January 4, 2012

 

Canada's corn, soy yields rise amid bad weather

 

 

Hundreds of corn and soy growers across Canada's Chatham-Kent had exceptional yields, despite one of the slowest growing seasons recently.

 

The crops had been plagued by cool, wet spring planting conditions and numerous rainfall events throughout the growing season.

 

"We're pretty pleased with the results,'' said Mark Huston, a Florence-area farmer and second vice-president of the Grain Farmers of Ontario.

 

Huston said the better-than-expected yields in a crop year plagued by adverse weather conditions is a complete surprise to many farmers.

 

He said for some, the 2011 corn harvest has yet to be completed. Thousands of acres of yet-to-be harvested corn will now have to wait for fields to dry from a deluge of rain.

 

Huston said corn yields range anywhere from 160 to 200 bushels an acre, with the average being in the 180 range.

 

Heavy amounts of rainfall in August were a boon to corn and soy crops, he said, but not beneficial to many of the vegetable crops produced in Chatham-Kent.

 

Soy yields, like corn yields, are also among the best seen in a number of years.

 

Huston said soy yields range from as low as 30 bushels per acre to as high as 70 bushels per acre, depending on location.

 

The only sour note to the grain-farming season, said Huston, is price.

 

"Prices have dropped sharply since September,'' he said. " Corn prices are down by as much as US$1.50 a bushel since September, due in part to the financial situation in Europe.''

 

Huston said soy prices are also down by as much as US$2 a bushel.

 

Steven Johnson, an Iowa State University economist, said most farmers don't want to sell off a lot of corn and add more to 2011 income, meaning a minimal flow of corn will be in the pipeline until early in 2012.

 

Johnson said the basis price should remain healthy due to the demand for corn by ethanol plants, which will buy five billion bushels this marketing year.

 

The net income of Canadian farmers in 2010 was US$4 billion, up US$916 million from 2009.

 

The increase followed a 19.6% decline in 2009. Lower operating expenses more than offset a small decrease in farm cash receipts in 2010.

 

Livestock receipts rose 4.5% to US$18.9 billion on the strength of higher hog and cattle prices.

 

Despite increases in 2010, hog prices remained below their recent peak in 2004. The market price of cattle was at its highest level since 2002.

 

Crop receipts fell 3.4% to US$22.4 billion. Lower prices, as well as diminished marketings, were among factors contributing to reduced receipts for some crops, including wheat, barley, lentils and potatoes.

 

Despite lower prices, increased marketings boosted the receipts of canola and soy. Receipts for horticulture increased for the third year in a row, which was largely attributable to gains in greenhouse vegetables.

 

Farm cash receipts, which include market receipts and program payments, amounted to US$44.5 billion, down 0.3% from 2009.

 

Total farm expenses, which include total operating expenses and depreciation, fell 2.5% to US$40.5 billion in 2010 after a 1.7% drop in 2009.

 

In 2010, total net income climbed 4.4% to US$3 billion following a 59.9% drop in 2009.

 

Agriculture's net value added amounted to US$11.3 billion in 2010, up US$133 million from 2009.

 

A US$907 million decline in expenses on inputs outpaced a US$755 million drop in the total value of production.