Lisa Kopochinski
As for what can be expected this year, many things are on the minds of farmers.
There are market uncertainties, trade relations, rising input costs and weather concerns going into any growing season. And with climate change, these uncertainties only grow.
The tariff and trade situation is also forefront in everyone’s mind these days. Much like the weather, there is little a farmer can do to change it. However, just like the weather, there are risk management strategies farmers can use to minimize the downside and maximize the upside.
Farming For Tomorrow recently had the opportunity to talk with Chris Barker, executive director of the Saskatchewan Seeds Growers Association, and Kayla FitzPatrick, director of communications at Fertilizer Canada, to discuss some of the biggest issues that farmers are facing on the Prairies this year and what steps should be taken. Here is what they had to say.
Farming For Tomorrow:The industry can expect market uncertainties, particularly with Canada’s relations with the U.S. What should our farmers be prepared for?
Chris Barker: The U.S. is our largest trading partner, so a lack of trade policy consistency from them is a huge risk for Canadian farmers. Food and food ingredients are somewhat protected, as demand is inelastic. There will be areas though where the U.S. will try to fill local demand with the soy, corn and wheat they would normally export. Much bigger issues are likely around farm equipment and parts, as complex manufacturing supply chains are likely to be caught up in multiple tariffs.
Kayla FitzPatrick: Our advice is to always work closely with your ag-retailer and/or Certified Crop Adviser, as they are your best resource for advice and product availability. Planning ahead can help ease some concerns. For example, working with a trusted 4R advisor to develop a 4R plan can help farmers map out and optimize their fertilizer investment.
FFT: Could there be the possibility of tariffs since a significant percentage of our ag exports are shipped to the U.S.? How much could this hurt our farmers?
CB: There will be tariff impacts on Canadian farm exports, whether direct tariffs or an indirect impact on the ability of farmers to operate. The scope and scale of the pain is unknown, which is a huge pain point for agriculture. The inability to plan and the market uncertainty are huge risks for Canadian farmers.
KF: I can’t speak to the impact of tariffs on ag exports, but I can say that the fair free trade flow of fertilizer in North America is important to farmers on both sides of the border.
FFT: Can you comment on the rising input costs for essentials such as fertilizer, seed and machinery? What advice can you offer to farmers?
CB: Farmers need to maximize their productivity by using the best technology available. That means using newer crop varieties with proven yield advantages over older varieties. Newer varieties have been bred under the current climactic conditions for the demands of today’s market.
KF: As a globally traded commodity, fertilizer prices are vulnerable to geopolitical events and turmoil, like threats of a trade war. Farmers should speak with their ag retailers to get a better understanding of the supply locally. Farmers can also look to implement 4R Nutrient Stewardship best management practices to optimize nutrient uptake and help maximize their investment in fertilizer inputs.
FFT: What challenges can farmers expect this year and for the next several years with respect to government policies and regulations?
CB: The biggest challenge farmers will face this year and for the foreseeable future with respect to government is to be heard. There is going to be a lot of noise from all sectors about the need for support in the wake of U.S. policy. If each segment of the agriculture industry tries to speak on their own, they will not be heard. All the voices within agriculture need to have the same message. Agriculture is foundational to a prosperous Canada.
KF: The new Liberal government has indicated in their election platform that food security is a priority, but we will still need to see what policies and regulations that translates to. Recently, the minister of agriculture’s office used ambitious language about cutting red tape and putting agriculture at the forefront of Canadian economic policies, and we would like to see more of this approach. Canada has the potential to be an agricultural superpower, and now is the time to step up and implement smart policies that support the sector.
FFT: When it comes to unpredictable weather, what is your advice to farmers in adapting to this?
CB: This is perhaps the easiest question of the bunch. Farmers always face unpredictable weather. The best defence is to use the best technology available. That means the best management and the best inputs. For me, that means the best genetics available. Newer varieties are bred and selected under today’s climate to today’s market.
KF: Weather is a significant challenge in agriculture, and while it is not a complete solution, innovation in farming can be a resource. Precision agriculture and innovative new products can help growers manage unpredictable weather.