Had a Chat with Canola council of Canada Yesterday in Brandon!

[SASKFARMER3]

I always love going to Brandon Manitoba. Its a fun free, Yes Free show. No cost like Saskatoon where they cant open a minuet before the time. Or Red Deer with its way to high cost.
And well Agribition or Farm Progress show also way to high cost.
Any way Had a nice chat with their young workers sent to handle the booth.
Yes were part of their plan, Yes we have a seat at the table, But basically its the Big boys that run the show.
When I started explaining that If one increases a Seed cost for a substandard seed variety to high that crop wont be grown. They look stunned. Farmers will quit planting a crop that is not showing a profit.
Why when your all sitting around cant the cost of seed be addressed.
Its real simple its a cash cow a real big cash cow and once its has been set up their is no way they want to drop it.
Their goal I explained is nice but wont happen at all. Again it boils down to seed costs for substandard varieties. Yes they all claim super duper powers but basically we live in Canada and Mother nature runs the show.
So yes farmers were part of their goal but the goal is their so that one group can make money and its not you.
So please every one stop by and have a chat tell them how it really is on the farm and how what's in place today is not working.
Nice to have a goal Hell I wanted to own half of Saskatchewan once. But in Reality you end up with a little plot of land that's big enough for a URN or Coffin when its all said and done. Me thinks their goal is going to have the same consequence.
But they could achieve it if some of the Industry players settled for a little less on inputs and gave a little more on price and maybe we could hit it.
But the way it is today and way the shit show of 2012 played out with prices It will never ever be hit.

[bgmb]

Sask farmer at least you only pay 50 cents a tonne is sask. We r paying 1 dollar a tonne over here.

[agstar77]

Was at Ag days yesterday, did not see bto. But it was busy.

[farmaholic]

Don't expect them to give up one red cent, oh I mean nickel, of what they gained. You adjust...

[agstar77]

Talked to some Monsanto bio reps, they said canola yields have gone up 5 bus with new varieties. So at 9 per bus does that cover the extra seed cost?

[SASKFARMER3]

No it doesn't.
All the gain went to them in extra cost of seed. We get to haul more brag more and basically store more.
Ah what a system.

[SASKFARMER3]

Ag star the comments I got from friends running booths is lots their yesterday walking the Isles but few stopping and questioning and buying. Tuesday had less people more looking at purchases.
On a funny note the Keystone needs to be upgraded a bit. HA HA HA.
Fun couple days out that way. MINOT HERE WE COME!!!!
HA HA!

[tweety]

The canola council is here to ensure profits for exporters and crushers - always has been. More product means more $$$. You're just a farmer, you're opinion doesn't matter, now sit down and grow more for less!

Why do you think the canola councils' goal is always x millions of tonnes and not x price farmgate?

[charliep]

Canola is an industry that has demand for 16 million tonnes every year. With the addition of the Camrose plan, 50 % of this crop will be processed in Canada with all the value added/multiplier impact including the benefit to local communities.

The size of the market and our ability to produce has over doubled in the past 10 years. Are you saying this is bad thing? Could this have happened without the canola council and all the roles it serves starting with practical ideas on agronomy and ending with market development/customer service?

[SASKFARMER3]

That's all nice to point out but with seed costs getting where they are, maybe their cutting the head off the golden goose which is us.
Alberta will not be Canola King Sorry.
SW sask will be back to normal rotations.
Its a pipe dream. Which was created to keep prices low.
They Killed Canola the industry.
Farmers need to be part of the equation not just the cow that gets milked.

[charliep]

Not questioning your right to make decisions about what to grow or how intensively. I assume you pretty savy/know how to do budgets and from there make profitable decisions.

My point is you have a line up of committed customers who will be there to buy your canola year in/year out. Your customer is not the grain company or the crusher - they are crusher in Japan/China or oil/meal buyer in North America. They will put a value proposition forward that will keep farmers putting in canola acres. The day they stop/move to another will be the day our industry will be in trouble. The new world is demand pull - not supply push.

[SASKFARMER3]

Yea recheck whats happening in the world. Demand is really tough when people cant pay for it.
The 1% that own more than the rest of us still run the show.
Canola was killed by industry the buyers from over seas just are having fun. Seed costs are to high and what we get for the product are to low.
We should be over 11 with a shitty dollar 9s was out their yesterday and today they widened their basis.

[agstar77]

Unfortunately this drive to increased production has come at price. Decreased rotations and over production. Farmers are not heeding world price signals to the detriment to our environment and the sustainability of farming. Large producer groups such as the Canola growers are moving in a self serving direction without regard to these issues. Its the Mantra of increased production is good at any price. Has increased production and more value added crushing slowed the erosion of rural Sask? These are just a few points to ponder in the bigger picture.

[freewheat]

Also remember that canola average yields have been trending higher. Why? Because of seed improvements? NO! Because the non traditional areas have been blessed with better than long term average rainfall.

Kindersley is not a place you would expect to see canola yielding 60 bushels an acre.

If they want to assume this will always be the case, and that rain will always fall in normally borderline farming areas, fine.

But IMO, if they think we are going to grow 52 bushel average crops over the whole of western Canada, based on seed and a few agronomic benefits, they are mistaken.

It still takes good weather to get there.

We have been collectively riding a wave of half decent moisture falling from the sky, and relatively cooler summers than typical.

And now, with the seed guys pricing themselves out of sales, where an average crop of canola just fails to pay off well enough to justify seed costs, they are shooting themselves in the head.

Don't even get me started on the new disease and insect problems caused by pathetic crop rotations. Not to mention the ones that inevitably are yet to come...

[charliep]

Can you help me understand something.

I am going to start with the western Canadian farmers are good managers. You can put the range in but for the most part, they manage a $2 to $5 million asset business. A major part of this is managing risk in a very uncertain world.

SK3 tells us canola doesn't provide a profitable value proposition in rotations. agstar/freewheat tells me managers are pushing rotations - a farmer decision based on ___ (someone can fill in the blanks). Help me understand.

Sorry for being a numbers guys. Deliveries 7.2 million tonnes, up from 6.6 last year/above other years pace. Exports to date 3.7 million tonnes, up 13 % from 2014. Crush similar pace but will pick as LDC Yorkton comes back on line/Camrose opens. Edmonton May delivery canola $10.20/bu using a $4 over July basis. Markets are going higher. Basis? Place your bets/take your chances.