NEWS
THE WESTERN PRODUCER | WWW.PRODUCER.COM | JANUARY 5, 2012
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ENVIRONMENT | LIVESTOCK
Cattle improve biodiversity
AGRONOMY | PASTURE MANAGEMENT
Growing markets could make forages economically viable Maximize returns from pastureland | Cattle producers can save on feed costs by pasture grazing year round or reap extra income by growing forage crops for export markets FILE PHOTO
STORIES BY DAN YATES SASKATOON NEWSROOM
Canola may be king, but there’s still value in forages, producers were told at a recent Canadian Forage and Grassland Association conference. However, the sector is facing challenges: grasslands must compete for acres with canola, forages can be costly to export, herd sizes have decreased and the commodity’s value can be difficult to monetize because much of it is grazed and fed on the farm. “One of the challenges for the industry is to get a better sense of the value of that forage,” said association chair Doug Wray. “And I think if we can accurately describe that value, people will gain a new appreciation for what it brings and its ability to compete with the grain industry and the oilseed industry for land and resources.” Canola production may be up, but millions of tame and natural pasturelands remain across the Prairies. Wray said it’s in the best interest of producers to maximize their returns on those acres through resourceful management.
“A lot of the land we have forages on are best suited for forages. They’re not good canola acres,” he said. “They don’t work for canola or wheat, so that’s the reason they’re in forages. But in order to be economically viable you still have to do the very best job you can do to make it work.” David Kerr, who grazes cattle on a wide range of soil and grass types and forages, said he has cows that remain on pasture year round and bale graze in the winter, which drives down costs. He’s had calves gain as much as three pounds a day on grass. He told producers to be resourceful. “A lot of guys don’t graze their hay land. They feel its a detriment to their hay land,” said Kerr. “I don’t feel that way. As long you wait until after the ground freezes off, you can still get a lot of benefit off of that and it’s almost free.” There are growing export markets for forages, including Japan, which is already a common destination for compressed hay, and the United Arab Emeritus. China is also a potentially lucrative market, said Rollie Bernth, president
A lot of guys don’t graze their hay land.… As long you wait until after the ground freezes off, you can still get a lot of benefit off of that and it’s almost free. DAVID KERR CATTLE PRODUCER
of the U.S. National Hay Association. “If you look at where they’re capable of growing forage crops, it’s a long ways away from where it’s utilized,” he said. “It’s going to be many years, if ever, that they’re going to be able to be able to be self sustained in forage production.” However, different markets have different demands: what may be an acceptable product in the UAE may not be acceptable in Japan. He said it’s important that producers study these markets and understand the requirements of customers and governments. “It’s interesting how farmers like to grow a particular crop because it
works for them, but sometimes they forget about how to sell it,” said Bernth. Shipping provides a greater challenge because it’s expensive. Processing can cut down on costs, but there are limited facilities in Saskatchewan and Manitoba. Consultant Allen Tyrchniewicz said prairie producers using domestic containers can pay as much as $84 per tonne to ship to ports in Vancouver, Montreal and New Orleans. Rates to Abu Dhabi run higher. Tyrchniewicz studied the viability of using the Port of Churchill to ship forages. It is Canada’s only Arctic seaport and the closest ocean port to Western Canada. The site has potential but cannot yet meet producers’ needs. However, he said forage prices should increase as the world’s demand for meat grows, which will cover the higher transportation costs. “And that I think is one of those long-term things,” said Tyrchniewicz. “Same thing with the Port of Churchill: We might not be able to act on it right now, but in the long term there might be some opportunities there.” access=subscriber section=news,livestock,none
Forage producers have a story to tell, says the chair of Canada Beef. Brad Wildeman, who is also president of the Pound-Maker feedlot and ethanol company near Lanigan, Sask., told the recent Canadian Forage and Grassland Association conference that cattle is a green business. “If we’re not going to raise cattle on that land, some of it’s going to get plowed up,” said Wildeman. “A lot more crops are going to get grown in areas where probably the land can’t sustain it.... We’re going to create a lot more problems. And in fact, as I always tell my eco-friends in the city: eating beef is one of the greatest things you can do for the environment.” He said science proves that forage and grasslands promote biodiversity, reduce soil erosion and assist in carbon sequestration. As well, grasslands provide habitat for wildlife and insects that pollinate crops, and some cattle owners may add water back to the land. The benefits can be even greater when wetlands are restored. “We’re not going to see the 1,000acre marshes ever restored that had Class 1 soils that are being used for canola (and) wheat production,” said Richard McBride of Ducks Unlimited Canada. “It’s very, very likely that well into the future those are going to remain farmland. But where we are seeing an interest in restoring wetland is the smaller one- to two-acre wetlands that are found in association with rolly landscapes ... where you have a lot of lands returning to forage production.” Producers won’t necessarily see those environmental benefits reflected on their bottom line, and higher commodity prices can encourage land conversion in areas where production is favourable. “When we start talking about biodiversity as a value, we don’t necessarily have dollar values,” said Ken Belcher of the University of Saskatchewan’s bioresource policy, business and economics department. The economic incentive is with annual crops, which narrows biodiversity. “We probably need to develop more than just a system of protected areas,” said Belcher. “There needs to be more of an integrated approach to develop biodiversity. There’s a need to integrate wildlife into the agricultural landscape.” Ducks Unlimited Canada presented information at the Dec. 13-14 conference in Saskatoon that said non-market values of forages in Saskatchewan are as high as $2.4 billion. Belcher provided research indicating well-managed grasslands also provide high diversity while not impacting economic returns. But there remains a tradeoff between production of market commodities and management for biodiversity. Some producers at the conference expressed concerns that biodiversity will be lost if no cash value is placed on it. “That’s where I think there is some value of understanding some of these tradeoffs, looking at things from more of a physical sense than a dollar sense,” said Belcher. “But that has to be embedded in the policy and it hasn’t been up until now.”