Provincial Ag Minister Derek Johnson on Wednesday announced the forage lease rent on agricultural Crown land will be reduced by 50 per cent in 2023, 33 per cent in 2024 and 15 per cent in 2025.

These rent reductions will be automatically applied starting with next year’s bills, the province said, so forage leaseholders won’t need to apply for the cut.

“Stakeholders have told us that rental rates on forage lands are challenging with the hardships they are experiencing following the past two years of extreme weather conditions,” Johnson said in a release.

“We are responding to their concerns by implementing this rent reduction program over the next three years, which will provide ranchers with up to $4 million in relief.”

Said “extreme weather conditions” have ranged from severe drought the past two years to excess moisture this year, which have “significantly affected the productivity and forage capacity of agricultural Crown lands,” the province said.”

The rent cut will be in place as the productivity of the land recovers and as “further improvements” to the province’s agricultural Crown lands program are put in place, Johnson said.

The provincial ag department said it’s “exploring other policy, program, regulation and service improvements to enhance the productivity and sustainability of agricultural Crown forage lands including mechanisms for leaseholders to invest in productivity and adjustments to the terms and conditions of leases.”

Other changes made in the past several years as a result of the province’s ongoing review of the Crown land program included the move to an online auction system; a “market-based” formula for calculating rental rates; and the eliminations of lifetime leases and unit transfers.

The program review now includes an online public survey that will be available until late October. — Glacier FarmMedia Network

The post Manitoba to cut Crown forage lease rates appeared first on Farmtario.

At the end of June, only 22 per cent of the Prairie region was classified in the Abnormally Dry (D0) to Extreme Drought (D3) ranges, including 39 per cent of farmlands. A very small area of Alberta bordering both Saskatchewan and Montana was in D3, while areas of severe drought (D2) were found in areas west of Regina and Saskatoon, as well as the Alberta/Montana border. Moderate drought (D1) and abnormally dry conditions were found in most of southern Alberta and both northern and southern Saskatchewan.

Drought conditions were improved substantially as rain fell on south and central Alberta in June, including a system which brought 75 to 125 millimetres in the Calgary area in the middle of the month. While some areas in Alberta received one-third of their annual rainfall in three weeks, it was much needed for crop growth and pasture recovery, where conditions were brought in line with five- and 10-year averages. Northern Alberta received near-normal precipitation in June.

Drought concerns were still present in southwest and south-central Saskatchewan with many parts receiving less than 40 mm during the month of June, less than half of normal amounts. As a result, D0 to D2 conditions slightly expanded to the east. Some cattle producers in those areas are reducing their herds, while communities have reported worsened water quality. Parts of northern Saskatchewan also remained dry with wildfires reported in some areas.

Excess moisture concerns remain in Manitoba after significant moisture in the spring led to flooding in the south. However, pasture, hay and crop growth have progressed well in areas where flooding and moisture concerns have subsided. There were no areas in the province which were abnormally dry or under drough — a far cry from last year when parts of Manitoba were the driest in Canada.

Across the country, 15 per cent was either abnormally dry or under moderate to extreme drought, including 29 per cent of farmland. No exceptional drought (D4) was reported in June.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.

The post Drought conditions remain in Alberta, Saskatchewan appeared first on Farmtario.

AFSC, the province’s Agriculture Financial Services Corporation, announced Wednesday it will accept such applications from eligible growers from now until Sept. 11. Applications will be available online through AFSC Connect.

AFSC described its offer as a “one-time initiative” for farmers in those regions insured under its hail endorsement or straight hail insurance, “who have drowned-out crops that are no longer viable, and thus would be ineligible for a hail claim.”

Premiums will only be refunded on acres deemed as having “non-viable” crops, which AFSC defines as “those where the yield possible is considered not to be worth the cost of harvesting.”

The offer will apply only in cases where farmers who bought AFSC hail insurance have over 10 per cent flooded or non-viable acres in a given field — in which case they can then have those specific acres declared non-viable for the refund.

Furthermore, AFSC said, any non-viable acres on which it has already paid out for hail damage are not eligible for the refund.

Also, the premium cancellation will be only on hail endorsement or straight hail insurance; annual crop production insurance coverage remains in effect, AFSC said.

For each affected field, clients will need to report provide legal land descriptions, part, crop type, acres insured and non-viable acres by the deadline of 11:59 p.m. on Sept. 11.

Refunds to eligible growers will be issued in the fall, as part of AFSC’s harvested production report and post-harvest activities, the agency said.

AFSC emphasized the offer is a “special refund, in response to the excessive moisture in the northern part of Alberta.”

In its Aug. 11 crop report, the province described the northeast reporting region — which includes Smoky Lake, Vermilion, Camrose and Provost — as needing “warm drier weather along with wind” to dry fields.

The same report showed the northwest reporting region (Barrhead, Edmonton, Leduc, Drayton Valley, Athabasca) as “still struggling with excessive soil moisture, resulting in delayed crop maturity.”

In that region, the province said, some crops were 10-14 days behind normal, while “in more severe cases, crops are dying off. Yield potential is impacted by wet conditions and low quality is expected.”

Meanwhile in the Peace reporting region (Fairview, Falher, Grande Prairie, Valleyview) crops in low areas were described as “thin and in poor condition, while the rest of crops look very good.”

“We recognize the challenges many farmers in the northeast, northwest and Peace region(s) are facing as they deal with back-to-back years of excessive moisture,” AFSC interim CEO Jerry Bouma said Wednesday in a release.

“Many AFSC staff are also producers, so we understand the frustration and disappointment farmers feel when they can’t harvest the crop or conditions simply won’t allow it to grow.”

The agency “realize(s) this won’t fix the problem,” he said, “but it is something AFSC can do to help farmers impacted by these extreme moisture conditions.” — Glacier FarmMedia Network

The post Alberta’s AFSC to refund hail premiums on drowned crops appeared first on Farmtario.

According to Trevor Hadwen, agroclimate specialist with Agriculture and Agri-Food Canada’s Drought Watch program in Regina, this is a good thing, as it will help reduce concentrations of water that farmers have to deal with next spring.

“We’re kind of a month behind the temperatures we would normally get,” he said in an interview Monday. “So we’re in a situation where things are fluid at the moment.”

Frequent rains during the summer and early fall bumped up the moisture reserves across much of Western Canada — so much so that there aren’t any areas where dryness is a concern heading into next year, said Hadwen.

“Basically we’re looking at a fairly abnormal situation: the entire Prairie region does not have a single drought area at this time of year,” he said. “Normally you would have some small region (experiencing) moderate drought.”

However, he said, the area running from central Saskatchewan to southern Manitoba is a bit of a concern right now when it comes to excess moisture.

“Southern Manitoba for sure had a wet fall period and the soil moisture is high,” he said.

The early word is to expect normal to above-normal snowfall this winter, he said, but the situation could change.

For instance, he said, the chance of a La Nina weather event — cooler-than-average sea surface temperatures in the central and eastern tropical Pacific Ocean — seems to be growing.

“If we move to a more La Nina stage we might be seeing a lot more snow this winter; we’re leaning towards La Nina but not fully committed there yet.”

If there is a lot of snow this winter, a long, drawn-out thaw would be preferable.

“Ideally you get that temperature where it gets to +5 C during the day before cooling down at night. That’s kind of what we want.”

February could tell the tale, he said, as it is generally considered the big snow month.

— Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

The post Winter wonderland piles on saturated eastern Prairies appeared first on Farmtario.

Spot malt barley prices are about $4.75-$4.85 per bushel in Western Canada, Prairie Ag Hotwire data said, which compares with last year’s harvest prices of about $5.25-$5.75.

“We do have a lot more quantity this year than last year. There’s fairly large quantities of unchitted, unsprouted barley, consequently the domestic maltsters are close to being full,” said Rod Green of Central Ag Marketing Ltd.

While domestic needs are mostly filled, ongoing exports are limiting further weakness in the market, he added.

Excess moisture throughout the growing season has caused some quality issues, he said, and producers are still assessing damage.

“Quality is maybe not looking as good as it did even a month ago,” he said.

“We’ve seen a lot of weather, which is never usually good for malt barley.”

The level of chitted — partially sprouted — barley was lower this year compared to last growing season, he said.

“But as we get further into this crop we’re seeing germination issues, so that’s not good.”

Total production of barley, which includes both malt and feed, is expected to be 8,704,300 tonnes this year, estimates from Statistics Canada said, compared to last year’s 8,225,700 tonnes.

— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

The post Malt barley market weaker with increased supplies appeared first on Farmtario.

While the spring wheat harvest is just getting started and it’s hard to get a firm handle on quality at this time, “it’s fair to say that it won’t all be premium,” said Brent VanKoughnet, executive director of the Manitoba Wheat and Barley Growers Association and a farmer at Carman, Man.

“There are years when nothing can go wrong; this isn’t one of them,” he added.

As far as the wheat quality goes, “it’s really variable,” he said, noting his own farm had received two inches of rain over the past three days, while “two miles from here, they’ve only had half an inch.”

Excess moisture also caused problems in other parts of Western Canada during the growing season, with major wheat grower Saskatchewan dealing with fusarium issues as well, according to the latest provincial crop report.

On top of increased disease pressure, more recent rains are causing harvest delays, which can lead to quality downgrades as well.

Pam de Rocquigny, a crops specialist with Manitoba Agriculture, said winter wheat quality was generally good, but early reports on spring wheat were highly variable.

“There is some variability out there, but what that variability is in terms of numbers, we don’t have yet,” and determining yields is much quicker than grading the crop, she said.

“Anytime there is wet weather during the harvest, it can obviously cause concern in terms of downgrading,” she said.

“Yield is one component of how (farmers) get paid, but quality is important as well. So they are doing everything they can, given the challenging conditions, to make sure they are maximizing the quality of the crop they are taking off.”

In a report Tuesday, Statistics Canada pegged Canada’s 2016-17 wheat crop at 30.5 million tonnes, compared to 27.6 million the previous year.

Of the wheat total, spring wheat was pegged at 20.2 million tonnes, up by only 300,000 tonnes from 2015-16. Durum and winter wheat had more sizeable increases, accounting for most of the yearly change.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow him at @PhilFW on Twitter.

The post Quality still a question for Canada’s big wheat crop appeared first on Farmtario.

Lloydminster, Estevan and Carrot River were just a few of the communities hit hardest by the precipitation.

In some cases, areas in eastern and southern regions received over 100 millimetres of rain in just a few hours. Crops in those area have suffered lodging, wind and hail damage or been placed under standing water.

Leaf spot and root rot are already issues and the water is also raising the potential for disease pressures, according to one official.

Topsoil moisture is rated as 33 per cent surplus, 66 per cent adequate and one per cent short. Hay land and pasture topsoil moisture is rated as 18 per cent surplus, 81 per cent adequate and two per cent short.

Haying progress is at a standstill due to wet fields and high humidity. Saskatchewan livestock producers now have 19 per cent of the hay crop cut and 20 per cent baled or put into silage. Hay quality is rated as nine per cent excellent, 70 per cent good, 18 per cent fair and three per cent poor.

According to the report, 51 per cent of fall cereals, 69 per cent of oilseeds and 70 per cent of spring cereals and pulses are at normal developmental stages for this time of year.

— Dave Sims writes for Commodity News Service Canada in Winnipeg.

The post Soggy conditions stress Saskatchewan’s crops appeared first on Farmtario.

Farmers in parts of the Prairies increased lentil seedings by 48 per cent, covering a record 5.8 million acres this year, according to Statistics Canada.

While the increase in lentils was expected, the excess of moisture in some areas was not, said Greg Simpson, CEO of Simpson Seeds at Moose Jaw, Sask.

“We’ve gone from an El Nino-type weather situation to a La Nina, which implies going from a warm, dry season like we had last year to a cool, wet season like we’re experiencing,” Simpson said. “That’s not good for lentils.”

The surplus of moisture increases the chance of disease, and in some cases can kill the crop entirely, he said.

“Lentils can only stand in water for less than 24 hours until they basically die,” Simpson said.

If rain continues into harvest season, Simpson said, quality problems could arise.

“Lentils are something that’s consumed in a way that we need a No. 2 or better quality. We don’t want to be producing four million tonnes of No. 3s, that wouldn’t be a good situation,” Simpson said.

So far, excess moisture and wet spots are only taking hold of southern areas of Saskatchewan and Manitoba, Simpson said, adding his lentil crops at Moose Jaw don’t have any standing water.

“What’s going to help us be successful is that 5.8 million acres. Even if 20 per cent of that land base is extremely wet… the rest of the growing area should produce a very good crop.”

— Erin DeBooy writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

The post Wet weather threatens record lentil crops appeared first on Farmtario.

Both crops finished higher on the Chicago Board of Trade (CBOT) to cap off the week ended Wednesday; however, the current outlook is dim, according to Scott Capinegro of Barrington Commodities.

“The world isn’t going to run out of beans or corn,” he said.

In particular, Capinegro noted, there is a lot of uncertainty over how many soybean acres will actually get planted this year due to excess moisture.

“Looking at the March 31 planting intentions (report) by the (U.S. Department of Agriculture), there were still three to four million acres that were missing. So do they tack those back on the June 30 report?” he said.

If that scenario were to occur, he said, it would potentially offset the millions of acres of beans that might not get planted because of the rain. “That’s a big question mark.”

Looking at the technical situation, Capinegro said, he believes the wide spread between the July and August soybean contracts can be explained by the record crush over the past two months.

“They’re probably trying to free up some supplies from the farmer,” he said.

Chicago corn contracts are essentially treading water right now, according to Capinegro.

“The U.S. farmer has so much old corn not priced it’s going to hang over the market; world ending stocks are huge,” he said.

As a result, exporters will have to keep pricing supplies on a competitive stance with world competitors.

“So we can get some business,” Capinegro said, adding the situation would be much worse without support from the ethanol sector.

“You can basically say we’re still in trading ranges and we could be stuck in there for the next three weeks,” he said.

Some dry days with temperatures in the 90s F (32 to 38 C) could help the situation, according to Capinegro.

— Dave Sims writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

The post CBOT weekly outlook: Weather issues dominate corn, soy in short term appeared first on Farmtario.

The federal government on Thursday rolled out its final list of designated areas for the 2014 tax year, adding to an already-long initial list released at the end of December.

“Extreme” weather conditions in 2014, which included drought in British Columbia and Alberta and excess moisture in Saskatchewan and Manitoba, led to “significant” forage shortages across the West and some producers having to reduce breeding herds, the government said.

The list of drought-affected areas, attached below, so far includes 32 census subdivisions in B.C., up by one (Peace River B) from December, plus seven counties and six municipal districts in Alberta, up from four and five in December respectively.

The list of areas hit with excess moisture — also attached below — now includes 66 municipalities, one First Nation and two census subdivisions in western and central Manitoba, up from 27 municipalities and one First Nation in December. The excess moisture list now also includes 49 RMs in Saskatchewan, up from 22 in December.

In those designated areas, eligible producers who sold breeding livestock may be allowed to defer some or most of the income tax on those sales for one year. Proceeds from deferred sales are included as income in the next tax year, to be “at least partially offset” by the cost of buying breeding animals.

Eligible producers will be able to request the tax deferral when filing their 2014 income tax returns.

To qualify, a producer’s breeding herd must have been reduced by at least 15 per cent, from which 30 per cent of income from net sales can then be deferred.

Where a herd has been reduced by more than 30 per cent, 90 per cent of income from eligible net sales can be deferred.

Producers in areas that get consecutive years of drought or excess moisture/flood designation will be able to defer sales income to the first year in which their areas are no longer designated. No areas were designated during 2013.

A federal agriculture minister may call on the Canada Revenue Agency to allow such tax deferrals when impact is deemed “significant” — that is, where forage yields in a given year are less than 50 per cent of the long-term average, across an area large enough to have an impact on the industry.

Preliminary designations can be made “if it appears that the criteria will be met.” Final decisions and adjustments are made on designations when all forage yield information is available. Typically, preliminary designations and final adjustments are made in September and December respectively. — AGCanada.com Network

Livestock tax deferral designated regions, 2014

British Columbia (drought): Census subdivisions Alberni-Clayoquot (A, C, D), Bulkley-Nechako (A through G), Capital (F and H (Part 2)), Cariboo (A, B, C, I), Comox Valley (A), Cowichan Valley (F), Fraser-Fort George (A, C through H), Nanaimo (C, H), Peace River (B through E) and Powell River (D).

Alberta (drought): Birch Hills County, Clear Hills County, Grande Prairie County No. 1, Mackenzie County No. 23, Northern Lights County No. 22, Northern Sunrise County, Saddle Hills County; municipal districts of Big Lakes, Fairview, Greenview, Peace, Smoky River and Spirit River.

Saskatchewan (excessive moisture): Rural municipalities of Antler, Argyle, Buchanan, Calder, Cana, Churchbridge, Clayton, Cote, Elfros, Emerald, Enniskillen, Fertile Belt, Foam Lake, Garry, Good Lake, Grayson, Hazel Dell, Insinger, Invermay, Ituna Bon Accord, Kelvington, Keys, Lakeview, Langenburg, Livingston, Martin, Maryfield, McLeod, Moose Creek, Moose Mountain, Moosomin, Mount Pleasant, Orkney, Ponass Lake, Preeceville, Reciprocity, Rocanville, Saltcoats, Sasman, Silverwood. Sliding Hills, Spy Hill, St. Philips, Stanley, Storthoaks, Wallace, Walpole, Wawken and Willowdale.

Manitoba (excessive moisture): Census subdivisions No. 17 and No. 20 (South Part); Valley River First Nation 63A; Municipality of Shoal Lake; rural municipalities of Archie, Arthur, Birtle, Blanshard, Brenda, Cameron, Clanwilliam, Coldwell, Daly, Dauphin, Edward, Ellice, Elton, Eriksdale, Ethelbert, Gilbert Plains, Glenella, Glenwood, Grahamdale, Grandview, Hamiota, Harrison, Hillsburg, Killarney-Turtle Mountain, Lakeview, Langford, Lansdowne, Lawrence, McCreary, Minitonas, Miniota, Minto, Morton, Mossey River, Mountain, North Cypress, North Norfolk, Oakland, Odanah, Ochre River, Park, Pipestone, Portage la Prairie, Riverside, Rosedale, Rossburn, Russell, Saskatchewan, Shell River, Shellmouth-Boulton, Sifton, Siglunes, Silver Creek, South Cypress, St. Laurent, Ste. Rose, Strathclair, Swan River, Wallace, Westbourne, Whitehead, Whitewater, Winchester, Woodlands and Woodworth.

The post West’s soaked, parched tax deferral zones expanded appeared first on Farmtario.