to 14.75 per cent as of April 1990.

Before we tackle those questions, let’s look at why rates are going up and which rates are being affected. Canada’s inflation rate is very high and needs to be addressed. If we look back at the last time we had double digit interest rates in the early 1990s, the inflation rate was comparable. In December 1990, inflation was five per cent. In January 1991, it was 6.9 per cent. We are now experiencing over seven per cent inflation and it appears to be going higher. The Bank of Canada had to act to try to get this under control.

16 FARMING YOUR MONEY | INTEREST RATE FRENZY

These numbers in comparison to today can make a producer very nervous. If six per cent inflation caused lending rates to go to 14.75 per cent, what will seven or eight per cent inflation cause? I think this is an incorrect comparison. I listed the 1987 lending rates above to show where rates were before and to show the relative rise. In 1987 the interest rate market was relatively flat, low in activity. By 1988, rates started to hit double digits. From 1987 to 1991, the Bank of Canada overnight rate went up 88 per cent and prime went up 60 per cent. This period can represent our most recent years. If we look at pre-pandemic rates between 2010 and 2018, the Bank of Canada overnight rate was around one per cent and prime was around three per cent. This lasted until 2019 when rates crept up to 1.75 per cent for the Bank of Canada rate and 3.95 for prime. We had a run of well over 10 years of boring interest rates that remained low. If we take the interest rate change we have had in just 2022, it does not represent a long enough time period, plus the changes are so dramatic that they skew the percentages. Let’s look at the timeframe between 2010 and 2019 and compare it with today. As I listed, prime was around three per cent and the Bank of Canada rate was approximately one per cent during that time frame. As of summer 2022, prime is 4.7 per cent and the Bank of Canada rate is 2.5. To compare these two periods, prime is up 57 per cent and the Bank of Canada rate is up 150 per cent. This change in rates is more dramatic than the increase in the 1990s.

When the central bank changes rates, does it affect inflation? In January 1991, inflation was 6.9 per cent. By January 1992, inflation was down to 1.6 cent. Despite any other factors in play, these numbers do not lie. Interest rates went up and inflation fell. Based on what happened the last time we had inflation this high, our interest rates have risen higher already. Everyone is Based on what happened the last time we had inflation this high, our interest rates have risen higher already. Everyone is wondering how much higher they can go. I believe they are getting close to the top.

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When will they begin to go down? They will go down once inflation is at two per cent. If the Bank of Canada is correct this will occur late 2024 How will this affect your farm? If you have a lot of fixed rates that do not expire until 2024. There may be little effect. Your line of credit will cost you more. Your trade lines at retailers will cost you more. Take a look at your last financial statement and see where interest costs are relative to fertilizer, fuel or the increase in your revenue. I am going to guess that a higher cost of borrowing will not affect you that much. What can we do to lessen the effect of rising rates? Borrow less money, renew mortgages coming due now for three years instead of five and negotiate a better deal for your operating line of credit.

Let’s answer our interest rate questions. How high will they go? Experts are saying there is another one-and-a-quarter per cent–125 basis points–that the Bank of Canada may get up to. This would be an overnight rate of three-point-seven-five per cent and create a prime of 5.95. If this happens, that increase will be much higher than we experienced in the 1990s from a relative perspective. It will not be the end of the world if those are the rates for a year or two.

18 wondering how much higher they can go. I believe they are getting close to the top. Relatively speaking, they have risen more than they did in the 1990s. I do not think we can directly compare apples to apples and say that 1991’s 14 per cent interest rates will return in 2022/23 just because the inflation rate is about the same as it was then. If we look at 1993 to 1996, inflation was two per cent or less the entire time and the Bank of Canada overnight rate was approximately five-to-eight per cent while prime was 7 to 9.75 per cent. Those rates are high compared to today and with inflation under two per cent, there was no central bank policy in place to slow economic growth. These were the rates chosen to maintain the economy. We have a different interest rate economy today than we had in the 1990s. Rates do not have to rise to double digits to get inflation under control. The governor of the Bank of Canada says by 2024, inflation will be back to two per cent. If we look at the historical data, 1990 and 1991 were high inflation years, while in 1992, it was back down again. Based on history and the governor’s predictions, I am estimating a higher interest rate environment for 2022 and all of 2023. On your farm, avoid locking in rates today that go past 2024. I would not recommend a five-year rate today taking your expiry to 2027. If you need the stability and are happy with the rate, go ahead, but economically speaking, there will be lower rates to come. If you have variable rates, measure the actual dollar difference it is costing you with the increase. Depending on the debt type, you may not have a choice of fixed or variable. If you have an operating line of credit, your lender will not allow you to fix that rate. All you can do is negotiate the best deal. Machinery dealers will still have good rates with buy downs to entice buyers.

Borrow less money, renew mortgages coming due now for three years instead of five and negotiate a better deal for your operating line of credit.

FARMING YOUR MONEY | INTEREST RATE FRENZY

An important distinction is fixed rates versus variable. All of what we have mentioned above has to do with variable rates. Bank of Canada sets the overnight rate which affects prime which affects variable rates. Fixed rates do not follow that pattern. Fixed rates that lenders charge are based on a spread from Government of Canada bonds for the applicable time period – five year mortgage rates come from five year Government of Canada bonds rates. If one goes up or down, so does the other. Generally speaking, variable and fixed rates go up and down together, but not specifically. We are seeing fixed interest rates drop in the summer of 2022 as prime jumped one per cent. The drop is not big, but it is still a drop rather than an increase. If fixed rates continue to be flat, your mortgage debt will not be as affected as you might think since most of that type of debt will be fixed rates.

The key is to actually look at your debt and determine how rate increases will affect your farm financially in real dollars. Once you know this, you will be able to make better decisions. What can we do to lessen the effect of rising rates?

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Return of the Soybean

It was a very different story when Phillips got into the crop in 2012, coming off years of excess moisture. “We were looking for a crop that could better handle excess moisture compared to canola and other crops we used at that time,” he says.

Carl Potts, executive director of the Saskatchewan Pulse Group (SPG), says they saw 200,000-to-250,000 acres of soybeans planted on average every year between 2014 and 2017. In 2017, it spiked to 850,000 acres before falling back. This year, Statistics Canada estimates only 45,000 acres of soybeans were put into the ground in Saskatchewan.

Soybeans look to rebound after years of drought

Potts agrees the decrease in soybean planting has to do with the amount of precipitation farmers have seen in the latter stages of the growing season. “We’ve had some dry finishes to the season over the last couple of years and soybeans, in Saskatchewan at least, need rain in late July and August, so that’s been a big challenge for soybean acres,” he says. At the same time, there have been good prices for wheat, canola and lentils, while oats, flax and barley have offered farmers a lower risk than soybeans, which are on the edge of adaptation in Saskatchewan. Meanwhile, in Southeast Alberta, By Craig Lester

Statistics Canada says soybean production in Manitoba dropped 17 per cent last year, despite a 14 per cent increase in harvested acres. The lack of yield is blamed on drought, a large reason fewer acres are out there this year. “With the drier conditions over the past two or three years, it has kind of reduced yields to the point where it became a less important part of our rotation,” says Phillips, who also sits as a director for Manitoba Pulse and Soybean Growers (MPSG). He is quick to point out his family always maintains a certain percentage of acres because it helps with risk management and will continue to do so moving forward. Also in his rotation are canola, wheat, corn and sometimes peas.

Planted soybean acres on the Prairies may have taken it on the chin a little bit this year. Brendan Phillips of Grand Bend Farms in Hartney, Man., has reduced the number of soybeans in his crop rotation in recent years and he’s not alone. The soybean situation on the Prairies, which flourished between 2014 and 2017, has taken a step back in recent years, primarily due to dry conditions and high prices for other crops.

SOYBEAN ACRES | RETURN OF THE SOYBEAN

Rolling Hills farmer Tracy Hemsing tries growing soybeans in his rotation for the first time in 2022.

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Despite not having a dedicated large-scale crush plant in Manitoba, smaller processors that crush beans for animal feed to service the large animal protein segment have created demand.

“We’ve had some dry finishes to the season over the last couple of years and soybeans, in Saskatchewan at least, need rain in late July and August, so that’s been a big challenge for soybean acres.”

There is a significant global market for soybeans, and since Canada is a significant exporter, logistics are in place to get it to Vancouver to be exported to Asia. China, in particular, is a massive buyer of soybeans.

Producers in the province don’t typically have much for soybean acres, which is also reflected in the County of Newell, where farmers have irrigation from the Eastern Irrigation District. However, Hemsing believes that may be changing as there are several producers in the region who have it or tried them at one point or another. “There are more than I thought there were, actually, it seems like it’s a crop that’s trying to get a Onefoothold.”resounding

If there’s one area Potts would like to see improve, it is more domestic crush capacity. “The pulse plants that have been announced or built on the prairies really deal with pulses only, so we’re dealing with peas, maybe to a lesser degree faba beans and lentils, but not soybeans,” he says, adding soybeans must be processed at an oil seed crushing facility more than a fractionation of flower facility that deals with peas and lentils.

– Carl Potts

Hemsing doesn’t have quite the options as those in Manitoba or Saskatchewan. He points to a buyer in the central Alberta town of Three Hills, where his crop will probably end up after it comes off the field.

Tracy Hemsing is growing soybeans for the first time. The Rolling Hills area farmer says it was a last-minute decision when he could not plant canola and was looking for a crop that was lighter on fertilizer, particularly nitrogen, with current Hemsing,prices.

who also grows silage corn, canola, wheat and barley, has been pleasantly surprised with the crop. “I think they’re a relatively easy crop once you get your spray down.

22 SOYBEAN ACRES | RETURN OF THE SOYBEAN

There’s a possibility of needing a fungicide, but it’s not always necessary on them,” he says.

One of the best things about growing the crop is the opportunities at farmers’ fingertips to move it to market once it comes off the field, says Phillips. “There seem to be reliable movement opportunities off the combine, so we generally utilize soybeans to improve our cash flow in the fall as well as it seems easy to market.”

message Potts, Hemsing and Phillips all share is that once the crop is harvested, it’s easy getting to market.

Phillips generally markets upwards of 75 per cent of the beans straight to the elevator and stores the remaining 25 per cent. There are generally no off-spec issues to worry about.

As for genetics, farmers are looking for varieties that mature sooner to correspond with the short growing season across the prairies. Producers’ struggles with the lack of precipitation in recent years have them looking for varieties that will better weather drought, allowing them to achieve good yields. “To be able to produce the yields that farmers would expect to keep them in the rotation [is] quite important,” says Potts.

“There seem to be reliable movement opportunities off the combine, so we generally utilize soybeans to improve our cash flow in the fall as well as it seems easy to market.” – Brendan Phillips

Soybeans are expected to lessen input costs on Tracy Hemsing’s Southern Alberta farm.

Alberta Pulse Growers, SPG and MPSG coordinate regional soybean variety trials in partnership with seed companies, post-secondary institutions and other stakeholders, making the information available to farmers on their respective websites. This allows producers to evaluate the different locations and get information about similar growing conditions as they have on their farm. In the meantime, Hemsing leaned on the advice of his seed provider to select a variety that was Round-Up ready, and that has worked out well. He looks forward to next year when he can go into the field and grow corn or possibly canola and see the impact of soybeans on the soil’s health. “We need these pulses in our rotation to help make our soils more sustainable,” he says. Despite the recent decline in acres of soybeans, Potts still views the crop as an essential option for Saskatchewan producers seeking additional nitrogen-fixing crop in the rotation.

24 SOYBEAN ACRES | RETURN OF THE SOYBEAN

Phillips is also optimistic, pointing to the excess moisture in his region this year, which should mean a good harvest. “It wouldn’t surprise me to see a rebound in acres in Manitoba next year.”

For Phillips, genetic improvements making soybeans better suited for the Prairies was a key reason they got into their crop on his farm. “The herbicide systems were better suited for our cropping location,” he says, adding he would also like to see more advancements with the varieties to adapt to short-term drought, which his farm often sees in July and August, as well as to the shorter growing season. “As well, [we’re] looking forward to new chemical traits like the Enlist E Three system that will kind of open up options for dealing with Roundup Ready resistant weeds a little bit better for our farm.”

There’s something special within the opportunity to create advisor-client relationships and to share a similar experience and understanding, a notion Stelter personally speaks to. “I’m part of two fourth-generation farms – my own family farm where I grew up and my husband’s,” she says. “I understand how important it is to have these conversations as a family and with your advisors to ensure operations and businesses can continue successfully each season and for future generations.”

“We’ve seen more women coming into the agriculture industry over the last number of years, attending postsecondary agriculture programming and pursuing agriculture technology development,” says Nicole Stelter, TD Vice President of Agriculture Services in Alberta. “Whether it’s business, technology, animal or plant science and everything in between, these programs are preparing them for a variety of career choices.” Whatever their passion, women are launching careers that apply their talent to advancing the agriculture industry. “Whether that’s returning to the family farm, starting their own farm, working as an advisor in banking, consulting, seizing the huge opportunity in technology, working in research or marketing, there’s such a plethora of opportunities for women in agriculture,” says Stelter. “It’s so exciting because of the mix of new people really becoming engaged in that growth and innovation in the industry.”

With that in mind, TD supports several initiatives that give back to the industries, small businesses and agriculture communities, including helping the success and growth of women entrepreneurs and women-led businesses through a Women in Enterprise Program. “Our Women in Enterprise bankers are specifically trained and accredited in supporting women in business,” says Stelter. “It’s important to have bankers that understand the unique circumstances for women getting into certain industries. Agriculture has traditionally been a male dominated industry, so that support is important.”

The support that TD can provide includes various loan programs, creating loan structures, and providing advice for business expansions, diversifications or even transfers. In addition, TD experts can create custom plans for wealth preservation in the event of a sale of property or operation. “For instance, farm families can utilize TD Agricultural Services to support the transition of business to the next generation and TD Wealth to support the current or incoming generation with wealth strategies,” says Stelter.

Make an Impact

MAKE AN IMPACT | TD

Most recently, she attended and spoke at the Advancing Women in Agriculture Conference in Calgary, where topics included reenergizing and getting back to business, leadership, understanding your core values and numerous entrepreneurial endeavours headed by women.

“I love attending all these events, but this one felt really special,” she says. “Coming out of COVID, the networking was incredible. There was so much laughter and connection between a variety of experiences and businesses. These conferences give you an opportunity to chat with someone who in your normal course of business or life, you wouldn’t have that occasion. Maybe there’s an opportunity for mentorship. I know it’s good for my business, my farm, and my family.”

Please visit www.td.com for more information.

“There’s incredible opportunity when farm businesses talk to their advisors early if they can, but my message to people is that it’s also never too late,” says Stelter. “Having all partners, including third-party experts, at the table to help guide families and businesses through the important transitions is so important.”

*https://calgaryherald.com/business/local-business/future-of-agriculture-in-alberta-faces-many-challenges By Natalie Noble

In her passion to spread the good news in Canadian agriculture, Stelter spends a portion of her time attending events and conferences where she can connect with her peers in person.

In every facet of Canadian agriculture, women are doing big things. When they needed support, encouragement or a boost, TD has been there to help.

As the demand for people to fill positions across the agriculture industry continues to swell, women are playing a growing role and are doing so with great impact. “Having women involved, and this goes beyond agriculture into business in general, brings together different mindsets, skillsets, experiences and backgrounds,” says Stelter. “That’s important when you’re driving change and innovation. Have I seen this happening more and more in the industry? Absolutely.”

Planning and support are critical to continuing success for farm families. Yet, Statistics Canada reports that only 14 per cent of Alberta farms have a succession plan in place despite an average producer age of 56 and twice as many farmers over age 55 than there are under*.

TD supports women to blaze their own trail in Canadian agriculture

COVER STORY | ORGANIC EVOLUTION 28 By Natalie Noble All photos courtesy of Robin Lafond, Shyhorses Photography Mumm’s Sprouting Seeds celebrates 40 years’ of success in organic seed retail ORGANIC EVOLUTION

Working in the heart of a province known world-wide for its massive global food production, innovation and progressive technologies, the Mumms were early adopters of organic seed production, embracing the practice in 1974, way ahead of its time. “These were the pre-certification days, but they used the practices and principles of the organic movement,” says Mumm. “Mom remembers going to organic farmer meetings for the whole province in church basements with just a handful of growers there. Now, we have over 1,000 certified organic growers across the province.”

When her father was diagnosed with Parkinson’s Disease in 2011, Mumm returned home with her BA in International Studies from the University of Saskatchewan and studies at McGill Law. She quickly realized home was exactly where she belonged.

“I was helping my parents get ready to sell. Dad was still feeling relatively good at that time but my parents wanted to spend some years together, and not just while working so hard,” says Mumm. “Although, growing up I had never imagined myself back on the family farm or running the family business, as we prepared to sell, I decided this was something I was really interested in. That was a fun epiphany at the time.”

The Mumm family adopted organic seed production in 1974, long before the now popular practice was officially certified.

Mumm’s father always found technology appealing, building their business’s first website back in the mid-90s. “He had this attitude of, ‘I can learn how to code and build a website on my own,’” says Mumm. “Obviously this was way prior to Shopify

The luckiest people in business are those who pursue their passions, well, organically. As a young girl growing up on the farm six miles south of Shellbrook, Sask., Lisa Mumm, owner of Mumm’s Sprouting Seeds, didn’t yet envision her return to the family farm and organic seed retail business. But, life happens and when people listen to intuition, opportunity tends to knock.

Mumm’s Sprouting Seeds originally operated right off the farm. In 2000, it was moved into neighbouring Parkside. Because the farm’s 550 acres border one of the province’s old-growth forests, expansion wasn’t an option and the business had outgrown its capacity. Having a strong network within the organic farming community, the Mumms have long sourced seed from local farmers and organic growers across the Prairie provinces. What propelled them to embark on this journey? Historically, it’s been a spirit of curiosity behind their efforts. “My parents have always been driven by that curiosity, their desire to learn and to explore everything,” says Mumm. “Dad was always interested in new and different farming practices, experimenting with unconventional crops on the farm, experiencing a lot of hits and some misses, too. That experimentation kept things fun for my parents in their work.”

ORGANIC EVOLUTION | COVER STORY

Another case of perfect timing, alongside Mumm’s return, Saskatchewan’s provincial government incentivized farm families to work on their succession planning through a grant program covering a portion of third-party costs. Because MNP had a great reputation in the ag world, the Mumms sought their guidance.

30 COVER STORY | ORGANIC EVOLUTION

Mumm’s Sprouting Seeds ran from the family farm from 1982 until 2000 when Parkside’s community curling rink – no longer in use–accepted the Mumms’ proposal to run their business there. “It’s where we still operate,” says Mumm. “We put on an addition roughly eight years ago, but the curling rink we retrofitted to be our office, manufacturing facility and warehouse still houses the bulk of production.”

Thinking outside the box traces back to Mumm’s grandparents who previously farmed their land, mainly grazing a large sheep flock, venturing into leaf cutter bees early on as well. Her father left the family’s home quarter to pursue his undergraduate degree in marine biology and then returned home, soon meeting her mother who grew up in southwest Saskatchewan.

“Although, growing up I had never imagined myself back on the family farm or running the family business, as we prepared to sell, I decided this was something I was really interested in. That was a fun epiphany at the time.” – Lisa Mumm

or those kinds of platforms. That spirit drove a lot of their decisions and it made for an interesting combination of being curious, willing to explore new ideas, at the same time being thoughtful, careful and cautious in decision making.”

“It wasn’t their first rodeo and they were fantastic to work with,” says Mumm, adding that the entire process took nearly

Like Mumm, life also altered her parents’ path. “It helped them prioritize the business,” she says.

Lisa Mumm’s timely 2011 return to the family farm and business after post-secondary meant the family could proactively work through the transition process while she learned all she could working alongside her father.

“When the farm transitioned to them in 1974, they started a mixed farm, working to produce most of the food they would eat year-round. They had chickens, pigs, honeybees, a large garden and still raised sheep,” says Mumm. “But, being right on the edge of the provincial forest, there’s a lot of wildlife activity near our farm. Sixty out of their 200 sheep were taken out in one year. Despite their best efforts to protect their flock from the coyotes, they got out of raising sheep.”

Farmers who cannot afford further rate hikes may want to lock some rates in now. “This can give you some peace of mind that any further rate hikes will not put you into a bad situation. Don’t take that chance if you can’t afford it,” says Person. “As for how long to lock them in, it’s best to get some advice from your lender.”

Meanwhile, challenges within the cattle sector may see pastureland values struggle to hold up as well as cropland, unless that pastureland can be converted to crops, that is.

Theoretically, more difficulty accessing financing to purchase land could reduce demand, lowering land values and slowing the number of transactions. However, reality may play out

Still, staying prepared and planning proactively are the keys to doing good business, so Person breaks down some top impacts farmers may feel with today’s rising interest rates.

crop commodity prices remain strong and there’s renewed investor interest in farmland likely driven by increased volatility in the stock market as people seek safer investment opportunities,” says Person. “I would suggest cropland values will remain strong in the near term, and it might take further rate increases, along with a combination of other factors, for interest rates to significantly impact cropland values.”

“Currently,differently.

The media would have Canadian farmers overreact to rising interest rates. However, Stuart Person, SVP of MNP’s Agricultural Services, offers practical reassurance.

Land values have increased significantly across Canada over the past 20 years. For sellers, Person says they might see opportunity in taking those profits now. “I imagine it’s tempting for some people right now to consider selling,” he says.

Proactive planning can help farmers rise above climbing interest rates

“While we’re seeing some big jumps, from a historical level these rates still sit fairly low,” he says.

By Natalie Noble

THE SKY’S NOT FALLING | MNP

With interest rates still relatively low, Person says farmers who can service debt at this level should feel confident in buying now. However, farmers should do a proper analysis around the different costs in purchasing versus renting more land.

“Given that farmland tends to only trade once per generation, if that, the best time to buy land is when it comes up for sale,” says Person. “You likely cannot buy it next year.”

“Do the math on your purchase, take the dollar amount financed per acre, multiply that by the interest rate, and that’s essentially your rent,” says Person. “If that number is far in excess of the going rental rate, you might want to think about what is available for cash rent.”

The Sky’s Not Falling

Higher rates may also diminish a farmer’s ability to obtain and service new debt. “When you have to pay more interest, you’re left with less cash to pay on the principal, reducing your borrowing capacity” says Person. “This may result in less spending on capital items such as equipment, buildings, grain storage and land.”

Does all this mean potential buyers should hold off? Not exactly.

Finally, higher rates could throw a curveball at succession planning if the exiting generation has all their wealth tied into the farm. The entering generation then must buy them out entirely, or at least partially, to fund their retirement needs.

Higher interest rates may limit borrowing options in order to do “Butso.succession planning is intended to be long term, so don’t let short term interest rate changes get in the way of doing the right thing by moving forward to ensure your legacy carries on. Think long term, and tweak your plan as needed to weather events like this,” says Person. It can be confusing to navigate change. It’s more important than ever to reach out to your trusted professionals, including your business advisors and lenders. For more information, reach out to Stuart Person, MNP’s Senior Vice President, Agriculture and Director, Crop Services at stuart.person@mnp.ca

“For anyone with floating debt, which typically includes lines of credit to finance general operational costs, rising interest rates will increase the cost of borrowing on those expenses immediately, therefore increasing the cost of production,” says Person.

a year-and-a-half. “We worked on everything from strategic planning to value mapping, all kinds of really foundational business work. It was so good for me to participate.”

That value cannot be emphasized enough, “It’s so important to do this work,” says Mumm. “There are so many people at the point they want to put a succession plan in place, but if they’re anything like we were, might have no clue where to start.”

In 2020, Lisa Mumm paused to reprioritize her time and effort. Renting out the family’s farmland for five years, she’s focusing on Mumm’s Sprouting Seeds, and family.

Learning all she could over those years, unfortunately Mumm’s dad fell ill in 2017. “So, I was farming on my own for a few years and really enjoyed that part of my work,” she says. Sadly, her dad passed away in 2019. “Of course, there are still knowledge gaps because I didn’t learn everything from Dad that I could have. I wish I would have had more time with him to learn more.”

With that business taken care of, Mumm got to work farming with her dad. “I was growing crops like daikon radish, arugula, rapini, curly cress and some specialty seed crops we were challenged to source locally or within Canada,” she says. “I included wheat, oats, buckwheat and other more familiar crops into my rotation.”

32 COVER STORY | ORGANIC EVOLUTION

Performing a formal business evaluation, the MNP team helped the Mumms structure a buy-out. A gradual purchase schedule, equity structure and good communication were all implemented. “My parents could sell the business for a fair price while I was able to take it over in my mid-20s,” says Mumm. “It was really cool to have that knowledgeable guidance around the many parts of succession planning that would never have otherwise come to mind. We ended up with a fool-proof plan and came out of the process feeling like everything was solid, saying ‘we’re not going to fight about this.’ We all know exactly where we stand.”

Today, the farm remains with her mom while Mumm, her husband Paul and six-year-old son Nico moved a small 1913 farmhouse onto the family farm, completing renovations in 2013. “Even though Dad and I farmed together and then I farmed solely for a couple years, we’ve continued to run the farm as a cooperative with an informal share structure in place for the crop production,” says Mumm. Running the farm on her own, leading a growing business into the future and raising a young son, Mumm decided to

The Mumms also expanded early into the U.S. market. “One of Mom and Dad’s first sales in the ‘80s went to California,” says Mumm. “We had our toes in the water in the States from the early days selling to commercial sprout and microgreen growers and market gardeners. We’ve been selling via ecommerce into the U.S. since Dad built that first website in the 90s.”

All that work requires a capable, motivated staff of 28 full time employees. “This team beside me working so hard is the heart and soul of Mumm’s Sprouting Seeds,” says Mumm. “They work day-in, day-out, come to me with creative ideas every day to make this business better and truly care about connecting with our customers to get them quality product. This is an awesome team and I’m really proud of that.”

– Lisa Mumm

reprioritize two years ago. “I wasn’t running the farm and the business well together because it was just too much,” she admits. “Nico was four and I felt like I was missing his childhood, especially at seeding and harvest time while also managing the seed business.”

Also important are the farmer relationships built as the Mumms outsource their growing seed demands beyond their farm’s smaller contribution. “Our closest organic farmer is one mile away, but we work with farmers all the way across the province, into Alberta’s Peace region and in Manitoba as well,” says Mumm.

As for those crops that simply won’t grow in the Prairie climate, Mumm’s Sprouting Seeds sources from organic operations outside the country, mostly in the U.S., but 80 per cent of their seed is produced in Canada.

Between growing up in the business and running it today, Mumm is watching the organic industry make incredible advances. “It’s

With things flourishing at Mumm’s Sprouting Seeds, that time is likely to fly by. “We’ve been fortunate that the business has seen really good organic growth through word of mouth as people increasingly become more interested every year in healthy food, local food and in supporting Canadian agriculture,” says Mumm. That growth has led to the business supplying over 100

33 ORGANIC EVOLUTION | COVER STORY

varieties of sprout and microgreen seeds. Customers include kitchen growers, e-commerce purchasers, independent grocers and natural food stores across Canada. Approximately 55 per cent of sales come from commercial sprout and microgreen suppliers, including market gardeners, urban farmers, larger scale facilities dedicated to sprout and/or microgreen production and a garden seed distributor. “We also supply to folks growing at a smaller level to support their communities through farmer’s markets or communitysupported agriculture (CSA) growers,” says Mumm. “We have a really interesting and diverse customer base.”

“Some of these relationships are decades old, others are new to us this year. We’re always looking to grow that network.”

Mumm’s Sprouting Seeds organic products are shipped to growers as small as the kitchen gardener to independent grocers and natural food stores across Canada as well as larger scale facilities and a garden seed distributor.

“Of course, there are still knowledge gaps because I didn’t learn everything from Dad that I could have. I wish I would have had more time with him to learn more.”

So, she took a five-year break from the farm production side, renting it out to a neighbouring organic farmer. “He’s been growing some organic seed crops for us and will manage the farm’s crop production for five years,” says Mumm. “When we’re through that time, I’ll have to make some decisions about upgrading some farm equipment and all those things that go along with running a farm today, but that’s where we’re at right now with our farm production.”

34 COVER STORY | ORGANIC EVOLUTION

Lisa Mumm is honoured to be named one of the 2022 Influential Women in Canadian Agriculture. exciting to see new traceability technologies from the consumer engagement and food safety perspectives,” she says. “Through our organic program we’ve had farm to fork traceability in place for decades, but it’s certainly getting easier through new tools.”

Recently, the business adopted a new enterprise resource planning (ERP) software. “Having that traceability back to the farm and field level is important to our food safety program, too,” says Mumm, adding that her team also implemented a Global Food Safety Initiative (GFSI) level food safety program in 2018. “There’s no higher level of food safety certification in the world than attaining this certificate. As a small business, this took a ton of work and time for us to pull together. It was a really big deal for us because consumers, rightfully so, want to know the food they’re eating is safe and that we’re doing everything we can to ensure that.” It’s with that desire to connect consumers and field level production that Mumm volunteers her time to various organic boards. Working with the board of directors for the Canada Organic Trade Association from 2012 to 2020, she served as vice president in her last years. She’s also served on SaskOrganic’s Organic Agriculture Protection Fund committee and continues to serve on the Organic Connections board of directors since 2012.

This year, Mumm was honoured to be named one of the Influential Women in Canadian Agriculture. “It was lovely to have that recognition,” she says. “I’ve tried to follow in my parents’ footsteps and be very involved in the organic farming community. We have worked to strengthen this community and build our network along with the thousands of people across Canada doing the same. There’s an energy and excitement within the organic community that’s great to see. And, it’s stronger than ever in 2022.”

“Our closest organic farmer is one mile away, but we work with farmers all the way across the province, into Alberta’s Peace region and in Manitoba as well. Some of these relationships are decades old, others are new to us this year. We’re always looking to grow that network.”

“We put together Western Canada’s largest organic conference for organic producers,” she says. “It’s so fun, and we finally get to go back to it this November in Saskatoon.”

– Lisa Mumm

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In mid-summer, the crop was off to a later start thanks to cooler than average temperatures. “In addition to the lack of rainfall last year, there were very hot temperatures during the flowering period, which had a negative impact on yields,” says Broughton, adding that in the case of milder July temperatures, farmers in regions of adequate rainfall should be optimistic about the 2022 crop.

If one thing is true about farming, it is not for the faint of heart. Numerous strengths are required to be a successful grower – problem-solving, farm management and organization, patience and perseverance, analytical and technological skills. Farmers play an essential role in changing the agriculture landscape for the better.

“However, for those who were not lucky with timely rains, it was devastating because many producers had little-to-no canola to harvest,” he says. “The very wet spring this year in Manitoba and in parts of Saskatchewan probably had a greater impact on producers and the acres seeded to canola. We estimate that only 93 per cent of Manitoba’s total arable acres were planted. This no doubt will impact the total acres seeded to canola in Manitoba.”

Still, much of a crop’s success is dependent upon climate and market access issues. For Canadian canola growers, the 2021 growing season was one of the most difficult on record.

“The Prairie-wide drought of 2021 resulted in the biggest drop in Canadian canola production in more than a decade. Average yields fell to 25 bushels per acre with total production of 12.6 million metric tons,” he says. “This led to a rationing of sales to export markets and very low ending stocks.”

CANOLA UPDATE: WHAT CAN GROWERS EXPECT? | CANOLA

Fossay was awaiting the crop insurance seeded acreage report to know the full effects. He says after seeding, some farmers

GlobalKopochinskidemand

Jim Everson, president of the Canola Council of Canada (CCC), says CCC agronomy specialists extended timely resources and advice to help growers manage pests and better understand heat stress, as well as deal with the sprouting, regrowth and lateseason pathogens that followed last year’s late season rains.

By Lisa

SaskCanola invests in research to improve profitability of canola and ensure the long-term sustainability of Saskatchewan canola farmers. After last year’s drought, executive director Tracy Broughton says current conditions vary significantly from region to region in Saskatchewan since the province is so large. While some areas remain dry, overall the province has experienced significantly more rainfall than this time last year which has been very helpful to improve soil moisture levels.

for Canadian canola remains favourable

Canola Update: What Can Growers Expect?

Chuck Fossay, Manitoba grower and board member with Manitoba Canola Growers and CCC, says last year’s drought affected producers in many different ways. For producers who received some timely rains, the drought had only a minor impact on production.

There is some good news in that new biofuel regulations are presenting a new market opportunity for canola oil to be part of a low carbon fuel. To address global climate change, Everson says more countries are introducing renewable fuel mandates to reduce greenhouse gas emissions, with Canada and the U.S. among them. This is an important opportunity for the industry because canola-based biofuels have among the lowest carbon footprints in the world, reducing lifecycle greenhouse gas (GHG) emissions by up to 90 per cent compared to fossil Thisdiesel.is largely because Canadian growers have such a strong track record of sustainable production practices. In addition “We see an opportunity for canola to continue to service the demand in the food market, and increased demand to come from the fuel market.” – Tracy Broughton

What’s Next for Growers?

40 CANOLA | CANOLA UPDATE: WHAT CAN GROWERS EXPECT?

In addition to climate challenges, there was also the market access restriction for canola seed to China over the past several years. China’s restriction on canola exporters impacted the demand for and value of canola. Seed exports to China dropped from $2.8 billion in 2018 before the restrictions, to $800 million in 2019, $1.4 billion in 2020 and $1.8 billion in 2021. This dispute lasted three years, with positive news finally arriving in May 2022 when China reinstated access for Richardson and Viterra to export canola seed to China. Throughout this dispute, CCC worked very closely with Government of Canada officials to encourage a return to rules-based predictable trade, and ensure all Canadian exporters are treated equally by the Chinese administration.

had to spray their canola fields for flea beetles up to four times. “Some fields have been reseeded due to excess moisture or have simply drowned out. We’ll need to wait to see how much canola actually is harvested. But canola does have the ability some years to rebound and recover from a poor start.”

“We had a case study completed that estimated this trade restriction has cost the industry between $1.54 and $2.35 billion from lost sales and lower prices between March 2019 and August 2020,” says Everson.

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to the environmental benefits, canola-based biofuels help diversify market opportunities for canola growers and mean more jobs and investment in value added processing.

“With this expansion, we see an opportunity for canola to continue to service the demand in the food market, and increased demand to come from the fuel market,” says FossayBroughton.predicts

“I cannot comment specifically on these new varieties but by early fall, producers will be told about these varieties and will have to make their selections,” says Fossay. “As for products, there are some new seed treatments in the pipeline to be released later this year or next spring that will provide better disease and insect protection for canola.”

“While the futures price has gone down since early June, prices are still very attractive and, despite high input costs, farmers should be able to make profitable sales of canola with average yields. So, overall if there are no unforeseen events, canola producers should do well this year.” - Chuck Fossay

Western Canadian farmers will seed somewhere around 22 million more acres of canola. “Canola prices were attractive all winter and into the spring planting season,” he says. “While the futures price has gone down since early June, prices are still very attractive and, despite high input costs, farmers should be able to make profitable sales of canola with average yields. So, overall if there are no unforeseen events, canola producers should do well this year.”

Every year seed companies come out with new varieties of canola that have potentially higher yields, better disease resistance, better pod shatter resistance or some other trait, says Fossay.

Photo: Canola Council of Canada

Meanwhile, the federal government’s target to reduce fertilizer emissions by 30 per cent by 2030 is an important issue. Ensuring canola farmers have access to nitrogen fertilizer plays a role in that canola production and meeting the goal to sustainably increase yields.

A combine augers canola into a farm truck in Manitoba.

42 CANOLA | CANOLA UPDATE: WHAT CAN GROWERS EXPECT?

43 Follow us: facebook.com/fortisab @fortisalberta youtube.com/fortisab @fortisalberta POWER LINE CONTACTS CAN BE FATAL FortisAlberta’s goal is to ensure you return home safely each day. We urge you to always ask yourself, “Where’s the Line?”, Stay 7 Metres Safe and call 310-WIRE (9473) if you need to get closer than 7 metres to our power lines. Remember, contacting a line can seriously injure or kill you. Keep safety in mind, especially if you are operating air seeders/sprayers, trackhoes, grain augers, tractors or transporting high loads. Watch for guy wires and overhead lines, especially at dusk and dawn. If you contact a line, know how to respond safely. Have your own customized safety plan. Create a power line safety plan by downloading a copy from FortisAlberta.com. You’ve got a lot on your mind farming season, let us help keep you safe. Raising a healthy family is all anyone wants. When you recycle, you help us do that. We have 37 EcoCentres and nearly 100 drop-off points province wide. usedoilrecyclingsk.com Toll free in SK1.877.645.7275 By recycling used oil, filters, antifreeze, their plastic containers and DEF containers, you help keep Saskatchewan’s water, land and air clean and safe. We have one of the best recycling networks in the country, let’s use it. Saskatchewan Association for Resource Recovery Corp. 20220729_SARRC_FarmingForTomorrow_7x4.75_Fall.indd 1 2022-07-29 1:57:52 PM

“The fundamentals of global demand for Canadian canola are in our favour and our industry continues to be focused on growing the supply of canola to meet this market demand in a sustainable, profitable way,” says Everson, adding steady growth in domestic processing exceeded 10 million metric tons in 2020 and should processing capacity utilization sit at 90 per cent, 15 million annual metric tonnes of Canadian canola will be processed by 2025. “The four major announcements in 2021 and early 2022 to increase canola processing capacity in Saskatchewan are well aligned with this strategic plan.”

Asked if many of these targets are within reach by 2025 –including exported seed and domestic processing – Everson says the country’s seed exports in 2020 came close to the 2025 target at a record 11.8 million metric tons.

CANOLA | CANOLA UPDATE: WHAT CAN GROWERS EXPECT?

- Jim Everson

“Canadian canola farmers have been and continue to be strong adopters of management practices and technology that contribute to environmentally sustainable production, such as conservation till, pod shatter tolerant seed varieties, precision ag technologies and 4R Nutrient Stewardship practices,” says Everson. “Moving forward, continued adoption and advancement of 4R practices is an important opportunity to improve fertilizer efficiency, which is good for both farm productivity and our environment.”

Keep It Coming 2025

In 2014, CCC released its strategic plan, “Keep it Coming,” to achieve an ambitious yield of 52 bushels per acre to meet a global market demand of 26 million metric tons by 2025. To reach this goal, the industry is focusing on three strategic priorities: a sustainable and reliable supply; differentiated value; and, stable and open trade.

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“However, the global economy is a significant challenge, and inflation and higher interest rates trying to manage inflation have heightened uncertainty and volatility,” says Townsend.

However, key opportunities available for Prairie farmers include a return to a normalized or average production.

“For example, while the drought was devastating for many farmers, this year a larger area has seen adequate moisture,” says Townsend. “This could mean the majority of farmers should have a more representative crop. Of course, weather in July is critical to determine the final outcome.”

Renewable diesel has also emerged as a significant demand driver for North American oilseeds.

Neil Townsend is chief market analyst at Winnipeg-based FarmLink Marketing Solutions’ GrainFox, a firm that helps farmers manage their farm wealth through expert market analysis, a network of local grain marketing advisors and over 20 years of statistical and historical data. In addition, they offer valuable planning tools and features, with up-to-the-minute insights, and timely recommendations.

“Canola stands to benefit because it has a higher relative oil content,” says Townsend. “This has already benefited prairie farmers and will only gain traction in 2022/23. Additional supplies and relatively strong global oilseed demand should open the door for a more robust export program.”

Townsend’s final advice at this stage is that farmers should incrementally sell.

CANOLA | CANOLA UPDATE: WHAT CAN GROWERS EXPECT?

“Grain and oilseed prices are impacted by the general perception around global economic well-being. Our team sees a heightened probability for social unrest in many offshore markets. All things equal, it is better to market grain in periods with greater certainty. The first half of 2022/23 looks to be plagued with a high degree of uncertainty.”

As for what the 2022/23 year holds for Canadian farmers, one market analyst predicts production will rebound from last year’s drought and increase supply back above 20 million metric tons.

Canola Farmer Forecast: Rebound Expected after Last Year’s Drought

From market experts to tech specialists to former producers, the company provides complete, comprehensive support to farming operations of all sizes. In terms of supply, Canada will see a significant improvement year on year, says Townsend. “However, demand—dampened by higher prices and COVID-19 shutdowns—remains a question mark. Will it rebound back to 2020/21 levels [at] 21 million metric tons, or will it be negatively impacted by lingering demand destruction–higher prices culled demand in 2022/23–and inflation/macroeconomic concerns?” he adds. “Price prospects could be under pressure from improved supply and questionable demand. As always, China’s demand will be an important variable in determining the final price outcome.”

To help manage some of the risks in an uncertain market, a platform like GrainFox can help farmers plan, compare profit scenarios and manage crop portfolios, all while getting up to the minute market insight and advice, says Townsend. “In a volatile market like this, it’s more important now than ever to have direct line of sight into your farm wealth.”

There is also a big crush expansion underway in Western Canada. With several plants currently at various stages of development and construction, this could add between three and five million metric tons of crush capacity in the next several years. Renewable diesel demand, helped by tax incentives, is the driving force behind these investments.

“There is no firm determination of what future events will occur and where prices will absolutely end up,” he says. “Thus, the best approach is to split sales into four or five increments and sell a portion into rallies. Today’s price might be an average, a seasonal high, or even a seasonal low. Use the time value of the full marketing year to mitigate risk and secure opportunity.”

Mental health isn’t something we talk about. to ignore

To recognize that just like anyone else, sometimes we might need a little help dealing with issues like stress, anxiety, and depression. That’s why the Do More Agriculture Foundation is here, ready to provide access to mental health resources like counselling, training and education, tailored specifically to the needs of Canadian farmers and their families.

Mental health isn’t something we talk about. to ignore

It’s time to start changing the way we talk about farmers and farming.

Mental health isn’t something we talk about. to ignore

It’s time to start changing the way we talk about farmers and farming. To recognize that just like anyone else, sometimes we might need a little help dealing with issues like stress, anxiety, and depression. That’s why the Do More Agriculture Foundation is here, ready to provide access to mental health resources like counselling, training and education, tailored specifically to the needs of Canadian farmers and their families.

Mental health isn’t something we talk about. to ignore

Think about it this way. When you eat your bread, you consume nutrients. If your bread is made from whole wheat flour, it contains a wealth of nutrients, including fibre, vitamins, minerals and of course, carbohydrates. Where did these nutrients come from? The soil, the sun and the air. Plants like wheat consume carbon dioxide, solar energy, water and a list of elements from your high school chemistry class

By Jake Leguee Do Farmers Really Nitrogen Fertilizer?Need

As we hear more and more about agriculture’s contributions to climate change, a lot of people are wondering why farmers can’t just stop using fertilizer. Some link the need for fertilizer to “industrial” agriculture, or “corporate” farming, or the worst of them all, “factory farming.” Many people seem to believe the use of fertilizer strip-mines the soil, rendering it an inhospitable, dried-up hunk of dirt that can’t support any life at all. Some even think it’s somehow tied to the infamous Roundup that, supposedly, our crops depend on multiple applications to survive. So, what’s the real story here?

This June, our air drills went to the fields to plant our 2022 crop. Over those few weeks, we applied hundreds, even thousands, of metric tons of fertilizer of various types. The reality is, farmers need fertilizer to be sustainable and to look after their land. Fertilizer replaces the nutrients we take from the soil when we harvest a crop. If we don’t replace the nutrients, the soil slowly gets mined to exhaustion. Somehow, we must replace what we take. Nutrients don’t come out of thin air. Well, except nitrogen – but we’ll get to that later.

These two men developed a method for breaking the bond between N2 in the atmosphere and developing it into a source available for plants. This ammonium nitrate they developed was a godsend for agriculture, saving the lives of untold billions of people over the last hundred or so years. Without this innovation, our world would be very, very different. In fact, every second person alive right now exists only because of this discovery.

50 like nitrogen, phosphorus, potassium, sulphur, magnesium and so on. Wheat depends on these nutrients to develop a seed–hopefully, lots of them–that grows ground up to produce your flour. These nutrients can’t be created from nothing. They must come from somewhere.

The major nutrients wheat needs, called macronutrients, include several elements, such as carbon, oxygen, nitrogen and a few more. These macronutrients don’t differ a whole lot amongst most of our major crops. Whether you’re growing corn, wheat, canola or lentils, you need all of these nutrients to produce a healthy plant with nutritious seeds. Now, I’ll address the elephant in the room: nitrogen, the nutrient we apply in and by far the largest volumes in much of the world. You might know that nearly 80 per cent of the air we breathe is nitrogen. So, why can’t our crops just use that? Well, it’s not “available” to them. The N in our atmosphere is tightly bound up as N2 and cannot easily be broken up. This unfortunate paradox, that the most important nutrient most plants need is abundant but not actually available, has been a tremendous challenge for all of humanity’s history in agriculture. It was recognized as the primary reason why famine would overtake the exponentially growing human population a hundred years ago. Enter Fritz Haber and Carl Bosch.

The downside, of course, is the energy required for the so-called Haber-Bosch reaction is substantial, making it a significant contribution to greenhouse gases. But, I would submit that the lives of four billion people outweigh that. But wait. Some plants don’t need nitrogen fertilizer at all, why can’t we just grow them? Yes, some of our crops don’t need nitrogen, at least, not nitrogen fertilizer. Our legumes, like soybeans, lentils, peas and others work symbiotically with soil bacteria, giving the bacteria carbon and getting “fixed” atmospheric nitrogen in return. Unfortunately, legumes don’t have the ability to produce the calories required, or the nutrient mix necessary, to provide for all of humanity’s diet. They also tend to have greater disease risk in the field and all sorts of other production challenges. They work as a great rotation with cereal crops like wheat, but not as a whole farm crop. We need cereals, and oilseeds, too. Why can’t wheat, canola and all these other crops produce their own N, like the legumes? Well, scientists have been working to crack that biological mystery for decades. Someday they will. Even today, new products are emerging that may allow us to reduce N requirements for these crops, so there is reason for optimism here. But for now, and for the foreseeable future, we still need nitrogen. But wait. Can’t organic agriculture get us out of using all that toxic nitrogen fertilizer? No, it Organiccan’t.agriculture has often been touted as being the saviour of modern agriculture as the way out of using all these toxic fertilizers and pesticides and monocrops. Well, here’s the truth. Organic agriculture is a marketing play. Nothing more. Organic farmers use pesticides and practice monocropping, which there is nothing at all wrong with, by the way. They till up their soils to kill weeds and generate nutrient release from it. Yes, tillage, the dirty word we left behind in the 1980s after a legacy of dust storms and dead soils. Organic farming is not more sustainable than conventional farming is. Don’t get me wrong. There are great organic farmers out there who really do look after their soils well. Many organic farmers are excellent producers and I am not criticizing their decision to be organic farmers. But even they will admit their production just cannot match conventional agriculture. And then there’s regenerative agriculture. It has also been touted as an improvement on conventional agriculture. The problem with this system is nobody knows what it is. It has a thousand definitions and practices. Until regenerative agriculture settles itself out, its flurry of definitions and The reality is, farmers need fertilizer to be sustainable and to look after their land. Fertilizer replaces the nutrients we take from the soil when we harvest a crop. If we don’t replace the nutrients, the soil slowly gets mined to exhaustion. Somehow, we must replace what we take. REALLY NEED NITROGEN FERTILIZER?

FROM THE FARM | DO FARMERS

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51 DO FARMERS REALLY NEED NITROGEN FERTILIZER? | FROM THE FARM

practices leaves me cold. In any case, regenerative crops need fertilizer too, and that is not likely going to change. Nitrogen, along with all the other major nutrients our crops need, is a key component of good soil fertility and healthy crops. Too much of it is no good for anyone, least of all us farmers who pay the bill for it. This year, and most years, our nitrogen fertilizer bill is the single largest expense on our farm. It is truly a costly nutrient, so farmers are already incentivized to minimize the use of it. We have reams of research on application guidelines, nitrogen requirement information for all our crops split out by region and incredible access to researchers, agronomists, and other advisors to help us apply the right amount of nitrogen, in the right place in the soil, at the right time. Until there’s a better option, farmers need nitrogen fertilizer, and lots of it. If we want to continue to feed a planet that seems to be lurching from one crisis to the next, with food security becoming a clear and present danger for hundreds of millions of people, we need unrestricted access to nitrogen. Someday, technology may develop that allows us to replace nitrogen fertilizer with bacteria, but that’s not today. Some may consider synthetic nitrogen fertilizer a necessary evil; I consider it one of the greatest achievements in human history.

Jake Leguee is a passionate advocate working to help people outside agriculture understand that good land stewardship is a top priority for farmers.

It’s an old mantra – read the label. And there are good reasons for that advice. The pesticide label represents the information required for the legal and safe application of the product. But the label is also full of bad information, including statements that require caveats and exceptions, particularly when it comes to application instructions. All too often, I find that some of the information is being misinterpreted by users.

Labels: How can They be Better?

It’s time for a frank discussion on the pros and cons of the modern pesticide label.

By 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.

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1. The important information isn’t easy to find. Most applicators look to the label for crop and pest spectrum and staging, rates and water volumes, as well as rotational restrictions. Yet the label is front loaded HOW CAN THEY BE BETTER?

SPRAYING 101 | LABELS:

Then, provide the information in a logical order, perhaps in the chronology that a user might need: crops and stages; re-cropping intervals; pest species and The pesticide label represents the information required for the legal and safe application of the product. But the label is also full of bad information, including statements that require caveats and exceptions, particularly when it comes to instructions.application

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53 with precautionary statements. I don’t want to downplay the importance of safe application, but unless there is unique and critical safety information to provide, place it at the end. It gets skipped regardless.

development stage; rates; mixing order; application volume; buffer zones re-entry; and harvest interval.

3. The cleanout instructions don’t make sense. Tank cleanout and waste disposal are among the most pressing questions of any applicator. It’s important to get the tank and boom clean, and to achieve this in minimal time. Yet, many product label procedures require two to three full tanks of water and overnight soaking, being completely oblivious of the resources used to make that happen. In fact, many labels show no recognition of many common features on sprayers, such as wash-down nozzles or on-board clean water tanks. Applicators must therefore find their own methods of cleanout by trial and error.

Registrants very rarely make recommendations regarding spray quality for efficacy. Instead, they use statements like, “ensure thorough coverage” without any specific indication of what the metric may be. This is one of the most important deficiencies in pesticide regulation.

2. The units of measure are different from what Western Canadians use on the farm. One of the fundamental rules of effective communication is to speak the language of your audience. If the registrant needs the product rates to be accurate, they should be allowed to communicate in the units of measure that the applicators use. Although I’m a proponent of the metric system because it makes every single calculation on the farm easier, I recognize that my clients use U.S. gallons for water volume, litres or grams (or “cases”) for product rates and acres for land area. So that’s what I use, too. But the label insists on units that are not commonly used in Western Canada. Conversions are required, and that’s a recipe for mistakes. The new Pest Control Products Act, for which consultations are starting, could address this issue.

54 SPRAYING 101 | LABELS: HOW CAN THEY BE BETTER?

On many labels, the application information is badly dated, to the point that it should not be followed. A label that requires the use of a “flat fan nozzle at 40 to 45 psi” is asking the applicator to obtain old technologies that may be drift prone and to use these at pressures that are not compatible with modern rate controllers. For the past 20 years specialists have recommended low-drift nozzles, many of which require higher pressures to operate properly, all the while reducing drift. Another common label statement is to use sprayer speeds of six-to-eight kilometres per hour. While slower speeds can be valuable for improving uniformity and reducing drift, even I know to avoid recommending such slow speeds. The problem with such serious errors is that the

5. What’s the best droplet size/spray quality to use for the Mostproduct?labels make reference to spray quality. But it’s not for the reasons some people think. Almost all references to spray quality are in the restrictions section, where buffer zones are identified. It is there that the label may say, “Do not apply in sprays finer than ASABE Medium.”

This isn’t entirely the fault of the label. Sprayer manufacturers have a myriad of configurations and automated processes for cleaning that can be confusing or wasteful. Furthermore, some formulations are notorious for being hard to clean and as a result cause widespread crop damage, even with a diligent cleaning.

4. Important information is missing. The registrant provides certain information voluntarily. Rainfastness is one example. We may see it on a label, or we may not. The effect of cold temperatures is another. Only rarely does the label provide advice on the consequences of unexpected cold temperatures prior to or following application. Identifying re-cropping intervals sometimes require field bioassays. This is not helpful.

This spray quality requirement is for drift control only and means that the Pest Management Regulatory Agency (PMRA) risk assessment for drift was based on this spray quality. It does not mean that the registrant believes the spray will work best with that spray quality. In fact, registrants very rarely make recommendations regarding spray quality for efficacy. Instead, they use statements like, “ensure thorough coverage.” without any specific indication of what the metric may be. This is one of the most important deficiencies in pesticide regulation. The absence of spray quality leaves the applicator unsure of how to ensure the best pesticide performance and may spray finer than necessary, risking drift.

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The proliferation of tank mixes and the addition of speciality fertilizers and adjuvants such as pH modifiers can be a minefield. While the label does recommend the order in which the product is to be mixed and agitated, the introduction of tank mixes creates uncertainty. The complicating factors of poor water quality, cold water or product temperatures, and excessive agitation is known to generate issues for some mixes. It would be very helpful for these adverse outcomes to be reported and mentioned on the label.

6. The mixing order on the label disagrees with the mixing order Improperelsewhere.mixingorder can result in incompatible mixes. Nobody ever talks about the proper way to dispose of a tank of sludge, probably because there isn’t one. This remains one of the more painful and troublesome aspects of a spray operation.

SPRAYING 101 | LABELS: HOW CAN THEY BE BETTER?

7. How sensitive is the product to water quality? Spray water may contain a variety of solutes, have a unique pH and may also include suspended solids such as soil particles. Some, but not all, pesticides are sensitive to these properties. It is useful to identify if water shouldn’t

56 credibility of the entire label suffers. The user doesn’t know which parts to take seriously.

57 exceed a certain maximum level of hardness, bicarbonates, pH, etc. Most of these limitations are known to the registrant. Let’s see these limits, and what to do about them, on the label.

LABELS: HOW CAN THEY BE BETTER? | SPRAYING 101

The role of provincial guides to pest control Provincial guides are compendiums of the label and are virtually indispensable to advisers and farmers alike. The format is much better, summarizing the pertinent information in a consistent order and format, while adding valuable summaries.

A recent online version of the Western Canadian guides, InputsPro (inputspro.ca), is a very valuable addition to the system for desktop or mobile platforms. Because these guides are based on labels, they must have fidelity to those original documents and that’s why the label formats themselves require revision. Guides do add some chapters on tank cleanout, adjuvant use and nozzle selection that is more up to date than the label. However, in a strictly legal sense the label itself must be followed, and its contravention may be an offense. It is hard to believe that such an important document would be so slow to reflect modern information and be so difficult to follow.

Shifting weed patterns, weather patterns and herbicide resistance have added to the complex issue of weed control. Utilizing different tank mix partners can enhance weed control, provide soil residual control and/or delay the development of herbicide resistance. But adding a tank-mix partner isn’t the only factor in ensuring a herbicide application is effective. While many choose to rely on in-crop herbicide applications, there is a strong business case for pre-seed herbicide applications and there are some significant benefits to applying some of these herbicides in the fall.

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.

Some fall-applied soil residual herbicides will control summer annuals until mid-May or earlyJune. According to studies from the University of Lincoln-Nebraska, this practice can eliminate the need for a preemergence herbicide application in the spring and protect yields until a timely postemergence application can be made.

The trade-off is that an extended control herbicide may limit the crop options. Given that certain weeds are almost impossible to control effectively in specific crops, that trade-off becomes relatively minor. For instance, kochia control in peas, a crop that relies heavily on Group 2 herbicides, will not provide effective control of Group 2-resistant kochia. Another example is the use of in-crop glyphosate applications which do not effectively control weeds resistant or naturally tolerant to glyphosate, like wild buckwheat, waterhemp and kochia. Furthermore, herbicides that might be effective on troublesome weeds are not always tolerated by the crop.

First off, there are those who would debate the need for pre-seed herbicides. A pre-seed herbicide application may not be required on every field. Tillage, cover crops, altering seeding dates and early establishment of competitive crops are all good options for fields with low weed pressures. But there are several crops that benefit immensely from pre-seed herbicides, those that are a little less competitive, including peas, lentils, flax, soybean, corn and even canola. Additionally, the number of herbicides registered for in-crop use with some of these crops is very limited.

WEEDS

Fall is typically a time for post-harvest weed control, but it’s never too early to start setting up next year’s crop for success. Rather than focusing on the huge opportunity to clean up perennials and winter annuals, let’s consider the benefits of a soil residual herbicide tank-mix partner. A soil residual optimizes the fall operation by providing extended control of weeds for next year’s crop.

Fall-Applied Spring Weed Control: Why Optimize PreSeed Herbicide in the Fall?

THOSE WILY | WHY OPTIMIZE PRE-SEED HERBICIDE IN THE FALL?

59 WHY OPTIMIZE PRE-SEED HERBICIDE IN THE FALL? | THOSE WILY WEEDS

Active ingredients classified in herbicide groups 3, 13, 14 and 15 offer several soil residual herbicides rarely used in-crop, providing good herbicide rotation options. Some of these active ingredients are volatile and require incorporation, while others require a minimum amount of soil moisture in order to be taken up by germinating weeds. One of the upsides to fall application is there is more time for diffusion or dispersion for a consistent layer of protection to form, ensuring uniform weed control in the spring. Additionally, the snowmelt can provide the required soil moisture for activation since spring showers are not always delivered when needed. Winter months’ cold soil temperatures slow or halt herbicide breakdown to ensure the herbicide is available as soon as growing conditions are favourable. The extended control period of these herbicides varies, as do the weed spectrums, so this isn’t a ‘one-size fits all’ decision.

Early season weed control with unique active ingredient(s) can provide flexibility in timing, help improve the effectiveness of the in-crop herbicide and reduce the probability of herbicide resistance developing. Whether it’s caused by dry conditions or an abbreviated window of protection based on environmental factors, weeds that germinate in the spring but escape through the herbicide application tend to be smaller, less competitive and more susceptible to an in-crop herbicide application. While the herbicide dose will not remain lethal indefinitely, crop competition will enhance the suppression of later emerging weeds. The one-two-punch of a pre-seed and highly effective in-crop herbicide can help reduce the amount of weed seed contributed to the seedbank for future years. Time management is another critical factor in the decision for a fall application of herbicide. This past spring exemplifies the challenges of seeding into extremes. While there was drought in many areas last season, there was excess moisture in many other areas early this year. Rushing to get the seeder/planter into the field to meet internal or insurance deadlines meant that many fields did not receive any weed control activities in the spring and in-crop herbicides were challenged due to weed stage, crop stage or lack of suitable herbicide for in-season application.

So, for fields with challenging weeds where the crop rotation has a less competitive crop planned next season, it’s time to change it up with a soil active herbicide application in the fall. Commit to the success of the crop!

Time for a Pre-Seed: Fall is the perfect time to apply a pre-seed soil residual herbicide.

In review, using a fall-applied herbicide application with a soil residual herbicide provides an extensive list of benefits, including but not limited to: time management; the ability to use herbicide groups that may not be utilized in-crop; controlling weeds when they are small to reduce crop competition; herbicide resistance management for some key weed species; saving nutrient and water resources; helping to reduce overall costs; and, keeping those weeds guessing.

Brandt High-Speed Disc Delivers One-Pass Productivity.

60 NEWS & INNOVATIONS

ProducerTractorProfit

“When time is money, and field conditions aren’t on your side, you need equipment you can rely on,” says Jason Klassen, senior vice-president of sales – manufactured products, Brandt Industries, Ltd. “These new units are designed to do more work in less time and with fewer passes, keeping you on schedule no matter what the environment throws your way.”

Brandt Agricultural Products is pleased to announce the addition of an all-new high-speed disc to their growing lineup of premium tillage Designedequipment.tomanage crop residue, condition seed beds, level ruts, and reclaim wetlands in record time, the Brandt High-Speed Disc delivers operational speeds of up to 14 mph. Optimized disc angles, a variety of disc styles (available in 20” and 22” sizes), and a choice of three roller types have also been included to ensure maximum productivity.

Brandt

Marketing your grain isn’t a one size fits all solution. Certainly, the last 18 months have proven just how difficult executing a plan or strategy can be. Producer Profit is a company that looks to work with the farm to develop risk management strategies that are suitable to the individual farm. Protecting a floor price while allowing the farm to participate in rallies if market conditions change helps to give peace of mind. Lack of production from drought followed by markets falling off a cliff is a good reminder that market plans need to adjust to the outlook and remain as flexible as possible. Everyone wants to price at the peak, but the only way to know it’s the peak is when the market falls below that level. How do you protect the farm’s profitability when the market is climbing? What do you do when the market falls? Perhaps the farm prefers to wait until harvest is complete to commit grain, how can we protect the farm from price risk while we wait for harvest? Perhaps the farm has a high-risk tolerance and is comfortable marketing multiple years of production into historic rallies, how do we manage the production risk in this scenario? Whatever the preference, Success in trading hinges on the ability to adapt to market uncertainty. We develop personalized trading strategies based on your risk profile.

“We’ve got customers farming in a wide range of locations and conditions,” adds Klassen. “With seven working widths ranging from sixteen feet to forty-five feet, and narrow transport models available, we’ve built a High-Speed Disc for every farm.”

Designed to simplify post-harvest and seed prep seasons, the new unit is built to maximize farmers’ uptime with minimal maintenance requirements. It features induction-hardened chrome plate pins, composite bushings with nylon wipers, sealed disc hubs, and only six easily accessed grease points. The independently mounted discs feature rubber torsion suspension for consistent ground pressure, and excellent travel. With an average weight of nearly one thousand pounds per foot, Brandt’s new High-Speed Disc is the heavyweight of the industry, delivering the downward force and structural rigidity that farmers rely on without compacting the soil, thanks to the large flotation tires.

Please feel free to connect with our market analysts Kyle and Josh at info@producerprofit.com

CROSSING BORDERS | INTERPROVINCIAL FARM EXPANSION

Why would the founder of Microsoft, who, one would assume, knows a lot more about computers than cattle, be so eager to buy up America’s farmland? Because owning farmland is a good investment. Because climate change is creating the need for new farming technologies to continue supplying food to the world and Gates knows a thing or two about technology.

For Carlson’s family, the decision to buy in Saskatchewan was

By Janice Tuff

In 2015, Saskatchewan amended its farm security legislation to make pension plans and their administrators ineligible to own farmland.

Joshua is a fifth-generation farmer, and along with his father and grandfather, owns and operates about 11,000 acres in Alberta. In 2009, the family purchased 8,000 acres in the far southeast corner of Saskatchewan, about five minutes from both the Manitoba and U.S. borders. This year, the family added another 750 acres in Craik, Saskatchewan, which they farm as a research project with Olds College.

In Canada, restrictions around farm ownership varies from province to province. But generally speaking, to purchase farmland in a province other than your own, you must be a Canadian citizen, residing in Canada for at least 183 days year.

And because he can, at least in the U.S.A.

More farmers expanding operations into other provinces

Crossing Borders

“The Saskatchewan government had concerns that big investment funds and mutual fund companies might buy up this land because it was undervalued,” says Darren Sander, an ag land specialist who works with his son Tyler Sander for Remax in Saskatoon. “So, the government at that time put in place some ownership restrictions allowing the farmer next door to still buy land beside him without having to compete with the big funds, out of province investors.”

“Land was very undervalued. With the lower population and higher land base compared to Alberta, it was a quarter of the price at that time.” - Joshua Carlson

Bill Gates is not only the fourth richest man on Earth, he is also the largest private owner of American farmland, worth an estimated $690 million.

Saskatchewan’s rules used to be even stricter, allowing only its residents to purchase its farmland. But that changed in 2002, and many people from other provinces are now investing in Saskatchewan farmland. Some, like Jeff and Joshua Carlson, a father and son from Trochu, Alta., are buying farmland in Saskatchewan to expand their existing farming operations.

Distance can be one of the challenges for farmers expanding into another province. For the Carlsons, it’s about a 10-hour “My experience with a few clients has been that they go to Saskatchewan and buy a farm for one of the sons, share machinery and operate that way.” - Darryl McDonald

62 INTERPROVINCIAL FARM OPERATIONS | CROSSING BORDERS

Saskatchewan’s large land base is a reason farmers choose to expand in Saskatchewan and not elsewhere, like B.C. “There’s a lot of small area farms and lots of good farms,” says McDonald. “The Peace area would probably be the biggest area where people could expand to, but the rest of B.C., they’re just tiny pockets and they’re too spread out. In Alberta and Saskatchewan, we’re used to hundreds of thousands of acres of McDonaldland.”doesn’t see a lot of expansion into Manitoba either, at least for his Alberta clients. “Most people want to be as close as they possibly can,” he says. “If you’re in Saskatchewan, you can load a tractor and your air seeder onto a big semi trailer and truck it from Alberta in eight or 10 hours. You try sharing equipment in Manitoba or Ontario, they’re just too far.”

driven largely by price, and when laws changed to allow Albertans to own farmland, they bought. “Land was very undervalued. With the lower population and higher land base compared to Alberta, it was a quarter of the price at that time,” says Joshua Carlson.

While still more affordable than in other provinces, farmland prices in Saskatchewan have been catching up. “The last few years, values increased about 10 or 15 per cent,” says Sander. “And it was about 18 or 20 per cent about a decade ago. The average increase across the province last year was 7.5 per cent, so it’s cooled off a bit.”

Price is one reason people are buying in Saskatchewan. Availability is another one. “My clients who have moderately small farms in Alberta have kids who grow up and want farms,” says Darryl McDonald, realtor and greater Calgary real estate farm specialist. “They try to expand their land base and feed two or three families from that same farm. They can’t afford nor can they compete to buy farmland in their neighbourhood. My experience with a few clients has been that they go to Saskatchewan and buy a farm for one of the sons, share machinery and operate that way.”

forward, Sander is optimistic about Canada’s agricultural sector and opportunities for farmers to expand, especially in Saskatchewan. “There’s a renewed focus on where we get our food from,” he says. “Canadian-grown, Saskatchewan grown will have a renewed interest. I think values will continue to increase and the next decade will be very strong.”

“There’s a renewed focus on where we get our food from. Canadian-grown, Saskatchewangrown will have a renewed interest. I think values will continue to increase and the next decade will be very strong.”

What should you do if you’re a farmer looking to expand into another province? First, know what you’re looking for. “Find a good agent and give him the parameters on the size of the package and the area you prefer,” says Sander.

It’s also common for farmers to grow much of the same crops on all their farms. “In Western Canada, the crops are very similar,” says Sander. “The people I’m involved with are farming grains and oilseed crops, lentils, wheat, canola, barley, field peas, maybe corn. In my experience, most of the people are expanding to do what they’re already doing.”

The Carlsons are likely an exception to the norm. For the most part, farmers tend to expand their operations so family members – the next generation – can move onto and run the other farm. “The kids want to farm, that’s the most common thing,” says McDonald.

“Take a couple of trips and look around,” says McDonald. “Stop by local crop insurance offices, ask lots of questions. And hire a good realtor to help you. There are great opportunities to expand into neighbouring provinces.”

drive between their farm in Alberta and the one in Saskatchewan. The family used to share equipment, but the drive was simply too long. Now they operate both farms independently, with separate equipment and separate teams that run the farms.

That’s the case for the Carlsons, who produce similar crops on both farms with just a few differences, like more beans and lentils in Saskatchewan and primarily canola, wheat, barley and peas in Alberta. “It’s largely the same timeline, same equipment, similar growing seasons,” says Carlson. “That’s why it works well for us.”

– Darren Sander

Darryl McDonald has been a farm specialist in southern Alberta for 17 years.

For Carlson and his family, expanding the farm was a business decision. For now, the family remains in Alberta while the Saskatchewan farm is operated and managed like a business with workers on site and oversight from the family in Alberta.

According to the 2021 FCC Farmland Values Report, sustained demand, historically low interest rates, favourable commodity prices and a tight supply of farmland were all factors in a national average farmland increase of 8.3 per cent in 2021, compared to 5.4 per cent in 2020. In western Canada, the average increase in Alberta was three-point-six per cent, 7.4 per cent in Saskatchewan, 9.9 per cent in Manitoba and 18.1 per cent in GoingB.C.

An uptick in farmland sales is also working out well for sellers.

64 INTERPROVINCIAL FARM OPERATIONS | CROSSING BORDERS

65 atb.com/LetsTalkAg Agriculture is changing fast. And you’re looking toward a future that’s more profitable for your operation and sustainable for your family. Whatever you're planning next, our specialized Agriculture team can provide the right flexible financing solutions to help you get there. We understand what’s on your mind, because we live and work here too.

Vincent Cloutier

Agriculture has always weathered economic storms well. The year 2022 will be no exception, if yields are good. Despite that, concerns about rising inflation and interest rates remain. The impact is compounded by the financing – both short and long term–required to conduct agricultural activities. The Bank of Canada surprised many by raising its policy rate by one per cent at its July 13 meeting. Experts were expecting 75 basis points, as the Federal Reserve Board recently did in the United States. Further increases are likely to occur this fall at the September 7 and October 22 meetings. Where will it end?

Inflation is at its highest level in decades and interest rates are rising, meanwhile oil and fertilizer prices remain high despite a welcome summer dip. Fortunately, margins in the fields for the current season are attractive and the start of the crop season is promising.

The savings – which the decline in consumption of services and historic government interventions have put into the pockets of consumers during COVID – will gradually be depleted, and consumption behavior will change accordingly. Thus, in the wake of the economic slowdown, or worse, in the second half of 2022, the National Bank’s economic team anticipates that rate hikes will cease before 2023.

BANK ON BETTER BUSINESS | UNSPEAKABLE TIMES

Unspeakable Times

What about agriculture? Despite the 2021 drought in Western Canada, Canadian agriculture has experienced two years of record net income. Record grain prices, affordable inputs and interest rates prior to the current boom, as well as stability provided by supply management, explained it for the most part. The Canadian agriculture balance sheet data published by Statistics Canada and the analyses that follow show the strength of the sector. Land, infrastructure and quotas are all supported by very strong assets, although the rate of growth in their value will be lower in 2022. Rising interest rates are also a shock to the Canadian agriculture industry, but current signals indicate it will absorb them well.

By Vincent Cloutier

Some of the answers can be found in the factors behind the current surge in inflation, including labour shortages in several industrialized countries. The Russian-Ukrainian war is also contributing to this, causing a reorganization of Russian oil and fertilizer export channels as a result of economic sanctions. Add to this China’s zero-COVID policy, which has acted as an important inflationary factor. Indeed, any slowdown in this key global manufacturing country reduces the supply of goods, which consequently fuels inflation. Despite the continuing uncertainty about the COVID virus and its management there, the ongoing reopening of the Chinese economy bodes well.

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

Loan renewal remains a challenge in this environment. Frank and open discussions with your financial partners are more essential than ever to develop risk management strategies that are well adapted to the reality of your business.

On the other hand, whether it’s gas, food or rent, rising costs are changing consumer behavior.

World-Class

t’s a well-known fact, the world needs more Canadian ag products. Programming, initiatives and the passionate team at University of Saskatchewan’s (USask) Crop Development Centre (CDC) are helping farmers achieve that agenda.

Dr. Bunyamin Tar’an, (PhD) professor, chickpea and flax breeding, has bred chickpeas at the CDC for nearly 20 years. Last year, four new varieties became available. The first two fall under the kabuli category, commonly used in salads or humus. CDC Pasqua is a large-seeded chickpea, and CDC Pearl is smallerseeded with improved resistance to Ascochyta blight.

with market desired light tan seed coat colour. CDC Kala, a black seed coat variety, represents an opportunity to pursue a niche market, including organic production. All new varieties are tolerant to imidazolinone herbicides. In fact, for those consuming a highly plant-based diet, including vegetarians and vegans across North America, the chickpea is often a major protein source, also rich in minerals and other nutrients such as beta carotene. “There’s an increasing interest and demand in chickpeas as a plant-based source of protein in all kinds of products,” says Tar’an. “We’re excited to supply all these varieties to meet that market demand.”

Along with CDC, Saskatchewan Pulse Growers happily supports farmers to grow chickpeas successfully on their farms. “These developments give them great choice,” says Tar’an. “Which do

Recently celebrating their 50th Anniversary with over 500 varieties developed and released to drive agriculture innovation and increase global food security, the organization is more energized than ever, already forward focused.

By Natalie Noble

New chickpea varieties help Canadian growers fill global and niche market demands for nutritious food As global weather events create supply issues for populations dependent upon chickpeas in their diets, new CDC varieties help Canadian growers respond.

Dr. Curtis Pozniak, (PhD) CDC director, credits the people and their vision of the CDC for its success. “CDC scientists continue to improve existing and new crops, while tackling crop disease and climate stresses to ensure farmers can seize new market opportunities,” he says. “The work of the CDC has had a tremendous impact on Saskatchewan’s economy, generating an estimated $50 billion to the economy since 1971.”

CDC director Dr. Curtis Pozniak credits people and a clear vision in the organization’s estimated $50 billion injection into Saskatchewan’s economy since 1971. (Photo courtesy of Christina Weese).

CDC variety development creates more options and opportunities for farmers

It’s safe to say, the ag world is watching what’s happening at this world class research centre. What should Western Canadian farmers look forward to?

WORLD-CLASS | CROP DEVELOPMENT CENTRE

The other two varieties are desi chickpeas, commonly milled into flour to make Indian flatbreads in South Asia, India and surrounding countries. CDC Sunset is a good yielding chickpea

New flax variety builds diversity and stronger crop rotation on Prairie farms

SeCan is working to commercialize this new variety, continuing to support variety development at CDC. New forages allow better production on marginal acres

FirstAnniversary.isextremely salt tolerant hybrid wheatgrass tentatively named CDC Soft King. “This is a welcome option for farmers across Western Canada where there are relatively large acres with moderate-to-severe salinity,” says Dr. Bill Biligetu, (PhD)

SPG congratulates CDC on 50 years of world-leading innovation to beneﬁ t Saskatchewan farmers.

This year, CDC released a new variety of brown seed flax. Not yet officially named, it’s referred to as FP-2591. “This variety is high yielding across major flax growing areas, has maturity range similar to current varieties and sampleable seed quality,” says Tar’an. “Flax’s quality depends on its oil content and composition and this line has acceptable characteristics around its oil content.”

CDC chickpea and flax breeder Dr. Bunyamin Tar’an looks forward to a bright future for CDC variety development. “We work directly with the stakeholders – the farmers,” he says.

Two new grass varieties were released with the CDC’s Jubilee

(Photo courtesy of Christina Weese) CDC forage breeder Dr. Bill Biligetu says newly released forage varieties can be targeted to marginal and unproductive acres, expanding opportunities in regions such as those high in salinity. (Photo courtesy of Christina Weese) they prefer, is their farm going to produce it well, and how can it help them move into niche markets they’re interested in?”

Flax also gives farmers the opportunity to diversify their production and implement a healthy four-year rotation on the farm. With major flax growing areas in Manitoba and Saskatchewan’s longer-season black or brown soil growing zones, Ta’ran boosting its yields is a priority. “This variety is one of the best available to these farmers,” he says.

While flax has long been used in industries for linoleum and other products, it’s quickly growing in popularity as a nutritious food source. “Within plants, flax’s healthy oil offers one of the highest sources of omega-3s,” says Tar’an.

68 CROP DEVELOPMENT CENTRE | WORLD-CLASS

WGRF congratulates the Crop Development Centre (CDC) for 50 years of outstanding crop research. The CDC is a world-class centre of excellence, contributing to farmers' profitability through the development of new crop varieties.

WGRF is proud to be a long-time supporter and investor in CDC research with more than $40 million invested in almost 40 years. Here’s to another outstanding 50 years. Congratulations CDC on a remarkable milestone.

500 varieties. 50 years. one institution.

This grass is a great option for acres likely otherwise taken out of production as most crops won’t grow on them. “Saline is not always a major issue, but where there are 10 or 20 acres of saline sections that really don’t grow anything, they’re susceptible to noxious weeds,” says Biligetu. He points to foxtail barley–a major issue that can drown out prime cropland because it produces so many rapidly spread seeds and require herbicide applications to control. “These herbicide applications are an indirect cost to manage these areas. If you can use this variety to manage them, you can probably prevent weed infestation and saline expansion during wet-dry cycles.”

The new timothy variety has been released to Nutrien Ag Solutions, a major marketer into the U.S. and the E.U. So much accomplished, much more to do! With 50 years in the rear-view mirror and the next 50 on the horizon, Biligetu appreciates the technology transformation he’s witnessing in CDC breeding programs. “It has really advanced,” he says. “We have drone-based phenotyping to collect all kinds of plant data and we’re incorporating genomic markup for plant selection to help us make even more progress.”

Both new varieties can help expand opportunities for farmers in areas perhaps not previously an option for these grasses. “They can be targeted towards more marginal and unproductive land with saline or wet acres where a farmer might have lost money seeding those acres in the past,” says Biligetu.

A new timothy variety is also available. Popular especially as horse feed in North America and Europe, timothy’s moisture tolerance is appealing. “It can be used in areas prone to spring flooding, even handling four-to-five weeks of spring flooding.” says Biligetu. “We’ve been working on this variety for many years and it’s the first timothy grass variety we’ve released in Western Canada.”

70 CROP DEVELOPMENT CENTRE | WORLD-CLASS associate professor, forage breeding. “It has good forage quality, is higher yielding and can survive those saline areas.”

Proud of the work already accomplished, Tar’an is excited to continue the CDC legacy. “We work directly with the stakeholders–the farmers,” he says. “We’re producing high quality nutritious food for the world and helping to generate stronger economies. That keeps us excited, working hard here and looking forward to the next 50 years.” innovative research and agronomic solutions Visit

through

71 TITLE | SECTIONCleanfarms 2022 Unwanted Pesticides & Old Livestock/ Equine Medications Collection British Columbia & Alberta Peace Region – October 12 to 21 Northern Alberta – October 3 to 7 Manitoba – October 24 to 28 Safely dispose of unwanted or obsolete agricultural pesticides and livestock/equine medications – no charge! Watch for additional information regarding date and time for each location. Farmers! Got unwanted pesticides or livestock/equine medications? • For collection dates, go to: cleanfarms.ca/materials/unwanted-pesticides-animal-meds/ • Next Cleanfarms collection in these areas in 2025. Peace&ColumbiaBritishAlbertaRegion FALHER St. Isidore Co-op Range Rd. 780-837-2205213 FORT ST. JOHN Nutrien Ag Solutions 9704 78 250-785-3445St GRIMSHAW Peace Grain Advantage 235014 Township Rd. 780-332-4400833 ROLLA Rolla 250-759-47705082ServicesAgriculturalLtd.RollaRd. RYCROFT Nutrien Ag Solutions 52044 Highway 49 780-765-2865 SEXSMITH Nutrien Ag 780-568-6060HwyIntersectionSolutionsof2&Hwy672 AlbertaNorthern BARRHEAD Neerlandia Co-operative Assn. Ltd. 3224 Twp Rd. 780-674-2820615A BOYLE Nutrien Ag Solutions #1 Elevator 780-689-3650Rd. CAMROSE Cargill Ag Horizons 46036 Hwy 56, RR1 780-672-4710 CASTOR Meadowland Ag Chem 206Ltd. Alliance 403-882-2490Ave EDGERTON Nutrien Ag Solutions Junction Hwy 14 & Hwy 894 780-755-3734N HAIRY HILL Nutrien Ag Solutions Corner of Hwys 29 & 45 780-768-3825 INNISFAIL Central Alberta Coop 35435 Range Rd 282 403-227-3466 IRMA Nutrien Ag Solutions 5113, 48 780-754-4040Avenue LEDUC Cargill Ag Horizons 49532 Range Rd. 262 Leduc County RR#1 780-985-3601 LEGAL Sturgeon Valley 57402FertilizersRR 780-961-3088252A PENHOLD Nutrien Ag Solutions 27528 Highway 42 403-886-4326 PONOKA Nutrien Ag Solutions 255048 Township Rd. 403-783-2940424 PROVOST HwySynergyAG13,1mile E of Provost, quarter mile north Range Rd. 23 780-753-7587 ROSALIND Nutrien Ag Solutions #1 Railway Ave. North 780-375-3966 ST. ALBERT Sturgeon Valley 55003FertilizersRange Rd. 253 780-458-6015 ST. PAUL Parrish & Heimbecker A58207 780-645-4494RR93A VEGREVILLE 6422CargillHwy 16A W 780-632-2363 VERMILION RangeCargill Rd. 63, (1 mile east of 780-853-6200Vermillion) VIKING Nutrien Ag Solution Hwy #14 780-336-3180East WAINWRIGHT Parrish and 780-842-3306HwyIntersectionHeimbeckerofHwy14&41,2mileSHwy41 Manitoba ARNAUD Thursday, Oct. 27 G J Chemical Co. Ltd. 96 Smith Ave 204-427-2337West BALDUR Friday, Oct. 28 Baldur Agro 121 2nd 204-535-2598St BEAUSEJOUR Wednesday, Oct. 26 Nutrien Ag Solutions 73010 Road 40 oﬀ Hwy 44 SE 204-268-349710-13-7E BRANDON Thursday, Oct. 27 Richardson Pioneer 14 km west on Hwy 1, then south 1/4 mile on Pioneer 204-727-5353Rd. BRUNKILD Monday, Oct. 24 MK 3062AgroRoad 39 204-736-4769NW DAUPHIN Monday, Oct. 24 Dauphin Co-op AGRO 601 Whitmore Ave E 204-622-6080 DELORAINE Monday, Oct. 24 Nutrien Ag Solutions Hwy 3 & Broadway St. S 204-747-2877 GLADSTONE Monday, Oct. 24 204-385-2906(4RoadCoopNeepawa-Gladstone69,Hwy16milesWofGladstone) INGLIS Wednesday, Oct. 26 Prairie Giants Crop 2SupplykmEast of Hwy 83 on PR 204-564-2293366 MEADOWS Thursday, Oct. 27 Ag Advantage Ltd 68156 Road 6 204-322-5351W MELITA Tuesday, Oct. 25 7CargillkmSW of Melita on Hwy 204-522-322183 PORTAGE LA PRAIRIE Friday, Oct. 28 Portage Agri-Sales 11 Can-Oat 204-857-7838Dr RIVERS Friday, Oct. 28 Redfern Farm Services 102 2nd 204-328-5325Ave SHOAL LAKE Thursday, Oct. 27 Shur-Gro Farm Services 236Ltd. Industrial Park Rd. 204-759-4240 ST. LEON Tuesday, Oct. 25 Pembina Coop 49079 Road 204-744-285025N STANLEY Wednesday, Oct. 26 12137CargillRoad 204-325-955125W STEINBACH Friday, Oct. 28 Clearview Coop 33124 Road 39 N (at Hwy 12N, between Steinbach and 204-326-9921Blumenort) SWAN RIVER Tuesday, Oct. 25 2Cargillmiles S on Hwy 83 204-734-5747 TEULON Tuesday, Oct. 25 Willis 11034EAgroRoad 204-461-038695N VIRDEN Wednesday, Oct. 26 Core Ag Inputs 320 Chester St. E 431-763-3536 Partner Cleanfarms.ca info@cleanfarms.ca @cleanfarms