GOING TO SCHOOL ON WHEAT
RESURGENCE FOR HEAVY HORSES
Combine to Customer program offers growers new insights into their crop » PG 3
The ‘gentle giants’ are finding new roles — and commanding top dollar » PG 42
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Make hay while the sun shines It’s good times in the cattle business, but there are things that need to get done before the next downturn By Alexis Kienlen AF STAFF
G
ood times don’t last forever, so use them wisely. That, in a nutshell, is the advice of four Alberta cattle producers who were asked for their thoughts on the current state of the sector and what lies ahead. A decade of misery following the BSE crisis in 2003 has been followed by record-high prices, and some mixed signals — good and bad — about what might be next. The four producers who spoke to Alberta Farmer were generally optimistic on the price side — at least in the short term. “I think we’ll probably be in for three years of good prices because our cattle (herd) numbers are so low,” said Brian Chomlak, who farms at Beauvallon, and is chair of Alberta Farm Animal Care and an Alberta Beef Producers delegate. “Depending on how the TPP (Trans-Pacific Partnership trade deal) comes out, it may benefit us again. Those countries take a lot of cuts that we don’t use in Canada, like tongue and offal, so it can add
see MAKE HAY } page 6
Ten-dollar canola is no longer a great price, says Greg Sears, so that’s why he and other producers are focusing on the management side of farming. PHOTO: SUBMITTED
Business strategies for a down market The bears are out, but here are some ways to manage through a time of tight margins and high risks By JENNIFER BLAIR AF staff
T
he grain market bears are out in full force, but while times are challenging, there are ways to manage through the latest downward cycle, say four Alberta farm leaders. “In 1980 — 35 years ago — I was selling spring wheat for $6 a bushel,” said Gary Stanford, president of the Grain Growers of Canada. “Today, it’s like $6.50 a bushel. It’s a good thing we have better technology and better farming methods so that we can get better yields. Where I used to get 30 or 35 bushels per acre on dryland, now I’m getting up to 55 bushels.” The Magrath producer knows the odds
of any price increase is slim. In fact the outlook is getting gloomier with market analysts now saying “the world is awash in wheat” (see story on page 33). Canola prices are also disappointing by recent standards, says Sexsmith producer Greg Sears. “We aren’t seeing the commodity prices that we’ve got used to in the last five or eight years,” said the vice-chair of the Alberta Canola Producers Commission. “Ten-dollar canola used to be a good price, and now it’s not a great price.” The steep fall in the loonie has shielded Canadian growers from the drop in world prices, but is also raising some costs. “It is concerning when your input and machinery costs keep going up,” said Stanford. “With the Canadian dollar going lower compared to the U.S. dollar, all of
our farm machinery and parts are getting more expensive.” That’s also a concern for Humphrey Banack. “Margins are very tight in agriculture as a whole, so it’s going to be a challenge,” said the Round Hill producer, who is also vicepresident of the Canadian Federation of Agriculture. That increases the importance of making your dollar go as far as possible. He pointed to urea, which has fallen by US$100 a short ton over the past year. “It may work out well for farmers because there seems to be a glut in the world on fertilizer,” said Banack. But he won’t wager that fertilizer prices will stay low or that crop prices won’t go lower.
see DOWN MARKET } page 7
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