THURSDAY, FEBRUARY 19, 2015
VOL. 93 | NO. 8 | $4.25
Ag survey An Ipsos survey asks farmers about their plans for the future | P. 4 4
FEBRUARY
19, 2015
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NEWS
Agricultu re outloo k
In Decem of Glacie ber 2014, subsc r ribers to t The Weste business FarmMedia were ted attitudes, outlooks. Partic invite d to partic rn Producer, Count ipants sh needs and ipate in s an online ry Guide and plans. | shared some intere STORIE STO ORI S BY sting insighIpsos survey of other publications BRIAN farmer attitud CROSS, ts about SASKAT farmers’ OON NEWSRO es and ARMERS market OM Western perceptions, da have S IN W Canaaw weakly wea view optimisti
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The amoun but produ t of debt carrie d byy C cers don’t Canadian appear overly ov ver conce farmers has never been rned
Q:
38.5% 61.5%
Q:
National Farm Machinery Show
NEWS
LAND PURCHAS ES
Land, eq pm me m nt pu on horiz uip on fo for many rchases farmers
THE WESTERN
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| FEBRUARY
19, 2015
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SUCCESS ION PLANNIN of th c current G economythe IN THE farm an are PAST YEAR, positive y and even less about a abo HAVE YOU econom months. prospecttss over PURCHA ic ov the SED … next 12 Howeve signif growers r, a significa CCORD ifica nt YES ability are still confiden conf survey, ING TO the nfide t number of to Ipsos 24 in their farm andweather tough dents said percent of responown to Survey Su Surv oug times NO responde increase many are buildings on the likely to they are somewha of mor a plannin more than m nts with YES buy land their landhold t like annual landh major capital $1 million months in likely dholdings g to kely to sales t buy and 69 the next 12 are anadian or make purch purchas year. they Crop prices percent major maj chases ajor assets land, machine even more able or NO IN THE machinery said in the next somewh were either very nearly farmers are carrying have been NEXT 12 /equipmen These Th Thir Thirty-fo this year, the ry and other past two years, $80 at comforta comfortfalling over MONTH t accumul billion worth ur percent survey found. from an were some of increased while land reported ble making rep S, HOW o the port th key of of farmers capital purchas sales prices the LIKELY ting on ated debt and findings farmers online survey Accordinsignificantly. yea year purchase have ar sa assets valued are sitARE YOU said they of more than who conductesurrvey of Canadia g to s. VERY dreds of The Canadian d late buy SOMEWHAT/ TO PURCHA uy mo l last at hunn more land were somewh$1 million a average value Farm Credit Canada, billions of dollars. Yet Outlook increased of Canadia Agri Agricultu at likely survey, this year, LIKELY SE … of farmers ricul ralyear. farm fa the was conduct more thanaccordin g to to by while n with more Business condu farmlan The Western two-year 47 who plan sales of lion an Ipsos ucte on a year 70 percent NOT VERY d VERY period than 40 percent more thanpercent Producer ed by Ipsos to transfer Producer. said tors in of producer SOMEWHAT/ NOT AT / ending “There family percent likely like er. Other kely to in the for $2 milOt collabora ALL the farm ownersh member buildings of survey buy landthey were somewh participa s LIKELY LIKELY Guide, RBC,survey included respondewas a significanDec. 31, 2013. plan in they theey were vey in inclu and 83 nts are surv ip to w place. don’t have a account accounti at least percent at purchase nts) that said t proportion law firm successio a NOT VERY abl able nting Bruce Tait, ble making ng firm Country continu somewh (of m said Miller Thom n NOT AT / MNP and senior vice-pres Thompso capital that almostland, but whatthey planned at machinery The s culture ALL mps Al Mussel, M purchase comfortto with accounti /equipmen There is e in the next LIKELY Decembu r v e y w a s c n. in the surveyeverybody was funny was an agricultu ident of s. farmers h who 12 ho analyzed t an ond that participa agrier and ng capital broad confiden months. … Sask. from more — said that — I think generate gene the survey ral economi of farm ave struggled firm MNP, said berrs pertainin bers purchase nera d u c t e d i n ce in making ted p it was successio st in with they felt response Al Mussel, s.” Producer than 4500 sub Alberta g to land data, said numsurp surprisin their area,” However n plannin the concept land was 84 percent ssubscribe rpri g, 37.9 s an agricultu , the message g. overvalu Mussel given the acquisitions rs to the and lead research affiliate owned r and affilia It might out. envviro environm iate publicat ral economi Manitoba 23.11 said. ed by on ent. current are would Econom seem unusual is slowly er with st Nearly Glacier FarmMed economi Faarm ions “We are getting 20.2 uncover ic Systems, said Agri-Food c that consider buying that a farmer Ontario ia. percent) 370 surveyy respond tance eachseeing more he considers ed res the survey land and more 14.1 ents (81 about prairieinteresti ng informa katchewa were from said some overprice in a market Compare year,” he said. m Manitob accepB.C. 2.4 M d, but Livestock farmers’ attitudes tion d to other acquisitio farmers see a, SasAlbeerta “Farmersn and Alberta. ness owners, producer land as Mussell private-s Atlantic from a . a of the ag have a weekly existing existin n based on its farmers s have benefitte accept ector busi1.2 strong proximitystrategic landhold economyweeekl positive farm transition have been slow year, while market during Quebec d Others Othe O essary ings. view to their and a are see step planning the past ers have grain and to somewha multi-gen in ensuring optimize a larger land opti o as a nect commodbeen dealingoilseed producbase as the use percent a way with Tait said erational operationviability of machine of existing ma ity survey participa of assets, such to a Neverth prices, Mussel declining ry. . tions ago farms that were “As you as growers eless, grain said. nts are have started Today, remain generamachine get larger and many grown in cautiousland oilseed Ne a r l ry worth millionsfarm familiessize and value. y optimisti machine sets or multiplelarger respondy o n e - q u a r c. of dollars. control assets ry, ter of However sets of ents - what desire to there’s sometim SURVEY likely” said they were s u r v e y ment skills, corporate structure es a to buy acreage get access to “somenext 12 SNAPS and attitudes more evolved a larger s, managebase that months, 33.8% HOT to the unit were likely 51 percentland in the operating would drive Successioreflect the valuehave not always 35-54 to buy The Ipsos coming machine of those n should machinesaid they cess in ry down,”costs of that responses survey received which senior not be seen assets. expected year, 40 percent ry in the Mike Raine, he said. percent 455 grow grain . The majority 55.4% 5 manager as a prosaid they managin percent to invest in buildings tor of The the next,control one day s have 100 g edithe three and oilseeds of respondents 55-74 Western which trucks orsaid they expected he and zero and prairie provincesand were commis Producer, A good added. transport percent 7.7% to invest 23 from Ipsos survey, The desire sioned ation equipme . in plan and strategy can take 18-34 the to invest perceptio said a farmer’s farm Farm operators nt. responsiseveral more to several years - who assets was higherin land and other times differsn of land values execute, to made up between reported 3.1% gradually bilities and among somemore than 55-74 lative investor.from that ownersh with roles, farmers million sales of evolving of a specu75+ half of the years of age a year. Elaine ip stakes more than througho The fact sample. “I was quite $1 that land expert Froese, a successiut the proce inc increase - of optimism Participan and encourag ss. farm family on planning agrees. p few d very rapidlyvalues have past ed by the that farmers sales, but ts reported a currently years may business level during broad ffarm farmers’ She said and going coach, also the had, or more those with sales range of farm said Mussel, 12 months both “Farm perception, be influencing “F “Farmer ongoing farm successio made up of $250,000 who helped survey. survey about two-thirds out,” under a s often view he said. number process that n planning is and design different a often involvesan of the “We knowanalyze the results. the side investor.… lens than piece of land not just of different professio inve an have been some of the would an the last Quite a nal advisors,a When sheaccountant. outthings d decade bit of farmland Responde ers. Grain framing the mindset coaches that has cession cases c and oilseed farm in ships of nts were the sole planning tripled doubled and down significan prices of farma foundati in some their (in price) Canada Cana C , Froese families on sucparticipa percent of survey pa few years, rated farms farms or ran proprietortly compare have come … so under in Western nts families on of understa tries to establish incorpostances, stan of at least have annual those circumcan farmers so you would d to the last tions, within roughly equal you sales A family’s build a plan. nding on which would expect ers er might can see why some about cutting be starting desire to that partnersha smaller numberproporconsider leads to avoid conflict ips valued.” costs, austerity to think inertia. land to be farmsorts of business or other formsin To reach members over23.3% organizat of optimistithings. But they and those Concern must voice a consensu usually their visions ion. c, s, family were pretty 18.5% est rates s about rising 21.3% Economi all things considere and stop their opinions Froese interdid not c condition , share avoiding d.” month play a major appear future on said young farmers conflict. s of 2015 to 9.5% 14.7% role in should during the first farm confidenc tudes of planning the attithe plan a family farm serve MICHELLE 4.8% 4 want to Fuel costs, e even further, to bolster contemp farmers who HOULDEN know “whata unable is” but older generatio GRAPHICS 7.9% to cant portionwhich comprisehe added. chase. lating a major are ns are fear losinghand over the pura signifiof overall costs on power and reins becauseoften More “When than western product control. they half of have come I coach vey’s 455 ion Canadia sion planning families responde the surthe survey down significa n farms, cated that , I create on farm succesnts inditations, In latee January, certainty increase a one percent The valuewas conducte ntly since agreemeclarifica tion of expecd. in interest cut its prime the Bank of timeline also droppedof the Canadian would Those are nts and a commitm have a off Canada s and cent, which lending rate o dollar has more than minor or rates ageable the past ent to act. “When my three big Cs. by .25 pereffect on mancould relief to nesses. 88 cents two months, 10 percent in you’ve got ” their busigrowers provide additiona then you’re falling those out Sole proprietor annual from US cents Feb.Dec. 1, 2014, l no longer operatingwho borrow to on conflict to less ship ...... 1, 2015. tal investme cover fighting the table, … Corporatio costs than 79 brian.cro 39.3% or ting out instead, you DO YOU D n ............... 39.3% nts on theiror make capiss@produ feel like avoiding Partnersh farms. ting the of neutral and you’re cer.com OF YOURPLAN TO MAKE O ip ............... .. 337.6% plan in you’re finally getJoint venture a drive CHANGE brian.cro FARM IN .. 21.3% putposition.” ss@produ THE COMING S TO THE ............... Communa cer.com l ownership .. 1.1% YEARS? OWNERSHIP brian.cro YES Y YE E ..... 0.7% ss@produ 0 cer.com Do you plan to have a successio the farmtransfer to a n plan? family member
39.6% 57.1%
A
70.3% 29.7%
Successi importanon plans always t but not done
higher,
C
81.2
51.0% 44.8%
from the Prair fro om ies.
58.5 55 or older .
Who are you?
67.2
WWW.PRODUCER.COM
Q:
33. 33.6% 33 3.6% NO N
66 66.4% 6.4
62.1%
16.3%
plan to
the farmtake over from a family member
29.5 % 14.7% 55.8 %
Presented
2015 Agricultura Outlook Surveyl
with: Published
by:
Visit www. produce com to r. find a PDF version of the 2015 Agricultu Outlook ral Survey.
CATTLE
Net cash income for Canadian farmers in 2014 was
$13.95 billion
Gaps in feed ban may be source of BSE infection: CFIA
Crop receipts for Canadian farmers are expected to be worth
$27.9 billion in 2015, down four percent from 2014 but up six percent from the 2009-13 five-year average.
BY MARY MACARTHUR CAMROSE BUREAU
Total liabilities for Canadian farmers are expected to increase
17 percent
Gaps in Canada’s early feed ban that allowed specified risk material from cattle to get into feed might have caused the country’s latest BSE case. Paul Mayer, vice-president of policy and programs with the Canadian Food Inspection Agency, said the feed ban that was implemented in 1997 was not as comprehensive as the enhanced feed ban in 2007. Specified Risk Materials, or SRMs, are tissues thought most likely to be infection points for BSE. “It is possible between 1997 and 2007 that certain tissues that were not restricted in 1997 could have the potential to pose a risk,” he said during a Feb. 13 news conference following the announcement of Canada’s 19th case of BSE. “That is why the extension of the feed ban in 2007 was undertaken to eliminate those tissues from the feed supply.”
Source: 2015 Canadian Agricultural Outlook, Agriculture Canada
in 2015 compared to the 2009-13 five-year average. AGRICULTURAL OUTLOOK
How are farmers doing? New statistics from Agriculture Canada show net farm cash income set a new record in 2014 BY SEAN PRATT SASKATOON NEWSROOM
Canadian farmers are making money hand over fist, according to a new report from Agriculture Canada. Aggregate net cash income for 2014 is projected at $14 billion, 10 percent higher than the previous record. The preliminary forecast for 2015 is for net cash income to fall to $13 billion, but that would still be 21 percent higher than the five-year average. Average net operating income at the farm level is forecast at an alltime high of $78,139 for 2014. “It’s something that we’ve been working for all of our careers is to see numbers like this,” said Norm
Hall, president of the Agricultural Producers Association of Saskatchewan. “But they could have been better (if it wasn’t for) profit taking by the grain companies.” Hall said the rail transportation problems in early 2014 caused a backlog of grain, which prompted the elevator companies to adopt “extraordinarily wide” basis levels that hurt farm incomes. “We could have seen not just $14 billion but maybe as high as $17 billion,” he said. Hall figures producers will lose another $2 to $3 billion in 2015 as basis levels continue wide. SEE HOW ARE FARMERS DOING, PAGE 2
SPRAY
WHEN YOU WANT IN THE CONDITIONS YOU’VE GOT.
It’s GO time — visit dowagro.ca
SEE GAPS IN FEED BAN, PAGE 3
TM
Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow. 0115-41246
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u|xhHEEJBy00001pzYv!:) FEBRUARY 19, 2015 Return undeliverable Canadian addresses to: Box 2500, Stn. Main, Saskatoon, SK. S7K 2C4 The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240
but is expected to decline by six percent in 2015.
YES
NO
NOT YET
CANADIAN
|
$10K-$50 K $50K-$10 0K $100K-$2 50K $250K-$5 00K $500K-$1 M $1M-$2M
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
$2M+
$250,000 .
Independent testing on the way. | P. 76
%
6.6