Volume 42, Number 3 | february 2, 2016
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P RA C T I C A L P R O D U C T I O N T I P S F O R T H E P RA I R I E FAR M ER
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Oat acreage forecast up Price and disease a big factor in pushing oat acres across the Prairies By Angela Lovell
A
round 2.9 million acres of oats were planted across Canada in 2015 according to Statistics Canada, and although acres have been dropping over the past few years, oat production will likely be up by more than 10 per cent this spring to around 3.3 million tonnes. Last year, the majority of those acres were planted in Saskatchewan, which grows more oats than Manitoba and Alberta combined. “In Saskatchewan, specifically last year there was quite a bit of disease pressure from fusarium head blight in wheat,” says Shawna Mathieson, executive director of the Prairie Oat growers Association (POGA). “Because of that some people switched some wheat acres to oats.” Oat supplies had tightened over the past year partly due to transportation issues, and U.S. millers especially were looking for more supply in the spring, which helped stabilize prices. Although oat prices vary quite a lot from province to province, estimates for oats in Manitoba
and Saskatchewan looked more profitable than canola or spring wheat last March. “Oats gained some acres when it looked like they were going to be more profitable than some other crops in the coming year,” says Mathieson. Oats also cost less to produce so there’s less risk. “You can put in oats and still make a good return on them with a lower input cost,” adds Mathieson. About half of Canada’s oat production is exported to the U.S., and there are still issues with rail transportation. “Delivery is a major issue especially in northern Alberta and Saskatchewan. Manitoba doesn’t tend to have the same issues because they have more direct rail lines down to the U.S. and the oat growing area is closer to the U.S. so trucking is an easier option,” says Mathieson. POGA continues to work alongside the transportation and grain industries to review the Canadian Transportation Act to help increase export opportunities. Another factor that may have driven oat acres in some areas was late seeding, prompting growers to switch to oats
because they have earlier maturity, says Ron Weik, seed portfolio manager for FP Genetics. “Oats is a tough crop. It will usually produce something even under very trying conditions,” says Weik. “If it doesn’t make maturity because of a drought or something, growers can still cut it for greenfeed, or bale it and sell it for hay.”
A good rotation crop Oats has always been a small acreage crop and area is very price sensitive. There could be a lot more interest in oats as a rotation crop if growers could get more consistent pricing, says Mathieson. “In the spring oats was competitive with most crops, including canola, but most farmers consider canola one of their key rotation crops. It’s tough for oats to ‘buy’ acres from canola because in a typical year, oats does not compete well with canola on net margin,” she says. The expected high yield from oats can be a double-edged sword. “One of the challenges we have in oats is that because you get higher yields the price per bushel
is lower, and you also need extra storage than you would for soybean, canola or wheat,” says Mathieson. “Growers also have to factor in the cost of shipping because they ship three to four times the volume of oats per acre as they would canola. So there’s a cost for shipping and storage that has to be factored in. What I hear from growers in Saskatchewan is that they would like to see a minimum price of $3 a bushel to keep oats in their rotation and prices typically fluctuate from $2 to just over $3 per bushel.”
Millers and niche markets Most oats produced in Western Canada ends up with millers, but marketing oats is more complex than selling other grain crops such as wheat. Millers publish lists of desirable oat varieties and specifications that growers must meet. Growers provide a sample of the approved variety they have grown for testing; if the miller accepts it they will be given a delivery schedule. “There is a fair bit of oat milling capac-
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photo: poga
Shawna Mathieson is the executive director of the Prairie Oat growers Association (POGA), which is working to develop new markets for Canadian oats.
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In This Issue
Wheat & Chaff .................. 2 Features . ........................... 5 Crop Advisor’s Casebook . 8 Columns ............................ 14 Machinery & Shop............. 24 Cattleman’s Corner .......... 30
Wily wild boar
lisa guenther page 10
Mid-range tractor guide Scott Garvey page 24
FarmLife ............................ 35