Adverse weather slows spring seeding in Canada

Spring seeding plans are setting back in Southern Alberta, Canada due to rain and snow giving farmers a slow start this year.

 

That much-needed moisture over the past couple of weeks has brightened the outlook on Alberta farms this year. But producers are also weighing slumping crop prices against expenses that will make it tougher to turn a profit.

 

''The costs are down - that takes away a little bit of the pain,'' says Dugdale, who will grow equal amounts of wheat, barley and rapeseed this year over the 3,000 hectares he farms with his brothers.

 

Crop prices are slumping amid a world glut of grain and the lingering impact of global recession last year that curbed demand for food, feed and fuel.

 

The lower prices appear to be resulting in few shifts for planting this year in Alberta. Statistics Canada's survey of crop intentions shows farmers in this province will plant a little less wheat and barley.

 

Rapeseed acreage is expected to rise again slightly as demand for vegetable oils remains strong.

 

''That seems to be the crop right now where a lot of farmers are focusing - that potentially has the ability to make the most money,'' said Rod Scarlett, executive director of the Wild Rose Agricultural Producers.

 

Rapeseed prices are trading between US$8-US$9 a bushel, down about 10% from a year ago.

 

Prices for wheat - still Alberta's biggest crop - are down about 30% from last spring to US$4-US$5 a bushel.

 

On the cost side, producers are catching breaks on fuel and fertiliser this year. But Pearson said other inputs continue to rise, putting the squeeze on profits.

 

Preliminary estimates show about 6% of seeding is complete, about half of last year's pace. The province's first look at crop conditions will be released on Tuesday (May 12).