Any strength was largely tied to chart-based speculative buying, with no real fresh fundamental news as far as canola is concerned. The harvest is largely complete across Western Canada, while the U.S. harvest is in its final stages.

Farmers were still making good deliveries into the commercial pipeline in the latest weekly data, and the ample nearby supplies should be keeping a bit of a lid on the market. While those off-the-combine deliveries will now be slowing down, end users are looking comfortable for the time being with little reason to bid up the market.

Producers delivered just under 400,000 tonnes of canola during the week ended Nov. 12, taking visible stocks to 1.4 million tonnes, according to the latest Canadian Grain Commission data. Exports were off the record level posted the previous week, with adverse weather at the West Coast likely causing some delays.

Agriculture and Agri-Food Canada released updated supply/demand tables during the week, but left their projections for canola unchanged with a carryout of one million tonnes projected for 2017-18. That would compare with the 1.3 million tonnes carried forward from 2016-17. The one million tonne mark is considered a bit of a tipping point for canola, with anything below that considered tight. As a result, future adjustments to the supply/demand balance will be followed closely.

Statistics Canada releases its final survey-based production estimates of the year on Dec. 6, which should provide a clearer picture on the available supplies for marketing this year.

Looking ahead, basis opportunities are a possibility, but the futures might just keep grinding along within their sideways range until a fresh spark comes to move values one way or the other.

In the U.S., soybeans and corn also saw some choppy activity during the week, with the bias pointed lower for the most part before Friday’s corrective bounce.

Corn futures touched fresh contract lows during the week, and could still have more room to the downside. However, about five to ten per cent of the U.S. corn crop is still waiting to be harvested, with quality and yield downgrades a possibility in some cases.

Soybeans hit their weakest levels in a month during the week, but bounced off of those lows as fund traders squared positions.

Attention in both markets is now shifting to South America, where weather conditions in Brazil and Argentina have the potential to pull prices one way or the other.

The U.S. Thanksgiving holiday takes place on Thursday, Nov. 23, and U.S. markets will close early on Wednesday and only see sporadic activity on Friday as participants digest their turkey. The holiday trade could lead to some choppiness and price swings.

The post Canola prices likely capped by ample supplies appeared first on Manitoba Co-operator.

“It was awesome… a lot of fun,” recalls farmer Mark Peters with a wide smile. Peters and his wife Yanara, of Spruce Drive Farms, grow certified seed potatoes 12 miles northwest of Portage la Prairie.

On Saturday, October 14, they brought in two potato trucks and a conveyor to a vacant lot in Portage and set up for their second Community Potato Give-Away.

Word about the event spread throughout the week and people were already lined up by 8:30 – a half-hour before the giveaway was slated to start. While many had driven, others walked, pushed strollers, rode bikes or scooters. As the potatoes were unloaded from the truck onto the 36-foot conveyor, folks gathered around filling bags, boxes, containers of all sizes and even backpacks.

Community effort

Volunteers worked alongside the Peters, helping load and carry the spuds as well as encouraging those who were unsure of what to do to find a place along the conveyor and help themselves. The atmosphere was light and jovial. It didn’t matter who you were, or where you came from, everyone was welcome to as many potatoes as they wanted.

“What I loved about it, is that we’re not just targeting one sector of our community. We had people of all ages, all income brackets and walks of life stop by,” said Mark. Many people on fixed incomes and social assistance came up to him to express just how much this was helping them out, shake his hand and thank him. Others stopped by out of curiosity or because they knew the Peters. Some didn’t even need the potatoes but just thought it was a cool idea.

For Yanara, the feeling of community was incredibly gratifying.

“Discovering how people are there for each other, like those taking potatoes for perogy fund­raisers to support other needs in our area. Or the grandmothers who cook extra meals for the children in their community,” she said. “We’re all the same and we all have a story.”

“You had people who come back two or three times,” Mark added. “But they’re not coming back for themselves. They’re coming back for their neighbours, their friends, their families.” And that is exactly what the event is all about. The inspiration to reach out and help others. Filling a need. Building and extending community.

Farmer outreach

Inadvertently it also bridges the farmer-consumer gap. The young ones in the crowd often opened up the best conversations. “Why are the potatoes dirty?” “How come there are so many different shapes and sizes?” “Why are you giving them away?” Many discussions ensued on food waste, what happens to produce before you find it on your store shelves, and why it feels good to give back when you can.

The inaugural event in 2016 was a result of circumstance. Seed potato production standards are very precise. That year, some of the Peters’ crop did not meet seed specifications but was perfectly suitable for the consumer market. However, without a contract to sell consumer potatoes, there was no place for those spuds to go. They could have left them in the field and avoided incurring any more costs, but that type of waste didn’t sit well with the Peters. They opted to dig the crop and the “Community Potato Give-Away” was born.

Being cognizant of local vegetable fundraisers in the community, they waited until those were over before proceeding. The event was a success, in more ways than the Peters could have imagined. The heartfelt gratitude and connections made were powerful and lasting.

“It was always on my heart,” said Mark. “I really wanted to do that again.”

Uncertainty

However, this past summer rains eluded his area. Only the smaller of his two potato fields had access to irrigation. The potatoes in the larger field suffered under the intense summer heat, not looking healthy at all. Peters worried, unsure if he would even have enough to fill his seed contracts.

Once harvest was underway, those worries slowly receded. Whether it was divine intervention or answered prayers, that field with little to no rain produced amazingly well. On the last day of harvest, Mark had a good idea of what was left in the field and didn’t think it could all fit in his storage bin. The giveaway would happen.

He set up a sizer to separate the larger potatoes (less desirable for seed) as they were unloaded. One and a half truckloads were set aside for donation. Along with the Portage la Prairie event, six 2,000-pound totes were filled to be delivered to remote reserves across the province. The fact that the Peters don’t even mention the effort, cost and time that goes into this, speaks volumes.

Many asked if this will be an annual event. When it comes to farming, it all depends on the year and success of the crop. The Peters remember and appreciate how generous people were with them when they were young adults, so when they are in a position to give back, they definitely will.

“It’s only potatoes, but it just brought so much to the community,” Mark said. “It’s a great opportunity to interact with people and hear their stories. The most basic need is being met with the most basic vegetable.”

The post Building their community one potato at a time appeared first on Manitoba Co-operator.

Canola futures began climbing back in the early part of September, eventually rising above the $520-per-tonne mark. However, that changed on Thursday, November 9, when the USDA left its prediction for soybean yields in the U.S. untouched. Traders had generally been expecting the yield number to fall slightly, but when that didn’t happen they started selling almost immediately.

The front-month January contract fell $5.30 on the day. It could have fallen more, but seemed to find a level of technical resistance at the $515 mark.

Demand for canola remains strong though and growers have been moving some supplies. Crushers and buyers have been putting on a few “specials” too, in order to keep things moving. Many in the industry want to get some more canola out of the bins before the dead of winter sets in.

Crush margins have been improving in recent days as the Canadian dollar has softened a bit from a few weeks ago.

In the U.S., both the soybean and corn markets were pressured by the USDA’s monthly supply-and-demand report. The agency surprised many in the oilseed industry by leaving the yield number untouched. The USDA also issued a slight revision to the carry-out in the U.S. which further undermined prices. On the international scene, soybean production estimates for Brazil and Argentina stayed relatively neutral, although rain in northern Brazil has improved growing conditions for the soybean crop. Brazil is expected to produce around 108 million tonnes while Argentina’s output is pegged at 57 million tonnes.

The corn market dropped from its usual perch near the US$3.50-per-bushel mark after the report came out. The USDA raised its yield estimate by a larger amount than expected. The agency pegged yields at 175.4 bushels an acre, up from the previous estimate of 171.8 bushels. If that prediction holds true it would be the biggest national average yield ever. The USDA also raised its estimate for the U.S. carry-out to 2.487 billion bushels, up from the October estimate of 2.295 billion bushels.

Chicago wheat futures continue to be pressured by the increasing size of the Russian wheat crop. SovEcon consulting agency raised its projections for Russian wheat production to a record 82.9 million tonnes. That exceeds the USDA’s prediction and comes at a time when the Russian ruble is relatively weak.

The post USDA report surprises oilseed market appeared first on Manitoba Co-operator.

The January contract hit a session high of $522.50 per tonne on November 2, but was back below the psychological $520 mark by Friday when it closed at $516.80. Looking at a weekly chart, the $520 to $530 area marks a fairly noticeable resistance zone, with any moves above that range few and short lived over the past four years.

The strength in canola was largely tied to the weakness in the Canadian dollar, as it traded below 78 U.S. cents. The declining currency makes canola that much more attractive to international buyers pricing in U.S. dollars.

Export demand remains solid for canola, with the latest weekly Canadian Grain Commission (CGC) report showing exports during the crop year to date at about 2.4 million tonnes. That’s up by roughly 300,000 tonnes from the same point the previous year.

The domestic crush remains solid as well, with the total crush to date of 2.26 million tonnes only 40,000 behind what was processed during the first three months of the previous crop year, according to the latest Canadian Oilseed Processors Association (COPA) data.

Harvest operations are wrapped up across most of the Prairies, and farmers may be closing their bins for the time being waiting for their next target. Cash bids in the $11-per-bushel area could be found across most of the Prairies during the week, but the $12 mark is likely the next selling target for many growers.

In the U.S., the soybean harvest was in its final stages while the corn harvest passed the halfway market. Soybeans and corn both chopped around during the week, with traders waiting on a clearer sense on the size of the crops before pushing values too far one way or the other.

The USDA’s monthly supply/demand report, due out on November 9, could provide some answers. Anecdotal reports that later harvested soybean crops were seeing disappointing yields has many traders anticipating a downward revision to the overall U.S. soybean yield estimate in the November USDA report. Corn, meanwhile, is expected to see yields revised higher from the October report.

Beyond the U.S. production, the world’s next crop is just being planted in South America, making weather conditions there important to keep an eye on.

For wheat, the Chicago and Kansas City contracts hit their softest levels in six months during the week, but may have finally hit a bottom as buying came forward at the lows. U.S. wheat is thought to finally be at a price that’s competitive on the world market, bringing in some bargain buying.

Minneapolis spring wheat never fell as low as its more actively traded winter wheat counterparts, and also outpaced to the upside when those markets moved higher. World supplies of higher-protein wheat are reportedly on the tight side, which could lead to widening price spreads going forward.

The post An up-and-down week for canola prices appeared first on Manitoba Co-operator.

In September Academy Award-winning film director James Cameron announced he would be investing in a new multimillion-dollar pea-processing plant in Vanscoy, Sask. As well there is talk of a $100-million pea-processing facility to be built in Moose Jaw, Sask. and other possible pea-processing facilities in Alberta.

The news hasn’t upset Roquette’s plans at all, however.

“We know that (the market) can absorb new capacities and we are satisfied that there are other investments, which have confirmed the market trend is robust,” said Pascal Leroy, vice-president of pea and new proteins business line with Roquette.

At the end of September, Roquette held a sod turning for its $400-million pea-processing plant in Portage la Prairie, Man. The plant, which will employ 350 people during construction and 150 people when operating, will need 120,000 tonnes of peas a year. According to Leroy, the project is on track for a tentative opening mid-year 2019.

“At the end of the day what is quite important for Roquette is to be close to the customer, markets, to develop the right grade for all the applications that we serve,” he said.

The pulse protein market is expected to grow substantially as consumer eating habits shift. According to Leroy, the pea protein market is expected to grow by 15 per cent per year.

“Pea protein has value and can be eaten in a lot of meals like sport nutrition, meat (substitutes) and so forth. And it addresses consumer concerns like non-GMO,” he said.

The French starch processor has been in the pea-processing business since 2005, when it opened its first plant north of the French capital of Paris. Since then the company has worked to refine its process for extracting pea protein.

“We have developed a unique process to develop protein with good attribute in terms of nutrition properties and functionalities as well,” Leroy said.

With the expansion into North America Roquette is considering future growth opportunities within the pulse industry.

“You need time to be in a position to master a new crop… so for the time being we are quite happy to work on pea and pea protein,” Leroy said. “Having said that, for sure we are as well looking for new proteins, but again we know Canada has a good potential for that.”

Low costs

Pulse industry groups say the recent spate of announcements is partly due to the region’s growing reputation as a pulse producer, but mainly the focus on peas boils down to the costs of doing business.

“It’s a combination of the tonnage available and then, what is the cost? And given that they’re producing protein isolate, it becomes, what’s the cost per tonne of protein isolate?” said Gordon Bacon, CEO of Pulse Canada.

Yellow peas are currently trading at $8 per bushel (22 cents per pound), according to Prairie Ag Hotwire, compared to Richelea No. 1 lentils at 35 cents per pound, which are grown as well in the Prairies.

“When peas start out as a commodity form in a lower cost per tonne then they become a very interesting crop to fractionate because we as the pulse industry are going to compete with other proteins,” Bacon said.

Rachel Kehrig, director of communications for Saskatchewan Pulse Growers agrees cost factors significantly into choices for processing facilities.

“If you’re looking to put peas into food products or other manufactured goods, which is what some of these plants will be supplying is those ingredients, they’ve got to be cost competitive,” she said.

As well, Kehrig said there has been a lot of focus in the last decade on developing pulse ingredients especially peas.

“Work is being done on lentils and other pulses as well and we expect to see some kind of drive in the ingredient utilization of those as we move into the future. Right now peas are kind of opening that door for everyone,” she said.

Bacon said as well, consumer interests drive the processing industry. There has been an explosion of interest in plant-based proteins as people are looking for gluten- and soy-free products, due to allergies. As well, some companies are interested in GMO free and environmental sustainable products.

“You have companies that are looking for cost advantages relative to other sources of protein and you have people who are looking for novel ingredients,” Bacon said.

Bacon said there is opportunity for other pulse processing. Fababeans have a higher protein content than yellow peas but currently fababean production is much less than peas.

“You’re not going to build a plant for something that doesn’t yet get produced in Western Canada. But I think for sure it’s the combination of price availability and then the functionality of the protein as well,” Bacon said.

The post Pea processing attracting wide interest appeared first on Manitoba Co-operator.

In the end, however, yields are expected to be similar to last year.

Dave Sawatzky, manager of Keystone Potato Producers Association, said he predicts yields will roughly be on par or slightly better than 2016’s harvest, when Manitoba potato growers brought in 348 hundredweight per acre on average.

“Overall, it looks like a pretty good crop. A very challenging crop, this year, to grow — very dry summers, so irrigation was run hard,” he said.

He added that harvest conditions proved especially difficult when rain fell in mid- to late September, which delayed harvest, pushing many producers past the traditional completion date of Oct. 1.

• Pearce: Heavy rains cause losses in Ontario potato fields

“We start gambling with frost after that date. So, there was a lot of risk or nervousness, I guess, here in the province.”

But with October, farmers’ luck changed. Better weather enabled most to get their potatoes in by Oct. 7 or 8, he said.

Seeded area was down from a year ago, at 62,500 acres, compared to 65,000 in 2016. Contracted acres were reduced to better match supply needs of french fry processors McCain Foods in Portage la Prairie and Carberry, and J.R. Simplot in Portage la Prairie.

This year’s long, strange road to harvest gave producers cause for concern right from the start. The large set early in the season, where there are more tubers than normal under each plant, sparked worries that the tubers would not reach an acceptable size.

Then heat came at the end of August and early September, which may have reduced tuber “bulking” and trimmed yields back a bit, said Sawatzky. He added that heat also delayed harvest as producers waited for cooler weather to arrive, not wanting to put warm tubers into storage because they don’t keep well under those conditions.

In the end, most potatoes gained acceptable size, although there are some size issues with one variety, Umatilla Russet, in one area of the province.

In recent years, potato yields have generally been increasing, a trend Sawatzky attributes to several factors.

He said one variety, Innovator, has enabled producers in the Portage la Prairie region to achieve higher yields, although markets for it are limited due to its slightly yellow colour. McCain holds the rights to Innovator.

Other reasons for increasing yields are better management practices as growers fine-tune their irrigation systems. All processing potatoes in Manitoba are grown with irrigation.

Row spacing has also contributed, as many growers now seed on 34-inch row spacing and use more seed per acre, compared to the 38-inch spacings and then 36-inch spacings used a few years ago.

Based on data from Keystone Potato Producers, Manitoba’s potato harvest for the past six years is as follows:

• 2011 240 cwt per acre;
• 2012 276 cwt per acre;
• 2013 310 cwt per acre;
• 2014 306 cwt per acre;
• 2015 322 cwt per acre;
• 2016 348 cwt per acre.

The post Good potato yields despite challenging year appeared first on Manitoba Co-operator.

The November contract briefly traded above the 200-day moving average of $497 per tonne on Sept. 22, on the back of some fund buying triggered by a rally in Chicago soybeans. However, that key chart point held as resistance, and the contract finished the week closer to its 20-day average, at $494.80 per tonne. The contract finds itself right in the middle of a broad range from about $475-$525 per tonne.

The canola harvest saw setbacks in Alberta during the week, with cool and wet conditions including snow in some cases. However, farmers continued to make good progress elsewhere across the Prairies, and the market remains focused on a large crop. Producer deliveries into the commercial pipeline topped half a million tonnes for the third straight week in the latest Canadian Grain Commission data, which should leave end-users with little reason to bid up the market.

Statistics Canada on Sept. 19 released an updated model-based production estimate that uses satellite imagery, rather than farmer surveys, to gauge the size of the crop. The model-based number for canola, 19.7 million tonnes, would be a new record, and compares with the August survey of 18.2 million. While that’s already a large number, many analysts are still looking higher, pencilling a ‘20’ in their supply/demand calculations.

However, even with a record-large crop, world demand for oilseeds remains strong as well and any production issues elsewhere in the world could provide the spark that would break canola out of its sideways range.

The U.S. soybean harvest is just getting started, while South American farmers will soon be seeding their next soybean crop. Early U.S. soybean yields reports are beating expectations, but only four per cent of the crop was in the bin in the latest U.S. Department of Agriculture report. In South America, traders are watching dry conditions in Brazil and excessive moisture in Argentina, with both extremes likely to cut into the crop prospects.

With actual U.S. yields still up in the air as the harvest progresses, traders may be reluctant to push soybeans or corn too far one way or the other.

In wheat markets, futures trended higher over the course of the week, with the Minneapolis spring wheat contracts outpacing the Chicago and Kansas City winter wheats to the upside. Concerns over tightening supplies of higher-protein wheat accounted for some of the relative strength in Minneapolis, while relatively favourable winter wheat seeding conditions in the southern U.S. Plains limited the upside in those contracts.

Reports of large Russian wheat supplies also weighed on prices to some extent, although those big crops were countered by dryness concerns in Australia and the excessive moisture in Argentina.

The post Canola traders are fixed on forecasts for a record crop appeared first on Manitoba Co-operator.

For most of us it means, simply, boiled oats, a rather humble meal. Englishman Samuel Johnson, who had something to say about everything, once called oats “the grain, which in England is generally given to horses, but in Scotland appears to support the people.” The Scotsman’s retort was that was why England had good horses, and Scotland had good men.

We may not call it porridge, but we certainly still eat it. For many of us, the day starts with a bowl of oatmeal and we’re better for it. Oats are a feast of fibre, as scores of studies have shown, keeping us full longer and our cholesterol in check too.

• Read more: What’s in artificial sweetener packets?

But instant, quick-cooked, rolled or steel-cut oats for breakfast is by no means the only way to eat oats. Well-documented claims on the health benefits from eating oats have resulted in loads of new recipe ideas for taking oats long past breakfast.

There’s good reason to eat more; one cup of cooked instant oatmeal at breakfast has approximately four grams of fibre. But if the rest of our daily diet is low in fibre, that’s not enough. The Mayo Clinic recommends that men and women under the age of 50 consume 38 and 25 g of fibre a day, respectively. Men and women who are 51 and older should be consuming 30 and 21 g of fibre a day.

Here’s a couple of recipes to encourage you to try oats in new ways. I stopped by the Prairie Oat Growers Association’s booth at Ag Days where they were handing out these giveaway recipe cards. I’ve already baked this beautiful bread recipe and promise it won’t last long in your household.

You’ll find more oat recipes at www.poga.ca.

Saskatoon oat and seed bread

• 1 c. oat bran
• 1/2 c. quick-cooking oats
• 1/2 c. whole wheat flour
• 1 tsp. baking soda
• 1 tsp. baking powder
• 1/2 tsp. salt
• 1/3 c. ground brown or golden flaxseed
• 1/3 c. lightly packed brown sugar
• 1/4 c. unsalted, toasted sunflower seeds
• 1/4 c. unsalted, toasted pumpkin seeds
• 2 tbsp. whole brown or golden flaxseed
• 2 tbsp. sesame seeds
• 2 tbsp. poppy seeds
• 1-1/4 c. 1 per cent buttermilk
• 1 large egg, beaten
• 2 tbsp. canola oil
• 2/3 c. fresh saskatoon berries or frozen, thawed and drained

Preheat oven to 350 F and position rack in the centre of the oven. In a large bowl, combine oat bran, oats, flour, ground flaxseed, salt, baking powder, brown sugar, sunflower seeds, pumpkin seeds, whole flaxseed, sesame seeds and poppy seeds. Mix well. In another bowl, whisk buttermilk, egg and oil. Add to dry ingredients. Stir until moistened. Gently stir in saskatoon berries. Spoon batter into a 9×5-inch loaf pan that has been sprayed with a non-stick cooking spray. Bake 50 to 60 minutes or until wooden skewer inserted in the centre of the loaf comes out clean. Cool in pan 10 minutes before removing to cooking rack. Cool completely before slicing or wrapping.

To toast seeds: Preheat oven to 350 F. Combine sunflower and pumpkin seeds in pie plate. Toast 3 minutes, stir, toast 3 minutes, stir again. If needed, toast another 2 to 3 minutes until lightly browned.

Yield: 1 loaf (16 slices)

Bread may be stored in an airtight container for up to 2 days or frozen for up to 2 months.

Recipe courtesy of Prairie Oat Growers Association and SaskFlax

Oat risotto

• 1 small onion, diced
• 1 tbsp. canola oil
• 1 c. steel-cut oats
• 3 c. low-sodium chicken broth, heated
• 1/2 c. white wine (*)
• 1/2 c. frozen baby peas, thawed
• 1 tbsp. chopped fresh herbs such as rosemary,thyme, parsley, dill
• 2 tbsp. ground flaxseed
• 1 tbsp. grated Parmesan cheese

In a medium pan, over medium heat, sauté diced onion in oil for 1 minute.

Add oats, cook and stir 3 minutes until starting to lightly toast and smell nutty.

Add 1/2 cup hot broth, stirring constantly until liquid is absorbed. Repeat with another 1/2 cup doing the same until you’ve added a total of 2-1/2 cups. Add peas and herbs. Stir in wine, cook and stir until wine is absorbed. Risotto is served el dente. Taste and check texture, adding more broth and cooking a few more minutes if needed. Remove from heat, stir in ground flaxseed and Parmesan.

Yield: 3 cups

Variations:

• 1/2 c. diced zucchini, edamame, etc.
• 1/2 c. sliced mushrooms
• 1/4 c. chopped sun-dried tomatoes

(*) Wine may be substituted with 1/2 cup of chicken broth.

Risotto should be served a little on the soupy side, not thick like porridge.

Recipe courtesy of Prairie Oat Growers Association and SaskFlax

The post Oats after breakfast appeared first on Manitoba Co-operator.

In November, the USDA upped their estimate of an already-record 2016-17 crop. The agency said soybeans would come in at 4.269 billion bushels and corn at 15.057 billion bushels. Market watchers, already expecting a big crop, weren’t overwhelmed by the news, but it did add a bit more downward pressure to an already challenging market.

USDA had earlier forecast the largest-ever Russian wheat harvest at 72 million tonnes due to favourable weather. At the same time, Ukraine’s grain harvest was targeted at about 63 million tonnes and record exports are forecast. In the European Union, the cereals harvest was a bit below the five-year average, but that wasn’t enough to offset the effect of good harvests elsewhere.

As the production season has worn on in the Southern Hemisphere, things haven’t gotten much brighter.

In an early-October report, USDA said it was expecting Australia to produce massive crops this growing season as a drought there has broken and soil moisture conditions have improved. They called for a wheat harvest of 27.5 million tonnes (a 12 per cent increase on a year earlier) and a barley crop forecast at 9.9 million tonnes (up 15 per cent). The agency noted only minor challenges early in the growing season with a bit of water logging and an early frost that hit quality in some parts of that country. The report further noted the better conditions will also support greater production of the region’s summer crops, in particular rice, as the year progresses.

Similarly high yields have been predicted for the Latin American agriculture powerhouses of Brazil and Argentina, although there are some concerns a drying trend may be taking hold. The caveat for any numbers from that region are the usual ones about the ability of weather to hamper production between now and their harvest season.

All in all, it’s not a particularly encouraging picture for a grain farmer hoping for better prices and is all the more astounding considering where we were just a few years ago.

In 2008, the talk was of a food crisis as the cost of staple crops like rice and other grains exploded after many years of moribund pricing. At the time market analysts told us a handful of issues were lifting grain prices. Population growth was creating more mouths to feed. Economic growth in developing countries was ramping up consumption, especially as those folks celebrating their improving fortunes by consuming more meat.

What really kicked the market into overdrive, however, was ethanol mandates. The movement was transnational with governments around the world mandating inclusion of biofuels into the gasoline supply in an effort to offset potential energy shortages and climate change. That had the effect of diverting a third of the U.S. corn crop into the energy market almost overnight.

The effect was as one would expect. Grain prices skyrocketed. They also remained stubbornly high on a series of crop failures such as the 2012 U.S. drought. It combined to give farmers everywhere a powerful incentive to invest in more productive capacity.

Despite the old adage of how land is always a good investment ‘because they’re not making any more of it,’ farmers appear to have done just that. In Brazil, millions of new acres came into crop production, for example, and that country saw near-double-digit annual increases in agricultural productivity according to the United Nations Food and Agriculture Organization (FAO) in a report on the future of global agriculture.

The other big story has been the modernization and rapid productivity growth of the Black Sea region. Freed of the shackles of communism and finally given a price signal to make it worth their while, farms in this region have become powerhouse exporters, especially of wheat.

It’s a familiar pattern in commodities, but an unfortunate turn of events for those who embraced ‘it’s different this time’ mentality, assuming the factors driving growth would continue forever.

Some argue that it’s only a matter of time before grain prices improve again. After all, population is still growing, and global economic malaise aside, people continue to claw their way out of poverty. Others worry we could be in for a prolonged period of lower prices as farmers do what they always do — deal with lower prices by producing more bushels.

Right now, with record harvests piling up, it seems the good times are on hold.

Is waiting for crop failure to hit, hopefully somewhere else, or trying to grow their way out of low prices the only options farmers have, or is it time for another strategy?

The post Editorial: Where have all the good times gone? appeared first on Manitoba Co-operator.

“You never know exactly at this time of year, but I am seeing about 5,600 acres and that includes a project in Thunder Bay, Ont., as well,” said Harold Penner, CFGB regional representative. “I believe we are about 90 per cent done harvest right now and we probably have about 500 acres to go at this point.”

Every year a number of communities throughout the province comes together to grow and harvest a crop through volunteer labour and donations.

Funds raised are then matched four to one by the federal government and donated to the CFGB.

The CFGB puts these donations to work in a number of projects throughout the world, which aims to fight global hunger, reduce malnutrition and achieve sustainable food security.

In 2015-16, the CFGB helped over one million people in 40 countries by providing food in times of crisis and helping people grow more food to better support themselves.

Last year Manitoba raised $3 million in donations through 29 CFGB projects on 5,750 acres.

Penner says that despite struggling with some weather obstacles, Manitoba’s efforts should produce another sizable donation this year.

“Our fields are spread all over Manitoba so we get a little bit of whatever is going on. We have had a lot of reports of average crops but some seem to be turning out better than expected,” Penner said.

About 10 different crops were grown, including hard wheat, soybeans, canola, winter wheat, barley, fall rye, corn, and alfalfa.

“Hard wheat was still the biggest crop that people grow for us and the second crop acres this year were soybeans,” Penner said.

A fall gathering

Every year following harvest, the Manitoba chapter of the CFGB puts on a fall banquet in order to celebrate the year’s accomplishments, enjoy a meal together and discuss how the donated funds are being put to use.

“This year, instead of holding one of the events in Winnipeg we will be holding one here in the Morris-Rosenort area,” Penner said.

The organization has decided to switch up this year’s location in order to draw some attention to the 40th anniversary of when area farmers began gathering and donating grain to the food bank.

“Forty years ago, in 1976, is when farmers here started to gather grain for the newly formed food bank and the first shipment of grain was actually shipped out in January of 1977,” Penner said. “So it has been exactly 40 years ago that farmers in this area actually started doing this and that is what led into the CFGB, which was formed in 1983. So, at the banquet we plan to talk a little bit about that and we will have a few of the guys who were involved in it at that time to share a little bit.”

Two fall banquets will be held, one in Brandon on November 24 and another in the Morris-Rosenort area on November 22.

“Everyone is welcome to attend and if you have some interest in starting up a grow project in your community, the fall banquet is a great place to start. Come and listen to what other people are doing and we usually do some sharing. So, come and see what it is all about,” Penner said.

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