April 25, 2005

Canadian farmers to plant less wheat this year

A survey by the Canadian government has revealed that Canadian farmers are planning to reduce seeding of wheat by 1.5 percent to 25.2 million acres this year.

This can be attributed to rising fertiliser and fuel costs, and depressed wheat prices. At the present time, none of the major grains are high enough for farmers to break even, said Dave Guichon, president of AgValue Group of Calgary.

Soybean acreage will drop 0.3 percent to 3.03 million acres. 

Grain corn, most of which is grown in Ontario and Quebec, may contract 3.8 percent to 2.82 million acres, the fourth straight decrease, as record US supplies have lowered prices and dented expected returns.