Bright Outlook For Ag Depends On Weather
Written by Kelvin Heppner
Wednesday, 22 February 2012
Canadian farm income is expected to remain strong for the next decade, according
to a report released on Monday by Agriculture and Agri-Food Canada.
Mid-Term Outlook forecasts relatively strong international
grain and oilseed prices, and modest improvements for the red-meat sector. AAFC
also projects average net operating income for farmers in 2011 will reach a record
level of just over $65 thousand.
"It certainly is an optimistic report.
Certainly we've seen good commodity prices in 2011, but with the production
challenges we've had with flooding and 25 percent of our acres going unseeded,
we did not get the opportunity in Manitoba to capitalize on these good prices,"
says Doug Chorney, President of Keystone Agricultural Producers.
report projects a 10 years of strong demand, so that gives us a real reason for
optimism for the future of our industry. With Manitoba being a big exporter
producers are in a position to be part of that success story. We just hope the
weather cooperates and we are able to do that," he says.
the strong prices and optimism about the future are quickly translating into
higher costs for producers. Higher grain prices have been capitalized into
higher land costs.
"That happens very rapidly. Bred cows are also going
at record prices for cattle producers, so there's some concern about how they
can sustain those levels. You don't always know what you're going to be selling
your calves for and you don't know that grain prices are going to remain
strong," he says.