different revenues?

[cowman]

Saw an article about two weeks ago about farm revenues on the prairies? The upshot was Sakatchewan farm revenue was like $295 million in the hole! Manitoba wasn't much better at $195 milion in the red! Now the surprize...Alberta was $250 million in the black! Now why is that? Was in more generous subsidys or crop insurance or something...or was Alberta just luckier weatherwise? I know Manitoba was pretty much a wreck last year with their weather...don't know about Saskatchewan? I do have a friend who lives north of Regina and they basically had the best crop they ever had!
I also wonder how much government policy plays in this? Saskatchewan is no longer a "have not" province and a buddy of mine tells me they are going crazy drilling for shallow gas near Verdun...so maybe Manitoba won't be far behind?

[cropduster]

cowman, I would imagine that surface lease revenue would be included in the Alberta farm income .

[SASKFARMER3]

Also in Saskatchewan Any area that had the flood in fall of 2005 were forced by crop insurance to combine the crap then the piles were measured and guess what with the grade factor they received nothing from Sask Crop insurance but on the revenue side they get 1.75 a bushel for the feed crop so guess what their broke.
Saskatchewan has a wreck of a system low coverage because of Frost drought frost and a inadequate market price system. Guarantee for crop insurance is 2.80 a bushel for wheat at 70 % coverage so if your average is 30, 70% is 21 at 2.80 equals 58.80 an acre coverage most expenses are greater you do the math.
Its a joke. Oh yea its created by REGINA VOTE UNION EVERY TIME! Lets all be equally BROKE!

[ruggb]

re:Sask revenue figures

Here is a brief summary of the last 5 years at our place:

2001 - Bad drought
2002 - really bad drought
2003 - dry - below average yields but
good quality
2004 - great crop on the way but major frost destroyed yield and quality
2005 - dry but still good yields on the way. 6 inches of rain at harvest destoyed quality on everything but canola
These last 5 years have been the worst in my farming carrer.
I am sitting on a lot of poor quality stuff ie: #3 and feed lentils for which there appears to be no market
Lots of #3 wheat and feed barley and feed peas

Does this help explain the poor incomes in Sask.?

All doom and gloom? no!

Its got to get better and it will!

[furrowtickler]

All above are true for 90% of us here in Sask.
cowman, a little more explanation....
Higher freight rates, 20-30% lower yeilds, less crop insurance = loss.
Some of you on here from central Alberta have some nice rose coloured glasses on, which is fine you do have the best area to farm, but take out a pencil and paper and just try to add up what 75% of the rest of western Canada has to deal with.

[furrowtickler]

p.s add in higher taxes accross the board as well.

[Horse]

Cant you see get to hell out and come to Alta where the streets are paved with gold that is if you are in resources. We may be better off here in the farming business but we are still loosing money so we may be dying a slower death but we are dying.
Dont know the tax rules there but here there are a lot of people burying oil money in the farm and I think squeing the true story of farm income like there is a lot of land held by people that never had dirt under thier finger nails but if you are selling out I guess that helps but if you are trying to compete you are SOL.

[cowman]

Actually a lot of what Horse says is true? And I do realize Saskatchewan has a really poor crop insurance deal as well as higher freight rates?
But I wonder why, when the feds killed the CROW, Saskatchewan didn't diversify more? I know they moved into different crops and I guess that was helpful?
A few years ago I went to this seminar where they were trying to get Alberta ranchers to move to east central Sask.? Anyway one old boy asked the presenter if it was such a rosy area for raising cows how come the locals weren't doing it? The presenter said in Saskatchewan there is a "culture of grain" that is ingrained into the farming community and they just can't change!
Now is that true?
I will tell you the low land prices look pretty tempting to a lot of people faced with $2,000/$3,000 acre land! How do you grow barley or feed a cow on $3,000/acre land?
And like Horse said the oil money is pouring into farming here and is keeping everything solvent!
Emerald: I doubt they included surface lease money in the equation? It isn't included in farm income for tax purposes...or at least not in my case? Not just sure how the accountant does it but I believe it is a capital gains deal?

[Horse]

Very simplistic plan Cowman . what happens when we all produce cows and where are the feeders going to get the grain there is a lot of sask grain used here, I think if there was a plan of any kind that would work if would have to be for everyone not just those that are slick enough to hose those that would just like to make a decent living.
Again good for alta if you could get all those sask farmers to buy ALTA cows to populate thier farms and when she tanks so what we got ours.

[Horse]

cowman, surface lease income is included in farm income in my tax form.

[ruggb]

Comment above about diversification:
There is an attitude amongst city people and maybe even amongst the odd Albertan that "If only those stupid Sask. farmers would quit growing wheat ie. diversify they could be rich like us"
In my neighbourhood many of the farmers don't grow much if any wheat and haven't for quite a few years.
I put about 15% of my acres in wheat.

On my farm I grow wheat, barley, flax, canola, lentils, peas, alfalfa seed (my own leafcutters), hay and oats. What am I missing? We're too far north for chickpeas. Climate not suitable for Timothy
I grow a little pedigree seed.
We did buy a few cows a month before BSE turned our $1200 investment onto $200. I realize there have been some good opportunities since but I am a little gun shy.

My point is that I can't diversify any more I don't think.

Diversify - into what? I anxiously await your reply.

[cowman]

ruggb: I don't have an answer for you. I was just saying this seminar was to entice Alberta ranchers to eastern Saskatchewan to raise cattle on grain land...and the promoters response as to why weren't Sask. farmers running cows.
Actually quite a few Alberta farmers have moved to Sask. to run cows? Now whether they are idiots or something I don't know? All I do know is with land at $3,000/acre you can't run cows...at $300/acre I think you probably can?
I don't know if this is simplistic, like Horse says? People are doing it although I am sure it is not for everyone. Not for me although I really liked that area around east Yorkton.