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The Alberta Advantage?

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    The Alberta Advantage?

    The following is a CBC commentary:

    t seems the promised land starts about 200 kilometres west of Swift Current. What you don't hear much about is the Alberta disadvantage when it comes to agriculture.

    Land prices are big part of that. Just talk to farmers anywhere near the Highway 2 corridor between Edmonton and Calgary. They
    face prices of $1,500 or $2,000 an acre or more if they want to expand.
    Even an hour away from Highway 2, the price can be $1,000 an acre –– that’s top dollar for the very best Saskatchewan farmland. Most prices here are in the $200 to $600 range, prompting scores of Alberta cattle producers to move east. Sure, they probably have to put up with higher taxes and more potholes in the roads, but it's still an attractive proposition.

    If they want to ship grain for export, they’ll have to put up with higher freight rates too. But our "freight challenged" feed grains provide an advantage for livestock production.

    Alberta still has twice as much hog production and 10 times our feedlot capacity, but the tensions between the non-farming and livestock producers are higher too. Alberta is becoming less hospitable to new development.

    Another Alberta disadvantage is its lack of dryland crop diversity. With livestock so dominant, Alberta grain farmers have been less aggressive in adopting higher-value crops. For instance, Saskatchewan farmers grew nearly 1.8 million acres of lentils last year. Alberta had a mere 24,000 acres. We also grow vastly larger amounts of chickpeas, mustard and canary seed –– this diversity has been a key factor in keeping our farmers viable. Alberta farmers sometimes pick up some extra subsidy money, but with budgets growing tight even in that province, you have to
    wonder if those days are nearing an end. In fact, Alberta has
    announced drastic cuts to its network of agrologists who work with and provide information for farmers and ranchers.

    Yes, Saskatchewan has many challenges. But you don't hear about
    Saskatchewan farmers packing up and moving to Alberta to farm.
    Everything considered, the agricultural advantage is here.

    ________
    How much truth is there to these statements? What is Alberta truly competitive at? For how long?

    #2
    I think you have got it pretty much right. In terms of what should be real competition I think Sask. should have a big lead.
    We do have some definite advantages though. We have the infrastrucure to support our livestock sector. The big packing houses etc., and that is mostly because our governments have always been pro-business while Saskatchewan has had a lot of socialists(Well except for Devine....and I don't know what you'd call him!!!). I believe southern Alberta has a much better climate for feeding cattle than Sask. but that could be just personal bias.
    And the fact of the matter is if you own land in Alberta it appreciates in value(sometimes quite dramatically!) so that when you retire your investment has increased.
    Opportunities for families and young people are greater in Alberta because of the oil and the resulting industry. You know this is true as every other Albertan seems to have come from Saskatchewan!

    Comment


      #3
      I keep hearing about all the Alberta cattlemen coming to cheap land price Sk. But really how many are? There is a ranch for sale near me in central Sk that just can't seem to sell. I hear about all this but I think it's a lot less people than what is lead to believe.
      I have a relative that is heading to Alberta to ranch and they will receive almost double the wages from anything they could find in Sk.
      There is also getting to be less and less in our rural communities to offer young folks to move here for or to come back home to.
      Alberta is so much more heavily populated that the communities can offer advantages to people in terms of spousal employment and school and extra curricular activities that we can not get in Sk. without traveling sometimes great distances.
      Land might be cheaper here but there is alot more to think about before you pack it up in Alberta and move to Sk.

      Comment


        #4
        You could be very right Muttley. I come from a heavily populated area and while that can be a real pain it also has a lot of benefits. I'm minutes from many farm dealerships, major shopping, fine restaurants, and major recreational facilities. The land around here is getting so high priced it is hard to justify farming it. Recently some bare land close by sold for $2800/acre. The guy who bought it was from Holland who had just sold his 60 acre farm for $100,000/acre so it was a steal for him! I think the lure of cheap grass has a lot of people interested...they see no future here for raising cattle. In Red Deer on Feb 27 the rural municipalitys of Calder and Churchbridge, from Sask., are putting on a seminar for interested cattlemen. They call it the " Last Remaining Cattle Frontier".
        The Sask. govt. has promoted the idea that the province needs to shift away from grain production. Our governments don't have the necessary money to play with the first class nations in the grain market. Cattle and pigs basically don't need a lot govt. support and they provide lots of jobs for the govt. to tax. And seeing how the Saskatchewan government is pretty well broke they need some fresh blood to suck on! I would suggest your poor government is what worries cattlemen from Alberta more than being stuck out in the boonies!

        Comment


          #5
          The gov't is certainly a worry out here in Sk. I'm sure they do some good somewhere I'm just not sure where.
          If I need to stop farming over all the difficulties facing us this year I see Alberta as my first pick. Maybe part of it is the number of cattle in that province.
          Maybe I should just go into politics and then I can say I'm semi-retired.
          One of these days you'll see my resume on this sight. In fact I'm not sure if the right offer comes around I wouldn't pack it in a let somebody else worry about the bills.

          Comment


            #6
            Muttley: Have some faith! You will definitely make it!!! Don't let the garbage of this world get you down! It WILL rain and you will be okay!!! I feel for you man, but it will work out!!! Keep your faith!
            Yours DM(cowman)

            Comment


              #7
              I second cowman's thoughts!

              Hang in there Muttley. You sound like you have your fingers in a few pots to get you through the rough parts.

              Try ignoring the gov't for awhile, I find they can be very depressing - you don't need to go there, you sound more intelligent than that .

              Neighbour on the other side (MB), jensco.

              Comment


                #8
                It sounds great to hope we can all hang in there. We converted from a mixed farm to strickly cattle a couple of years ago. Cattle is about all I ever wanted to raise. We lease most of our cows and that helps to handle the numbers without more loans.
                We really want to increase our numbers and one way we are thinking about doing it is this. Looking for a investor whether it's a rancher or a business person wanting to own land and cattle in Sk. We can provide a wintering place for the cattle the owner can receive all the income from the cattle and we get a wage.
                We are thinking this could increase our numbers without the big risk of more loans.
                I am not sure if there is any interest but you never know. There is lot's of land in my area for sale from 150.00 to 300.00 per acre that would be great for cattle. Our carrying capacity's on this kind of land is much better than straight native pasture.

                Comment


                  #9
                  Muttley,you have one good thing going for you.You quit the grain business!!!Wish I could do the same.Like you all I really care to do is raise livestock but unfortunately I have about 3 more years of grain farming to put in,that is if things go as planned.I think you may be on to something with your plans.You would certainly provide a good business to some doctor and lawyer type people.Another thing you may want to consider is to do some custom backgrounding on grass.One day I sat down and did some figuring and there are some pretty impressive profits to be made doing this.Enough of a profit that you could buy some of that cheap land and easily and quickly pay for it,while keeping a good chunk for your own pocket.Good thinking and good luck.

                  Comment


                    #10
                    Hi Jensco
                    Nice to see another fellow Manitobanite here!!I look forward to reading your future posts.

                    Comment


                      #11
                      I like that idea of getting the wealthy to invest as a tax dodge. Which just goes to show you that the Canadian farmer can always come up with a solution. Despite our governments best attempts to get rid of us we can just continue to hang in there.
                      Our federal government would like to see about half the farmers disappear, that way they believe it won't cost them any money. It is a totally stupid concept but then they aren't exactly rocket scientists are they? They don't seem to understand that primary industries and small business are what the whole rotten house of cards are built on and if you destroy it the whole thing comes tumbling down! They seem to have taken the corporate approach...never consider anything longer than six months! But then why not? By the time the country goes belly up they can be sitting on the beach in the Caymans with all the other little tinpot dictators!!

                      Comment


                        #12
                        Interesting to follow the dialogue, I am a little concerned that all of the arguements are tangled up...... but follow the pattern, ie too much government in Sk has drastically affected the economy chasing farmers to Ab where..... the farmers are asking the govt to get more involved in farming ie. subsidies, price supports, border closings etc. etc., so they can re-enact the previous 10 years?

                        When will we realize the world has moved on, things have changed, some farmers are making money and others are not... just like other businesses...no one guaranteed anyone an income (except maybe the SK and BC govts???). Lets figure out who is making money off the land and how and start to emulate them?!

                        Comment


                          #13
                          Actually Europe and America have moved on...to more support for their farmers. I guess the question is does Canada want to grow grain or not? I don't think we can all grow saskatoons and organic chickens.

                          Comment


                            #14
                            Cowman there you go again. Low prices hurt us all with or without subsidies.
                            Nobodies getting rich while consumers pay less and less for food. If they get a fraction of the organic food we all seemed urged to produce the premiums will vanish.Organic looks an easy solution to a politician.
                            Are you still dry?
                            Sad as it seems my best chance of a better year lies with you staying dry not help from EU.

                            Comment


                              #15
                              ianben: In a large part of the prairies it is still very dry with little snow cover. Where I am it is not too bad as we have quite a bit of snow. The type of spring we have will tell the story. I think you overestimate Canadas' influence on world grain markets as we have become a fairly minor player in the export market. Just about all of our barley goes to the local feeding industry as well as a large portion of the wheat. High freight rates and elevation charges as well as a really bad marketing board have made export cereal production pretty shaky.

                              Comment

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