May 8, 2023

Canadian farmers plan biggest wheat crop in 20 years due to Ukraine conflict

This year, Canadian farmers expect to plant the largest wheat crop in more than two decades due to strong wheat demand, the Canadian Broadcasting Corporation reported.

According to Statistics Canada, farmers plan to plant 23 million acres of wheat this year, a 6.2% increase from the previous year.

The federal agency's report on major field crop areas showed the anticipated growth could be due to favourable wheat prices and strong demand.

Because Ukraine is one of the world's largest wheat exporters, Russia's invasion of Ukraine more than a year ago drove up global wheat prices. Prices have since fallen significantly from last year's double-digit highs, but they remain relatively strong historically.

Midday Wednesday, Chicago benchmark wheat futures were trading around US$6.49 per bushel.

The Ukrainian conflict was just one of several curveballs thrown to Canadian farmers last year. These difficulties included inflationary pressures on commodities such as fertiliser and fuel, as well as higher interest rates.

Farmers have also faced more severe weather in the last decade, including a severe drought in 2021.

Statistics Canada said farmers plan to plant more canola, corn (for grain), barley and soybeans in 2023 than they did last year, while oats, lentils and dry peas are expected to decrease.

-      Canadian Broadcasting Corporation