Low grain yields in Alberta mean high grain prices will continue

The combines at the moment are parked, and fall area work is underway.

Geoff Backman with the Alberta Wheat and Barley Fee mentioned it was a troublesome yr for a lot of farmers who had been plagued with drought situations.

“They’re actually hoping for rain subsequent yr as a result of two years of this might be financially devastating,” mentioned Backman.

The crops at the moment are within the bin, and the numbers present yields are considerably down.

“For probably the most half, we’re listening to that, regionally, yields are between 75 to 50 per cent of what they skilled final yr and that simply isn’t the quantity of grain that we’re used to having,” added Backman.

The provincial five-year yield index exhibits this yr is 37 per cent beneath the five-year averages. Demand is up and so are costs. This time final yr, feed barley in southern Alberta was $5.50 a bushel; it’s now almost $9 a bushel.

“These are the best costs I’ve seen, but it surely’s not simply me. I’m younger in comparison with among the farmers and a few of our members, and they’re reporting that these are among the highest costs they’ve ever seen of their careers as properly,” added Backman.

The excessive grain costs instantly influence the cattle trade, particularly feeder cattle.

“It takes an enormous chunk out of calf costs, so if we’re speaking $4 barley versus $8 barley, roughly for each greenback enhance within the worth of barley, you’re taking about 20 cents off the value of calves,” mentioned Brian Perillat, supervisor and senior analyst for Canfax.

Perillat mentioned many cattle producers can’t discover the grain they want in Canada and are counting on feed from south of the border.

“We’ll be importing a major quantity of corn. It ought to begin flowing into the southern Prairies or into Alberta into November and that’s going to be the largest feed supply,” he added.

Backman mentioned the grain scarcity is worldwide.

In line with Agriculture and Agrifood Canada, wheat and barley have dropped from an estimated world provide of 12 million metric tonnes to eight million tonnes this yr.