March 24, 2022

Farmers in Canada could face another drought this year

Farmers in Canada expect to face another drought later this year, just as the rest of the world is counting on the country to grow more wheat and canola to ease food inflation caused by Russia's invasion into Ukraine, Reuters reported.

Canada's harvest in 2021 was affected by dry conditions, and US and China wheat crops are also struggling. Before the drought in 2020, 13% of globally traded wheat came from Canada, according to data from the US Department of Agriculture (USDA).

The Russian invasion has pushed prices of Minneapolis spring wheat to its highest in 14 years, especially as Russia and Ukraine account for 30% of worldwide wheat supply.

Much of the Canadian Prairies remain affected by drought, with Canada's drought monitor reporting southern Alberta and central Saskatchewan are facing extreme drought conditions as of February 28.

Trevor Hadwen, an agroclimate specialist for Agriculture and Agri-Food Canada said there is no reserve of moisture in the soil that they would normally have after the winter, so crops are extremely vulnerable to dry periods this year.

Jonathon Driedger, vice president at LeftField Commodity Research said the drought could influence farmers to choose crops that can handle dry conditions better.

LeftField projects wheat and canola plantings to increase 2% from 2021, due to the need to rotate crops.

A report on farmers' planting intentions will be presented by Statistics Canada on April 26.

-      Reuters