Skip to content

Low crop yields, high prices for farmers in 2021

Climatologists and others who examine weather patterns seem to indicate extreme weather may become the norm in the future.
health harvest 9
For farmers, 2021 was a difficult year for the most part. (File Photo)
BRANDON - Manitoba producers are wrapping up a year that saw some of the highest grain prices in living memory, matched by record-low crop  yields.

For farmers, 2021 was a difficult year for the most part, but a lucky few found success in the face of an unprecedented drought, said Keystone Agriculture Producers director Charles Fossay.

“Prices  are up, in many cases at highs that none of us have ever seen, [even  those who have] been farming for 40 years or longer. Price wise, things  look well for most producers.

“It’s very tight supplies and  probably in many cases … because of the shortage of grain and the tight  supplies, that’s why prices went up for many producers who had grain to  sell.”

For most of the province, crop yields were below average, he said, and in some areas, the yields were almost at zero.

It  is difficult to say how these yields will affect the everyday consumer,  but it is possible they will begin to see higher food prices on some  items because processors and food manufacturers are paying more for the  raw product.

“It’s higher feed prices for hog producers, chicken  producers, cattle producers. We’re also looking at higher wheat prices  for the flour millers; high prices to the canola crushers that produce  cooking oil,” Fossay said. “That eventually will all go down to  consumers in some way or other. They may not end up paying the full  price, but they will be picking up at least some of the increased  costs.”

Farmers are also navigating the challenging economic  landscape brought on by the historic drought over the summer, affecting  overall crop yields.

“On my farm, I typically grow 45 bushels of  canola and I’ll market that for $11 a bushel, so I’ll get $500 an acre  for my canola,” Fossay said. “This year, my canola did 17 [bushels], and  even though prices right now are around the $20 or $21 mark, I had  pre-sold a lot of my canola for say, $15. I’m going to average out a  slightly higher price than what I normally get, but based on the 17  bushels, I’m maybe only going to be getting two-thirds of what I would  get in a normal year.”

Preparing for seeding in 2022, farmers are hoping to see additional moisture in the province to help rebuild crops.

The  provincial government has said between 100 and 120 millimetres of snow  will be needed to help recharge the water system in Manitoba and bump  soil moisture up to normal levels.

“What we really need right now  is a very white, snowy winter,” Fossay said. “We also need some very  timely rains in the spring and throughout the summer that make sure we  continue to recharge our soil moisture.”

He noted it will take many years to recharge moisture and build up reserves for the future.

In  2020, even though it was hot and dry, most farmers managed to get an  average crop because they had good sub-soil moistures and rain fell  during the summer, benefitting crop growth.

This year was a  different story — the subsoil moisture had been depleted, and  much-needed rains did not appear for the most part in May, June and  July.

These dangerous factors were only exacerbated by multiple days of temperatures reaching 30 C or warmer, hurting the crops.

Farmers  across the Prairies faced this problem in 2021, causing a huge  impact around the country, Fossay said, especially because Alberta and  Saskatchewan experienced even harsher weather compared to Manitoba.

Western  Canada typically produces 21 tonnes of canola and exports about 12  million tonnes out of the country, fuelling trade, the economy and job  growth.

This year saw only 12.5 million tonnes of canola produced,  most of which will be processed in Canada and only a little bit will be  exported.

“The hurt is very big,” Fossay said. “That means  there’s less work for people at the elevators. There’s less work for the  railway companies. There’s less work at the terminals. At some point,  and it hasn’t happened yet, some of these businesses might be looking at  laying off workers — that has an impact on everybody.”

He added  these factors also make Canada a less dependable supplier of grain to  international markets, which could lead to other countries buying wheat,  grain and barley elsewhere.

Fossay said climatologists and others  who examine weather patterns seem to indicate extreme weather may  become the norm in the future.

“If you believe that global warming  is occurring, [climatologists] say we’re going to see more extreme  weather events — we’re going to see more droughts. They could be longer  droughts, they could be severe droughts, but we’ll also see the  opposite, something like we saw in B.C., where we could see more  rainfall in some years and more localized flooding in some years.”

The  volatile and unpredictable weather will force farmers and consumers to  find ways to adjust to changing weather patterns and the higher risks  they will be exposed to — this includes looking at changing production  practices and finding how moisture can be preserved in the soil.

“Farming  is always evolving. Farmers are always adapting to change. Whether it’s  changes to the crops we grow, changes to how we market our grain or  changes in weather patterns. We will try and adapt. Hopefully, we are  successful, but if we’re not successful, we have to hope that government  and consumers can help us through the bad years so that we’re still  here when we have better times.”