Third-generation farmer Greg Sears is greater than prepared for a classic with none curveballs in it.
In 2021, farmers have been thrown a giant one within the type of the extreme drought that withered crops throughout Western Canada, together with on Sears’ farm simply north of Grande Prairie, Alta.
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Then final yr — even because the conflict in Ukraine pushed grain and oilseed costs to document highs — inflationary pressures led to dramatic will increase in the price of all the things from fertilizer to gas to tractor tires, main some within the business to see 2022 as known as the costliest. classic in historical past.
“Rotman experience is an efficient strategy to describe it,” Sears mentioned of the volatility that has affected Canadian agriculture over the previous 24 months.
“I am type of hoping (2023) might be, for what it comes right down to, a standard yr.”
Sears made the feedback in a current interview from his farm, the place the climate had solely lately turned to what he described as “spring-like” circumstances.
Though it is going to probably be a number of extra weeks earlier than his fields dry out sufficient to start planting his wheat, barley and canola, Sears mentioned he feels a combination of hope and “nervous anticipation.”
On the one hand, crop costs stay excessive from a historic perspective – though not as excessive as final yr – and Canadian farmers are keen to satisfy the rising world demand for meals.
“Most indications level to farmers hitting the fields laborious this yr, with deliberate acreage anticipated to be close to a document,” Raymond James analyst Steve Hansen wrote in a current analysis notice, suggesting that if all goes properly, Canadian farmers might produce a “High 5 crop” this fall.
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However the reminiscence of 2021’s record-breaking warmth and drought in Western Canada is weighing on many farmers who skilled it.
“We used to have a sure expectation for what our worst-case state of affairs was, and 2021 actually resets that cap,” Sears mentioned.
“We’re as affected as anybody. It was not an excellent scene for most individuals in our space.”
Whereas 2021 was the worst, Western farmers have suffered by a number of drier-than-average rising seasons over the previous decade.
And as of late February, Agriculture and Agri-Meals Canada’s drought monitor map exhibits giant components of BC, Alberta and Saskatchewan as “abnormally dry” or already in a drought situation.
That is a priority, Sears mentioned.
“We have not had actually good regular rain to construct up the underground moisture once more,” he added.
“And we did not get the large, massive snow that we often get in February or March. It was fairly sparse.”
One other concern is inflation, which might have an effect on farm profitability this yr, in response to Farm Credit score Canada chief economist JP Gervais.
Though fertilizer and diesel prices have decreased considerably from final yr, they continue to be traditionally excessive. And rates of interest are a lot greater than they have been at this level in 2022, which might be an issue for some farmers.
“The monetary well being of some operations is dependent upon ‘do you personal your land, and what number of curiosity funds do it’s important to pay on that land?'” Gervais mentioned.
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“Undoubtedly a priority for producers is that enter prices are going to be very excessive typically this yr,” mentioned Invoice Prybylski, who farms close to town of Yorkton in southeastern Saskatchewan.
However Prybylski, who’s heading into his forty first yr of farming, mentioned he believes most growers in his space are optimistic regardless of the dangers.
“I believe we’re a pleasant begin to the classic right here,” he mentioned.
“However in fact so much can occur between now and harvest.”
© 2023 The Canadian Press
