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Alberta

Prairie farmers hope for ‘normal’ season after volatile couple of years

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CALGARY — Third-generation farmer Greg Sears is more than ready for a crop year without any curve balls in it.

In 2021, farmers were thrown a big one in the form of the severe drought that withered crops across Western Canada, including on Sears’ farm just north of Grande Prairie, Alta.

Then last year — even as the war in Ukraine drove grain and oilseed prices to record highs — inflationary pressures led to dramatic spikes in the cost of everything from fertilizer to fuel to tractor tires, leading some in the industry to dub 2022 as the most expensive crop year in history.

“Roller coaster ride, is a good way to describe it,” said Sears, of the volatility that has affected Canadian agriculture in the last 24 months.

“I’m kind of hoping (2023) will be, for what it amounts to, a normal year.”

Sears made the comments in a recent interview from his farm, where the weather has only recently changed to what he describes as “spring-ish” conditions.

While it will likely still be a few weeks before his fields dry up enough to start seeding his wheat, barley and canola, Sears said he feels a mix of hope and “nervous anticipation.”

On one hand, crop prices remain high from a historical perspective — though not as high as last year — and Canadian farmers are eager to meet the growing global demand for food.

“Most indications suggest farmers are going to hit the fields hard this year, with planted acreage expected to be a near record,” Edward Jones analyst Steve Hansen wrote in a recent research note, in which he suggested that if everything goes well, Canadian farmers could deliver a “Top 5 harvest” this fall.

But the memory of 2021’s record-breaking heat and drought in Western Canada weighs on many farmers who experienced it.

“We used to have a certain expectation for what our worst-case scenario was, and 2021 really reset that limit,” Sears said.

“We were affected as much as anybody. It wasn’t a very good scene for most people in our area.”

While 2021 was the worst one, western farmers have suffered through multiple drier-than-average growing seasons in the past decade.

And as of the end of February, Agriculture and Agri-Food Canada’s drought monitor map shows vast swathes of B.C., Alberta and Saskatchewan as being “abnormally dry” or already in a drought condition.

That’s a worry, Sears said.

“We haven’t really had good solid rains to build up the subsoil moisture again,” he added.

“And we didn’t get the big, big snows that we typically get in February or March. It was pretty sparse.”

Another concern is inflation, which Farm Credit Canada chief economist J.P Gervais said could impact farm profitability this year. While fertilizer and diesel costs have come down somewhat from last year, they remain historically high. And interest rates are much higher than they were at this point in 2022, which will be an issue for some farmers.

“The financial health of some operations depends on ‘do you own your land, and how much interest payments do you have to pay on that land?’” Gervais said.

“Certainly a concern for producers is that input costs are going to be very high this year overall,” said Bill Prybylski, who farms near the city of Yorkton in southeast Saskatchewan.

But Prybylski, who is heading into his 41st year of farming, said he believes most producers in his area are optimistic in spite of the risks.

“I think we’re looking at having a pretty start to the crop year here,” he said.

“But obviously a lot can happen between now and harvest.”

This report by The Canadian Press was first published April 17, 2023.

Amanda Stephenson, The Canadian Press

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Alberta

CPP another example of Albertans’ outsized contribution to Canada

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From the Fraser Institute

By Tegan Hill

Amid the economic uncertainty fuelled by Trump’s trade war, its perhaps more important than ever to understand Alberta’s crucial role in the federation and its outsized contribution to programs such as the Canada Pension Plan (CPP).

From 1981 to 2022, Albertan’s net contribution to the CPP—meaning the amount Albertans paid into the program over and above what retirees in Alberta received in CPP payments—was $53.6 billion. In 2022 (the latest year of available data), Albertans’ net contribution to the CPP was $3.0 billion.

During that same period (1981 to 2022), British Columbia was the only other province where residents paid more into the CPP than retirees received in benefits—and Alberta’s contribution was six times greater than B.C.’s contribution. Put differently, residents in seven out of the nine provinces that participate in the CPP (Quebec has its own plan) receive more back in benefits than they contribute to the program.

Albertans pay an outsized contribution to federal and national programs, including the CPP because of the province’s relatively high rates of employment, higher average incomes and younger population (i.e. more workers pay into the CPP and less retirees take from it).

Put simply, Albertan workers have been helping fund the retirement of Canadians from coast to coast for decades, and without Alberta, the CPP would look much different.

How different?

If Alberta withdrew from the CPP and established its own standalone provincial pension plan, Alberta workers would receive the same retirement benefits but at a lower cost (i.e. lower CPP contribution rate deducted from our paycheques) than other Canadians, while the contribution rate—essentially the CPP tax rate—to fund the program would likely need to increase for the rest of the country to maintain the same benefits.

And given current demographic projections, immigration patterns and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into the CPP than Albertan retirees get back from it.

Therefore, considering Alberta’s crucial role in national programs, the next federal government—whoever that may be—should undo and prevent policies that negatively impact the province and Albertans ability to contribute to Canada. Think of Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off B.C.’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.

Canada faces serious economic challenges, including a trade war with the United States. In times like this, it’s important to remember Alberta’s crucial role in the federation and the outsized contributions of Alberta workers to the wellbeing of Canadians across the country.

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Alberta

Made in Alberta! Province makes it easier to support local products with Buy Local program

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Show your Alberta side. Buy Local.

When the going gets tough, Albertans stick together. That’s why Alberta’s government is launching a new campaign to benefit hard-working Albertans.

Global uncertainty is threatening the livelihoods of hard-working Alberta farmers, ranchers, processors and their families. The ‘Buy Local’ campaign, recently launched by Alberta’s government, encourages consumers to eat, drink and buy local to show our unified support for the province’s agriculture and food industry.

The government’s ‘Buy Local’ campaign encourages consumers to buy products from Alberta’s hard-working farmers, ranchers and food processors that produce safe, nutritious food for Albertans, Canadians and the world.

“It’s time to let these hard-working Albertans know we have their back. Now, more than ever, we need to shop local and buy made-in-Alberta products. The next time you are grocery shopping or go out for dinner or a drink with your friends or family, support local to demonstrate your Alberta pride. We are pleased tariffs don’t impact the ag industry right now and will keep advocating for our ag industry.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Alberta’s government supports consumer choice. We are providing tools to help folks easily identify Alberta- and Canadian-made foods and products. Choosing local products keeps Albertans’ hard-earned dollars in our province. Whether it is farm-fresh vegetables, potatoes, honey, craft beer, frozen food or our world-renowned beef, Alberta has an abundance of fresh foods produced right on our doorstep.

Quick facts

  • This summer, Albertans can support local at more than 150 farmers’ markets across the province and meet the folks who make, bake and grow our food.
  • In March 2023, the Alberta government launched the ‘Made in Alberta’ voluntary food and beverage labelling program to support local agriculture and food sectors.
  • Through direct connections with processors, the program has created the momentum to continue expanding consumer awareness about the ‘Made in Alberta’ label to help shoppers quickly identify foods and beverages produced in our province.
  • Made in Alberta product catalogue website

 

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